by Thomas Dworetzky
, Contributing Reporter | May 25, 2022
The healthcare IT market looks to double down on its recent numbers, hitting $579.56 billion by 2028, from $282.7 billion in 2021, according to Brandessence Market Research — for a CAGR over the time frame of 10.8%.
Driving the robust growth is the growing realization, boosted in part by the necessity of dealing with Covid, by both government and the private sector that pushing more data to the cloud, increasing the fullest use of EHR and other data handling systems, is both cost saving and essential to provide “a greater focus” on “personalized care delivery and streamlining the storage of data,” according to the research firm, and the emphasis of “making effective use of the data analytics.”
“The global healthcare information system market grew significantly during the Covid pandemic and that showed that the existing healthcare systems were not appropriate to deal with a health emergency,” the report noted.
Moreover, the market has also been driven by the challenge of increasing data use and access: ongoing hacking issues. This has also led to increasing focus on IT to better protect and back up data — including more of a move to cloud-based approaches.
The report identified the market's major players to be Accenture, Oracle, GE Healthcare, Cerner, McKesson and Microsoft.
“These companies share technologies through mergers and acquisitions and work on the awareness about the products they provide,” it noted, giving them a leg up on the competition and allowing them to grow market share as the overall market grows.
Government initiatives are also driving the market. One of the most recent happened this month
, when a binding proposal to better share patient data throughout the EU was announced by the European Commission. The plan's timetable is aiming to be in place by 2025.
"Sharing data will save lives," EU health commissioner Stella Kyriakides said at the time.
It should also save money. The EU proposal could save around 10 billion euros ($10.51 billion) over a decade by cutting down on duplicative patient testing, including the nearly 1.4 billion euros each year lost on “unnecessary medical images,” according to the Brussels proposal.
Such a boost in access to health records could generate as much as a 5.4-billion-euro economic gain, the Commission estimated. In addition, it forecast another 5.5 billion euros from savings to both patients and providers and from “faster growth of the digital health and wellness applications markets.”
The push to greater interoperability will also drive the global EHR market size — now on track to hit $39.9 billion in 2026, at a CAGR of 5.4% for the forecast period, up from $26 billion in 2018, according to a Fortune Business Insights report
in early May.
The gain in momentum is being fueled in part by the ongoing adoption of artificial intelligence (AI) throughout the healthcare industry, according to the report.