The global healthcare IT market size was estimated at USD 663.0 billion in 2023 and is projected to reach USD 1,834.3 billion by 2030, growing at a CAGR of 15.8% from 2024 to 2030. This growth is driven by several factors including increased smartphone usage, rising demand for remote patient monitoring to enhance out-of-hospital care, advancements in healthcare IT infrastructure, and increased initiatives and investments promoting eHealth and digital healthcare solutions.

For example, in May 2022, Microsoft partnered with BeeKeeperAI, a healthcare AI solutions provider, enabling users of Microsoft Azure to benefit from confidential computing in healthcare AI applications. The adoption of healthcare IT is further propelled by its ease of use, cost efficiency, and time-saving features, especially in hospitals. Market expansion is also supported by ongoing innovations from industry players aiming to meet consumer needs. In August 2021, Change Healthcare launched its cloud-based SaaS solution, Change Healthcare Stratus Imaging PACS, specifically designed for radiology practices. Currently in beta testing, this solution is expected to expand its reach into hospitals in the near future.

Moreover, government initiatives aimed at advancing technology adoption in healthcare, including responses to COVID-19 and other primary health challenges, contribute to market growth. For instance, India has made significant strides toward digital healthcare. In September 2021, India’s Prime Minister launched the Pradhan Mantri Digital Health Mission, a nationwide effort to digitize healthcare services. This initiative aims to create a secure and accessible digital health system, allowing individuals to store, access, and control the sharing of their health records, further supporting the expansion of the healthcare IT market.

Key Market Trends & Insights:

• North America held a dominant position in the global healthcare IT market in 2023, capturing a revenue share exceeding 40.0%. This significant market share is primarily driven by the widespread adoption and integration of healthcare IT solutions and services across the region, with the United States leading the way in implementing these advanced technologies. The strong focus on digital transformation within healthcare systems and hospitals in North America contributes greatly to this robust growth.

• Within the market, the electronic prescribing system segment stands out for its rapid expansion, expected to experience the fastest compound annual growth rate (CAGR) of 26.8% throughout the forecast period. This accelerated growth is attributed to increasing demand for digital prescription management tools that improve efficiency, reduce errors, and enhance patient safety, making it one of the most dynamic application areas in healthcare IT.

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Market Size & Forecast:

• 2023 Market Size: USD 663.0 Billion

• 2030 Projected Market Size: USD 1,834.3 Billion

• CAGR (2024-2030): 15.8%

• North America: Largest market in 2023

Key Companies & Market Share Insights:

Prominent companies in the healthcare IT market, including Philips Healthcare, McKesson Corporation, eMDs, Inc., Veradigm Inc. (previously known as Allscripts Healthcare Solutions, Inc.), Athenahealth, Inc. (which has been acquired by private equity firms Hellman & Friedman and Bain Capital), Carestream Health, and GE Healthcare, are actively employing a range of strategic initiatives to strengthen their position within the industry. These strategies include the development of innovative new products, forming collaborations with other organizations, and establishing partnerships that expand their reach and capabilities.

The healthcare IT market is highly competitive, with numerous players vying for market share by offering diverse applications such as Electronic Health Records (EHR) and electronic prescribing (e-prescribing) systems. This competitive environment drives continuous innovation and improvement, as multiple vendors strive to provide advanced, effective solutions tailored to the evolving needs of healthcare providers and patients alike.

Key Players

• Philips Healthcare

• McKesson Corporation

• eMDs, Inc.

• Veradigm Inc. (formerly Allscripts Healthcare Solutions, Inc.)

• Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital)

• Carestream Health

• GE Healthcare

• Agfa- Gevaert Group

• Hewlett Packard Enterprise Development LP

• Novarad

• Optum, Inc.

• IBM

• Oracle

• SAS Institute, Inc.

• IQVIA

• Verisk Analytics, Inc.

• SAP

• Accenture

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Conclusion:

The healthcare IT market is experiencing rapid growth driven by increasing demand for digital healthcare solutions, advancements in technology, and rising adoption of remote patient monitoring and eHealth initiatives. Growing government support and investments in healthcare digitization, along with the need for improved patient outcomes and operational efficiency, are further propelling market expansion. The competitive landscape is marked by continuous innovation and strategic partnerships among key players to meet evolving healthcare needs globally.