Healthcare IT Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

The Healthcare IT Market is segmented by Business Segment (Laboratory Information Systems (LIS), Picture Archiving and Communication System (PACS) and Vendor Neutral Archive (VNA), Radiology Information Systems (RIS), Cardiovascular Information System (CVIS), Electronic Health Records (EHR), Telemedicine, Clinical Decision Support System (CDSS), Claims Management Solutions, Population Health Management Solutions, Fraud Analytics, Provider Management Services, Billing and Accounts Management Services, and Other Business Segments), Component (Software, Hardware, and Services), Delivery Mode (On-premise and Cloud-based), End User (Payers and Providers), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report offers the value (in USD million) for the above segments.

Market Snapshot

Healthcare IT Market Summary
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 12.5 %
Healthcare IT Market Major players

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The Healthcare IT market is expected to register a CAGR of nearly 12.5% during the forecast period, 2022-2027.

The healthcare IT market witnessed incremental growth during the COVID-19 pandemic. With the global lockdown and restrictions on travel and hospital visits for nonelective and non-urgent procedures, along with the reluctance of people to visit hospitals and clinics in fear of being contacted with the SARS-CoV2 virus, digital healthcare has witnessed a spike within the healthcare system. The increasing adoption of teleconsultation instead of face-to-face physician consultations during the current pandemic boosted the studied market. Additionally, with the growing number of COVID-19 patients worldwide, a massive demand exists for the maintenance and storage of big data related to patient information, medical reports, financial analytics, and many others. The healthcare IT solutions are expected to ease the storage and access of COVID-19 patients' medical reports. Also, as per the research article published in the New England Journal of Medicine 2020, the Office of Civil Rights (OCR) at the Department of Health and Human Services (HHS) announced that it would use its enforcement discretion and would not impose penalties for using HIPAA-noncompliant private communications technologies to provide telehealth services during this public health emergency, which would further enhance the usage of technological infrastructure among healthcare professionals. Thus, COVID-19 is expected to have a significant direct impact on the growth of the studied market throughout the pandemic phase.

The usage of the internet and digitalization of healthcare processes has become essential to develop a better understanding of healthcare information technologies and their impact on health communication. Additionally, the high adoption of hospitals toward healthcare IT is driven by the benefits, such as ease of use and saving time, labor, and space. The continuous upgradation of the solutions provided by the market players to better benefit the users is also propelling the growth of the market. For instance, in August 2021, Change Healthcare introduced Change Healthcare Stratus Imaging PACS, a new, comprehensive cloud software as a service (SaaS) solution for radiology practices, now in beta testing with plans to extend to hospitals in the future. Stratus Imaging PACS is one of the latest solutions to be introduced by Change Healthcare’s rapidly growing cloud imaging business, which includes image archiving, analytics, universal viewers, and sharing solutions.

Furthermore, initiatives taken by the governments of various nations to promote digital health are also contributing to the growth of the market. For instance, in September 2021, Indian Prime Minister Narendra Modi rolled out the Pradhan Mantri Digital Health Mission. It is aimed at digitalizing healthcare practices across the nation, creating a country-wide digital health ecosystem that will enable patients to store, access, and consent to share health records.

Also, the growing burden of chronic diseases globally plays a vital role in the growth of the studied market. Healthcare IT solutions minimize the risk of misplacing medical records and help in remote access of patients' health reports globally. Thus, the above-mentioned factors are expected to aid the growth of the healthcare IT market over the forecast period. However, a lack of skilled professionals and high maintenance costs may hinder the growth of the market.

Scope of the Report

As per the scope of the report, healthcare IT is the application of information processing involving computer hardware and software that deals with the storage, retrieval, sharing, and use of healthcare information, data, and knowledge for communication and decision-making. The main goal of the healthcare information technology market is to maintain records containing the patient's health information and deliver it to doctors, patients, or their families, safely and efficiently. The healthcare IT market is segmented by business segment (laboratory information systems (LIS), picture archiving and communication systems (PACS) and vendor neutral archive (VNA), radiology information systems (RIS), cardiovascular information system (CVIS), electronic health records (EHR), telemedicine, clinical decision support system (CDSS), claims management solutions, population health management solutions, fraud analytics, provider management services, billing and accounts management services, and other business segments), component (software, hardware, and services), delivery mode (on-premise and cloud-based), end user (payers and providers), and geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across significant regions globally. The report offers the value (in USD million) for the above segments.

By Business Segment
Laboratory Information Systems (LIS)
Picture Archiving and Communication System (PACS) and Vendor Neutral Archive (VNA)
Radiology Information Systems (RIS)
Cardiovascular Information System (CVIS)
Electronic Health Records (EHR)
Clinical Decision Support System (CDSS)
Claims Management Solutions
Population Health Management Solutions
Fraud Analytics
Provider Management Services
Billing and Accounts Management Services
Other Business Segments
By Component
By Delivery Mode
By End User
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Middle-East and Africa
South Africa
Rest of Middle-East and Africa
South America
Rest of South America

Report scope can be customized per your requirements. Click here.

Key Market Trends

The Services Sub-segment is Expected to Hold the Highest Market Share in the Component Segment Over the Forecast Period

In the component segment of the healthcare IT market, services are believed to have the largest market size over the forecast period. The COVID-19 pandemic is a once-in-a-generation worldwide public health crisis that is expected to benefit healthcare IT services. The pandemic has heightened the need for telemedicine and mHealth technologies to become a reality in the healthcare profession, as correct patient data, linked patient records, interoperability, and cybersecurity were a few of the major concerns amid the outbreak.

The services sub-segment includes both support and maintenance and professional services. Since the implementation of IT in healthcare, the amount of data has been increasing continuously, and the storage and maintenance costs of data have increased over the last few years. Additionally, healthcare institutions lack skilled IT professionals to handle this huge amount of data. Hence, the increasing cost and lack of skilled professionals have compelled several institutions to opt for the maintenance and support services provided by healthcare IT companies, which is in turn expected to drive the segmental growth for services.

Also, with the emergence and introduction of cloud-based and other advanced technology platforms in healthcare, the need for services across healthcare IT solutions is in great demand. For instance, in October 2020, Infosys collaborated with Mobile Health AG to set up and manage cloud and infrastructure services and support, security and monitoring, and platform management services for Mobile Health AG across multiple geographies. Thus, the share of the service sub-segments is expected to dominate significantly over the forecast period.

Healthcare IT Market: Adoption of Electronic Health Records ( In Percentage ), By Hospital Type, United States, 2021

North America Dominates the Market and is Expected to do the Same in the Forecast Period

North America, being the developed region, is currently dominating the healthcare IT market and is expected to hold a significant market share for a few more years. The major factors responsible for the region's largest market share are the well-established healthcare industry and the early adoption of IT services across healthcare settings. The United States holds the majority of the market in the North American region; this is due to the higher adoption of digital healthcare in the country, along with the high concentration of key market players and increased government funding for healthcare services and infrastructure.

Moreover, to better support providers and patients, Microsoft launched a cloud service specifically for healthcare in May 2020. Healthcare systems can leverage this industry-specific cloud service to increase patient engagement, schedule telehealth visits, maintain patient data, and ensure Health Insurance Portability and Accountability Act (HIPAA) compliance. Cloud-based services are helpful for all stakeholders. Most healthcare institutions neither have the time nor the resources to devote attention to cybersecurity that an established cloud provider may have. The huge number of data breaches calls for more robust implementation of cloud technology in the healthcare sector to improve security.

Additionally, in November 2021, InsiteOne LLC released the platform (V11) for general availability after a successful pilot at Doylestown Health, Doylestown, PA. The new platform represents a major technological step forward and supports the integration of various tools into clinical workflow and provides healthcare institutions with automation tools designed to put their enterprise VNA imaging data to work.

Thus, owing to the abovementioned factors, the North American region is expected to project growth over the forecast period.

Healthcare IT Market- Growth Rate By Region

Competitive Landscape

The healthcare IT market is highly competitive and consists of several major players. In terms of market share, a few major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by introducing new services at affordable prices. Companies like GE Healthcare, Philips Healthcare, Siemens Healthcare, Cerner Corporation, and Allscripts Healthcare Solutions Inc. hold a substantial share in the market.

Recent Developments

  • In May 2022, Modmed launched OBGYN-specific software suite set. ModMed OBGYN is an all-in-one EHR, practice management, patient engagement, payments, image and inventory management, and analytics solution that will bring practice and workflow innovation to obstetrics and gynecology.
  • In March 2022, Epic launched Garden Plot. It is a software-as-a-service (Saas) designed for independent medical groups looking to use Epic EHR tools.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rise in the Demand for Paper-less Technology

      2. 4.2.2 Increased Government Funding on Healthcare Services and Infrastructure

    3. 4.3 Market Restraints

      1. 4.3.1 Lack of Skilled Personnel

      2. 4.3.2 High Maintenance Costs

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value – USD million)

    1. 5.1 By Business Segment

      1. 5.1.1 Laboratory Information Systems (LIS)

      2. 5.1.2 Picture Archiving and Communication System (PACS) and Vendor Neutral Archive (VNA)

      3. 5.1.3 Radiology Information Systems (RIS)

      4. 5.1.4 Cardiovascular Information System (CVIS)

      5. 5.1.5 Electronic Health Records (EHR)

      6. 5.1.6 Telemedicine

      7. 5.1.7 Clinical Decision Support System (CDSS)

      8. 5.1.8 Claims Management Solutions

      9. 5.1.9 Population Health Management Solutions

      10. 5.1.10 Fraud Analytics

      11. 5.1.11 Provider Management Services

      12. 5.1.12 Billing and Accounts Management Services

      13. 5.1.13 Other Business Segments

    2. 5.2 By Component

      1. 5.2.1 Software

      2. 5.2.2 Hardware

      3. 5.2.3 Services

    3. 5.3 By Delivery Mode

      1. 5.3.1 On-premise

      2. 5.3.2 Cloud-based

    4. 5.4 By End User

      1. 5.4.1 Payers

      2. 5.4.2 Providers

    5. 5.5 Geography

      1. 5.5.1 North America

        1. United States

        2. Canada

        3. Mexico

      2. 5.5.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Spain

        6. Rest of Europe

      3. 5.5.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. South Korea

        6. Rest of Asia-Pacific

      4. 5.5.4 Middle-East and Africa

        1. GCC

        2. South Africa

        3. Rest of Middle-East and Africa

      5. 5.5.5 South America

        1. Brazil

        2. Argentina

        3. Rest of South America


    1. 6.1 Company Profiles

      1. 6.1.1 GE Healthcare

      2. 6.1.2 Koninklijke Philips NV

      3. 6.1.3 Siemens Healthcare

      4. 6.1.4 Cerner Corporation

      5. 6.1.5 Allscripts Healthcare Solutions Inc.

      6. 6.1.6 Wipro

      7. 6.1.7 Oracle Corporation

      8. 6.1.8 IBM

      9. 6.1.9 SAS Institute Inc.

      10. 6.1.10 Dell Technologies Inc.

      11. 6.1.11 Mckesson Corporation

      12. 6.1.12 Optum Inc.

      13. 6.1.13 Cognizant Corporation

      14. 6.1.14 Change Healthcare

      15. 6.1.15 Conduent Inc.

      16. 6.1.16 Conifer Health Solutions LLC

      17. 6.1.17 3M

    2. *List Not Exhaustive

**Subject to Availability
**Competitive Landscape Covers - Business Overview, Financials, Products and Strategies, and Recent Developments

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Global Healthcare IT Market market is studied from 2019 - 2027.

The Global Healthcare IT Market is growing at a CAGR of 12.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

GE Healthcare, Philips Healthcare, Siemens Healthcare, Cerner Corporation, Allscripts Healthcare Solutions Inc. are the major companies operating in Global Healthcare IT Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!