HEALTHCARE INFORMATICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Healthcare Informatics Market Size and Trends

Global healthcare informatics market is estimated to be valued at USD 39.55 Bn in 2024 and is expected to reach USD 91.51 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 12.7% from 2024 to 2031.

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Global healthcare informatics market growth is driven by factors such as increasing digitalization in the healthcare sector, growing adoption of cloud-based storage solutions and rising need to curtail healthcare costs. Several market players are investing extensively in R&D to develop enhanced healthcare informatics solutions integrated with latest technologies such as AI and machine learning. Adoption of such advanced informatics solutions helps providers in automating procedures, improving patient outcomes and streamlining clinical workflows. However, high deployment cost and privacy & security concerns related to patient data can hamper the market growth.

Adoption of Electronic Health Records

The healthcare industry has witnessed a massive shift towards digitization over the past decade. Previously, patient records were predominantly maintained as physical paperwork, which made storage and sharing of information difficult. This led to various inefficiencies and errors. However, with increasing usage of electronic health records (EHR), most healthcare providers have now transitioned to digital platforms. EHRs allow streamlined management of comprehensive patient health histories and treatment plans. Right from scheduling appointments to recording vitals, prescribing medications, ordering tests and tracking results - everything can be done electronically through a centralized system. This not only improves organizational workflow but also enhances the quality of care delivered. Doctors can instantly access complete medical histories from anywhere, thus, helping them to make faster and more informed clinical decisions. Several regulatory bodies also incentivized the implementation of EHRs through monetary incentives and penalties, thus, boosting adoption rates. For patients, EHRs translate to a more efficient experience. These no longer have to repeatedly fill out forms or transport medical records between different facilities. Digitally stored health records are immediately accessible to authorized providers, removing logistic hassles. In emergencies, crucial health details are right at hand without any delay. Over time, patients have also come to appreciate the personalized care enabled through consolidated health profiles on EHR platforms. For instance, India's National Health Authority launched a Digital Health Incentive Scheme aimed at boosting adoption of digital health records. Healthcare providers, diagnostic centers, and digital solution providers like HMIS and LMIS are eligible for incentives based on the number of digital health records created and linked to the Ayushman Bharat Health Account. The scheme, supported by Rs 500 million (US$ 6 million) over six months, aims to accelerate digital health transactions under the Ayushman Bharat Digital Mission, fostering patient-centric healthcare delivery and encouraging broader participation in digital health initiatives.

Government support and initiatives

Government support and initiatives can drive the healthcare informatics market growth. Governments across the world are increasingly focusing on digitizing healthcare systems to improve access, quality and efficiency of care. These are implementing various programs to promote adoption of electronic health records, telemedicine, mobile health and other healthcare technologies.

Governments are providing funding to healthcare organizations for transitioning from paper to digital records. Transition to digital healthcare helps in easier sharing of patient data between providers, enables remote patient monitoring, and improves care coordination. It also saves physicians' time from administrative work so that physicians can spend more time with patients. Several countries have also implemented nationwide electronic health record to connect healthcare providers on a single digital platform. This has improved real-time access to patient health information. Governments are also working on expanding telehealth and remote care facilities to improve access in rural and remote areas. The COVID-19 pandemic further accelerated this shift as telemedicine played a critical role in facilitating care while maintaining social distancing. Many countries temporarily relaxed regulations during the pandemic to increase virtual care coverage. For instance, in 2021, over 25 U.S. states passed new laws expanding coverage of telehealth services by private insurance. This has boosted uptake of virtual care technologies and wearable devices for remote monitoring.