The global market for healthcare information systems is anticipated to expand at a CAGR of 12.5% during the forecast period of 2024 and 2032. Rising healthcare expenditures and enhancements to the industry's IT infrastructure are two of the most important drivers driving market expansion. The huge demand for remote patient monitoring has a significant impact on its adoption rate. According to a 2016 study published in The Lancet, global health expenditures are anticipated to exceed USD 18.3 trillion by 2040.
The construction of patient registries and patient portals, patient-centered care management, population health management, and point-of-care solutions aid practitioners in lowering healthcare costs and enhancing patient outcomes. Developments in healthcare IT infrastructure, such as the use of IoT, big data, and AI, are one of the most influential drivers driving the market growth. As a result of organizations' development of advanced technologies, there are more healthcare IT solutions for cybersecurity and AI applications. Interoperability of data, artificial intelligence (AI), and machine learning (ML) are promising.
The rise in chronic diseases like diabetes, cancer, and congestive heart failure is a major reason in the adoption of remote patient monitoring services, which is expected to enhance the industry's demand for IT solutions. The International Diabetes Federation (IDF) projects that the number of people with diabetes will climb to 643 million by 2030 and 785 million by 2045. In 2021, the American Cancer Society projected that around 1.9 million new cases of cancer would be diagnosed in the United States.
Many companies and healthcare organizations are establishing mHealth programs for remote patient monitoring, resulting in an increase in the use of IT solutions for remote patient monitoring services. In 2019, the Marshfield Clinic Health System in Wisconsin will implement mHealth monitoring devices for patients with congestive heart failure. The development of current IT infrastructure and the promotion of patient engagement and patient-physician collaboration technologies are eHealth projects. The number of eHealth deployment projects is expanding worldwide.
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Europe is among the regions that invest heavily in the development of eHealth infrastructure. As a result of these efforts, the European Union is increasing its use of eHealth to enhance the delivery of health services and public health. 30 of the 53 member states have a national eHealth policy, according to 2016 WHO report that provides an overview of the EU's eHealth situation. Developing nations are also adopting eHealth via a range of initiatives. In October 2020, India and the Netherlands joined forces in the field of eHealth to provide Indians with digital health facilities and security and to aid the Netherlands in accelerating the digital transformation of health.
Increasing smartphone applications, such as telemedicine, remote sickness management, Health Management Information Systems (HMIS), and others, are expanding the scope of information technology, especially in healthcare. It is anticipated that technological advancements in smartphone technology that better disease diagnosis would drive the growth of IT in this business. Researchers at the University of Illinois have developed a camera to improve the diagnostic capabilities of cell phones, according to data from 2017.
With 65% of the market in 2023, the revenue cycle management (RCM) sector maintained the largest market share. This is due to the need to eliminate medical billing errors, lower healthcare reimbursements, shift the trend toward the establishment of synchronized management systems, and raise the need to optimize healthcare facility workflow. According to a report, by 2020, more than 67% of providers will be using AI for RCM, and nearly 100% of the executives surveyed anticipate deploying AI for RCM over the next three years. It is projected that this will increase RCM's growth rate over the forecast period.
The increasing use of hospital information systems to improve operational efficiency, the growing awareness of technologically advanced services, and the ensuing desire to cut healthcare costs are among the key forces propelling the hospital information system market. The need for analytical IT solutions is increasing in the healthcare industry as a result of a number of technology-related benefits, such as lower healthcare costs and increased operational efficiency.
In 2023, web-based deployment held a 42 percent market share. Using web-based solutions significantly reduces the operational challenges involved with processing vast amounts of data. However, the potential of web-based deployments to support software and systems is dependent on the availability of the systems' requisite technological needs and operational characteristics. Web-based applications are adapted to the needs of the healthcare organization, thereby enhancing business operations and maximizing business value.
The industry of cloud-based deployment is anticipated to have the greatest CAGR throughout the forecast period. Cloud-based technology enables the distant hosting of freely accessible software and systems, applications, and services. Several security breaches in on-premises and web-based deployment have led to a spike in the adoption of cloud-based technology. The evolution of edge computing has simplified data processing at the edge, resulting in a high processing efficiency that permits the transfer of relevant data to the private or public cloud for further analysis.
In 2023, the services segment will be the market component with the highest revenue contribution. This is mostly due to the numerous services supplied by corporations to manage the information systems in healthcare institutions, including optimization, hosting, consulting, and revenue cycle services. The increasing demand for IT and communication services in healthcare information systems has contributed to the growth of the information system services market in this industry. Other services such as installation, education & training, and upgradation also significantly contribute to the segment's expansion.
Over the projected period, the segment of software and systems is anticipated to see the fastest growth rate. Increasing demand for efficient management of organizational workflows in healthcare organizations, a shift toward value-based care in developed economies, and an increase in the number of initiatives undertaken by private and public players to support healthcare IT infrastructure are driving the growth of the healthcare systems software market.
In 2023, the hospital's segment held a 77% share of the market. The rising use of healthcare information systems in hospitals has increased the medical staff's efficiency, which has simplified and streamlined patient care. It facilitates the management of administrative, financial, and clinical hospital elements, which in turn facilitates the maintenance of hospital inventory and patient data. Innovations in cloud-based system technology have also contributed to an increase in hospital information system usage.
Due to the increasing need for laboratory information systems for services such as sample collection and machine interface, diagnostic centers are anticipated to see the greatest CAGR throughout the forecast period. The use of healthcare information systems by diagnostic centers enables healthcare providers to make informed decisions, which facilitates the formulation of diagnoses and the prediction of medical diseases such as drug interactions and responses.
In 2023, North America dominated the market with a 52% revenue share, mostly as a result of substantial economic growth and the existence of hospitals, advanced research institutes, universities, and medical device manufacturers. Prominent hospitals and research organizations, such as the Cleveland Clinic, the University of Maryland Medical Center, Johns Hopkins Medicine, St. Jude Children's Research Hospital, and the Mayo Clinic, offer market participants growth opportunities for healthcare IT services.
Asia-Pacific is the fastest-growing and most in-demand market for healthcare IT services as a result of a rise in government spending on healthcare. In addition, the key drivers of demand for IT-based healthcare solutions in this region are the rise in healthcare expenditure in developing Asian nations and the improvement in healthcare infrastructure due to the increasing adoption of advanced technology to streamline hospital workflow and reduce medical costs.
Due to the presence of a number of regional companies, the market is moderately fragmented. Through investments, collaborations, and acquisitions & mergers, these market participants are striving to expand their market share. Also, businesses are investing in the enhancement of their products. Also, they are dedicated to maintaining competitive prices. In order to capture the largest market share, prominent suppliers are implementing an expanding number of strategic initiatives, such as alliances, product launches, and investments. McKesson, for instance, announced ScriptPAS, a pharmaceutical management solution for oncology treatment, in March 2021. It is based on the fee-for-service model, allowing Medically Integrated Dispensing (MID)-capable practitioners to expedite patient treatment by boosting therapy speed. In March 2021, Athenahealth introduced athenaOneMedical Coding, an EHR coding solution. This strategy will reduce the amount of coding-related work performed by doctors, hence minimizing clinician burnout.
