From 2024 to 2029, the healthcare IT sector is forecasted to experience substantial growth, increasing from USD 420.23 billion to USD 834.35 billion annually.
Increasing expectations for system-to-system communication across healthcare institutions are prompting greater expansion.
As more healthcare providers rely on electronic exchange of information, ensuring that these systems talk to each other is becoming increasingly important.
The 21st Century Cures Act requires health care systems to upgrade their capacity for data exchange.
Key Takeaways
The global healthcare information technology market is expected to grow from USD 420.23 billion in 2024 to USD 834.35 billion by 2029, driven by advancements in cloud computing and artificial intelligence.
- Interoperability remains a key challenge in the healthcare IT market due to lack of standardization across different systems and vendors.
- Advancements in technology like AI and telehealth are transforming patient interactions for their care, driving growth in the healthcare provider industry.
- Market leaders such as Optum, Oracle, and Cognizant prioritize building alliances and advancing cutting-edge digital health technologies to improve healthcare quality while decreasing expenses.
Interoperability: key driver for market growth
Cloud computing and artificial intelligence have shown great promise in enhancing interoperability, fueling market expansion.
Based on their functionalities, services, software, and hardware make up distinct parts of the market.
In 2023, services dominated the healthcare information technology sector because businesses heavily relied on external service companies for expertise, infrastructure, deployment, education, upkeep, and periodic enhancements.
TATEEDA’s Tech Team Lead, Anastasia M, says “the healthcare information technology market size is skyrocketing as digital solutions weave deeper into every aspect of U.S. healthcare.”
Complex software introduction and software integration requirements drive growth in the services segment.
The escalating requirement for digital health options is driving patient adoption of remote healthcare services.
Patient engagement drives healthcare provider growth
The sector of healthcare providers is anticipated to exhibit rapid expansion driven by a growing demand for customized and convenient medical treatment.
Advancements in technology like AI and telehealth transform patient interactions for their care. Andrew G., Senior Developer at TATEEDA, said that telemedicine became the connective tissue that bridged gaps previously thought impossible to connect.
Increased engagement improves patient satisfaction and overall healthcare service efficiency, making the investment essential for providers.
Medication errors: a serious issue addressed
Apart from overall patient satisfaction with access to relevant care information, medication errors are also addressed with the use of electronic health records.
In the United States, the number of fatalities due to medication mistakes is approximately 150,000 every year, resulting in a financial burden of around $20 billion annually.
It’s incredible to see how quickly this field is evolving both in the United States and globally, with heavyweight investors shaping innovations that are transforming patient care forever
Anastasia M, TATEEDA’s Tech Team Lead
With their ability to streamline medication handling and better drug administration processes, precise record-keeping, and improved collaboration between medical staff, healthcare information technology solutions minimize the likelihood of mistakes occurring within healthcare settings.
Electronic health records (EHR) allow medical professionals to identify and prevent potential medication conflicts or miscalculations that could harm patients.
Government initiatives drive market growth
The Office of the National Coordinator for Health Information Technology (ONC) has implemented various projects focused on upgrading health information technology systems to ensure seamless interaction and collaboration among healthcare providers through enhanced data sharing capabilities.
This came at the heel of the discovery that U.S. hospitals can access health information from outside their own systems, but very few (less than half) actually integrate the data into patient records.
Announcements regarding funding have been issued to support novel approaches in healthcare technology.
Interoperability remains a challenge
Despite government initiatives, interoperability remains a challenge in healthcare IT market. A standard form of communication for seamless integration across different systems and vendors has yet to be established.
Through a requirement for healthcare providers to enhance their ability to share data, the Increasing Choice, Access, and Quality in Health Care for Americans Act seeks to resolve this problem.
Key players dominate market
Optum, Inc., Cognizant, Oracle, GE Healthcare, Dell Inc, eClinicalWorks, Nuance Communications, Inc., and Practice Fusion, Inc. are just some of the major US players operating in this market.
These organizations prioritize building alliances and advancing cutting-edge digital health technologies to improve healthcare quality while decreasing expenses.
Optum has spent a total of $31 billion on acquisition deals during the past two years, with the goal of accelerating its expansion and streamlining operations in the US healthcare sector.
Oracle Corporation has made substantial investments in the healthcare sector through a series of strategic acquisitions and partnerships, most notably the acquisition of Cerner Corporation, which has significantly enhanced its capabilities in integrating artificial intelligence and advanced analytics into its electronic health record (EHR) systems, significantly expanding the scope of these systems’ capabilities.
Oracle Health has successfully renewed its Electronic Health Record (EHR) contract with the US Department of Veterans Affairs, extending it until 2024, while also forging strategic alliances aimed at bolstering patient care and operational efficiency by leveraging advanced technologies to facilitate seamless data exchange and optimized clinical processes.
The company’s Health Data Warehouse has established itself as a pioneering healthcare IT solution, consistently delivering robust returns on investment to its users across a span of five years.
Recent Telemedicine technologies have become the connective tissue for healthcare delivery, bridging gaps that once seemed insurmountable
Andrew G., Senior Developer at TATEEDA
The sustained growth experienced by Oracle in the healthcare market is directly attributed to its ongoing commitment to investing in cutting-edge technologies and developing forward-thinking digital health solutions.
Cognizant has established a substantial global footprint, operating in nearly 50 countries and delivering comprehensive digital services and innovative solutions to clients worldwide, thereby solidifying its position as a leading player in this market.
Cognizant prioritizes leveraging inorganic growth strategies through targeted acquisitions and strategic partnerships to enhance its position within the rapidly evolving healthcare IT landscape.
The acquisition of Thirdera by Cognizant has resulted in the formation of one of the largest and most skilled ServiceNow teams globally, comprising 2,400 experts with a combined total of 14,000 certifications.
By acquiring Thirdera, Cognizant has positioned itself for significant expansion in the AI-driven automation sector, leveraging its enhanced capabilities to drive innovation and efficiency.
The company’s global delivery model encompasses a comprehensive network of delivery centers situated across various regions worldwide, enabling it to provide seamless and efficient services to clients globally and solidify its position as a prominent player in the healthcare IT market.
In a nutshell
The total value of the healthcare IT market will likely exceed USD 834.35 billion by the year 2029.
Advancements in technology like cloud computing and artificial intelligence enhance interoperability and fuel market expansion.
Growth in the healthcare provider industry is largely attributed to patients seeking out more individualized and easily accessible care, which meets their evolving needs and expectations.
Market leaders are able to maintain dominance thanks to their emphasis on forging strategic alliances and advancing digital healthcare technologies.
While interoperability remains a challenge due to lack of standardization across different systems and vendors, the Act dwelling on 21st Century Cures seeks to resolve this challenge by requiring healthcare organizations to enhance their data-sharing capabilities, adopt uniform standards, and facilitate secure exchange of health information among different systems.
Slava K., the CEO of TATEEDA, captures the growth of the healthcare IT sector in a statement. He said that “since the digital shift of the early 2020s, Healthcare IT has really taken center stage. Cloud technology, AI, and big data are now at the heart of healthcare, changing the game in how we manage care. From maintaining electronic health records to monitoring patients remotely or securing data with AI, these innovations enable healthcare providers to handle large volumes of data with much greater speed and security.”
This translates to a more efficient delivery of services and a growing confidence and satisfaction among patients and their caregivers.
The bottomline is a win-win for all sectors that are integral to the healthcare network.
