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Healthcare IT Market to Hit USD 834.35 Billion by 2029 with 14.7% CAGR | MarketsandMarkets

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DELRAY BEACH, Fla., Nov. 14, 2024 /PRNewswire/ -- The global healthcare IT market is projected to reach USD 834.35 billion by 2029 from USD 420.23 billion in 2024, at a high CAGR of 14.7% during the forecast period. Increasing demand for interoperability among healthcare systems is the main reason for the growth of this market; as the continuously rising amount of communication and data sharing across EHRs, laboratory systems, and billing software, the need for seamless integration becomes more critical. Moreover, government initiative, such as the 21st Century Cures Act, mandating that healthcare organizations improve their data-sharing capabilities. Further, advancements in technology such as cloud computing and artificial intelligence are enhancing interoperability that is, in turn, fuelling the expansion of the Healthcare IT market. A report from the Office of the National Coordinator for Health Information Technology (ONC) found that while hospitals in the U.S. can access health information from outside their own systems, less than half are integrating that data into individual patient records. This shows there's a big opportunity for growth in solutions that enable better interoperability.

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Based on Components, the Healthcare IT market is segmented into services, software, and hardware. The largest share of the healthcare IT market was held by the services segment in 2023. The growth can be attributed to the following factors: healthcare organizations rely heavily on service providers for consulting, storage, implementation, training, maintenance, and regular upgrade of technologies and solutions. Moreover, the introduction of complex software and the requirement for software integration and interoperability, which requires training and regular updates, fuelled the growth of the services segment. And the increasing demand for digital health solutions is driving patients towards distance health care services. especially after the COVID-19 pandemic, which highlighted the need for safe care and efficiency more than ever.

Based on end user, the healthcare provider segment is expected to register the fastest growth in the healthcare IT market. Significant share of this segment is attributed to the patient engagement as patients increasingly seek personalized and accessible care. This growth is fuelled by advancements in technology such as artificial intelligence (AI) and telehealth, which is transforming how patients interact with their care. This increased engagement not only improves patient satisfaction but also enhances the overall efficiency of healthcare services, making it essential for providers to invest in these technologies to stay competitive. Moreover, Medication errors are a serious issue, causing nearly 150,000 deaths each year in the U.S. and costing the industry about USD 20 billion annually. Healthcare IT systems minimizing these errors by improving medication management, ensuring accurate documentation, and enhancing communication among healthcare teams. For instance, EHR systems can alert healthcare providers about potential drug interactions or incorrect dosages, making patient care safer and more efficient.

Based on the region, the Healthcare IT market is segmented into five major regional segments, namely, North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The North American region dominated the Healthcare IT market because of the increasing adoption of health information technology (IT) solutions across healthcare settings, especially the interoperability used in between laboratories, clinics, pharmacies, and hospitals, it can easily share patient information and allows doctors and healthcare providers to quickly access and exchange electronic health records. Moreover, government initiatives led by the Office of the National Coordinator for Health Information Technology (ONC). These initiatives focus on improving health information technology (health IT) systems, enhancing interoperability, and advancing data sharing across healthcare providers. For instance, the Assessing Use of Health IT by U.S. Physicians Providing Outpatient Care initiative received USD 425,000 in its first year to fund a five-year study. The Leading-Edge Acceleration Projects (LEAP) in Health Information Technology, which has various funding announcements each year focusing on innovative solutions in health IT. And the ONC has allocated funding for the Health Information Exchange (HIE) and Immunization Information System (IIS) programs, with a maximum award of USD 10 million aimed at enhancing data-sharing capabilities.

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The Healthcare IT market is dominated by key players. The major players operating in this market are, Optum, Inc. (US), Cognizant (US), Koninklijke Philips N.V. (Netherlands), Oracle (US), GE Healthcare (US), Dell Inc. (US), Wipro (India), eClinicalWorks (US), SAS Institute Inc. (US), Inovalon (US), Infor. (US), Conifer Health Solutions, LLC. (US), Nuance Communications, Inc. (US), 3M (US), Merative (US), Epic Systems Corporation. (US), InterSystems Corporation (US), Veradigm (US), Salesforce, Inc. (US), CitiusTech (US), Conduent, Inc. (US), Carestream Health (US), Practice Fusion, Inc. (US), TATA consultancy services limited (India), Elsevier (Netherlands), MedeAnalytics, Inc. (US), Medecision (US), Surgical Information Systems (Georgia), Chartis. (US), and Clearwave Corporation. (Georgia).

Optum, Inc.:

Optum, Inc. (part of the UnitedHealth Group) provides HCIT solutions to healthcare payers, providers, employers, and government & life science companies. The company serves its solutions and services to more than 280 healthcare payers, 5,000 hospitals, and over 100,000 healthcare facilities in the US. The company focuses on forming strategic partnerships and driving innovation in digital health solutions to enhance patient care and reduce costs, especially in areas like value-based care and population health management. A notable example of their strategy is the recent completion of a USD 7.8 billion merger with Change Healthcare, which gives them access to data from millions of healthcare transactions and boosts their IT capabilities for the US population. And, according to an article from Becker's Health IT, in the last two years, Optum has invested USD 31 billion into acquisitions. These strategic steps have been critical in positioning Optum for rapid growth while also enhancing the capability of the company to offer better patient care and enhance operational efficiency throughout the US healthcare system.

Cognizant:

Cognizant is an IT, consulting, and business process services company. The company provides digital services and solutions, consulting, application development, systems integration, application testing, application maintenance, infrastructure, and business processes. Cognizant operates major metropolitan areas across nearly 50 countries, and its headquarters is in a leased facility situated at Teaneck, New Jersey, US. The company applies a global delivery model, which includes delivery centers around the world, involving both in-country, regional, and global facilities. The space owned and leased for its delivery centers now stands at over 24 million square feet for Cognizant, with its largest presence here being in India at 90% of its total delivery center square footage.

The company focuses on inorganic strategies. For instance, In July 2024 Cognizant partnered with Unity water to sign a five-year deal that envisioned the upgrade of its digital infrastructure and the improvement of its operational efficiency in serving Queensland for more than 800,000 customers. Again, In December 2023, Cognizant acquired Thirdera, which is one of the ServiceNow partners, onboarded more than 940 associates, and thus created one of the biggest ServiceNow teams in the world with 2,400 specialists and 14,000 certifications. This move was to strengthen the efforts of digital transformation and to spur a USD 1 billion AI-driven automation business.

Oracle:

Oracle Corporation, one of the world's largest technology companies, has revenue of about USD 53 billion for fiscal year 2024. It recently made a comprehensive acquisition of USD 28.4 billion in June 2022 to bolster its footprint in healthcare by acquiring Cerner Corporation. This allows Oracle to use advanced analytics and artificial intelligence in EHR. Oracle Health has extended its EHR contract with the VA until 2024 and announced new partnerships geared to improve patient care and operational efficiency through initiatives in cybersecurity and interoperability. Oracle's Health Data Warehouse has emerged as the greatest healthcare IT solution; users have attained a strong 417% return on investment (ROI) during five years. This continues to fuel growth for the company in healthcare.

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Get access to the latest updates on Healthcare IT Companies and Healthcare IT Market Size

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