A new market report predicts the global hospital information system (HIS) market could reach 10.3 billion euros ($14.7 billion U.S.) by 2017.
With a projected compound annual growth rate of 10%, the forecast would double the estimated value for the global HIS market of 5.2 billion euros ($7.4 billion U.S.) in 2010.
The high growth forecast is significantly influenced by accelerated efforts from both public and private sectors around the world to contain rising healthcare costs and enhance quality of care, according to the authors of "Hospital Information Systems (HIS) -- Global Opportunity Assessment, Competitive Landscape, and Market Forecasts to 2017." Other growth factors identified in the report include the adoption of mobile healthcare solutions, the adoption of dictation and speech recognition systems, and an influx of key information technologies such as software-as-a-service (SaaS).
HIS adoption is also being stimulated by the need for governments throughout the world to improve the productivity of their healthcare organizations and the clinical outcomes of patients receiving treatment. With a global population estimated to exceed 9 billion by 2050, and the portion of the population of individuals age 65 and older tripling during this time, governments are turning to information technology as a potential means to reduce healthcare-related costs.
The report shows the U.S. is leading the global HIS market with an approximate 31% contribution. GlobalData, who published the report, predicts the current 1.6 billion euros ($2.3 billion U.S.) U.S. HIS market is expected to grow at a projected compound annual growth rate of nearly 12%, and is expected to exceed 3.6 billion euros ($5.1 billion U.S.) by 2017. This industry growth is the result of the healthcare reform initiatives of the 2009 Health Information Technology for Economic and Clinical Health (HITECH) Act, federal government mandates to adopt International Classification of Diseases (ICD)-10 coding, Health Insurance Portability and Accountability Act (HIPAA) 5010 compliance requirements by 2013, and the transformation of healthcare providers to accountable care organizations.
The report also showed GE Healthcare is the market leader in the global HIS market, with a share of about 13% in 2010. Siemens Healthcare has 11% market share, followed by Cerner at 8%, Allscripts Health Solutions, iSoft Group, and McKesson. These corporations account for an estimated 48% of the global HIS market, according to GlobalData.
