The global healthcare IT solutions market will be worth $228.79 billion by 2020, growing at a compound annual growth rate of 13.4 percent, according to a forecast by India-based market research firm MarketsandMarkets.
This growth is attributed to the rising adoption of healthcare IT solutions by healthcare providers to meet regulatory requirements for patient care and safety, increasing need to curtail soaring healthcare costs, and growing need to improve healthcare quality while maintaining operational efficiency.
“Currently, the global healthcare IT solutions market is primarily driven by continuously increasing healthcare expenditure, increasing use of data-driven technologies, introduction of various healthcare reforms and changing regulations, and growing pressure on healthcare organizations to curtail healthcare costs against the backdrop of rising incidences of chronic disorders and increasing geriatric population. In addition to the demand for IT solutions from healthcare providers, the growing need of healthcare insurance providers to efficiently manage in-depth records of claims and reimbursements is also expected to contribute to the growth of the market in the coming years,” the report authors wrote.
For the purposes of the report, the healthcare IT solutions market, by product, is segmented into healthcare provider solutions, healthcare payer solutions, and healthcare IT outsourcing services. The healthcare provider solutions market is further categorized into clinical and non-clinical solutions.
Examining the market in 2015, the non-clinical solutions accounted for the largest share of the global healthcare IT solutions market in 2015. However, the clinical solutions segment is poised to grow at a double-digit compound annual growth rate through 2020, mainly due to the increasing demand for improved patient safety and care, stringent regulations mandating the implementation of healthcare provider solutions, and need for integrated healthcare systems, the report authors wrote.
And, the healthcare provider solutions segment, comprising clinical and non-clinical IT solutions for healthcare providers, accounted for the largest share of the global healthcare IT market, according to the report. Three key clinical solutions segments, namely, EHR, mHealth solutions and picture archiving and communications system (PACS) and vendor-neutral archive systems (VNA), accounted for more than 65 percent of the clinical healthcare IT solutions market last year.
On the non-clinical side of the healthcare IT solutions market, supply chain management, revenue cycle management, and healthcare analytics accounted for 50 percent of the market last year, according to the report.
The report also looks at the geographic trends in the market. The healthcare IT market in North America and Europe is regarded as technologically competent, characterized by the presence of well-established healthcare IT infrastructure. Together, these two regions accounted for approximately 75 percent to 80 percent of the global healthcare IT market in 2015, and are expected to grow at a healthy CAGR during 2015-2020, according to the report findings.
“Changing regulatory requirements for improving the quality of healthcare and increasing patient safety and rising healthcare expenditures are some key factors driving the growth of the healthcare IT market in North America and Europe,” the report authors wrote.
While the U.S. will continue to dominate the global market during the forecast period, emerging markets across Asia-Pacific and Latin America are expected to grow at the highest CAGR, the report findings indicated.