Healthcare Information Technology
BCC estimates the total market for the clinical healthcare IT technologies covered in this report at more than $6.3 billion in 2010. The market is projected to grow to approximately $7.4 billion in 2011 and nearly $17.5 billion in 2016, a compound annual growth rate (CAGR) of 18.7% over the next 5 years.
SCOPE OF REPORT
This report is an analytical business tool whose primary purpose is to describe and analyze the dynamics of the U.S. market for healthcare technology. It is particularly focused on clinical IT systems that facilitate or provide input into the care process, as opposed to administrative and financial systems. It covers only software applications, as well as dedicated hardware and online services used to run them.
The study format includes these major elements:
- Executive summary
- Clinical healthcare IT applications
- Benefits and barriers to implementation
- Market environment (e.g., legal and regulatory standards, economic conditions, consumer attitudes)
- Current (i.e., 2010) and projected markets for healthcare IT technologies and products through 2016
- Industry structure
Andrew McWilliams is a partner with 43rd Parallel, LLC, a Boston-based international technology and marketing consulting firm. He is also the author of several other BCC Research studies of the healthcare and related industries, including
- BIO072A Biotechnologies for Medical Applications: Global Markets
- HLC072A Medical Lasers: Technologies and Global Markets
- HLC014D Telemedicine: Opportunities for Medical and Electronic Providers
- HLC082A Emerging Markets for Advanced Medical Technologies
- HLC070A Preventive Healthcare Technologies, Products and Markets
- HLC066A Medical Automation Technologies, Products and Markets
- HLC016C Microelectronic Medical Implants: Products, Technologies and Opportunities
- HLC036C Medical Robotics and Computer-Assisted Surgery
- HLC051E The Market for Minimally-invasive Medical Device
- HLC038C Patient Monitoring
- HLC054B The Home Medical Equipment Market
- The U.S. market for healthcare IT is expected to be worth $4.0 billion in 2009. This should increase to $9.0 billion in 2014, a compound annual growth rate (CAGR) of 17.5%.
- The software applications segment dominates the market, generating an estimated $3.4 billion in 2009. This should increase to $7.2 billion in 2014, for a CAGR of 16.4%.
- Dedicated hardware is the second largest segment, worth an estimated $636.8 million in 2009. This should increase to $1.8 billion in 2014, for a CAGR of 22.9%.
BCC estimates the U.S. healthcare IT market size at $16.38 billion in 2005 and forecasts that it will grow to $18.5 billion in 2006. By 2011 it is expected to reach $34.7 billion in sales, a 13.4% AAGR.
The hospital segment accounts for the larger portion of the market with 52.2% of sales in 2005, 51.4% in 2006 and 48.2% in 2011. The Physician/ home care/ nursing/ hospices sector will overtake hospitals by the end of the forecast period and will be worth 51.3% of the U.S. market by 2011.
The highest growth appears in physicians, home care, nursing homes, and hospices. The market for this sector of the industry was worth more than $7.7 billion in 2005. By the end of 2006 it will grow to almost $8.9 billion and, at an AAGR of 15.0%, reach more than $17.8 billion by 2011.