- Global healthcare IT market is expected to grow at a CAGR of more than 8 percent, reaching $206 billion by 2022, according to a market report by Technavio.
The growth will be fueled by the need for greater efficiency and reduced costs. Health IT plays a role in automating the treatment process from the admission of patients, to creating transcripts of doctors’ diagnosis and maintaining follow-up schedules.
Major healthcare IT vendors examined in the report include General Electric, IBM, McKesso, Philips, and Siemens.
The Americas region controls close to half of the healthcare IT market, while the Asia-Pacific region will show the fastest growth rate over the forecast period, according to Technavio.
Another market report, this one by Market Research Future (MRF), estimates the health IT market CAGR at a more robust 15 percent to 2023.
The strong market growth is due to the high demand for various healthcare IT solutions among hospitals to manage the increasing load of patient information generated in the hospitals. Also, the growing need to improve the healthcare quality while improving operational efficiencies within the organizations is likely to fuel the segment growth, explailned MRF.
The healthcare network includes both wired and wireless technologies. Wireless technologies available in the healthcare market are WLAN, ZigBee technology, Bluetooth, WWAN, WMAN, RFID, and others.
In addition to the major health IT vendors identified by Technavio, MRF identified the following vendors as leaders in the space: Allscripts, Kronos, Oracle, United Healthcare Group, Cerner, Wolters Kluwer, CSI Healthcare IT, Infor, Anthelio Healthcare Solutions, Dell, Spok, Epic Systems, CTS, athenahealth, Orion Health, Syntel, Lexmark Healthcare, Conifer Health Solutions, and 3M Health Information Systems.
By end-user, the global healthcare IT market is segmented into healthcare payers, healthcare providers, third-party administrators, research centers, and government institutions. Hospitals form the largest end-user segment of the global healthcare IT market.
MRF agrees with Technavio that the Americas will make up the largest market, while the Asia-Pacific region will be the fastest growing.
Also, high return on investment for healthcare IT solution and government support are further anticipated to stimulate the global market. The increasing population and urbanization are fueling the demand for automated procedures, thereby driving the global market, explained MRF.
A rise in prominence of big data analytics in the digital healthcare sector will also fuel market growth in the coming years. With the growing prevalence of chronic diseases such as diabetes, cardiovascular ailments, blood pressure, and kidney disorders, the global market for healthcare IT is likely to flourish, it noted.
On the other hand, reluctance among the medical professionals to adopt advanced IT tools related to healthcare and the high cost of deployment could impede market growth in the coming years.
Last year, MarketsandMarkets projected similar strong growth of 15 percent CAGR, with the health IT market reaching $280.25 billion by 2021.
The strong demand for healthcare IT solutions is driven by the growing need to reduce healthcare costs while adhering to the regulatory requirements set by government organizations for ensuring safety, security, and confidentiality of patient information, MarketsandMarkets observed.
The growing adoption of health information exchanges and electronic health record systems and improved quality of care and clinical outcomes are additional factors driving market growth.
The need for healthcare insurance providers to manage a comprehensive record of claims and reimbursements is also expected to contribute to global health IT market growth, according to MarketsandMarkets.
“A lot of organizations are demanding quick turnkey solutions that are easy to deploy, easy to maintain, easy to configure and they don’t have to take a lot of time integrating all the components in the data center before they can deploy them,” Pivot3 Chief Marketing Officer Bruce Miline told HITInfrastructure.com.