What Has Been The Historical And Current Growth Of The Healthcare Technology Market?
The healthcare technology market has seen considerable growth due to a variety of factors.
• The market size for healthcare technology has experienced a meteoric rise lately. It's anticipated to escalate from $507.25 billion in 2024 to a more robust figure of $592.49 billion in 2025, showcasing a compound annual growth rate (CAGR) of 16.8%.
This exponential growth during the historic period can be explained by factors such as the rise in healthcare expenses, the emphasis on patient-focused care, adherence to regulatory standards and reporting, the burgeoning need for data analytics, and the acceptance of telehealth.
What is the Market Size Forecast for the Healthcare Technology Market?
The healthcare technology market is expected to maintain its strong growth trajectory in upcoming years.
• It's anticipated that the healthcare technology sector will expand considerably in the near future, reaching an estimated market value of $1251.38 billion in the year 2029. This matches a compound annual growth rate (CAGR) of 20.6%.
The projected expansion during this period can be credited to a shift towards value-based care, increased attention to preventative healthcare, collaboration and exchange of data, the rise of remote patient monitoring, and the building of healthcare infrastructure. The period covered by the forecast is also likely to see key trends emerge such as the increased application of 5G technology within the healthcare sector, a focus on mental health tech solutions, innovation within health information systems and increased cooperation with health tech startups.
What Factors Are Driving Growth In The Healthcare Technology Market?
The upswing in the need for preventive care solutions is projected to fuel the progression of the healthcare technology market. Preventive care solutions are designed to identify or ward off severe diseases and medical conditions before they exacerbate. The definition of preventive care includes annual physicals, inoculations, flu vaccines, and an assortment of tests and screenings. For example, as reported by an article in a weekly podcast, First Opinion, dedicated to healthcare's influential figures, pressing matters and initiatives, 152 million individuals with private health insurance can now access free preventive services starting September 2022. This regulation is also applicable to 61 million beneficiaries of Medicare and 20 million ACA Medicaid expansion beneficiaries, along with 52 preventive services that are evidence-based, endorsed by the United States Preventive Services Task Force which comprises nationally recognized pioneers in the realm of prevention, evidence-based medicine, and primary health care. Consequently, the escalating demand for preventive care solutions is steering the enhancement of the healthcare technology market.
What Are The Major Segments Within The Healthcare Technology Market?
The healthcare technology market covered in this report is segmented –
1) By Type: Healthcare Payers Solutions, Healthcare Providers Solutions, HCIT Outsourcing Solutions
2) By Component: Software, Hardware
3) By Delivery Mode: On-Premise, Cloud-Based
4) By Application: Electronic Health Records, Computerized Provider Order Entry Systems, Electronic Prescribing Systems, PACS (Picture Archiving and Communication System), Laboratory Information Systems, Clinical Information Systems, Tele-healthcare
Subsegments:
1) By Healthcare Payers Solutions: Claims Management Systems, Billing And Payment Solutions, Fraud Detection And Prevention Solutions, Member Management Systems, Data Analytics And Reporting Tools
2) By Healthcare Providers Solutions: Electronic Health Records (EHR) Systems, Practice Management Software, Telemedicine Solutions, Patient Engagement Solutions, Clinical Decision Support Systems
3) By HCIT Outsourcing Solutions: IT Infrastructure Management, Application Development And Maintenance, Data Migration Services, IT Helpdesk And Support Services, Business Process Outsourcing (BPO) Services For Healthcare
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Which Trends Are Expected To Transform The Healthcare Technology Market?
Leading corporations in the healthcare technology sector are concentrating on the development of novel technologies like large language model (LLM) solutions to maintain their market dominance. LLM solutions pertain to advanced AI systems that employ extensive neural networks, trained on enormous data sets, to comprehend, formulate, and modify human language for a range of applications, including chatbots, content generation, and language translation. For example, in June 2024, Cognizant, an American IT corporation, introduced its First Set Of Healthcare Large Language Model Solutions as part of its Generative AI alliance with Google Cloud, also based in the US. Cognizant's freshly launched healthcare LLM solutions amplify administrative efficiency and boost care experiences within key workflows. These AI-based solutions efficiently navigate processes such as appeals management and contract lifecycle management, thereby tackling significant problems in the healthcare sector.
Who Are the Key Players in the Healthcare Technology Market?
Major companies operating in the healthcare technology market include:
• McKesson Corporation
• IBM Watson Health
• Oracle Corporation
• Hewlett-Packard Enterprise Company
• Siemens Healthineers AG
• Cognizant Technology Solutions Corporation
• Koninklijke Philips N.V.
• General Electric Company (GE Healthcare)
• Epic Systems Corporation
• Infor Corporation
• Teladoc Health Inc.
• Agfa-Gevaert Group NV
• Athenahealth Inc.
• Nuance Communications Inc.
• Carestream Health Inc.
• Change Healthcare Corporation
• Allscripts Healthcare Solutions Inc.
• eClinicalWorks Inc.
• NextGen Healthcare Inc.
• Health Catalyst
• Imprivata Inc.
• NantHealth Inc.
• E-MDS Inc.
• Prognos Health Inc.
• Airstrip Technologies Inc.
• Ambra Health LLC
• Zebra Medical Vision Inc.
• Validic Inc.
• 3M Health Information Systems
What Is The Most Dominant Region In The Healthcare Technology Market?
North America was the largest region in the healthcare technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global healthcare technology market during the forecast period. The regions covered in the healthcare technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
