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Healthcare IT Services

The Healthcare Information Technology (IT) Services Market to Grow at 10% CAGR to Double its Size by 2016

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Healthcare IT Services

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  1. Healthcare IT Services - Global Opportunity Assessment, Competitive Landscape and Market Forecasts to 2016

  2. The Healthcare Information Technology (IT) Services Market to Grow at 10% CAGR to Double its Size by 2016 The global healthcare IT services market is forecast to reach $36 billion by 2016, growing at a Compound Annual Growth Rate (CAGR) of 11% during 2009-2016. The global healthcare IT services market will grow due to increased government and private spending on healthcare IT across the globe. In mature markets such as Europe, Canada and Australia, implementation of large scale healthcare IT projects such as regional IT integration has created a large market for IT services. Under the American Recovery and Reinvestment Act (ARRA), $19 billion in incentives have been allocated for development of healthcare IT infrastructure in the US. This will continue to drive demand for professional IT services over the next three years. In Asia, the $124 billion reform in China that has made provisions for modernizing healthcare infrastructure by employing IT solutions will drive the IT services market. Large vendors such as IBM, Microsoft and Dell are already competing alongside Chinese vendors for services such as consulting and implementation in China. In India, the growth of private hospital chains and continued expansion of the private healthcare insurance market has spurred the IT healthcare services market. The growing installed base of healthcare IT solutions will continue to sustain demand for maintenance and support services.

  3. Professional IT Services Accounted for About 70% of the Total Healthcare IT Services Market in 2009 The global professional IT services market for healthcare is forecast to grow at 12% to almost double to $27 billion by 2016. Over the next three years, global professional services will witness high growth due to high levels of investment in new installations of healthcare IT solutions through government incentives, especially in process management, consulting and training. After 2013, market growth will be sustained by new as well as renewed service contracts for IT managed services. The global support and maintenance services market for healthcare is forecast to grow to $9 billion by 2016, growing at the rate of 8% CAGR in 2009-2016. The market will be sustained by the year on year renewal of support and maintenance contracts for the large installed base of healthcare IT products. For further details, please click or add the below link to your browser: http://www.globaldata.com/reportstore/Report.aspx?ID=Healthcare-IT-Services--Opportunity-Assessment-Competitive-Landscape-and-Market-Forecasts-to-2016&ReportType=Industry_Report&coreindustry=Industry_Report&Title=Medical_Devices

  4. North America Accounts for the Bulk of Healthcare IT Services Market, Accounting for 70% of the Total Revenues North America accounts for the bulk of the global healthcare IT services market with 70% of the global market share, and was valued at $12.3 billion in 2009. Out of this, the US contributed $11.5 billion in sales revenues. In Europe, the healthcare IT services market is a mature one, and contributed 18% to the global healthcare IT services market in 2009. Asia contributed approximately 12% to the global healthcare IT services market in 2009. The three geographies present a very unique and interesting landscape for healthcare IT. In the US, due to government incentives and healthcare IT adoption, demand for services has grown tremendously in the past year. In Canada, Health InfoWay, a non-profit organization which has funded healthcare IT projects has resulted in a large number of healthcare IT projects being undertaken. Europe saw a peak in government initiatives in the early 2000s when the governments in Germany, France, UK, Scandinavian and Baltic countries such as Denmark, and the Netherlands embarked on ambitious healthcare IT projects. Since then, most projects have either been completed successfully (for example in Netherlands and Denmark) or have been shelved indefinitely (like the health ecard project in Germany).

  5. In Europe, the healthcare IT market has matured, and the ongoing emphasis and demand is for regional integration and interoperability solutions. In countries such as China, India and Australia, high growth for healthcare IT has been anticipated over the next decade due to government incentives (in the cases of China and Australia) while India’s private healthcare sector is set to boom. Japan will continue to struggle to maintain the already existing IT infrastructure in its hospitals as its risinggeriatric population threatens to overwhelm the healthcare system. Government Funding to Accelerate Demand for Healthcare IT Services Over the past decade, governments across the world have recognized the importance of IT in healthcare. There has been growing evidence of the time and the cost -efficiencies these systems can bring into an already overstretched healthcare system. Since IT infrastructure requires a significant amount of funds, governments have stepped up the funding for various IT programs. All healthcare IT solutions require a significant amount of services to get the system in place and to maintain it after installation. With the growing adoption of healthcare IT, the demand for healthcare IT services is also likely to go up. In 2009, the US government dedicated a $19.2 billion stimulus package to healthcare IT infrastructure and Electronic Health Record (EHR) implementation

  6. by both hospitals and physicians under the Health Information Technology for Economic and Clinical Health Act (HITECH Act). Besides the HITECH Act, the migration to the International Classification of Disease -10 (ICD-10) and the Health Insurance Portability and Accountability Act (HIPAA) 5010 are further expected to boost the healthcare IT services market in the US. The Australian government recently announced health reforms to improve and modernize Australia’s healthcare system. The government plans to invest more than AUD7.4 billion in the healthcare system. The reform includes allotment of AUD464m towards healthcare IT. Similarly in China, the government announced a healthcare overhaul in 2009 with a funding of $124 billion. The government is expected to spend about 1.5% of that amount on building IT infrastructure. For further details, please click or add the below link to your browser: http://www.globaldata.com/reportstore/Report.aspx?ID=Healthcare-IT-Services--Opportunity-Assessment-Competitive-Landscape-and-Market-Forecasts-to-2016&ReportType=Industry_Report&coreindustry=Industry_Report&Title=Medical_Devices Visit our report store: http://www.globaldata.com

  7. For more details contact: pressreleases@globaldata.com North America: +1 646 395 5477 Europe: +44 207 753 4299 +44 1204 543 533 Asia Pacific: +91 40 6616 6782

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