Healthcare Information Software Market

Global Healthcare Information Software Market Size (2023 to 2028)

The global healthcare information software market size is forecasted to be worth USD 43.01 billion by 2028 from USD 31.7 billion in 2023, registering an 8.2% CAGR between 2023 to 2028.

MARKET DRIVERS:

The growing adoption of EHR is one of the primary factors accelerating the growth of the global healthcare information software market.

The increasing acceptance of EHR (electronic health records) increases the need for healthcare information software, thus driving market growth. Patient data is volatile, confidential, unstructured, and in large quantities. The software facilitates access to healthcare records and assists in resolving issues involved with manual health data processing. Henceforth, EHR and other software applications are integral to every successful healthcare infrastructure. According to an article in Health Affairs, electronic health record logs show that psychiatric hospitals only had a 15% acceptance rate in 2015, compared to 84% for general medicine hospitals. By 2020, 83 % of psychiatric institutions had implemented an inpatient or ambulatory EHR system. According to Definitive Healthcare 2020 figures, almost 95% of vital access hospitals have an EHR system. World Health Organization (WHO) reports that less than half of upper-middle- and high-income countries have national EHR programs. Adoption rates are much lower in the lower-middle, accounting for 35%, than in low-income countries, accounting for around 15%. Most of the Member States with national EHR systems report EHR system integration with laboratories (77%), pharmacies (72%), and image archiving and communications systems (PACS) (56 %).

Technological advancements in the healthcare IT sector are another significant factor driving the global healthcare information software market.

How data is collected and analyzed by healthcare information software helps small clinics and big hospitals operate seamlessly. Big data, artificial intelligence, cloud computing, smartphones, the "internet of things," and connected gadgets make it easy to access healthcare information. Emerging medical software applications, for instance, assist healthcare practitioners in gathering data to make data-driven decisions and interpret vast volumes of data. For example, IoT in Fitbit bands captures patients' blood, glucose, oxygen, and other variables that aid in patient monitoring. Similarly, emerging 3D technology, such as augmented reality, assist doctors with surgery by visualization. Aside from that, there is various software with numerous applications in healthcare, and numerous businesses and start-ups focus on designing new software tools for physicians, which raises the market for healthcare information software.

MARKET RESTRAINTS:

Issues associated with data security are hampering the healthcare information software market growth.

Data security issues are a significant impediment to the growth of the healthcare information software industry. Since patient personal information is helpful in the industry, it has become a priority for many hackers. The use of tech has been a target for data leakage, raising questions about data protection. According to HIPAA journal healthcare data breach figures for 2020, healthcare data breaches of 500 or more documents were recorded at a rate of more than 1.76 per day. This growing number of data breaches is limiting the adoption of health information software.

Impact of COVID-19 on the global healthcare information software market:

During the COVID-19 pandemic, the healthcare information software market has experienced an acceleration in the market’s growth rate. As a result, several companies have invested in and are implementing healthcare information software. For example, Epic Systems declared in 2020 that 190 health systems would launch Epic HER, and these health systems decided to adopt the EHR system in time for the first wave of the COVID-19 pandemic by nine countries and several states. Moreover, coronavirus infections generate much data regarding patient status, testing status, viral knowledge, and other factors that must be shared with other healthcare providers. For this purpose, Dr. Murat Kantarcioglu, professor of computer science at The University of Texas at Dallas' Erik Jonsson School of Engineering and Computer Science, has collaborated with Vanderbilt University Medical Center and has secured a $200,000 grant from the National Science Foundation's Rapid Response Research (RAPID) initiative to develop an open-source computing platform to assist legislators and health care professionals in making those decisions.

REPORT COVERAGE:

This research report on the global Healthcare Information Software Market has been segmented and sub-segmented based on the deployment model, end-user, and region.

Global Healthcare Information Software Market - By Deployment Mode:

• Web-Based
• On-Premises
• Cloud-Based

Based on the deployment Mode, due to the expansion of web technologies across sectors and hypertext-based principles over traditional software-based applications, the web-based deployment segment had the highest share in the global healthcare information software market in 2022. Using web-based systems in medical facilities results in simplified and improved operational operations and the resolution of several issues related to managing large databases.

In 2022, cloud-based deployment had the second-largest market share, expected to grow at the fastest CAGR throughout the forecast period. Several healthcare businesses are looking to improve workflow by using cloud-based solutions known for their increased accessibility, security, and cost-effectiveness. Furthermore, cloud-based deployment will save by reducing in-house storage requirements, allowing information to be accessed from various locations.

Global Healthcare Information Software Market - By End User:

• Hospitals
• Diagnostic Centers
• Academic and Research Institutes

Based on the end-user, the hospital segment had the highest global healthcare information software market share in 2022. The segment is predicted to grow at a healthy CAGR during the forecast period.

The diagnostic centers segment is anticipated to grow at a promising CAGR during the forecast period.

Global Healthcare Information Software Market - By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Geographically, the use of digital health technologies is increasing due to increased healthcare investments and the implementation of different government regulations, which is expected to aid the expansion of the healthcare information software market in North America throughout the forecast period. Favorable government policies, rapid digitization of the healthcare sector, and well-established healthcare infrastructure are all factors in the growth. Because of the government's desire to digitize medical treatment, hospital information systems have undergone significant changes, ranging from various actions to increase the use of electronic health records (EHR) to extending investments in healthcare information exchange systems. Therefore, expanding medical services in the United States has proven beneficial to the country's market development.

Europe had the second-largest share worldwide in 2022 and is estimated to grow at a prominent CAGR during the forecast period. This is due to a rise in patient population and the adoption of these systems in various public and private hospitals, which have significantly improved daily operations.

Over the forecast period, Asia Pacific is predicted to be the fastest-growing regional market worldwide. Increased government efforts and awareness campaigns of these systems drive the growth of the APAC region. Furthermore, significant government investments in this sector and an increasing population with chronic conditions are predicted to propel the market forward through 2025. Because of the increasing elderly population, growing patient pool, and upgrading medical care offices, emerging nations such as India and China are the most lucrative markets.

KEY MARKET PARTICIPANTS:

Some of the notable operating in the global healthcare information software market analyzed in this report are Allscripts Healthcare Solutions Inc., Cerner Corp., General Electric Co., Koninklijke Philips NV, Oracle Corp., athenahealth Inc., Epic Systems Corp., International Business Machines Corp., Microsoft Corp., Siemens AG, 3M Health, Dell, McKesson, NextGen Healthcare, Neusoft and Meditech.