Market Size of Healthcare IT Provider Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 13.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Healthcare IT Provider Market Analysis
The healthcare IT provider market is expected to register a CAGR of 13.5% over the forecast period.
COVID-19 significantly impacted the healthcare IT provider market, owing to factors such as the rise in the adoption of teleconsultation instead of face-to-face physician consultations. Due to the global lockdown, travel restrictions decreased hospital visits. Similarly, people's hesitation in going to hospitals and clinics boosted digital healthcare.
As per the article published in April 2022 in PubMed, CDSSs provided quality services, eliminated unnecessary testing, increased patient safety from COVID-19, and prevented potentially dangerous and expensive complications. The market is anticipated to witness growth in the coming years owing to the factors such as a rise in demand for healthcare IT technologies in hospitals and an increase in government funding for developing healthcare IT platforms.
Furthermore, as per the article published in Research Gate in October 2021, COVID-19 served as a catalyst and accelerator for digital healthcare innovation. During the pandemic, the United States approved legislation allowing a more seamless data flow. The European Union integrated data across member states to permit the interchange of EHRs across borders. Such instances of increase in acceptance of healthcare IT across the globe are likely to drive market growth in the coming years.
Other driving factors include the rise in the demand for paperless technology, the emergence of social media and its impact on the healthcare IT industry, and increased government funding for healthcare services and infrastructure. With the rising adoption of EHR across the European countries, there is a growing use of CDSS. In June 2022, the European Commission adopted a Recommendation for the European electronic health record exchange format to unlock the flow of health data across borders. This adoption will likely facilitate cross-border interoperability of electronic health records (EHRs) in the European countries. Hence, with the new regulations from the European Commission for adopting EHR, the healthcare IT provider market is anticipated to grow significantly.
Furthermore, in 2021, San Francisco-based healthcare technology startup Innovaccer, and Montana-based non-profit health system St. Peter's Health, collaborated to integrate the latter's healthcare cloud platform into care locations and enhance care management. Similarly, to improve clinical decision support, in 2021, Somo Medical Center in Palm Beach County, Florida, started a cloud-based EHR deployment from health IT vendor eClinicalWorks (CDS). Implementing a cloud-based EHR system is much cheaper than an in-house EHR system.
Strategic partnerships and acquisitions by healthcare IT providers are also anticipated to increase the availability and demand for their products, promoting the market growth. For instance, in June 2022, Cerner acquired Oracle, the provider of digital information systems used within hospitals and health systems to enable medical professionals to deliver better healthcare services.
Thus, due to the rise in the demand for paperless technology, increased government funding for healthcare services and infrastructure, and the surge in collaborations and acquisitions by the key players, the healthcare IT provider market is likely to witness growth over the forecast period. However, a lack of skilled labor and high maintenance costs are anticipated to restrain the market growth.
