Healthcare IT Services Market Size, Share & Trends Analysis Report By Application, By Technology, By Deployment (On-premises, Cloud), By Services (Telehealth Solutions, HCIT Integration Systems), By Region, And Segment Forecasts, 2023 - 2030

Healthcare IT Services Market Size & Trends

The global healthcare IT services market size was estimated at USD 143.43 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.2% from 2023 to 2030. The growth is attributed to the growing adoption of digital technologies within the healthcare sector, enhancing patient care, data management, and operational efficiency. There is also an increasing demand for preventive care and value-based healthcare, emphasizing the importance of IT solutions in improving health outcomes and reducing costs. Worldwide government initiatives that promote adopting healthcare IT solutions are further propelling market expansion. The rising prevalence of chronic diseases and aging populations also contribute to the market's growth, as healthcare providers seek advanced IT services to manage these healthcare challenges efficiently.

In September 2023, United Parcel Service of America, Inc. (UPS) acquired MNX Global Logistics, specializing in transporting time-sensitive and high-value goods, including medical supplies, aerospace components, and manufacturing parts. This acquisition aims to bolster UPS’s healthcare and time-critical service offerings. It also strengthens its position in the global healthcare and time-critical markets, enabling the company to provide more services to its customers.

The COVID-19 pandemic positively impacted the healthcare IT services industry by accelerating the adoption of digital healthcare solutions. These included telemedicinete, remote patient monitoring, and Electronic Health Records (EHRs), primarily driven by the imperative to deliver healthcare services remotely and minimize the risk of COVID-19 transmission in healthcare settings. The surge in demand for telemedicine became instrumental during this period, allowing patients to consult with healthcare providers via video conferencing or other remote technologies when in-person visits were challenging. Moreover, the increased adoption of remote patient monitoring enabled healthcare providers to track vital signs and health data remotely, facilitating early problem detection, and reducing the need for hospitalizations.

The healthcare IT services sector is poised for sustained growth in the coming years due to the growing demand for preventive care solutions, emphasizing the importance of IT services in promoting wellness and early intervention. Furthermore, the healthcare IT service sector is witnessing a surge in entrepreneurial ventures, fostering innovation and competition in the market. Partnerships and funding opportunities within the healthcare IT sector are rising, creating an environment for development and expansion. Network connectivity and infrastructure advancements facilitate the seamless exchange of healthcare data and enable more sophisticated IT services.

Telemedicine and telehealth services, leveraging video conferencing and technology, provide remote patient care, especially benefiting those in rural areas or with travel constraints. Artificial Intelligence (AI) and Machine Learning (ML) enhance diagnostic accuracy by analyzing medical images and identifying abnormalities. Remote patient monitoring enables vital signs tracking from a distance, facilitating early problem detection. The critical importance of cybersecurity in safeguarding healthcare data and systems emphasizes the evolving landscape of healthcare IT services, emphasizing accessibility, precision, and security in patient care. These advancements are poised to transform the healthcare industry in the coming years.

Application Insights

The application management segment held the largest revenue share of over 31.0% in 2022. Application management services play a pivotal role in assisting healthcare organizations across the entire lifecycle of their IT applications, encompassing development, deployment, maintenance, and support. Application management service providers contribute by enhancing IT application performance and reliability, optimizing resource utilization to cut costs, bolstering IT application security, ensuring compliance with industry regulations, fostering innovation, and implementing new business initiatives. Furthermore, they continually evolve and adapt to meet the dynamic demands of healthcare IT, emphasizing its vital role in ensuring the efficiency, security, and scalability of healthcare IT operations.

The data management segment is poised for significant growth within IT services in the healthcare market in the forecast period. This segment includes vital services such as data warehousing and analytics, data integration, data quality management, data governance, and data security. These services are essential for healthcare organizations to manage and leverage their data resources efficiently. Moreover, they can enhance patient care, reduce operational costs, and improve overall efficiency. With the increasing emphasis on data-driven healthcare services, the data management segment is expected to play a pivotal role in optimizing healthcare operations and patient outcomes.

Deployment Insights

The on-premises segment held the largest revenue share of over 54.0% in 2022. The segment's growth is attributed to the ongoing reluctance among healthcare organizations to migrate their data to the cloud. Data security and compliance concerns, budgetary constraints, and infrastructure limitations have led the healthcare sector to opt for on-premises solutions. On-premises systems offer exceptional control over data and security, a crucial necessity for complying with stringent industry regulations. Furthermore, these setups allow for extensive customization and seamless integration of IT systems, enabling healthcare organizations to tailor their technology infrastructure to their precise needs. This offers superior performance and reliability, reinforcing their prominence in the market.

The cloud segment in the IT services market is poised for substantial growth due to the rising adoption of digital health technologies like EHR, telemedicine, and wearable devices. Healthcare organizations recognize the need to enhance their data storage and analytics capabilities to meet evolving demands. Additionally, the demand for remote and mobile access to healthcare information is growing, while the industry's focus on cost efficiency is driving cloud adoption. Cloud computing offers various advantages, such as cost savings, scalability, agility for rapid application deployment, and robust security features, for healthcare organizations to optimize their IT infrastructure services.

Services Insights

The Population Health Management (PHM) service segment held the largest revenue share of over 17.0% in 2022 due to the rising prevalence of chronic diseases such as heart disease, cancer, and diabetes. The healthcare industry's transition toward value-based care, enhancing patient outcomes and reducing costs, has boosted the demand for PHM services. The increasing adoption of healthcare IT solutions to enhance care delivery efficiency and effectiveness further contributes to the segment's growth. PHM services play a vital role in helping healthcare organizations improve patient outcomes, lower costs, and align with the principles of value-based care. They utilize data integration, advanced analytics, and care coordination tools to identify high-risk populations, optimize care delivery, and facilitate preventive interventions.

Technology Insights

The AI and ML segment held the largest revenue share of over 31.0% in 2022. These technologies are increasingly adopted by healthcare providers, payers, and patients within IT services in healthcare to enhance the quality, efficiency, and affordability of services. Several applications have emerged within this segment, including AI-powered virtual assistants offering round-the-clock patient support and information. Remote patient monitoring systems utilize AI and ML to track vital signs in real time, while personalized medicine tailors’ treatment plans are based on individual patient data and genetic makeup. It facilitates drug discovery, enhances medical image interpretation, and automates administrative tasks such as appointment scheduling, record management, and claims processing.

The big data analytics segment is estimated to grow significantly over the forecast period, driven by the escalating volume, velocity, and variety of healthcare data and a growing demand for personalized and preventive healthcare solutions. It responds to the imperative to enhance the efficiency and effectiveness of healthcare delivery, spurred by the increasing adoption of digital health technologies. Big data analytics is instrumental in enhancing patient care by identifying patterns and trends in healthcare data, facilitating the development of more effective treatments, and reducing costs through resource optimization and waste reduction. Moreover, it elevates the quality of healthcare delivery by identifying and addressing gaps in healthcare, thus driving the segment's growth in the market.

The telehealth solutions segment is poised for substantial growth due to healthcare providers’ and patients’ increasing adoption of telehealth solutions. This adoption is further supported by the rising prevalence of chronic diseases, the increasing demand for personalized and preventive healthcare, and the persistent shortage of healthcare professionals. Integrating digital technologies in healthcare and government support for telehealth initiatives have further fueled the segment's growth. The COVID-19 pandemic significantly accelerated telehealth adoption, offering a safe and convenient alternative for healthcare delivery when in-person visits became challenging.

Regional Insights

North America dominated the market in 2022, accounting for over 36.0% share of the global revenue. The region's growth is attributed to its strong demand for innovative healthcare IT solutions, driven by leading healthcare providers and payers striving to enhance service quality and efficiency. North American governments have long supported healthcare IT adoption, offering funding and incentives for integrating new technologies. Furthermore, the region boasts a well-established healthcare IT infrastructure featuring high-speed internet access and widespread adoption of electronic health records (EHRs), facilitating the implementation and utilization of advanced healthcare IT solutions.

The Asia Pacific IT services market is poised for rapid growth, with the fastest projected CAGR in the forecast period. This growth is propelled by the increasing demand for remote patient monitoring solutions due to an aging population and a rising prevalence of chronic diseases. Healthcare IT services providers stand to benefit by assisting healthcare providers in implementing and managing these solutions. Moreover, government initiatives in the region are actively investing in healthcare IT infrastructure and promoting the adoption of digital health technologies, opening up new opportunities for IT service providers. The expected significant increase in healthcare spending in the Asia Pacific region drives the demand for healthcare IT services.

Key Companies & Market Share Insights

Leading companies in the healthcare IT services sector have strategically boosted their market share through a multifaceted approach, including product launches and advancements with expansions, mergers, acquisitions, contracts, agreements, partnerships, and collaborations. By adopting these comprehensive strategies, these firms have effectively strengthened their positions and influence in the healthcare IT services sector, ensuring continued growth and innovation in the industry. In July 2023, Ventra Health, Inc., a prominent provider of business solutions for hospital-based clinicians, announced its acquisition of ArcMed, an India-based automation and billing services organization. This acquisition will facilitate Ventra Health, Inc.'s expansion to enhance operational efficiency and drive overall growth. It also enables the company to diversify its service portfolio by entering new areas, such as billing and automation, offering clients a more comprehensive range of services to improve their financial performance. Some prominent players in the global healthcare IT services market include:

• Atos SE

• athenahealth, Inc.

• Cuelogic

• Cynoteck Technology Solutions

• Dataprise

• Healthcare Triangle, Inc.

• Oracle

•  ScienceSoft

• SPEC INDIA

• Synoptek, LLC.

Healthcare IT Services Market Report Scope

Global Healthcare IT Services Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global healthcare IT services market report based on application, technology, deployment, services, and region:

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Systems & Network Management

  • Data Management

  • Application Management

  • Security & Compliance Management

  • Others

• Technology Outlook (Revenue, USD Billion, 2017 - 2030)

  • AI & Machine Learning

  • Big Data Analytics

  • Threat Intelligence

  • Others

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • On-premises

  • Cloud

• Services Outlook (Revenue, USD Billion, 2017 - 2030)

  • Population Health Management Services

  • HCIT Integration Systems

  • Telehealth Solutions

  • Laboratory Information Systems

  • Clinical Decision Support Systems

  • Infection Surveillance Solutions

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa