Healthcare IT Market Size

Healthcare Information Technology Market Analysis

The Healthcare IT Market size is estimated at USD 358.5 billion in 2024, and is expected to reach USD 728.63 billion by 2029, growing at a CAGR of 15.24% during the forecast period (2024-2029).

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-CoV-2 virus, digital healthcare witnessed a spike within the healthcare system. The increasing adoption of teleconsultation instead of face-to-face physician consultations during the pandemic boosted the studied market. Additionally, with the growth in the number of COVID-19 patients worldwide, a massive demand existed for the maintenance and storage of big data related to patient information, medical reports, financial analytics, and many others. Healthcare IT solutions eased the storage and access of COVID-19 patients' medical reports. For instance, according to the study published in the Journal of the American Pharmacists Association in April 2021, during the pandemic, the usage of health information technology (HIT) increased rapidly. HIT has been utilized to deliver telemedicine services, information on the SARS-CoV-2 virus, updates on epidemiology and therapies, and most recently, access to scheduling systems for the COVID-19 vaccines during the pandemic. Furthermore, post-pandemic, the huge adoption of healthcare IT services and solutions is making them indispensable to healthcare, which will ultimately drive the market's growth. Thus, as per the analysis, COVID-19 had a significant direct impact on the growth of the studied market throughout the pandemic phase and is expected to continue its trend over the post-pandemic era.

The usage of the internet and the digitalization of healthcare processes have become essential for developing a better understanding of healthcare information technologies and their impact on health communication. Additionally, the high adoption of healthcare IT by hospitals is driven by the advantages, 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 SaaS solution for radiology practices 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, the Indian Prime Minister 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 the 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.