Key Takeaways:
- $231.2 billion in projected IT spend by healthcare organizations in the next 12 months
- 67% of the healthcare IT market size comes from the United States
- 49% of healthcare IT spend comes from companies with revenue of $1 billion or more
- The top technology trends in healthcare can be mapped to five IT categories: Data Storage, Security Hardware, Cloud Security, Cloud IaaS, and Business Intelligence
- Artificial intelligence is a top technology trend in healthcare, as organizations aim to improve margins and alleviate difficulties from the pandemic years
Around the globe, several healthcare technology trends are driving the industry forward, resulting in exciting innovations and better patient outcomes. The technologies that support healthcare organizations span categories — from IT services and software to hardware and communications. According to HG’s data, companies in the healthcare market will spend $231.2 billion on IT in the next 12 months. Due to the market’s growth and exciting healthcare technology trends like AI, HG Insights wanted to dive deeper into this sector.
This report provides research on IT spending and usage in the global healthcare market and covers leading vendors, solutions, and buyer profiles. This data was uncovered with the HG Market Intelligence Platform to help you identify healthcare technology trends and your distinct opportunities in the market.
Healthcare IT Market Size
According to HG’s data, the total healthcare market size for IT (i.e. total spend on IT solutions by healthcare organizations) is projected to reach $231.2 billion by 2025. Out of the 4.3 million companies in the HG database, our data analysis identifies approximately 200,000 healthcare organizations spending on IT solutions (this data includes only businesses with registered addresses).
Total IT Spend in Healthcare by Region
This chart shows the total IT spend by healthcare companies in each region. Out of the three global regions, healthcare organizations in AMER (North, Central, and South America) spend the most on IT solutions, 67% of global spend. EMEA (Europe, Middle East, and Africa) accounts for 23% of global spend and 10% comes from APAC (Asia Pacific).
US Healthcare Market Size for IT, Plus Other Top Countries
| Country | Total Spend ($) | Total Companies |
|---|---|---|
| United State of America | 148.2 | 156,442 |
| United Kingdom of Great Britain | 13.1 | 7,377 |
| Germany | 11.4 | 6,154 |
| Japan | 9.4 | 2,997 |
| Canada | 5.1 | 6,423 |
| France | 4.8 | 2,330 |
| Netherlands | 4.7 | 2,015 |
| China | 4 | 1,563 |
| Australia | 3.1 | 5,456 |
| Italy | 2.8 | 1,297 |
Source: This data was uncovered with HG Market Intelligence and includes only businesses with registered addresses
According to HG’s data, the US healthcare market size for IT is $148.2 billion, comprised of 156,442 healthcare companies buying IT solutions. This accounts for 64% of total IT spend in the global healthcare industry. Other key markets include the United Kingdom (6% of global spend), Germany (5%), and Japan (4%).
IT Buyer Landscape in the Healthcare Market
As the global healthcare industry grows, the number of IT buyers — and the need for innovative healthcare technology — continues to expand. This section digs deeper into technology trends in the healthcare industry including IT spending by category and the number of buyers (classified by company size in employee count and revenue) and their average spend.
Technology Trends in Healthcare by Category
Out of the $231.2 billion healthcare organizations spend on IT solutions, nearly half (48%) will be spent on IT services, 30% will be spent on software, 13% on hardware, and 9% on communications.
Healthcare IT Spending by Company Size (Number of Employees)
| Buyer Employee Range | Total Spend ($) | Total Companies |
|---|---|---|
| 10,001 and above | $78,447,252,819 | 583 |
| 5,001 to 10,000 | $28,566,627,463 | 910 |
| 1,001 to 5,000 | $72,604,694,519 | 7,453 |
| 501 to 1,000 | $19,503,748,813 | 6,511 |
| 101 to 500 | $20,027,271,764 | 21,501 |
| 1 to 100 | $6,612,005,900 | 98,820 |
Source: This data was uncovered with HG Market Intelligence and includes only businesses with registered addresses
This chart shows spending within the healthcare market by organization size (by number of employees). The largest tiers for IT spend in healthcare are companies with greater than 10,000 employees ($78.4 billion), and those with between 1,001 and 5,000 employees ($72.6 billion). However, nearly three in four IT buyers in the healthcare industry (73%) are small companies, with 100 employees or fewer.
Healthcare IT Spending by Company Size (Revenue Range)
| Company Revenue Range | Total Spend ($) | Total Companies |
|---|---|---|
| $5bn and above | 48,936,950,646 | 117 |
| $1bn to $5bn | 64,525,212,299 | 386 |
| $500m to $1bn | 26,843,957,999 | 1,079 |
| $200m to $500m | 40,616,006,703 | 2,683 |
| $100m to $200m | 24,349,779,316 | 3,844 |
| $50m to $100m | 18,387,298,204 | 7,805 |
| $10m to $50m | 6,632,278,606 | 39,583 |
| $1m to $10m | 776,837,198 | 109,323 |
| Less than $1m | 23,730,396 | 33,445 |
Source: This data was uncovered with HG Market Intelligence and includes only businesses with registered addresses
Companies making more than $1 billion in revenue make up nearly half (49%) of the total healthcare IT market size. However, only 803 buyers fall in these revenue tiers.
An additional 48% of total IT spend comes from 15,411 healthcare organizations making between $50 million and $1 billion in revenue. The final 3% comes from the largest group of companies (182,351) with less than $50 million in revenue.
Healthcare Technology Trends: Leading Vendors in Key Categories
IT vendors across all categories constantly battle to dominate the growing healthcare market. These vendors range from cloud giants like AWS and Microsoft to successful niche players offering specific healthcare systems. This section explores the leading vendors in five trending IT categories for healthcare buyers: Data Storage, Security Hardware, Cloud Security, Cloud IaaS, and Business Intelligence.
Leading Data Storage Vendors in the Healthcare Market
The storage of private healthcare data and electronic health records (EHR) is one of the most crucial IT processes for healthcare organizations as they ensure patient data remains both confidential and accessible.
This chart shows the ten leading vendors for Data Storage among healthcare companies. Unlike other IT categories, the Data Storage market is splintered among healthcare buyers. Even the leader, Dell Technologies, accounts for only 3,500 installations out of the 200,000 total healthcare organizations tracked by HG.
Leading Security Hardware Vendors in the Healthcare Market
Healthcare data is extremely private and must be protected from unauthorized viewers. This chart shows the ten leading Security Hardware vendors among healthcare buyers, and the following chart – Cloud Security – has a similar priority on protection as Data Storage.
The three leading Security Hardware vendors — Cisco Systems, Fortinet, and Citrix Systems — dominate the healthcare industry, with 7,248 installs detected altogether.
Leading Cloud Security Vendors in the Healthcare Market
The Cloud Security category has a much higher customer base than the previous two categories, with the leading vendor (Cloudflare) capturing 26,302 installations. The second and third largest Cloud Security vendors, Microsoft and Proofpoint, have won the business of 10,331 and 8,834 healthcare organizations, respectively.
Leading Cloud IaaS Vendors in the Healthcare Market
The Infrastructure-as-a-Service (IaaS) market is massive — estimated to be worth over $150 billion in 2023 and projected to grow to $195 billion in 2024. The three cloud giants, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, command the largest share of the healthcare market, capturing a total of 90,669 installations total.
Learn more about this category in our IaaS Market Report →
Leading Business Intelligence Vendors in the Healthcare Market
This chart shows the 10 leading Business Intelligence vendors by company installs. Microsoft’s Power BI tops the list with 11,839 installs at healthcare organizations. Other key players include Tableau (9,482 installs), IBM (6,989), and SAP (6,733).
The third largest “vendor” by number of installs is not a vendor at all, but an amalgamation of all open source Business Intelligence solutions.
Want to learn more about leading Business Intelligence providers and products? Check out our market report here →
The Top Healthcare Technology Trend: Artificial Intelligence (AI)
Almost every industry has been impacted by the rise of AI in the last few years, and healthcare is no different.
The timing is beneficial; although COVID-19 is no longer the top news story, the pandemic period was extremely difficult for the healthcare industry — organizations dealt with numerous COVID waves, canceled non-urgent procedures, implemented remote care, and are navigating a mental health crisis to this day. In the US, more than half of all hospitals ended 2022 with a negative margin, making it an even more difficult year than 2020 and 2021.
Healthcare organizations need to increase their margins and productivity across all stages of patient care. Generative AI can help.
A Bain & Company survey found that 75% of health system executives believe generative AI “has reached a turning point in its ability to reshape the industry,” but only 6% have established a generative AI strategy so far.
According to the Bain survey, some of the key use cases for AI in healthcare are reducing administrative burdens and enhancing efficiency. Other use cases include clinical decision support, remote patient monitoring, improving patient outcomes with treatment recommendations, and even new drug discovery.
The impact of AI on the healthcare industry remains to be seen, but organizations are embracing it — investing heavily in this healthcare technology trend.
While 5.5% of healthcare sector costs were dedicated to AI and machine learning in 2022, this number is expected to exceed 10.5% in 2024. The payoff could be significant: In the US specifically, the entire healthcare system could achieve $360 billion in annual potential savings over the next five years due to AI.
There are 1,500 AI vendors designed for the healthcare market, half of which were formed in the past seven years.
Uncover Healthcare Technology Trends & Opportunities with HG Insights
All of the data in this report was uncovered using the award-winning HG Market Intelligence platform, which enables go-to-market teams to pinpoint target markets (TAM, SAM, and SOM) and ideal customers (ICP).
Unlock HG’s data to size your markets, understand vendor penetration, identify your ICP accounts, and uncover your distinct opportunities in the healthcare market. Schedule a demo with one of our solutions experts to see your best-fit accounts and capitalize on these healthcare IT trends.
