The global healthcare IT market size is expected to reach $644,9-billion by 2030, growing at a CAGR of 18,7% from 2024 to 2030, according to a new report by Grand View Research.
The rising demand for advanced healthcare IT solutions, including Electronic Health Record (EHR), along with increased smartphone usage and the need for remote patient monitoring for improved out-of-hospital care are driving the overall growth.
For instance, a 2021 article in the Journal of Medical Internet Research titled ‘Adoption of EHRs in China over the Past Decade: A Comparative Study with the US’ highlights the increasing adoption of EHRs in both the US and China.
However, adoption rates vary due to different strategies at the country level. Hospitals in the US and China showed 9,6% and 6,1% adoption rates, respectively. Notably, 534 hospitals in the US adopted EHRs annually on average. In China, the number was significantly higher at 1 500, indicating the need for a greater effort.
A rise in healthcare spending across the globe is driving the demand for the implementation of IoT solutions in the healthcare sector. According to the estimates published by the World Health Organisation (WHO) in 2020, global healthcare spending witnessed a significant surge, accounting for 11% ($9-trillion) of the global GDP.
The healthcare industry is evolving from a fee-for-service model to a value-based model, wherein treatment outcomes are reimbursed. The pressure of reducing healthcare costs is rising globally, as the cost of healthcare is increasing faster than economic growth.
Advancements in healthcare IT are providing opportunities to cut down healthcare spending by improving care delivery and clinical outcomes.
Best possible interventions enabled through timely data aggregation coupled with an increase in patient involvement for the management of chronic care through patient engagement portals are among the factors contributing to cost reduction.
IoT-enabled clinical trials also offer an opportunity for cost reduction as IoT simplifies the overall process and captures sophisticated endpoints. Remote patient monitoring solutions help in handling non-critical patients at home, which eventually reduces hospital admissions and improves workflow efficiency.
In addition, IoT solutions also enhance clinical operations through asset tracking and improvement in data capturing help in significant cost savings.
Market players are focusing on innovative product development strategies. Notable players are integrating big data, Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) algorithms in their existing solutions to enhance health & medical processes, which is fueling the market growth.
For instance, in April 2023, eClinicalWorks announced the integration of its Practice Management and EHR solutions with cognitive services, including ChatGPT and machine learning models from Azure OpenAI Service, to enhance its technology offerings.
This strategic move followed eClinicalWorks’ significant $100-million investment in Microsoft Azure cloud services, allowing the company access to the latest innovations within the Microsoft Cloud ecosystem.
Healthcare IT Market Report highlights include:
* Based on application, the electronic prescribing systems segment is expected to exhibit the fastest CAGR of 26,8% from 2024 to 2030. An increase in awareness of the advantages of e-prescribing is fueling the adoption of e-prescribing systems.
* North America dominated with a revenue share of 48% in 2023. This growth is fueled by the extensive adoption of healthcare IT solutions and services, especially in the US, as providers strive to enhance patient care while reducing costs.
* Asia Pacific is anticipated to grow at the fastest CAGR of 22,8% from 2024 to 2030, due to the high demand for healthcare IT services, owing to increased government spending on healthcare.