Healthcare Information Systems Market Overview
The Healthcare Information Systems Market size is estimated to reach $210.3 billion by 2027. Furthermore, it is poised to grow at a CAGR of 7.5% over the forecast period of 2022-2027. Health Information Systems are meant to store and evaluate patient-related data in order to provide the best possible diagnosis. This system is built to consistently deliver and enhance clinical quality and care for each patient. Owing to faster adoption rates of healthcare information systems and demand from major and small healthcare organizations, the healthcare information systems industry has advanced from a fledgling era in the 1980s to a booming business in recent years with the adoption of clinical data repository, electronic health record, laboratory information system, and prescription management systems. The digitization of healthcare records has resulted in a new paradigm of care that is significantly more informed, inventive, and individualized. Physicians can use digitized information to see warning indications in people who are on the verge of significant health problems, avoiding costly procedures and hospitalizations. The worldwide healthcare information systems market is being driven by a growing aging population, rising healthcare costs, and an increase in the frequency of certain deadly diseases such as cancer and coronary heart disease. Several governments and healthcare service providers are currently adopting these healthcare information systems to suit the rising demand for medical treatment in a cost-effective manner. Several IT-enabled services and physicians in developing nations such as India and China are expanding the global healthcare information system industry. However, a scarcity of qualified and competent people, high maintenance and service costs, and interoperability concerns are all impeding the growth of the worldwide healthcare information systems market.
The report: “Healthcare Information Systems Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Healthcare Information Systems Market.
By Components - Software and Hardware.
By Application - Hospital Information Systems, Pharmacy Information Systems, Laboratory Information Systems, Medical Imaging Information System, Revenue Cycle Management and Others.
By Delivery Type - Cloud-based, Web-Based, and On-Premise.
By End-Use Industry - Hospitals, Diagnostics Centre, Academic Research Institution, and Others.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (the Middle East, and Africa).
- In 2021, the North American market held the largest market share. This is attributed to healthcare reforms, improved healthcare facilities, and significant private investment in the region's healthcare business.
- Factors such as healthcare providers' increased usage of electronic health record systems have contributed significantly to the growth of the healthcare information system industry.
- A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Healthcare Information Systems Market Report.
Healthcare Information Systems Market - Geography (%) for 2021
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Healthcare Information Systems Market Segmentation Analysis- By Component
The Healthcare Information Systems Market based on components can be further segmented into Software and Hardware. In 2021, the hardware segment held the highest share. At hospitals and medical centers, there is fresh and sophisticated hardware that helps to provide patients with better treatments by making diagnosis easier which is boosting segments' growth. Furthermore, patients are shielded from any diagnostic errors as diagnostic results are more accurate owing to the usage of this hardware. It can be employed in a variety of areas inside hospitals and medical institutions, broadening the scope of medical practitioners' knowledge.
However, the software and systems segment is expected to witness the fastest CAGR of 8.7% during the projection period 2022-2027. The growing need to rapidly minimize rising medical expenses, as well as the growing demand for accurate and timely information procurement and rising patient care costs, are driving the segment's growth. Furthermore, owing to the assistance provided to medical practitioners in storing, creating, managing, and accessing medical records, such as electronic prescriptions, patient results, and lab orders, the adoption of various healthcare software and systems, including electronic health records (EHRs)/electronic medical records (EMRs) and revenue cycle management solutions, has increased significantly.
Healthcare Information Systems Market Segmentation Analysis - By Delivery Type
The Healthcare Information Systems Market based on delivery type can be further segmented into Cloud-based, Web-Based, and On-Premise. Owing to the enormous number of users of web-based deployments compared to the other two deployments, web-based deployments held the major market share in 2021. Small and medium healthcare enterprises/organizations are clamoring for web-based platform technologies to optimize overall workflow processes. Furthermore, cost-effective web-based application development, the benefit of remote access based on the availability of an internet connection, and simple installation and maintenance are some of the important factors driving the segment's growth.
However, Cloud-based is estimated to be the fastest-growing, with a CAGR of 8.2% over the forecast period of 2022-2027. This is majorly attributed to the growing demand for cloud technology across large, medium, and small-scale hospitals for enterprise information technology to streamline business operations, improve patient services, and enhance data management. Cloud-based technology allows for hosting apps, software, systems, and services remotely and accessing or utilizing them freely over the internet. Owing to multiple security breaches in on-premises and web-based deployments, the use of cloud-based technology has expanded in recent years. Furthermore, the market is being fuelled by an expanding number of hospitals, particularly chain hospitals that require cloud-based information systems to handle data. For example, the North Danish Region announced in June 2019 that it has selected Systematic, a Danish software firm, as the supplier of a new electronic health record system for the region's hospitals. Thus, the usage of cloud-based systems may improve healthcare functioning by allowing for deeper integration and simple and safe data exchange among healthcare professionals, which is supporting the segment's growth throughout the forecast period 2022-2027.
Healthcare Information Systems Market Segmentation Analysis- By Geography
The Healthcare Information Systems Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. In 2021, North America held 41% of the market share and was the most dominant region. This may easily be ascribed to the rising implementation of healthcare information systems throughout hospitals in the United States, particularly in small and medium units. The region's improved healthcare infrastructure and increased adoption rate of digital technologies are important drivers of market growth. Furthermore, the region's well-established IT and telecommunications infrastructure contributes significantly to the industry. The existence of different market players, as well as their diverse development strategies, has a significant impact on market growth.
During the projection period 2022-2027, Asia Pacific is expected to be the most lucrative market with the fastest CAGR. The need for healthcare information systems is rising as the government invests more in the development of healthcare infrastructure and the use of cutting-edge digital technology. Furthermore, increased demand for high-quality healthcare services is fuelling demand for electronic health records, which is boosting the market growth. As the number of hospital admissions rises, so does the amount of data that must be kept, boosting the market's growth.
Healthcare Information Systems Market Drivers
The market growth to be boosted by technological advancement in the healthcare sector
The worldwide healthcare industry has grown significantly in recent years as a consequence of advancements in healthcare information systems. The use of intelligent wearable technology, electronic prescribing, and medication management to monitor lifestyle-related disorders are providing new avenues for market growth. The use of intelligent robots to do monotonous activities would lower healthcare expenses, driving the industry forward. Furthermore, the region's increasing digitalization of the healthcare sector is boosting demand for hospital information systems, and government programs like Medicare and Medicaid are promoting their usage. For example, Microsoft stated in February 2020 that invested USD 1.1 billion in Mexico, which included Microsoft cloud services. Increased demands to contain increasing healthcare expenditures are also expected to move the global health care information systems market forward throughout the projected period 2022-2027.
Increasing usage of Big Data Analytics in Healthcare is expected to drive market growth
The use of healthcare information systems in medication management, electronic prescriptions, intelligent wearable technology to prevent lifestyle illnesses, and smart robotics to automate repetitive jobs is predicted to cut healthcare costs and grow the industry. Owing to the digitalization of administrative, clinical, and financial data, the volume of electronic data created in the healthcare business has increased to terabytes and petabytes in recent years. With the amount nearly doubling every year, exabytes and even zettabytes are projected in the coming years. Apart from the increasing amount, the sheer diversity of data in healthcare is a significant barrier for healthcare professionals. When compared to other sectors, healthcare data is more difficult owing to its length and variability. Healthcare analytics and data management solutions are increasingly being used by service providers to solve these difficulties in the sector. The government, via a variety of programs, encourages the use of IT solutions and products in healthcare. According to research published by HealthIT.gov in June 2019, around 94 percent of EHR providers said their EHRs make records readily available at the point of service, and 88 percent said their EHRs assist clinical practices. This shows that the providers are aware of the importance of EHR systems, hence driving the market growth.
Healthcare Information Systems Market Challenges
The high cost of Healthcare Information Systems infrastructure is impeding the market growth
The deployment of information technology in healthcare has been noticeably slow, lagging behind that of other industries, which has been exacerbated by HIS implementation problems and healthcare workers' unwillingness to embrace technology. Concerns about technology, the healthcare setting, system users, and the regulatory framework are among the issues. The cost of implementing healthcare IT solutions is one of the major roadblocks. The cost of maintaining and updating these systems exceeds the cost of the software. Support and maintenance services, which include software upgrades in response to changing user needs, are a recurring expenditure that makes up more than 30% of the total cost of ownership. The United States has the most expensive healthcare system in the world. On average, a consultation with a general practitioner costs around $190. Furthermore, due to a lack of internal IT experience in the healthcare industry, end-user training is required to improve the productivity of various healthcare IT solutions, raising the total cost of ownership of these systems. In emerging economies, the cost of installing healthcare IT solutions is substantially greater since they also need more funds to build the infrastructure needed to implement healthcare IT solutions, which is slowing market growth.
Healthcare Information Systems Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Healthcare Information Systems Market. The top 10- Healthcare Information Systems Market companies’ are-
- McKesson Corporation
- Cerner Corporation
- AthenaHealth, Inc.
- Medidata Solutions Inc.
- Agfa Gevaert NV
- GE Healthcare
- Siemens Healthineers
- Epic Systems Corporation
- NextGen Healthcare
- In August 2021, the government of Delhi, India, approved the INR 13.9 billion project for setting up a cloud-based integrated health information management system across its hospitals.
- In January 2021, Royal Philips signed an agreement to acquire Capsule Technologies Inc., a leading provider of medical device integration and data technologies for hospitals and healthcare organizations.
- In December 2020, Indian Railways launched an integrated Hospital Management Information System (HMIS) in South Central Railways and Northern Railways. The HMIS in railways has been developed in coordination with RailTel Corporation Limited. The objective of the HMIS is to provide a single-window of clearance for hospital administration activities such as diagnostics, clinical, pharmacy, examinations, and industrial health.
Report Code: HCR 1228
Report Code: HCR 0697
Report Code: ESR 0355
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