The market for healthcare information technology is driven primarily by the rising incidence of COVID-19, government mandates, support and initiatives for HCIT solutions, the increasing use of big data in healthcare, high returns on investment for HCIT solutions, and the need to curtail escalating healthcare costs. However, high costs of solutions, implementation, and infrastructure, and concerns regarding data security are likely to challenge the growth of this market.
The global healthcare information technologies market size is projected to reach USD 270.3 billion by 2021 from USD 227.5 billion in 2020, at a CAGR of 23.6% during the forecast period.
Classification of HealthCare IT Sector
Based on products, the healthcare information technology market is segmented into telehealth solutions, healthcare analytics solutions and artificial intelligence (AI) in healthcare, blockchain in healthcare, healthcare IoT, supply chain management solutions, practice management solutions, ePrescription solutions, mHealth Solutions, HCIT outsourcing services, payer solutions, enterprise health records (EHR) systems, revenue cycle management (RCM) solutions, picture archiving and communication systems (PACS), and vendor-neutral archives (VNA).
The telehealth segment is expected to grow at the highest CAGR during the forecast period. The use of telehealth solutions facilitates remote doctor-patient consultations (telemedicine) and vital sign monitoring. These solutions enable medical practitioners to evaluate & diagnose patients, ePrescribe medicines & treatments and detect fluctuations in their medical conditions through remote consultations.
The COVID-19 pandemic is providing immense opportunities for telehealth solutions, considering that social distancing is the only existing solution developed so far capable of minimizing exposure. In this regard, telemedicine represents an attractive, effective, and affordable option. Moreover, this technology is of critical importance in keeping healthcare providers safe.
Based on end-users, the market is segmented into healthcare providers, healthcare payers, and other end-users. In 2019, the healthcare providers segment will dominate the market. The large share of this segment is attributed mainly to the strong financial capabilities of hospitals for purchasing high-priced Healthcare IT solutions, and the large patient pool treated at hospitals.
Region Covered in COVID-19 Impact on Healthcare Information Technology Market
The healthcare information technology market is segmented into five major regions, namely, North America, Europe, the Asia Pacific (APAC), Latin America, and the Middle East & Africa. In 2019, North America accounted for the largest share of the healthcare information technology industry.
The large share of this region can primarily be attributed to the high adoption of telehealth solutions, the high number of positive COVID-19 cases & deaths in the US, a strong healthcare system and IT infrastructure, and the presence of many large hospitals in the region. Moreover, a large number of major global players are based in the US, owing to which the US can easily manufacture these devices.