North America Healthcare IT Market by Product (EMR, mHealth, PHM, RIS, PACS, RCM, Healthcare Analytics, Telehealth, SCM, HIE), Component (Software, Service), Delivery Mode (Web, Cloud), and End User (Hospital, Payer, Ambulatory, Homecare)- Forecast to 2030

The North America Healthcare IT Market is expected to grow at a CAGR of 10% from 2024 to 2030 to reach $344.95 billion by 2030. North America healthcare IT comprises various technologies that gather, store, analyze, and represent information for various areas in the healthcare industry. Over the years, the North America healthcare IT industry has transitioned from applying IT solutions for basic administrative functions to core clinical tasks. The increased amount of data gathered through patient records has now led to deploying advanced IT solutions in the healthcare industry. This includes deploying advanced analytics solutions, population health management solutions, and AI solutions for various clinical and non-clinical applications.

The key factors driving the North America Healthcare IT market are the increasing awareness about digital health, government mandates and financial incentives for the adoption of HCIT solutions, the shift towards value-based care, rising use of big data in healthcare management, high return on IT investment in the healthcare industry, and rising incidence of chronic diseases. However, high installation & maintenance cost is restraining the market growth to a certain extent. Growing focus on cloud-based solutions and rising adoption of AI and IoT in healthcare are creating opportunities for market growth. Interoperability issues and data security and privacy concerns are challenging market growth.

Need to Reduce Healthcare Costs Drive the Market

Many hospitals and health systems are currently dealing with escalating operational costs. Healthcare analytics are known to improve medical practice efficiency. The operational costs can be reduced by lowering transcription costs, reducing time spent on documentation, improving documentation for billing, and limiting or eliminating chart pull, storage, improving patient outcome & treatment. Implementation of healthcare IT solutions reportedly leads to significant cost savings.

Hospitals and practices that use analytical software can curb excess and wasteful spending. In addition, studies have reported that medical errors can cost billions of dollars, such as additional costs for patient care who need treatment to recover from medical mistakes and the high cost of malpractice lawsuits. Implementation of healthcare analytics reduces the risk of disease in the future and can provide better treatment for patients. Therefore, the rising need to reduce operational costs in the healthcare industry is expected to factor in the growth of the healthcare IT market.

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Benefits Offered by mHealth Apps Support the Adoption of Healthcare IT Solutions

mHealth apps are the medical and public health practices supported by smartphones, tablets, or other mobile communication devices. They provide a new, innovative way to deliver healthcare services outside traditional care settings. They are expected to be a potential resource to enhance healthcare professionals’ productivity and improve patients’ health outcomes.

Conventionally, patients visit healthcare facilities regularly for their regular checkups, diagnosis, or treatment. Following are some of the benefits offered by the mHealth apps:

• These apps offer electronic health records via health-smart wearables, enabling faster and easy access to patient’s health data. Doctors can collect and retrieve patients’ clinical data in just one click. This allows them to make more comprehensive, informed, and timely medical decisions.
• With the help of mobile health apps, doctors and nurses can access medical and drug databases and laboratory results within a minute. They can also use mobile devices and apps for drug reference guides, medical calculators, clinical guidelines, and other decision support aids. These supports can make a real difference in disease diagnosis and treatment decisions, lowering the error rate and improving practice efficiency and knowledge.
• mHealth apps decrease unnecessary procedures and reduce the cost of care by lowering the risk of getting preventable chronic illnesses and hospital readmission rates.
• mHealth apps close this communication gap by offering variable tools to keep communication channels between patients and doctors open 24/7. In other words, patient-doctor communication apps can provide a more efficient medical workflow by keeping doctors connected with patients remotely and effortlessly.

Such benefits lead to increased mHealth solution adoption for efficient medical diagnosis and treatment, thereby driving the market.

Key Findings of the North America Healthcare IT Market Study:

Among the products, in 2024, Healthcare IT provider solutions are Expected to Account for the Largest Share of the Market

Based on product, the market is broadly segmented into healthcare IT provider solutions, healthcare IT payer solutions, and healthcare IT outsourcing services. Factors such as high demand for integrated healthcare systems, growing focus on patient safety & care, advanced healthcare infrastructure in the U.S. and Canada, increasing demand for quality healthcare, increasing investments & regulatory mandates on implementing eHealth solutions, rising awareness about EHRs, and growing geriatric population are among the factors supporting the largest share of healthcare IT provider solutions in the market.

Among the components, in 2024, the services segment is expected to account for the largest share of the North America Healthcare IT Market

In 2024, the services segment is estimated to account for the largest share of the North America Healthcare IT market. The use of healthcare IT services in rural areas, owing to the closure of many rural hospitals in the U.S., is a key factor supporting the largest adoption of healthcare IT services. Additionally, the shortage of physicians & specialists, the shift towards cloud-based services, and the increasing burden of chronic diseases supported the market growth. According to the Association of American Medical Colleges (AAMC), the demand for physicians grows faster than the supply, leading to a projected total physician shortfall of between 61,700 and 94,700 physicians by 2025 in the U.S.

In 2024, the web & cloud-based solutions segment is expected to account for the largest share of the North America Healthcare IT Market

In 2024, the web & cloud-based solutions segment is estimated to account for the largest share of the North America Healthcare IT market. This is mainly due to lower upfront costs, no maintenance costs, excessive storage flexibility, and greater security in private clouds. Cloud & web-based software eliminates the need for physical servers and thus the cost of maintaining physical on-premises servers. Cloud & web-based solutions are also less expensive than on-premise solutions, save costs, are simple to use on any platform, and are accessible at any time, supporting their largest adoption.

In 2024, the Healthcare Providers Segment is Expected to Account for the Largest Share of the North America Healthcare IT Market

In 2024, the healthcare providers segment is estimated to account for the largest share of the North America Healthcare IT market. The large share of this segment is attributed to factors such as the high demand for convenient healthcare owing to a high incidence of chronic diseases, the dearth of medical professionals, advanced healthcare IT infrastructure in hospitals, and an increase in the focus and availability of provider-specific healthcare IT solutions. Healthcare IT solutions offer improved patient care, reduced hospital administration costs, and managing workflows in healthcare settings. Thus, the reliance of healthcare providers on healthcare IT solutions has increased.

Among the Countries, the U.S. accounted for the Largest Market Share in 2024

The largest share of the U.S. is primarily attributed to the high awareness of the benefits and convenience of healthcare IT services, the presence of leading players, well-established health digital systems, an increased prevalence of chronic diseases in the region, and a robust healthcare infrastructure. Additionally, initiatives supporting the adoption of digital health also support the largest share of the market. For instance, in June 2021, the U.S. Department of Health and Human Services’ (HHS) Office of the National Coordinator for Health Information Technology (ONC) announced the establishment of a USD 80 million public health informatics & technology workforce development program (PHIT Workforce Program) to strengthen U.S. public health informatics and data science.

Key Players

The report includes a competitive landscape based on an extensive assessment of the product portfolio offerings, component, applications, end user, geographic presence, and key strategic developments adopted by leading market players in the industry over the years 2020–2024. The key players profiled in the North America healthcare IT market are McKesson Corporation (U.S.), Optum Health (U.S.), International Business Machine Corporation (IBM) (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), athenahealth, Inc. (U.S.), Epic Systems Corporation (U.S.), Dell Technologies Inc. (U.S.), GE Healthcare (U.S.), Cerner Corporation (U.S.), Oracle Corporation (U.S.), Cognizant Technology Solutions Corporation (U.S.), Nuance Communications, Inc. (U.S.), eClinicalWorks (U.S.) NextGen Healthcare, Inc. (U.S.), Computer Programs and Systems, Inc. (CPSI) (U.S.), Conifer Health Solutions, LLC. (U.S.), 3M Company (U.S.), Koninklijke Philips N.V. (The Netherlands), and Infor, Inc. (U.S.).

Scope of the Report:

North America Healthcare IT Market, by Product

• Healthcare Provider Solutions
  • Clinical Healthcare IT Solutions
    • Electronic Health Record (EHR)
    • PACS & VNA
    • Computerized Physician Order Entry
    • Clinical Decision Support System (CDSS)
    • E-Prescribing System
    • Patient Engagement Solutions
    • Radiology Information Systems (RIS)
    • Radiation Dose Management Solutions
    • Specialty Information Management Systems
    • Medical Image Analysis Systems
    • Population Health Management Solutions
    • Care Management Systems
    • Patient Registry Software
    • Laboratory Information Systems
    • mHealth Solutions
    • Telemedicine
    • HCIT Integration Systems
    • Infection Surveillance Solutions
    • Practice Management Systems
  • Non-clinical Healthcare IT Solutions
    • Pharmacy Information Systems
    • Healthcare Asset Management Solutions
    • Healthcare Workforce Management Solutions
    • Revenue Cycle Management Solutions
      • Front-end RCM Solutions
      • Mid-RCM Solutions
      • Back-end RCM
    • Medical Document Management Solutions
    • Healthcare Information Exchanges
    • Supply Chain Management Solutions
    • Healthcare Analytics
      • Clinical Analytics
      • Financial Analytics
      • Operational and Administrative Analytics
    • Customer Relationship Management Solutions
      • Medication Management Solutions
        • Electronic Medication Administration Software
        • Barcode Medication Administration Systems
        • Medication Inventory Management Systems
        • Medication Assurance Systems
      • Healthcare Quality Management Solutions
      • Healthcare Interoperability Solutions
      • Financial Management Systems (Billing & Accounting)
• Healthcare Payer Solutions
  • Claims Management Solutions
  • Customer Relationship Management Solutions
  • Fraud Analytics Solutions
  • Provider Network Management Solutions
  • Pharmacy Audit and Analysis Solutions
  • Member Eligibility Management Solutions
  • Population Health Management Solutions
  • Payment Management Solutions
• Healthcare IT Outsourcing Services
  • Provider HCIT Outsourcing services
    • Revenue Cycle Management Services
    • EMR/Medical Document Management Services
    • Laboratory Information Management Services
    • Other Provider HCIT Outsourcing Services
  • Payer HCIT Outsourcing Services
    • Claims Management Services
    • Provider Network Management Services
    • Billing & Accounts Management Services
    • Fraud Analytics Services
    • Other Payer HCIT Outsourcing Services
  • Operational HCIT Outsourcing Services
    • Business Process Management Services
    • Supply Chain Management Services
    • Other Operational IT Outsourcing Services
  • IT Infrastructure Management Services        

North America Healthcare IT Market, by Delivery Mode

• Cloud/Web-based
• On-premise

North America Healthcare IT Market, by Component

• Services
• Software
• Hardware

North America Healthcare IT Market, by End User

• Healthcare Providers
  • Hospitals
  • Ambulatory Centers
  • Home Healthcare & Assisted Living Centers
  • Diagnostic Centers
  • Pharmacies
• Healthcare Payers
  • Private payers
  • Public Payers

North America Healthcare IT Market, by Country

• U.S.
• Canada

Key questions answered in the report: