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    US Healthcare Information Systems Market

    ID: MRFR/HC/14732-HCR
    100 Pages
    Rahul Gotadki
    October 2025

    US Healthcare Information Systems Market Research Report By Application (Electronic Health Records, Laboratory Information Systems, Radiology Information Systems, Pharmacy Information Systems), By Deployment (On-Premises, Cloud-Based, Web-Based), By End Use (Hospitals, Ambulatory Care Centers, Diagnostic Laboratories, Pharmaceutical Companies) and By Component (Software, Hardware, Services) - Forecast to 2035

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    US Healthcare Information Systems Market Infographic
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    US Healthcare Information Systems Market Summary

    As per MRFR analysis, the healthcare information systems market size was estimated at 534.25 USD Million in 2024. The US healthcare information-systems market is projected to grow from 598.36 USD Million in 2025 to 1857.79 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 12.0% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US healthcare information-systems market is experiencing robust growth driven by technological advancements and evolving patient needs.

    • The largest segment in the US healthcare information-systems market is electronic health records (EHR), while the fastest-growing segment is telehealth solutions.
    • There is a notable increase in the adoption of telehealth solutions, reflecting a shift towards more accessible healthcare delivery.
    • A strong emphasis on data interoperability is emerging, facilitating seamless information exchange among healthcare providers.
    • Rising demand for patient-centric solutions and regulatory compliance are key drivers propelling market expansion.

    Market Size & Forecast

    2024 Market Size 534.25 (USD Million)
    2035 Market Size 1857.79 (USD Million)

    Major Players

    Epic Systems (US), Cerner Corporation (US), Allscripts Healthcare Solutions (US), McKesson Corporation (US), Athenahealth (US), Philips Healthcare (NL), Siemens Healthineers (DE), GE Healthcare (US)

    US Healthcare Information Systems Market Trends

    The healthcare information-systems market is currently experiencing a transformative phase, driven by advancements in technology and the increasing demand for efficient healthcare delivery. The integration of electronic health records (EHRs) and telehealth solutions has become more prevalent, as healthcare providers seek to enhance patient care and streamline operations. This shift is further supported by regulatory initiatives aimed at improving data interoperability and patient access to health information. As a result, stakeholders are investing in innovative solutions that not only meet compliance requirements but also improve overall healthcare outcomes. Moreover, the emphasis on data analytics and artificial intelligence (AI) is reshaping the landscape of the healthcare information-systems market. Organizations are leveraging these technologies to gain insights from vast amounts of health data, which can lead to better decision-making and personalized treatment plans. The growing focus on cybersecurity is also noteworthy, as the protection of sensitive patient information becomes paramount. Overall, the healthcare information-systems market appears poised for continued growth, with a strong emphasis on technology integration and data-driven solutions.

    Increased Adoption of Telehealth Solutions

    The rise of telehealth solutions is reshaping the healthcare information-systems market. Providers are increasingly utilizing virtual care platforms to enhance patient access and convenience. This trend is likely to continue as patients seek more flexible healthcare options.

    Focus on Data Interoperability

    Data interoperability is becoming a critical focus within the healthcare information-systems market. Efforts to standardize data exchange protocols are gaining momentum, enabling seamless communication between different healthcare systems and improving patient care.

    Emphasis on Cybersecurity Measures

    As cyber threats become more sophisticated, the healthcare information-systems market is placing greater emphasis on cybersecurity measures. Organizations are investing in advanced security solutions to protect sensitive patient data and ensure compliance with regulations.

    US Healthcare Information Systems Market Drivers

    Expansion of Cloud-Based Solutions

    The expansion of cloud-based solutions is significantly impacting the healthcare information-systems market. Cloud technology offers healthcare organizations the flexibility to scale their operations, reduce IT costs, and enhance collaboration among healthcare providers. As of 2025, it is estimated that over 60% of healthcare organizations are utilizing cloud-based systems for data storage and management. This shift is driven by the need for real-time access to patient information and the ability to share data securely across different platforms. The adoption of cloud solutions is likely to continue growing, as organizations seek to improve efficiency and patient care.

    Regulatory Compliance and Standardization

    Regulatory compliance is a critical driver in the healthcare information-systems market. The implementation of stringent regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) and the 21st Century Cures Act, necessitates that healthcare organizations adopt robust information systems to ensure data security and interoperability. Compliance with these regulations not only protects patient data but also enhances operational efficiency. As of 2025, it is estimated that over 80% of healthcare organizations are prioritizing investments in information systems that facilitate compliance, indicating a strong market demand for solutions that align with regulatory standards.

    Rising Demand for Patient-Centric Solutions

    The healthcare information-systems market is experiencing a notable shift towards patient-centric solutions. This trend is driven by an increasing emphasis on personalized care and patient engagement. Healthcare providers are investing in systems that enhance patient experience, streamline communication, and facilitate access to health information. According to recent data, approximately 70% of patients express a preference for digital health solutions that allow them to manage their health proactively. This demand is prompting healthcare organizations to adopt advanced information systems that support telehealth, remote monitoring, and personalized treatment plans, thereby reshaping the landscape of healthcare delivery.

    Growing Focus on Data Analytics and Business Intelligence

    Data analytics and business intelligence are becoming increasingly vital in the healthcare information-systems market. Organizations are leveraging data analytics to gain insights into patient care, operational performance, and financial management. The ability to analyze data effectively allows healthcare providers to identify trends, optimize resource allocation, and improve patient outcomes. Recent studies indicate that healthcare organizations that utilize advanced analytics are likely to see a 15% increase in operational efficiency. This growing focus on data-driven decision-making is prompting investments in information systems that offer robust analytics capabilities.

    Integration of Artificial Intelligence and Machine Learning

    The integration of artificial intelligence (AI) and machine learning (ML) technologies is transforming the healthcare information-systems market. These technologies enable healthcare providers to analyze vast amounts of data, leading to improved decision-making and operational efficiencies. AI-driven systems can assist in predictive analytics, patient diagnosis, and treatment recommendations, thereby enhancing clinical outcomes. As of 2025, the market for AI in healthcare is projected to reach $36 billion, reflecting a growing recognition of the potential benefits of these technologies. This trend is likely to drive further investment in information systems that incorporate AI and ML capabilities.

    Market Segment Insights

    By Application: Electronic Health Records (Largest) vs. Laboratory Information Systems (Fastest-Growing)

    The US healthcare information-systems market is driven by a diverse array of applications, with Electronic Health Records (EHR) commanding the largest share among segment values. This dominance is attributed to the increasing need for improved patient data management, interoperability, and the transition to value-based care. Meanwhile, Laboratory Information Systems (LIS) are rapidly gaining ground, capturing a significant share of the market. The demand for efficient lab operations and accurate reporting is propelling LIS growth, making it a critical component of modern healthcare delivery. In terms of growth trends, EHRs are expanding as healthcare providers seek innovative solutions that enhance clinical workflows and patient engagement. Conversely, LIS is witnessing a surge in adoption due to advancements in technology, which enable real-time data integration and analytics. Key drivers for this growth include the rising focus on personalized medicine, the need for regulatory compliance, and the increasing emphasis on data-driven decision-making within healthcare organizations.

    EHR (Dominant) vs. LIS (Emerging)

    Electronic Health Records (EHR) represent the dominant application in the US healthcare information-systems market, crucial for maintaining the continuity of patient care through accessible and accurate health records. EHR systems streamline clinical workflow, enhance patient engagement, and facilitate interoperability among care providers. Meanwhile, Laboratory Information Systems (LIS) are emerging as prominent players, offering tools for managing laboratory installations efficiently. As healthcare facilities seek to optimize lab processes, enhance diagnostic accuracy, and ensure compliance with regulatory standards, LIS adoption is on the rise. Together, EHRs and LIS play pivotal roles in creating a comprehensive healthcare ecosystem that drives improved patient outcomes.

    By Deployment: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

    In the US healthcare information-systems market, cloud-based deployment represents the largest segment, capturing a significant share due to its scalability and cost-effectiveness. On-premises solutions continue to hold a substantial market presence but are increasingly challenged by the flexibility and remote accessibility offered by cloud solutions. Meanwhile, web-based systems are also gaining traction as healthcare providers shift towards more integrated and accessible platforms for data management. Growth in the deployment segment is primarily driven by the need for data interoperability and enhanced patient engagement tools. Additionally, the COVID-19 pandemic accelerated the adoption of cloud and web-based solutions as healthcare facilities sought efficient ways to manage patient data and streamline operations. Innovations in security and compliance are further bolstering the shift towards cloud deployment, while on-premises solutions adapt to remain competitive against cloud offerings.

    Cloud-Based (Dominant) vs. On-Premises (Emerging)

    Cloud-based deployment is characterized by its flexibility, allowing healthcare organizations to easily scale resources and reduce IT infrastructure costs. This segment provides a platform for robust data analytics and integration, enabling healthcare providers to enhance their decision-making processes. In contrast, on-premises solutions, although presently emerging, are favored by organizations with stringent compliance, security, and data sovereignty requirements. They are often seen as the preferable choice for maintaining sensitive patient information within a controlled environment. As these two segments evolve, they reflect the broader trends towards modernization and enhanced support for patient-centric care in the healthcare sector.

    By Use: Hospitals (Largest) vs. Ambulatory Care Centers (Fastest-Growing)

    In the US healthcare information-systems market, Hospitals hold the largest market share, leveraging advanced technology and extensive patient data management systems to enhance operational efficiency and patient care. This segment's dominance is attributed to the high volume of patient admissions and the need for integrated solutions that streamline workflows, ensuring compliant and reliable information access across various functionalities. Conversely, Ambulatory Care Centers are emerging as the fastest-growing segment, driven by the increasing demand for outpatient services and cost-effective healthcare solutions. The shift towards value-based care and the expansion of telehealth services have significantly contributed to this growth, as these centers provide high-quality care while minimizing costs and enhancing patient satisfaction. Such trends highlight a transformational shift in the delivery of healthcare services within this segment.

    Hospitals (Dominant) vs. Diagnostic Laboratories (Emerging)

    Hospitals dominate the US healthcare information-systems market due to their comprehensive services, which rely heavily on integrated information systems for patient management, electronic health records (EHR), and billing. They utilize advanced information technology to improve patient outcomes, maintain compliance, and manage vast amounts of data efficiently. In contrast, Diagnostic Laboratories are an emerging segment that plays a crucial role in supporting hospitals and physicians with timely and accurate diagnostic information. The growing need for precise diagnostics, fueled by advances in technology and personalized medicine, positions these laboratories as essential partners within the healthcare ecosystem. Their role in utilizing data analytics and laboratory information systems to enhance service delivery exemplifies the evolving dynamic between traditional and emerging segments.

    By Component: Software (Largest) vs. Services (Fastest-Growing)

    In the US healthcare information-systems market, the component segment is primarily dominated by software, capturing the largest market share. Software solutions, which include electronic health records and data analytics platforms, have established a strong foothold due to their essential role in enhancing operational efficiency and patient care. On the other hand, services, encompassing consulting and support, are emerging rapidly in importance as healthcare providers seek to leverage technology effectively amidst evolving regulatory requirements. The growth trends within this segment highlight an increasing demand for integrated software systems that enhance interoperability and streamline workflows. Furthermore, as healthcare organizations increasingly recognize the value of managed services and digital transformation, the services component is set to experience the most significant growth. This shift is driven by the need for specialized expertise and support in navigating complex healthcare IT landscapes and optimizing system utilization.

    Software (Dominant) vs. Services (Emerging)

    Software has become the dominant force in the component segment of the US healthcare information-systems market, largely due to its critical role in automating clinical and administrative processes. With a focus on improving patient outcomes and operational efficiency, software solutions are continuously evolving to incorporate advanced features such as artificial intelligence and predictive analytics. In contrast, services are emerging as a vital complement to these software offerings, providing implementation, training, and ongoing support that enhance the overall effectiveness of technology investments. The demand for services is fueled by factors such as a growing need for compliance with healthcare regulations and the transition toward value-based care models, making it an increasingly important segment in its own right.

    Get more detailed insights about US Healthcare Information Systems Market

    Key Players and Competitive Insights

    The healthcare information-systems market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for integrated solutions. Major players such as Epic Systems (US), Cerner Corporation (US), and Allscripts Healthcare Solutions (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Epic Systems (US) continues to focus on innovation, particularly in electronic health records (EHR) and interoperability solutions, which are critical for seamless data exchange across healthcare systems. Cerner Corporation (US) emphasizes partnerships with healthcare providers to develop tailored solutions that address specific operational challenges, while Allscripts Healthcare Solutions (US) is investing in cloud-based technologies to improve accessibility and scalability of their services. Collectively, these strategies contribute to a competitive environment that prioritizes technological integration and user-centric solutions.

    In terms of business tactics, companies are increasingly localizing their operations and optimizing supply chains to enhance efficiency and responsiveness. The market appears moderately fragmented, with a mix of established players and emerging startups vying for market share. This competitive structure allows for diverse offerings, yet the influence of key players remains substantial, as they set industry standards and drive innovation.

    In October 2025, Epic Systems (US) announced a strategic partnership with a leading telehealth provider to enhance remote patient monitoring capabilities. This move is significant as it aligns with the growing trend towards telehealth services, enabling healthcare providers to offer more comprehensive care solutions. By integrating telehealth functionalities into their existing EHR systems, Epic Systems (US) positions itself as a leader in the evolving landscape of digital health.

    In September 2025, Cerner Corporation (US) launched a new AI-driven analytics platform aimed at improving clinical decision-making. This initiative is crucial as it leverages data to provide actionable insights, thereby enhancing patient outcomes and operational efficiency. The incorporation of AI into their offerings not only strengthens Cerner's competitive edge but also reflects the broader industry trend towards data-driven healthcare solutions.

    In August 2025, Allscripts Healthcare Solutions (US) expanded its cloud-based services through the acquisition of a startup specializing in health data interoperability. This acquisition is indicative of Allscripts' commitment to enhancing its technological capabilities and addressing the critical need for seamless data exchange among healthcare providers. Such strategic moves are likely to bolster their market presence and improve service delivery.

    As of November 2025, the competitive trends in the healthcare information-systems market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in driving innovation and expanding their service offerings. Looking ahead, competitive differentiation is expected to evolve, shifting from traditional price-based competition to a focus on innovation, technological advancement, and supply chain reliability. This transition underscores the importance of adaptability and forward-thinking strategies in maintaining a competitive edge in the market.

    Key Companies in the US Healthcare Information Systems Market market include

    Industry Developments

    In recent months, the US Healthcare Information Systems Market has shown significant activity. Major players such as Cerner and Oracle announced the completion of their merger in September 2023, combining their extensive services to enhance digital health management. Furthermore, in October 2023, athenahealth launched a new platform aimed at streamlining electronic health record (EHR) functionalities to improve provider-patient interactions.

    In terms of market valuation, companies like Epic Systems and McKesson have seen an uptick in stock prices due to increased demand for telehealth solutions and health IT systems, particularly in the wake of the COVID-19 pandemic. Growth in market valuation reflects heightened investments in health IT, with federal incentives facilitating expansions in digital health technologies. Similarly, eClinicalWorks introduced new features focused on interoperability, enhancing data exchange among healthcare providers.

    Over the last 2-3 years, the demand for advanced healthcare information systems has surged, demonstrated by significant investments often exceeding $30 billion annually, underscoring the critical role of technology in modern healthcare delivery across the United States. Companies like GE Healthcare and Siemens Healthineers continue to innovate, contributing to an increasingly integrated healthcare ecosystem.

    Future Outlook

    US Healthcare Information Systems Market Future Outlook

    The healthcare information-systems market is projected to grow at a 12.0% CAGR from 2024 to 2035, driven by technological advancements, regulatory changes, and increasing demand for data analytics.

    New opportunities lie in:

    • Integration of AI-driven predictive analytics tools for patient management.
    • Development of telehealth platforms with enhanced interoperability features.
    • Expansion of cloud-based electronic health record systems for scalability.

    By 2035, the market is expected to achieve substantial growth, driven by innovation and increased adoption.

    Market Segmentation

    US Healthcare Information Systems Market Use Outlook

    • Hospitals
    • Ambulatory Care Centers
    • Diagnostic Laboratories
    • Pharmaceutical Companies

    US Healthcare Information Systems Market Component Outlook

    • Software
    • Hardware
    • Services

    US Healthcare Information Systems Market Deployment Outlook

    • On-Premises
    • Cloud-Based
    • Web-Based

    US Healthcare Information Systems Market Application Outlook

    • Electronic Health Records
    • Laboratory Information Systems
    • Radiology Information Systems
    • Pharmacy Information Systems

    Report Scope

    MARKET SIZE 2024534.25(USD Million)
    MARKET SIZE 2025598.36(USD Million)
    MARKET SIZE 20351857.79(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR)12.0% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Million
    Key Companies Profiled["Epic Systems (US)", "Cerner Corporation (US)", "Allscripts Healthcare Solutions (US)", "McKesson Corporation (US)", "Athenahealth (US)", "Philips Healthcare (NL)", "Siemens Healthineers (DE)", "GE Healthcare (US)"]
    Segments CoveredApplication, Deployment, Use, Component
    Key Market OpportunitiesIntegration of artificial intelligence in healthcare information-systems enhances decision-making and operational efficiency.
    Key Market DynamicsGrowing demand for interoperability drives innovation in healthcare information-systems, enhancing data exchange and patient care.
    Countries CoveredUS

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    FAQs

    What is the projected market size of the US Healthcare Information Systems Market in 2024?

    The US Healthcare Information Systems Market is expected to be valued at 10.5 billion USD in 2024.

    How much will the US Healthcare Information Systems Market be worth by 2035?

    By 2035, the US Healthcare Information Systems Market is projected to reach a value of 19.0 billion USD.

    What is the expected compound annual growth rate (CAGR) for the US Healthcare Information Systems Market from 2025 to 2035?

    The market is expected to grow at a CAGR of 5.539% from 2025 to 2035.

    Which segment of the US Healthcare Information Systems Market has the largest market share in 2024?

    In 2024, the Electronic Health Records segment is valued at 4.0 billion USD, making it the largest segment.

    What is the expected market size of the Laboratory Information Systems segment by 2035?

    The Laboratory Information Systems segment is anticipated to reach 4.0 billion USD by 2035.

    Who are the key players in the US Healthcare Information Systems Market?

    Major players in the market include Allscripts, Oracle, athenahealth, and Cerner, among others.

    What will be the market value of Pharmacy Information Systems in 2024?

    The Pharmacy Information Systems segment is expected to be valued at 2.3 billion USD in 2024.

    What is the expected growth rate for the Radiology Information Systems segment from 2025 to 2035?

    The Radiology Information Systems segment is projected to exhibit significant growth during the forecast period of 2025 to 2035.

    How does the US Healthcare Information Systems Market compare to global markets?

    The US market is one of the largest among global markets for healthcare information systems, indicating strong domestic demand.

    What challenges might the US Healthcare Information Systems Market face in the coming years?

    Challenges may include technology integration and data security concerns within the evolving landscape of healthcare information systems.

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