The U.S. health IT market is forecast to grow at a compound annual growth rate (CAGR) of around 24% during 2012 to 2014, according to a study from RNCOS, a global market research and information analysis company.
The report, U.S. Healthcare IT Market Analysis, which was published earlier this month, said the health IT industry is expected to surge to $40 billion by the end of 2011. The growth will be driven not only by healthcare reform and the implementation of e-health systems, but also by a population that will demand and increasingly be able to afford quality services.
Segmenting the market into IT hardware, IT software, and IT services, the report notes that IT hardware accounted for 65% of the total market at the end of 2010. It also said the mandatory use of electronic health records (EHRs) has boosted the market for software. As a result, the healthcare IT software market will increase in revenues from $6.8 billion in 2010 to $8.2 billion in 2011. –Source
These are some interesting numbers to consider. I found the split between IT hardware and software to be quite interesting. The $1.4 billion growth in the healthcare IT software market seemed a bit low too. At least when you compare on the amount of EHR stimulus money that is suppose to go out. I’d have to run some numbers to figure out how the projected $36 billion of EMR stimulus money will be spent over the various years of the program, but it seems like it should be more than $1.4 billion this year. Plus, the $1.4 billion increase is all healthcare IT software and not just EMR. I assume this would mean PACS software, Pharmacy Software, Lab software, etc.
There’s no doubt that the healthcare IT industry is growing. Amazing to think about so much money flowing into healthcare IT.
