The global healthcare IT market is estimated to grow at a CAGR of 12.8% between 2018 to 2026. The technologies in healthcare has enabled IT application growth in this industry. According, to the HITECH Act and ACA has pushed the healthcare industry into digitalization with the focus on value-based care model and revised payment model. Thus, the healthcare IT providers and governments are majorly concentrating on connectivity and interoperability. For instance, Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), was reframed for the U.S. government to shift Medicare reimbursements away from fee-for-service to value-based care model. Also, Center for Medicare and Medicaid (CMS) in 2015, stated that 90% of Medicare fee-for-service will be linked to quality and value metrics by 2018 for developing significant opportunities in the global market.
Furthermore, healthcare IT market is experiencing continuous growth which is primarily driven by continuous technological advancement, rising need for managing the patient’s data at a single platform, and providing better-quality health facility to the patients. The majority of the healthcare IT companies are focused on developing new technologies and alliances to reach the global market. For instance, Cerner Corporation bought Siemens Health services, for tapping the new customer base by offering comparative solutions on population health management.
The global healthcare IT market is segmented on the basis of product type, components type, end use and geography. Based on product and service, the worldwide healthcare IT industry is segmented as healthcare provider solutions, payer solutions and IT outsourcing services. The provider solutions segment holds the major share in healthcare IT market, which is further divided into two including clinical and non-clinical solutions.
Non-clinical dominates the healthcare IT provider market. However, clinical solutions are poised to grow at a faster rate in the forecast period due to increased demand for improved patient care, stringent government regulations for patient’s safety, and increased need for integrating the healthcare system.
Based the components, the global healthcare IT market is segmented as hardware, software, and services. Service holds the major market share in the healthcare IT market followed by software and hardware. Whereas, software is considered to be the fastest growing segment. Which is driven by the increasing demand for the customized software’s for the providers, high implementation rate across the payer and providers, and increased awareness for the use of interoperable tools globally.
Global Healthcare IT market by end users is segmented as healthcare payers and healthcare providers. The healthcare payers are further divided as private payers and public payers. Whereas, healthcare providers segment is sub segmented as ambulatory care centers, hospitals, diagnostics & imaging centers, pharmacies, and others. This segment holds the major share in the healthcare IT market due to increasing number of hospitals globally, rising preference for ambulatory care centers, and growing need for managing the health data.
By geography, the global healthcare IT industry is divided into five main regions, Europe, North America, Asia Pacific, Middle East & Africa and Latin America. In terms of geography, North America holds a major share in healthcare IT market, which is primarily driven by stringent government policies for patient’s safety, high adoption rate of HCIT for reducing the healthcare cost, and large number of international and local players in the region. However, Asia Pacific is a potential healthcare IT market. This growth is mainly attributed due to increasing commercialization in the healthcare IT industry, rising preference of digitization of health records in the developing countries like India, and increased government expenditure to improve healthcare infrastructure.
Some of the major key players operating in global healthcare IT Market are Afga Gevaert Group, Novarad Corporation, GE Healthcare, Allscripts Healthcare Solutions, Inc., Mckesson Corporation, Philips Healthcare, Cerner Corporation, Hewlett-Packward, Oracle Corporation, Optum Inc., and E-MDS Inc.