The thriving private healthcare sector, coupled with the expanding network of specialty hospitals is driving the healthcare information technology (IT) market in India. Healthcare IT has improved process and data management, as well as patients’ experiences. In terms of revenue, the healthcare IT market in India was valued at INR 66.99 Bn in 2019, and is estimated to reach INR 98.21 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~6.46% during the 2020-2025 period.
The healthcare IT market is segmented into IT hardware, IT services, and IT software. In 2019, the IT hardware segment dominated the market, accounting for 54.95% of the overall revenue. The computerization of basic operations such as patient registration and billing was the primary driving factor for the growth of the segment in the past decade.
In terms of revenue, IT services was the second-largest segment, followed by IT software, in 2019. Outsourcing of IT services regarding implementation and maintenance of enterprise resource planning (ERP), customer relationship management (CRM), and hospital information system (HIS) has attributed to the segment’s growth. IT software is estimated to be the fastest-growing segment of the healthcare IT market, expanding at a CAGR of ~9.12% during the 2020-2025 period. Adoption of e-prescription, electronic health and medical records, and health information exchange, especially among hospitals located in tier II and tier III cities, is likely to bolster the growth of the IT software segment.
Impact of COVID-19:
Although various industries are trimming down their discretionary IT budget due to reduced economic activities, the healthcare industry is leveraging IT to optimize operations and productivity. Healthcare providers have embraced IT solutions to deal with the high volumes of patients while complying with social distance norms.
The rapidly spreading contagion has triggered the demand for IT consulting in areas including analytics, strategy, security, and risk assessment. Furthermore, the demand for electronic health record system has proliferated to manage the gamut of COVID-19-related data generated every day. Indian healthcare providers such as Apollo Hospitals Enterprise Ltd., Medanta (The Medicity), Wockhardt Hospitals, Fortis Healthcare Ltd., and All India Institute of Medical Sciences (AIIMS) have scaled up their technical expertise in order to continue seamless business operations.
• Wipro Ltd
• Allscripts (India) LLP
• Cerner Healthcare Solutions India Pvt. Ltd.
• Dell Technologies India Pvt. Ltd.
• Hewlett Packard Enterprise India Pvt. Ltd.
• IBM India Pvt. Ltd.
• Intel Technology India Pvt. Ltd.
• Oracle India Pvt. Ltd.
• SAP India Pvt. Ltd.
• Siemens Healthcare India Pvt. Ltd.