Healthcare IT involves the use of information technology to develop and implement information systems for the industry. Some of the objectives of healthcare IT include the improvement of healthcare quality, decrease paperwork to increase efficiency, enhance healthcare accuracy by reducing errors pertaining to the maintenance of medical records, reduce healthcare costs by optimizing and computerizing processes and providing real time access of medical records to healthcare practitioners. The global healthcare IT market was valued at USD 36.15 billion in 2012 and is expected to grow at a CAGR of 14.2% from 2014 to 2020. Rising prevalence of chronic disorders, government initiatives to provide affordable healthcare facilities to its citizens and the need for integrated healthcare systems to curb expenses are some of the primary growth drivers of the healthcare IT market. Moreover, growing adoption rate of computerized physician order entry (CPOE) in an attempt to reduce errors pertaining to the maintenance of medical records and rising global base of geriatric population expanding the patient population base will fuel the growth of this market. The implementation of inter-operable healthcare IT and the advantages associated with it such as its ability to detect and identify infectious disease outbreaks and to track chronic diseases (prevalence and incidence rates or trends) in an enhanced manner will serve this market as future growth opportunities by encouraging governments to expedite the adoption process.
Electronic health records, computerized provider order entry systems, electronic prescribing systems, picture archiving and communication systems (PACS), laboratory information systems, clinical information systems, telehealth and telemedicine are major applications for the healthcare IT market. The telemedicine and telehealth market dominated the overall healthcare IT market, in 2012 and was estimated at USD 10.40 billion. Telehealth is an ideal example of the collaboration between healthcare and technology and is also referred to as the delivery of healthcare services and information through the use of telecommunication technologies. Some of the drivers of this market include the growing demand for home healthcare, rising global incidences of chronic diseases such as chronic obstructive pulmonary disease (COPD), hypertension, diabetes and asthma and the changing patient preferences in terms of avoiding hospital stays. Moreover, the introduction of technological advancements in the field of telecommunications such as SIP (session initiation protocol) and TEEVE (Tele-immersive environment for everybody) and the growing market penetration rates of internet especially in the emerging markets of China, India and Brazil, will further propel the growth of this market.
The electronic health records market followed the telehealth and telemedicine market in terms of revenue share in 2012, accounting for 28.8% of global revenues in 2012. Electronic health records according to the Healthcare Information and Management Systems Society refer to longitudinal records pertaining to patient health information. These records are constantly updated based on encounters reported by healthcare establishments. The global electronic prescribing systems market is expected to be an attractive application market for industry participants; with market estimated at USD 212.5 million in 2012 and expected to grow at a CAGR of 24.8% from 2014 to 2020. Inter-operability and user friendliness are two of the most significant features of this system. In addition, these systems provide real time information and therefore are deemed to be an effective tool especially during an emergency.
North America dominated the overall healthcare IT market in 2012, with a revenue share of 52.1%. The presence of sophisticated healthcare infrastructure and high healthcare expenditures are two of the primary factors facilitating healthcare IT market in this region. Moreover, the implementation of industry friendly initiatives by the U.S. government and its affiliates such as the introduction of EHR (electronic health records) incentive programs by the Medicare and Medicaid and the presence of high patient awareness levels will serve this market as drivers.
Europe followed North America in terms of market share in 2012. Its market was valued at USD 11.0 billion in 2012. The growing number of private healthcare providers such as Helios and Sana and the presence of future growth opportunities in emerging European economies with high unmet medical needs such as Poland and Russia are some of the drivers of the European healthcare IT market. However, the Asia Pacific healthcare IT market is expected to grow at the fastest CAGR of 17% from 2014 to 2020. The presence of a constantly improving healthcare and telecommunications infrastructure in countries with high future growth opportunities such as India and China and the introduction of healthcare reforms in China encouraging foreign direct investments are some of the attributes accounting for its high growth rate.
The global healthcare IT market is consolidated in nature and therefore, is marked by constant mergers, acquisition and strategic collaboration exercises. These exercises are undertaken by bigger (in terms of revenue) players in an attempt to widen their product portfolio (by acquiring companies providing standalone services) and geographic presence. Some of the major players of this market include Agfa Healthcare, Philips Healthcare, Carestream Health, Mckesson Corporation, E-MDS Inc., GE Healthcare, Athenahealth Inc., eClinicalworks, Hewlett-Packard, Carestream Health and others.