Healthcare Information Software Market Analysis North America, Europe, Asia, Rest of World (ROW) - US, Germany, UK, China, Japan - Size and Forecast 2024-2028

Healthcare Information Software Market Forecast 2024-2028

The Global Healthcare Information Software Market size is estimated to grow by USD 8.75 billion at a CAGR of 5.65% between 2023 and 2028. The healthcare industry is trending toward outpatient settings in an effort to cut costs in response to mounting pressure on health systems to do so. The estimated cost of a procedure in an outpatient surgery center is 30% to 60% less than that of an inpatient hospital setting. Convenience is yet another significant factor contributing to the growth of medical care. The need for and use of Healthcare information technology (HCIT) solutions in outpatient settings will rise in tandem with the expansion of outpatient settings and the influx of new patients. Several federal agencies also support the use of HCIT solutions in outpatient care settings because of their advantages. Furthermore, the benefits of web-based management are also driving an increasing number of patients to refocus their ongoing care needs toward outpatient care, which is fueling the growth of the market during the forecast period.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

Application Analysis 

The market share growth by the HIS segment will be significant during the forecast period. Healthcare Information Software (HIS) encompasses a variety of applications tailored to meet the complex needs of healthcare organizations worldwide. Electronic Health Records (EHR) is a cornerstone of HIS, offering digital solutions for patient data management, clinical documentation, and interoperability. Leading companies in the EHR segment include Epic Systems Corporation, GE-Healthcare, and UnitedHealth Group Inc.. 

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The HIS segment was the largest and was valued at USD 14.13 billion in 2018. Further, picture Archiving and Communication Systems (PACS) manage medical imaging data, enabling storage, retrieval, and sharing of images across medical care facilities. Key companies in the PACS market include GE Healthcare, Siemens, and McKesson Corporation. Furthermore, Telehealth and Telemedicine platforms have gained prominence, offering remote consultations, virtual visits, and remote monitoring services, especially in light of the COVID-19 pandemic. Population Health Management (PHM) software enables healthcare organizations to analyze and manage the health outcomes and needs of specific patient populations, supporting proactive interventions and preventive care strategies. Overall, the diverse applications of HIS play a pivotal role in enhancing patient care delivery and operational efficiency, which further boost the growth of the market during the forecast period.

Regional Analysis

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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that will shape the market during the forecast period.  The North American region plays a pivotal role in the market, primarily driven by factors such as advanced medical care infrastructure, high adoption rates of medical care IT solutions, and increasing government initiatives for digitizing medical care systems. The United States, in particular, holds a significant share due to its large medical care expenditure; favorable reimbursement policies include federal medical care programs, such as Medicare, Medicaid, and the Children Health Insurance Program (CHIP), and the creation of medical care insurance exchange subsidies under the Affordable Care Act. Rising investment and the introduction of various government policies are increasing the adoption of digital health technologies, such as healthcare information software, which, in turn, is driving the growth of the market. Governments in the region are undertaking initiatives to increase the adoption of digital health in hospitals.

In addition, several companies, such as NextGen-Healthcare Inc., UnitedHealth Group Inc., and Epic Systems, operate in North America. They form strategic partnerships and focus on mergers and acquisitions (M and A) to enhance their medical care services. Strategic collaborations and M and A enable the development of healthcare information software solutions and result in the successful implementation of such solutions, which result in revenue generation and customer satisfaction. These factors will drive the growth of the market in the region during the forecast period.

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Market Dynamics and Customer Landscape

The global market is witnessing advancements in hardware and software technologies, facilitating teleconsultation, telemedicine, and e-prescribing for enhanced patient safety and improved healthcare quality. Integrated systems leverage big data analytics and artificial intelligence to drive remote patient monitoring and optimize clinical solutions, leading to better healthcare outcomes while reducing healthcare costs. Smartphone penetration and internet coverage contribute to the expansion of eHealth initiatives, supporting centralized medical records and bolstering the healthcare IT infrastructure. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

The rise in the prevalence of lifestyle disorders is notably driving market growth. The growing prevalence of lifestyle disorders significantly boosts the market growth as lifestyle disorders, including obesity, diabetes, cardiovascular diseases, and hypertension, have become rampant due to sedentary lifestyles, unhealthy dietary habits, and rising stress levels. This surge in lifestyle disorders has created a pressing need for advanced solutions to manage and treat these conditions effectively. Healthcare information software plays a crucial role in addressing the challenges posed by lifestyle disorders by offering innovative solutions for patient management, electronic health records (EHR), telemedicine, and data analytics.

Moreover, the growing adoption of digital health technologies, coupled with government initiatives to promote healthcare IT infrastructure, has further propelled its demand globally. Additionally, the pandemic has accelerated the adoption of telemedicine and remote patient monitoring solutions, driving the expansion of the market during the forecast period.

Significant Market Trends

Increasing adoption of advanced technologies like AI in healthcare is an emerging trend shaping market growth.  The need to improve efficiency and reduce cost is encouraging medical care service providers to invest in upgrading their legacy IT systems and integrating new technologies. Investments are needed to improve IT infrastructure and implement software tools to reduce the workload of physicians and hospital support staff and improve the quality of treatment. Various hospitals and medical care systems are investing in and integrating new technologies, such as big data, AI, and cloud computing, to streamline their operations and improve their efficiency. AI is emerging in medical care, and its acceptance is increasing within hospitals and medical care systems. With the help of AI, healthcare professionals can get efficient diagnosis charts and insights quickly. 

Additionally, various hospitals and medical care systems are adopting new technologies. Medical care businesses have begun implementing medical care information software to incorporate new, cutting-edge technologies into their buildings. This software can help the medical care sector improve the effectiveness of medical care delivery and make medications more precise for treatment, which in turn is boosting the growth of the market during the forecast period.

Major Market Challenges

The availability of open-source healthcare information software is a significant challenge hindering market growth.  Open-source medical care solutions are developed and offered for free by organizations or communities of developers. The high cost of proprietary software has increased the adoption of open-source applications, especially among organizations that have low IT budgets. OpenEMR, OpenMRS, OpenHospital, and MedinTux are some open-source medical care medical records and medical care information software solutions that are available in the market. Such solutions are cost-effective but offer limited functionalities and lack advanced features. Organizations must customize the medical care information software solution or pay extra for additional functions.

For instance, OpenEMR is a free and open-source software solution that is used for EHR and medical practice management. It is used by the International Planned Parenthood Federation (IPPF) and the Peace Corp. Similarly, OpenHospital is an open-source software project for hospitals in poor and rural areas. It is deployed at St. Lukes Hospital, Angal, Nebbi District, Northern Uganda. OpenHospital can be used for the computerization of patient data, visits, hospitalizations, and medicines for the management of daily activities at hospitals, which poses a threat to the vendors in the market in focus and their paid software. Thus, the use of such open-source medical care information software solutions will impede the growth of the market during the forecast period.

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Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

 Customer Landscape

Key Market Players 

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

3M Co. - The company offers healthcare information software such as 3M M Modal Fluency Direct, 3M M Modal Fluency Align, 3M M Modal CDI Engage One, 3M M Modal HCC Management, 3M 360 Encompass for Clinical Documentation Integrity, 3M 360 Encompass Professional System, 3M 360 Encompass Audit Expert System, and others.
ALLSCRIPTS-HEALTHCARE SOLUTIONS INC., Asteres Inc., athenahealth Inc., Azalea Health Innovations Inc., Change-Healthcare, Cognizant Technology Solutions Corp., Dedalus Group, ec2 Software Solutions, Epic Systems Corp., Fusion, GE-Healthcare Technologies Inc., Happiest Minds Technologies Ltd., Huawei Technologies Co. Ltd., Koch Industries Inc., Koninklijke Philips N.V., McKesson Corp., Microsoft Corp., NextGen-Healthcare Inc., Oracle Corp., Siemens AG, UnitedHealth Group Inc., Veradigm LLC, Wipro Ltd., and WRS Health

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview 

The market witnesses dynamic growth with key players like Independa and increasing adoption among Smart TV users. Electronic prescribing systems contribute to medical care efficiency, but the perception of physicians towards these systems varies. Monitoring analysis software, radiology information systems, and interoperability tools enhance medical management. Issues like security concerns, interoperability, and capacity management solutions influence the industry. The Healthcare Information Technology (HCIT) sector faces challenges in developing countries due to skilled IT personnel shortages and maintenance costs.

Further, the healthcare IT market thrives on a technologically advanced IT infrastructure, driven by initiatives and investments supporting eHealth and digital transformation. Key components like Electronic Health Records (EHRs), Computerized Provider Order Entry (CPOE) Systems, and eClinical Solutions streamline healthcare processes. Regulatory adherence, clinical alarm management, and digital medical care supply chain management contribute to efficient medical operations. Technologies like Healthcare Customer Relationship Management (CRM) and Healthcare Analytics enhance patient care. Challenges such as interoperability issues, IT infrastructure constraints, and the cost of upgrades impact the industry. Despite these, integrated healthcare systems, tele-healthcare, and mHealth solutions empower medical care providers and organizations to deliver optimal care, reflecting the market's dynamic landscape and adaptability to evolving healthcare needs.

The market is also witnessing significant growth, fueled by the rising demand for teleconsultation services and the adoption of health information technology (HIT). As the prevalence of chronic diseases increases, healthcare facilities rely on sophisticated systems like Laboratory Information Systems (LIS) and Picture Archiving and Communication System (PACS) for efficient data management. Solutions like Vendor Neutral Archive (VNA) and Radiology Information Systems (RIS) streamline operations in healthcare settings. Specialized systems such as Cardiovascular Information System (CVIS) and Clinical Decision Support System (CDSS) enhance diagnostic accuracy and patient care. The integration of billing and accounts management services optimizes financial processes, while e-prescribing facilitates medication management. With smartphones becoming ubiquitous, the clinical solutions segment experiences rapid advancements, improving healthcare quality while managing healthcare costs.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook
  • HIS
  • PIS

• Deployment Outlook
  • On premises
  • Cloud based

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • Rest of World (ROW)
    • Brazil
    • Argentina 
    • Australia 

Market Scope
Report Coverage	Details
Page number	168
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 5.65%
Market Growth 2024-2028	USD 8.75 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	5.21
Regional analysis	North America, Europe, Asia, and Rest of World (ROW)
Performing market contribution	North America at 38%
Key countries	US, Germany, UK, China, and Japan
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	3M Co., ALLSCRIPTS-HEALTHCARE SOLUTIONS INC., Asteres Inc., athenahealth Inc., Azalea Health Innovations Inc., Change-Healthcare, Cognizant Technology Solutions Corp., Dedalus Group, ec2 Software Solutions, Epic Systems Corp., Fusion, GE-Healthcare Technologies Inc., Happiest Minds Technologies Ltd., Huawei Technologies Co. Ltd., Koch Industries Inc., Koninklijke Philips N.V., McKesson Corp., Microsoft Corp., NextGen-Healthcare Inc., Oracle Corp., Siemens AG, UnitedHealth Group Inc., Veradigm LLC, Wipro Ltd., and WRS Health
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the between 2024 and 2028
• Precise estimation of the size and its contribution of the market in focus to the parent market
• Detailed analysis of customer landscape covering Diver of price sensitivity, Adoption of the lifecycle, and key purchase criteria 
• Companies landscape comparing criticality of inputs and factors of differentiation
• Exclusive Matrix on companies position and classification
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of companies

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