The global health information technology (HIT) market size was USD 388.4 Billion in 2023 and is likely to reach USD 1523.5 Billion by 2032, expanding at a CAGR of 16.4% during 2024–2032. The market growth is attributed to the rising demand for improved patient care.
Health information technology (HIT) is a broad term encompassing the application of information technology to healthcare. It involves storing, sharing, analyzing, and using electronic health records to improve patient care, healthcare delivery, and health outcomes. Health information technology (HIT) is essentially the use of computers and software in healthcare. It helps manage patient data, supports medical decisions, improves communication between providers, and automates tasks such as billing.
New advancements such as AI are making HIT even powerful by allowing it to analyze massive amounts of data to improve diagnoses and treatments. The health information technology (HIT) market is thriving on innovation, with AI and big data driving advancements in diagnostics, treatment, and patient engagement. Cloud-based solutions are offering cost-effective options; however, security remains a top concern.
The focus is shifting toward patient-centered care with tools for self-management and personalized medicine. Regulations are evolving to ensure data privacy and system interoperability, while economic factors such as rising healthcare costs and value-based care models are pushing for HIT adoption to improve efficiency and outcomes. For instance,
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In August 2021, the Change healthcare launched a comprehensive cloud SaaS solution for radiology practices in beta testing, Change Healthcare Stratus Imaging PACS. The company is known for its cloud-based healthcare imaging solutions, also launched Stratus Imaging PACS. This offering adds to its existing suite of image archiving, analysis tools, universal viewers, and sharing solutions.
Impact of Artificial Intelligence (AI) in Health Information Technology (HIT) Market
Artificial intelligence (AI) is revolutionizing the Health Information Technology (HIT) market, creating a wave of innovation and disruption. The enhanced diagnostics and treatments, improved clinical decision making with AI is increasing the demand for precision care and effective management technologies. Moreover, the streamlining workflows and automation is propelling the global market. AI automate repetitive tasks such as appointment scheduling, data entry, and insurance claim processing, freeing up valuable time for healthcare professionals to focus on patient care.
Increasing the drug discovery and developments through AI is analyzing complex molecular structures with identifying potential drug targets, leading the development of effective and targeted therapies. AI personalize healthcare experiences by tailoring recommendations and treatments to individual patients based on their unique genetic makeup, medical history, and lifestyle factors.
Health Information Technology (HIT) Market Dynamics
Major Drivers
Rising demand for improved patient care and focus on quality outcomes is driving the market. The healthcare industry is increasingly focused on delivering high-quality care and improving patient outcomes. HIT solutions play a crucial role in this by enabling better data-driven decisions, improved care coordination, and enhanced communication between providers. Furthermore, increasing initiatives taken by governments are expected to propel the market during the forecast period. For instance,
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In September 2021, the Pradhan Mantri Digital Health Mission rolled out by the Prime Minister of India aimed at digitalizing healthcare practices across the nation, create a country-wide digital health ecosystem enabling patients to store, access, and consent to share health records.
Existing Restraints
Increasing data security and privacy concerns such as data breaches and patient trust us expected to hinder the global market during the forecast period. Increasing reliance on electronic health records (EHRs) raises concerns about data breaches and unauthorized access to sensitive patient information. Robust cybersecurity measures and adherence to data privacy regulations are crucial. Breaches and concerns about data privacy erode patient trust in HIT systems. Building trust requires transparency about data practices and ensuring patient control over their health information.
Emerging Opportunities
Efforts to develop standardized data formats and open-source platforms are expected to improve interoperability between HIT systems, facilitating seamless data sharing and care coordination. Blockchain technology in healthcare has the potential to create secure and transparent platforms for managing and sharing patient data, enhancing data security, and patient control. Mobile health (mHealth) apps provide patients with on-demand access to health information, medication reminders, and self-management tools, promoting patient engagement and behavior change.
Scope of the Health Information Technology (HIT) Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Health Information Technology (HIT) Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2023
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Historic Data
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2017–2022
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Forecast Period
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2024–2032
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Segmentation
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Product & Service (Clinical Solutions and Non-Clinical Healthcare IT Solutions), Component (Hardware, Software, and Services), Delivery Mode (On-premise and Cloud-based), and End-user (Providers and Payers)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Agfa- Gevaert Group; Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital); Carestream Health; eMDs, Inc.; GE Healthcare; Hewlett Packard Enterprise Development LP; IQVIA; McKesson Corporation; Novarad; and Veradigm Inc.
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Market Segment Insights
Regional Analysis
In terms of region, the global health information technology (HIT) market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominates the global market in 2023 owing to established healthcare industries. Moreover, the early adoption of IT in healthcare and focus on cost reduction is expected to boost the segment. Rising healthcare costs in North America and growing focus on cost reduction are expected to surge the demand for IT in healthcare during the forecast period. Additionally, the increasing use of telehealth services is expected to drive the regional market significantly during the projection period. For instance,
The market in Asia Pacific is projected to grow at a significant pace in the years to come owing to the increasing government initiatives and effective management for clinical treatments, Moreover, rising awareness and demand for healthcare technologies is expected to boost the regional market during the projection period.
Segment Analysis
Product & Service Segment Analysis
Based on product & service, the health information technology (HIT) market is bifurcated into clinical solutions and non-clinical healthcare IT solutions. The clinical solutions segment held the largest share in the global market in 2023 owing to the focus on core healthcare functions. Clinical solutions directly address the core functionalities of healthcare delivery. They manage patient data, support diagnoses, treatment decisions, and facilitate communication between providers. Moreover, increasing focus on patient care propel the segment significantly. Clinical solutions play a vital role in improving patient care by enabling better data-driven decisions, improved care coordination, and enhanced communication.
Component Segment Analysis
On the basis of component, the global market is segregated into hardware, software, and services. The software segment is anticipated to register a considerable CAGR during the forecast period due to core functionality residing in software. Software applications are the brains of the operation in HIT. They determine the way, data is captured, analyzed, and utilized within the system. EHRs, Telehealth platforms, and other clinical solutions rely heavily on software for their core functionalities. Constant evolution and innovation in healthcare IT such as, new feature, functionalities, and integrations are developed. Additionally, the scalability and flexibility of software makes it a more versatile and valuable component as compared to hardware.
The service segment is projected to register a robust growth during the assessment years due to the complexity of HIT systems. Modern HIT systems are complex and require ongoing support for implementation, integration, training, and maintenance. Increasing demand for sophisticated services is boosting the segment.
Delivery Mode Segment Analysis
On the basis of delivery mode, the health information technology (HIT) market is bifurcated into on-premise and cloud-based. The on-premise segment holds a large share of the market owing to historical dominance. On-premise solutions have been the traditional method for deploying HIT systems for many years. Many healthcare organizations are comfortable with this established model and have already invested in the infrastructure. Furthermore, the data security concerns of healthcare providers particularly those handling sensitive data and storing patient information in the cloud due to perceived security risk.
The cloud-based segment is expected to expand at a significant growth rate over the projection period due to its cost-effectiveness. Additionally, the increased scalability and flexibility of cloud solutions to adapt changing needs is expected to propel the segment. Improved accessibility and security advancements is expected to drive the segment during the forecast period.
End-user Segment Analysis
Based on end-user, the market is bifurcated into providers and payers. The provider segment is expected to hold the largest share of the global market owing to the direct impact on patient care. Providers include hospitals, clinics, and physicians’ practices that directly utilizing HIT solutions for core functionalities. Furthermore, a wide range of needs and regulatory push from government creates constant demand for these technologies.
Segments
Product & Service
- Clinical Solutions
- Non-clinical Healthcare IT Solutions
Component
- Hardware
- Software
- Services
Delivery Mode
End-user
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Agfa- Gevaert Group
- Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital)
- Carestream Health
- eMDs, Inc.
- GE Healthcare
- Hewlett Packard Enterprise Development LP
- IQVIA
- McKesson Corporation
- Novarad
- Veradigm Inc.
Competitive Landscape
Key players competing in the global health information technology (HIT) market are Agfa- Gevaert Group; Athenahealth, Inc. (Acquired by Hellman & Friedman and Bain Capital); Carestream Health; eMDs, Inc.; GE Healthcare; Hewlett Packard Enterprise Development LP; IQVIA; McKesson Corporation; Novarad; and Veradigm Inc.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,
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In June 2023, a cloud-based software company, BoomerangFX, has joined forces with DrFirst, a leader in healthcare technology. This partnership aims to bring a brand-new electronic prescribing system specifically designed for cosmetic medicine practices in North America.
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In April 2023, Epic, a leader in electronic health records (EHRs), is teaming up with Microsoft to bring the power of artificial intelligence (AI) to their platform. This partnership is predicted to integrate Microsoft's cutting-edge AI service (Azure OpenAI Service) into Epic's EHR system. This allows for exciting features such as analyzing data in an interactive way and using natural language to ask questions. The impact is expected to extend to Epic's SlicerDicer tool, which allows the doctors to create their own reports.
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