Hospital Information Systems (HIS) - Global Opportunity Assessment, Competitive Landscape and Market Forecasts to 2017GlobalData
July 1, 2011
115 Pages - SKU: GBDT6442250
Additional InformationGlobalData’s new report, “Hospital Information Systems (HIS) - Global Opportunity Assessment, Competitive Landscape and Market Forecasts to 2017” provides key data, information and analysis on the global hospital information systems market. The report provides market landscape, competitive landscape and market trends information on the hospital information systems market. The report provides comprehensive information on the key trends affecting the market, and key analytical content on the market dynamics. The report also reviews the competitive landscape and technology offerings.
The Global Hospital Information Systems Market is Forecast to Grow at a CAGR of 10% from 2010-2017
Hospital Information Systems, Global, Revenue ($bn), 2010-2017
Source: GlobalData, Company Websites of Key Players, Primary Interviews with Industry Experts and Key Opinion Leaders
The global Hospital Information Systems (HIS) market was valued at $7.4 billion in 2010, and is forecast to grow at a Compound Annual Growth Rate (CAGR) of 10% to reach about $14.7 billion by 2017. The high growth forecast for the period 2010-2017 is significantly influenced by accelerated efforts from the public and private sectors around the world to contain rising healthcare costs and enhance quality of care. The inflow of key Information Technology (IT) technologies such as Software-as-a-Service (SaaS), dictation and speech recognition solutions, and mobile healthcare solutions into the healthcare market space will also contribute substantially to growth prospects in this market. These technological advancements attempt to offset major deterrents to IT adoption in healthcare settings, such as significant upfront investments and ineptitude of medical professionals, with large electronic data entry and handling. Rapid adoption in emerging economies due to enhanced focus of key healthcare IT players will also accelerate growth of the HIS market. With the concept of interconnected healthcare systems seeming to materialize, starting with the US healthcare IT market, vendors have accelerated their efforts in assimilating necessary capabilities to tap the significant market potential. Intense market consolidation activity has resurfaced in the last two years.
This trend is expected to continue in the future, considering the potential of the HIS market and its fragmented competitive landscape.
Government Initiatives and Rapid Technological Enhancements are Boosting the Adoption of Hospital Information Systems
Initiatives from the private and public sector around the world, along with significant technological advancements, are boosting the adoption of HIS by provider organizations. Rising healthcare costs and rapid demographic changes have forced governments around the world to enhance the quality and outreach of healthcare, while simultaneously reducing related expenses. The world population is expected to exceed nine billion by 2050, while during the same period the population aged 65 years or older is forecast to have tripled. As such, governments around the world face increasing concerns to address financial restraints as well as efficiency and affordability limitations of healthcare. These demographic trends have compelled governments to expand their efforts in pushing the adoption of HIS to increase hospital productivity as well as clinical outcomes. Significant economic and legislative incentives have been approved by governments in North America, several countries in Europe, and in China and India, to promote digitalization of healthcare workflow. These incentives have been instrumental in accelerating the adoption of HIS.
Government funding and the rising demand for better productivity and lower errors have spurred technological advancements in the healthcare IT industry. Among prominent technologies which have significantly contributed to positive adoption trends in this market are web-based and cloud-based HIS solutions. These SaaS models have eliminated large upfront costs associated with the uptake of IT infrastructure, thereby expanding the penetration of HIS into small and medium scale practices and independent physicians. Other technological improvements such as integrated speech recognition capabilities and advanced clinical decision support systems will continue to contribute significantly in expanding the customer pool for HIS.
The US is the Largest Market for Hospital Information Systems
With approximately 31% contribution, the US is the leader in the global HIS market. The $2.3 billion US HIS market is expected to grow at a CAGR of nearly 12% and exceed $5.1 billion by 2017. The expected double digit growth in the US HIS market is the result of the healthcare reform initiatives brought in by the Health Information Technology for Economic and Clinical Health (HITECH) Act, a part of the $787 billion American Recovery and Reinvestment Act (ARRA) of 2009. The HITECH Act, signed into law by President Obama in February 2009, allocated up to $27 billion in stimulus funds to accelerate health IT adoption. The reforms brought in by the Act have already provided a significant impetus to the process of healthcare reform through its mandated adoption targets of certified Electronic Health Record (EHR) technology by 90% of physicians and 70% of hospitals by 2019. The adoption of complete certified EHR along with the achievement of objectives under the Meaningful Use (MU) directives set forth in the Act is required to be deemed eligible for bonus incentives under the $27 billion stimulus funding, which has already begun since January 2011. These government regulations have driven a reform in the industry from a cost-driven market, sluggish due to recession, to a highly dynamic market spurred on by accelerated product innovation by vendors and rapid adoption by healthcare providers. The trends in the HIS market are also significantly impacted by additional non-funded government mandates requiring the transformation to International Classification of Diseases (ICD)-10 coding and Health Insurance Portability and Accountability Act (HIPAA) 5010 compliance requirements by 2013. Additionally, the transformation of providers to Accountable Care Organizations (ACOs) also necessitates the efficient adoption of health IT solutions to adapt to patient outcome-based payment mechanisms.
The expected positive trends in the market, along with the inflow of the bonus incentives from 2011, are also driving large scale activity in mergers and acquisitions, while simultaneously affecting adoption rates of HIS in other markets of developed and emerging countries.
GE Healthcare, with a Share of About 13% in 2010, is the Leader in the Global Hospital Information Systems Market
Hospital Information Systems, Global, Company Share (%), 2010
Source: GlobalData, GE Healthcare, Siemens Healthcare, Cerner Corporation, iSOFT Group Limited and Allscripts Healthcare Solutions Investor Presentations, Annual Reports, Press Releases, and Primary Interviews with Industry Experts and Key Opinion Leaders
GE Healthcare is the market leader in the global HIS market, with a share of about 13% in 2010. Fast development of integrated healthcare IT systems for a single platform solution to the entire enterprise level requirements, and strategies for bridging capability gaps in its portfolio have helped GE sustain its market leading position. The $6 billion corporate “Healthymagination” by GE Healthcare will allow it to address overwhelming needs of governments around the world to contain rapidly increasing healthcare costs. Closely behind GE Healthcare is Siemens Healthcare, with about 11% share in the global HIS market. A diversified product portfolio, widespread geographical presence and technical expertise of co-subsidiaries in IT solutions and services have enabled Siemens Healthcare to sustain its strong position in the HIS market. Cerner Corporation, with about 8% global share, is the third biggest player in the global HIS market. It is followed by Allscripts Healthcare Solutions (a company formed after the merger of Allscripts Misys Healthcare and Eclipsys in 2010), iSOFT Group Limited and McKesson Corporation. With the top six players combined accounting for only about 48% of the global HIS market, the competitive landscape continues to be widely fragmented. The enhanced market potential of HIS since 2009 has further contributed to its fragmented nature, while simultaneously boosting significant consolidation activity. A significant number of small niche vendors as well as large players from the IT and telecom industries have entered this market in the past two years.
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