HEALTHCARE IT CONSULTING MARKET ANALYSIS

The global healthcare IT consulting market was valued at US$ 43,272.3 Mn in 2022 and is forecast to reach a value of US$ 173,427.8 Mn by 2030 at a CAGR of 19.0% between 2023 and 2030. The global healthcare IT consulting market is experiencing strong growth due to the strict government regulations and rapid adoption of digitalization in healthcare. Moreover, rise in burden of chronic or infectious disease and increase in demand for IT consulting services in the healthcare industry is expected to propel growth of the market. However, factors such as high cost of deployment and concerns regarding data safety are expected to hamper the market growth.

Global Healthcare IT Consulting Market: Regional Insights

Based on geography, the global healthcare IT consulting market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period due to the stringent government regulations, need to improve the quality of care and reduce healthcare cost, and growing trend of digitalization in healthcare in the region. For instance, as per the U.S. Food & Drug Administration (FDA), digital health technologies (healthcare IT solutions) help providers reduce inefficiencies, improve access and quality, reduce costs, and make medicine more personalized for patients. Moreover, such technologies enable the patients and consumers to manage and track health and wellness-related activities more efficiently.

Europe and Asia Pacific are also expected to witness significant growth in the global healthcare IT consulting market due to the stringent government regulations, rise in adoption of healthcare IT services or solutions, and rising demand for effective, efficient, and advanced treatment solutions. For instance, in March 2023, India planned to launch a global initiative on digital health. According to the Government of India, digital health is a great enabler in delivery of healthcare services and has proved instrumental for various path-breaking digital health intervention ensuring availability, accessibility and affordability, and equity of health services.

Figure 1. Global Healthcare IT Consulting Market Share (%), by Region, 2023

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Global Healthcare IT Consulting Market Drivers:

Stringent government regulations to augment market growth

One of the key factors expected to augment growth of the global healthcare IT consulting market over the forecast period is the stringent government regulations worldwide. Stringent government regulations in the healthcare IT sector has increased demand for consulting services. For instance, the U.S. has the Health Insurance Portability and Accountability Act (HIPAA), which focus on the promotion of healthcare IT, testing of health IT in companies, and improvement of the privacy and security of electronic health information. Moreover, there are numerous laws and regulations that look into various aspects of healthcare IT issues.

Rapid adoption of digitalization in healthcare to boost market growth

Another factor which is driving growth of the global healthcare IT consulting market is the rapid adoption of digitalization (healthcare IT services or solutions) in healthcare around the world. For instance, the goal of information technology is to enhance the overall health of the population by improving the quality of care that patients receive. As the healthcare industry goes digitalized and new technologies, such as the Internet of Things (IoT) and artificial intelligence (AI), the amount of data that healthcare facilities have to work with is also growing rapidly. This in turn driving the growth of the healthcare IT consulting market.

Global Healthcare IT Consulting Market Opportunities:

Rise in burden of chronic or infectious disease worldwide is expected to provide significant growth opportunities for players in the healthcare IT consulting market. For instance, the research suggests that digital health solutions, in conditions such as chronic heart disease, can support the patients in health-promoting behaviors, empower them, and improve their medication compliance. Moreover, this might reduce the number of hospital stays and healthcare cost. According to the World Health Organization (WHO), cardiovascular diseases (CVDs) are the leading cause of death worldwide, taking an estimated 17.9 million lives each year.

Rise in demand for IT consulting services in the healthcare industry is expected to offer significant growth opportunities for players in the healthcare IT consulting market. For instance, in January 2022, Crowell & Moring launched a strategic consulting firm, Crowell Health Solutions, to help organizations and technology firms in transforming healthcare by boosting patient care. The new firm will help expand health equity and reducing healthcare expenses leveraging solutions such as value-based models and innovations in digital health. Crowell Health Solutions offer advice to the clients on healthcare transformation and innovation.

Global Healthcare IT Consulting Market Trends:

Growing penetration of internet and smartphone is a recent trend

Improving internet coverage and growing smartphone penetration are directly contributing to the adoption of healthcare IT solutions. India is now the largest connected nation with over 800 million internet users, according to the Ministry of Electronics and Information Technology (MeITY). The Government has plans to connect around 400 million users in the near future and bring the number of people having access to the internet to 1.2 billion. This in turn is expected to propel the growth of the global healthcare IT consulting market.

Rapid improvement in IT infrastructure is another trend

A greater and more seamless flow of information within the digital healthcare infrastructure can be achieved with the help of IT consulting services or solutions. Some outsourced IT consulting services include development & maintenance of clinical platforms, network optimization services, IT procurement, cloud services, and analytics dashboards. Hospitals and ambulatory care centres are digitalizing business practices of IT infrastructure management, IT security services, support services, resource planning, cloud-based solutions, and mobile computing.

Global Healthcare IT Consulting Market Restraints:

High cost of deployment to hinder the market growth

One of the key factors expected to hamper the growth of the global healthcare IT consulting market is the high cost of deployment. Though the benefits offered by the healthcare IT consulting services to the healthcare payers and providers are many, the high cost of the deployment of these services is very high. Advanced IT solutions, like on-site EHR deployment, can be very high even for small businesses. The small-scale healthcare providers cannot afford to use these services or solutions, as the cost-utility ratio for using them is higher than using their normal legacy systems.

Concerns regarding data safety to hamper market growth

Another factor which is hampering the growth of the global healthcare IT consulting market is the concerns regarding data safety. The growth in digital healthcare has increased need for ecosystems catering to patient comfort and security. Data security concerns become the foremost priority given the sensitivity of health records and the systems required for flawlessly streamlined information management. IT security is an aspect to be given immense attention and one cannot underestimate the importance of data security in healthcare.

Figure 2. Global Healthcare IT Consulting Market Share (%), by Consulting Type, 2023

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Global Healthcare IT Consulting Market Segmentation:

The global healthcare IT consulting market report is segmented into Consulting Type, End User, and Geography.

Based on Consulting Type, the market is segmented into HCIT Change Management, Healthcare Business Process Management, HCIT Integration and Migration, Healthcare/Medical System Security Set-Up and Risk Assessment, Healthcare Enterprise Reporting and Data Analytics, and Other Consulting Types. Out of which, HCIT Change Management Segment is expected to dominate the healthcare IT consulting market over the forecast period and this is attributed to the rapid adoption of digitalization in healthcare. Healthcare companies undergo change on the regular basis. The change should bring growth and long-term stability.

Healthcare Business Process Management Segment is also expected to witness robust growth in the near future and this is owing to the rapid improvement in the quality of patient care. Business Process Management (BPM) can help health care organizations better manage new requirements, regulations, and procedures while improving the quality of patient care.

Based on End User, the market is segmented into Hospitals and Ambulatory Care Centers, Diagnostic and Imaging Centers, Public and Private Payers, and Other End Users. Hospitals and Ambulatory Care Centers Out of which, Segment is expected to dominate the market over the forecast period and this is attributed to the rise in adoption of healthcare IT services or solutions.

Diagnostic and Imaging Centers Segment is also expected to witness significant growth in the near future and this is owing to the rise in burden of chronic/infectious disease.

Global Healthcare IT Consulting Market: Key Developments

In July 2021, Philips and Cognizant partnered to develop digital health solutions that will enable healthcare organizations to improve patient care and accelerate clinical trials.

In April 2021, Damo Consulting announced the launch of DigiMTM, an online assessment tool for health systems looking to benchmark their digital transformation efforts.

In September 2020, the German federal government enacted the Hospital Future Act (KHZG), under which all the public hospitals in Germany can apply for government funding for projects to boost digital health, cybersecurity, and IT infrastructure, and the public hostels will receive a share of EUR 4.3 billion for digital health innovation.

In September 2019, Health sector consultancy GE Healthcare Partners supported Tampa General Hospital to launch its high-tech clinical command centre, which uses AI and predictive analytics to better coordinate patient care and lower costs.

Global Healthcare IT Consulting Market: Key Companies Insights

The global healthcare IT consulting market is highly competitive. This is attributed to the rise in adoption of healthcare IT services and solutions, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global healthcare IT consulting market are Siemens Healthineers, Mckesson Corporation, IBM Corporation, Genpact Limited, Epic Systems Corporation, Deloitte, Cerner Corporation, Accenture, Allscripts Healthcare Solutions Inc., and Cognizant Technology Solutions Corporation, among others.

*Definition: Healthcare IT consulting refers to advisory support provided to clients in automation, platform extensions, and integrated business process services to enhance management services, application development, and business operation needs, among others.