The healthcare information technology market is set to grow from its current market value of more than $163 billion to over $441 billion by 2025; as reported in the latest study by Global Market Insights, Inc.
Favorable government initiatives for encouraging adoption of information technology in healthcare services will boost industry growth in the future. For instance, the U.S. government passed Health Information Technology for Economic and Clinical Health (HITECH) Act, providing funds worth USD 20 billion for setting up electronic health records. Such government initiatives should propel the Healthcare IT market growth.
Increasing demand for lowering cost of healthcare services by implementation of healthcare IT network will foster industry growth in the future. Inefficient processes in healthcare settings leads to loss of about 50% of the revenue earned by healthcare providers, ultimately leading to high healthcare cost. Implementation of healthcare IT services reduces errors in processes and manages the data efficiently, thereby lowering overall healthcare service cost. Aforementioned factors will propel healthcare information technology market growth in the future.
Healthcare Information Technology (IT) Market
Electronic health record market is expected to reach USD 97.8 billion by 2025. High growth rate is attributable to increasing healthcare expenditure and development of healthcare infrastructure. For instance, in 2014, the UK government announced an additional healthcare IT investment of USD 5.4 billion during the five-year period. High spending on healthcare information technology will stimulate adoption of electronic healthcare records market in the upcoming period.
Healthcare payer market is estimated to grow at 15.6% CAGR across the forecast timeframe. Healthcare payers are focusing on innovative digital healthcare technology. Also, payers are emphasizing on implementation of value-based care models to meet specific needs of patients. Increasing focus on collaboration and development of patient-friendly service models will boost healthcare payer market growth in the future.
UK healthcare information technology market is estimated to reach USD 24.7 billion by 2025. Rapid adoption of healthcare IT services in UK along with superior accessibility of information technology infrastructure will render positive effect on UK healthcare IT market. Rising number of chronic diseases and technological advancements in the country will favor market growth in the upcoming years.
U.S. Healthcare IT Market Size, By Solution, 2018 & 2025, (USD Billion)
China healthcare information technology market presents a lucrative growth opportunity at a robust CAGR of 19.3%. The Chinese government is undertaking initiatives to support eHealth and address long-standing inefficiencies along with unmet needs for the health care system in the country. Also, presence of a large patient pool, untapped growth opportunities, rapidly growing healthcare system, high economic growth and increasing technological advancement in healthcare services will be some of the major factors responsible for growth of China healthcare IT business in the future.
Prominent industry players in healthcare information technology market include McKesson Corporation, GE Healthcare, Siemens Healthcare, Oracle Corporation, Hewlett-Packard, Athenahealth, Allscripts Healthcare Solutions, eClinicalWorks, Experian Health, Agfa Healthcare, and Carestream Health. The industry players focus on strategies such as merger and acquisition, new product launch and geographical expansion in order to enhance their market presence across the world.