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    US Healthcare IT Market

    ID: MRFR/HCIT/16424-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Healthcare IT Market Research Report By Application (Electronic Health Records, Telemedicine, Healthcare Analytics, Patient Engagement Solutions, Healthcare Information Exchange), By End User (Hospitals, Ambulatory Surgical Centers, Clinics, Pharmaceutical Companies, Research Organizations), By Deployment Mode (On-Premise, Cloud-Based, Hybrid) and By Functionality (Administrative Solutions, Clinical Solutions, Financial Solutions) - Forecast to 2035

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    US Healthcare IT Market Infographic
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    US Healthcare IT Market Summary

    As per MRFR analysis, the US healthcare it market Size was estimated at 61.0 USD Billion in 2024. The healthcare it market industry is projected to grow from 65.11 USD Billion in 2025 to 125.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.74% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

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

    • The rise of telehealth solutions is reshaping patient-provider interactions, enhancing accessibility and convenience.
    • Integration of artificial intelligence is streamlining operations and improving diagnostic accuracy across healthcare settings.
    • Emphasis on cybersecurity is intensifying as healthcare organizations prioritize the protection of sensitive patient data.
    • The growing demand for interoperability and the shift towards value-based care are key drivers propelling market expansion.

    Market Size & Forecast

    2024 Market Size 61.0 (USD Billion)
    2035 Market Size 125.0 (USD Billion)

    Major Players

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

    US Healthcare IT Market Trends

    The healthcare it market is currently experiencing a transformative phase, driven by advancements in technology and an increasing emphasis on data management. The integration of electronic health records (EHRs) has become a cornerstone, facilitating improved patient care and operational efficiency. As healthcare providers seek to enhance their services, the adoption of telehealth solutions is also on the rise, allowing for remote consultations and monitoring. This shift not only broadens access to care but also aligns with the growing demand for convenience among patients. Furthermore, the focus on cybersecurity has intensified, as the protection of sensitive health information becomes paramount in an increasingly digital landscape. In addition to these developments, the healthcare it market is witnessing a surge in the utilization of artificial intelligence (AI) and machine learning technologies. These innovations are being leveraged to analyze vast amounts of data, leading to more informed decision-making and personalized treatment plans. As regulatory frameworks evolve, they are likely to support the continued growth of these technologies, fostering an environment conducive to innovation. Overall, the healthcare it market appears poised for sustained growth, driven by technological advancements and a commitment to improving patient outcomes.

    Rise of Telehealth Solutions

    The adoption of telehealth solutions is rapidly increasing, enabling healthcare providers to offer remote consultations and monitoring. This trend enhances patient access to care and aligns with the demand for convenience.

    Integration of Artificial Intelligence

    Artificial intelligence is becoming integral to the healthcare it market, facilitating data analysis and personalized treatment plans. This technology supports informed decision-making and enhances patient care.

    Emphasis on Cybersecurity

    As the healthcare sector becomes more digital, the focus on cybersecurity is intensifying. Protecting sensitive health information is crucial, prompting investments in robust security measures.

    US Healthcare IT Market Drivers

    Shift Towards Value-Based Care

    The transition from fee-for-service to value-based care models is significantly influencing the healthcare it market. This shift emphasizes patient outcomes and cost-effectiveness, compelling healthcare organizations to adopt advanced technologies that facilitate data analytics and performance measurement. It is estimated that by 2026, over 50% of Medicare payments will be tied to value-based care arrangements. Consequently, healthcare providers are increasingly investing in healthcare it solutions that support population health management, care coordination, and patient engagement. This trend not only enhances the quality of care but also aligns with the financial incentives provided by payers. As healthcare organizations adapt to this new paradigm, the demand for innovative healthcare it solutions is likely to surge, driving market growth.

    Advancements in Cloud Computing

    The healthcare it market is experiencing a transformative phase due to advancements in cloud computing technologies. The adoption of cloud-based solutions is becoming increasingly prevalent among healthcare organizations, as these technologies offer scalability, cost-effectiveness, and enhanced data accessibility. Recent estimates suggest that the cloud computing segment within the healthcare it market could grow at a CAGR of over 20% through 2027. This trend is likely to facilitate the storage and sharing of vast amounts of healthcare data, enabling providers to leverage analytics for improved decision-making. As organizations seek to optimize their operations and reduce IT infrastructure costs, the demand for cloud-based healthcare it solutions is expected to rise, driving market growth.

    Growing Demand for Interoperability

    The healthcare it market is experiencing a notable shift towards interoperability, driven by the need for seamless data exchange among various healthcare systems. As healthcare providers increasingly recognize the importance of integrated care, the demand for interoperable solutions is expected to rise. According to recent data, approximately 70% of healthcare organizations in the US are prioritizing interoperability initiatives. This trend is likely to enhance patient outcomes and streamline workflows, thereby fostering a more efficient healthcare system. The push for interoperability is also supported by regulatory frameworks that encourage data sharing, which may further propel the growth of the healthcare it market. As a result, vendors that offer robust interoperability solutions are likely to see increased adoption and investment in their technologies.

    Increased Focus on Patient Engagement

    The healthcare it market is witnessing a heightened emphasis on patient engagement, as healthcare providers recognize the importance of involving patients in their own care. Technologies such as patient portals, mobile health applications, and telehealth services are becoming integral to enhancing patient experience and satisfaction. Recent surveys indicate that nearly 80% of patients prefer to engage with their healthcare providers through digital platforms. This trend is likely to drive the adoption of healthcare it solutions that facilitate communication and empower patients to take an active role in their health management. As healthcare organizations strive to improve patient engagement, the demand for user-friendly and accessible healthcare it tools is expected to grow, further propelling the market.

    Regulatory Compliance and Data Management

    The healthcare it market is significantly influenced by the need for regulatory compliance and effective data management. With stringent regulations such as HIPAA and HITECH in place, healthcare organizations are compelled to invest in technologies that ensure data security and compliance. It is estimated that compliance-related expenditures account for approximately 15% of total IT budgets in healthcare organizations. This focus on regulatory adherence is likely to drive the demand for healthcare it solutions that offer robust data management capabilities, including electronic health records (EHR) systems and data analytics tools. As organizations navigate the complexities of regulatory requirements, the healthcare it market is expected to expand, with vendors providing innovative solutions to meet compliance needs.

    Market Segment Insights

    By Application: Electronic Health Records (Largest) vs. Telemedicine (Fastest-Growing)

    In the US healthcare it market, the Electronic Health Records (EHR) segment holds the largest market share, driven by the increasing need for efficient patient data management and regulatory compliance. Following EHRs, Telemedicine is emerging as a fast-growing segment, especially with the acceleration of remote healthcare services post-pandemic as patients prefer consultations from their homes. Other segments like Healthcare Analytics and Patient Engagement Solutions also contribute to the industry's growth, although at a slower pace. Growth trends indicate a significant shift towards telehealth solutions, largely due to rising patient demand for convenience and accessibility. The COVID-19 pandemic catalyzed the adoption of Telemedicine, allowing healthcare providers to reach more patients effectively. Furthermore, advancements in technologies such as AI and machine learning are enhancing Healthcare Analytics, driving informed decision-making and improving patient outcomes across various segments in the US healthcare it market.

    Telemedicine (Dominant) vs. Healthcare Information Exchange (Emerging)

    Telemedicine stands out as a dominant force within the US healthcare it market, particularly due to its expanding role in delivering healthcare services remotely. It has rapidly integrated into mainstream healthcare practices, fostering patient engagement and convenience. On the other hand, Healthcare Information Exchange is an emerging segment that facilitates the secure sharing of patient information among different healthcare systems. This connectivity is pivotal for improving care coordination and enhancing patient safety. While Telemedicine focuses on direct patient-provider interactions, Healthcare Information Exchange emphasizes the backend processes required to streamline communication, underscoring the importance of interoperability in the evolving healthcare landscape.

    By End User: Hospitals (Largest) vs. Ambulatory Surgical Centers (Fastest-Growing)

    In the US healthcare it market, hospitals represent the largest segment, capturing a significant share due to their extensive need for IT solutions to manage patient data and streamline operations. Ambulatory surgical centers, while smaller in market share, are rapidly gaining traction, especially in IT investments to enhance surgical efficiency and patient management. Growth in the healthcare IT segment is driven by an increasing demand for telehealth services and electronic health records (EHR) systems. Hospitals are focusing on integrating advanced technologies to improve service delivery, while ambulatory surgical centers are experiencing growth due to the shift towards outpatient operations, necessitating robust IT support. The overall trend indicates a strong push towards digital transformation across all end users in the healthcare sector.

    Hospitals (Dominant) vs. Pharmaceutical Companies (Emerging)

    Hospitals, being the dominant end user in the US healthcare it market, benefit from substantial investments in IT to enhance patient care, optimize workflows, and comply with regulatory requirements. They are increasingly transitioning to cloud-based systems and automation, which allows for improved data management and accessibility. In contrast, pharmaceutical companies are emerging as significant players in the market, driven by the need for sophisticated data analytics and management tools to support extensive clinical research and drug development. As they invest in digital solutions, they aim to streamline operations and improve collaboration across research networks. This juxtaposition illustrates a dynamic shift where traditional roles are evolving while new opportunities for IT integration continue to arise.

    By Deployment Mode: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

    In the US healthcare it market, the distribution of deployment modes showcases a significant preference for Cloud-Based solutions, commanding a larger share due to their scalability and cost-effectiveness. On-Premise solutions, while still relevant, are being overshadowed by the rising popularity of Cloud-Based deployments. Conversely, Hybrid models are gaining traction as organizations seek a balanced approach to IT infrastructure, integrating both local and cloud capabilities. The growth trends indicate a robust shift towards Cloud-Based solutions, driven by increasing demands for remote access, data security, and compliance with regulations. Hybrid deployment is rapidly emerging as the fastest-growing segment, as healthcare providers are looking for flexible solutions that capitalize on the advantages of both cloud and on-premise technologies. As a result, innovation in this segment is expected to propel further advancements in the healthcare IT landscape.

    Cloud-Based (Dominant) vs. Hybrid (Emerging)

    Cloud-Based deployment in the US healthcare it market is distinguished by its accessibility and adaptability, allowing healthcare organizations to leverage advanced technologies without substantial upfront investments. This model ensures efficient data management, improved patient care, and adherence to the latest healthcare regulations. Additionally, it supports interoperability amongst various healthcare systems, facilitating seamless data exchange. On the other hand, the Hybrid deployment method is emerging rapidly, appealing to organizations that require flexibility to utilize both cloud capabilities and on-premise resources. This model provides significant versatility, enabling healthcare providers to maintain control over sensitive data while also enjoying the benefits of cloud technologies, leading to a more efficient operational environment.

    By Functionality: Clinical Solutions (Largest) vs. Administrative Solutions (Fastest-Growing)

    In the US healthcare it market, Clinical Solutions holds the largest share among the functionality segment values, benefiting from ongoing investments in patient care technologies, interoperability, and data analytics. In contrast, Administrative Solutions, while significant, have seen a relatively smaller market share due to the prioritization of clinical advancements. However, with the increasing need for efficiency and cost management, Administrative Solutions are gaining traction in healthcare organizations seeking to optimize operational workflows. Growth trends indicate that the administrative segments are rapidly evolving to meet the rising demand for automation and improved patient engagement tools. Key drivers for this growth include regulatory changes, the shift towards value-based care, and the adoption of cloud-based technologies. Organizations are likely to invest in comprehensive administrative solutions to streamline processes and enhance patient experiences, thereby solidifying these solutions as integral to future developments in the healthcare landscape.

    Clinical Solutions: Dominant vs. Administrative Solutions: Emerging

    Clinical Solutions are established as the dominant force within the functionality segment of the US healthcare it market, characterized by robust applications in electronic health records (EHR), telemedicine, and clinical decision support systems. These solutions are essential in enhancing patient care quality and operational efficiency, offering healthcare providers comprehensive tools to manage patient data effectively. Conversely, Administrative Solutions, though currently emerging, are gaining momentum as organizations recognize their potential for efficiency gains. These solutions focus on automating back-office tasks, improving scheduling, and enhancing billing processes. As healthcare systems prioritize cost reduction and operational effectiveness, Administrative Solutions are poised for substantial growth in the coming years.

    Get more detailed insights about US Healthcare IT Market

    Key Players and Competitive Insights

    The healthcare IT market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for efficient healthcare solutions. Major players such as Epic Systems Corporation (US), Cerner Corporation (US), and McKesson Corporation (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Epic Systems Corporation (US) focuses on innovation through its robust electronic health record (EHR) systems, while Cerner Corporation (US) emphasizes partnerships with healthcare providers to expand its service offerings. McKesson Corporation (US) is leveraging its extensive distribution network to optimize supply chain efficiencies, thereby enhancing its operational capabilities. Collectively, these strategies contribute to a moderately fragmented market structure, where competition is intensifying as companies seek to differentiate themselves through technology and service delivery.

    In terms of business tactics, companies are increasingly localizing their operations and optimizing supply chains to respond to the evolving needs of healthcare providers. The competitive structure remains moderately fragmented, with key players exerting considerable influence over market dynamics. This fragmentation allows for niche players to emerge, fostering innovation and driving competition. The collective influence of these major companies shapes the market, as they continuously adapt to regulatory changes and technological advancements.

    In October 2025, Epic Systems Corporation (US) announced a strategic partnership with a leading telehealth provider to enhance its EHR capabilities. This collaboration aims to integrate telehealth services directly into Epic's platform, thereby improving patient access to care and streamlining workflows for healthcare providers. The strategic importance of this move lies in Epic's commitment to digital transformation, positioning itself as a leader in the integration of telehealth solutions within traditional healthcare settings.

    In September 2025, Cerner Corporation (US) launched a new AI-driven analytics tool designed to assist healthcare organizations in predictive modeling and decision-making. This tool aims to enhance patient outcomes by providing actionable insights based on real-time data. The introduction of this technology underscores Cerner's focus on innovation and its efforts to leverage AI to improve healthcare delivery, potentially setting a new standard in the industry.

    In August 2025, McKesson Corporation (US) expanded its supply chain solutions by acquiring a logistics technology firm. This acquisition is expected to enhance McKesson's capabilities in managing complex supply chains, particularly in the distribution of pharmaceuticals. The strategic significance of this acquisition lies in McKesson's aim to improve operational efficiencies and ensure reliable delivery of critical healthcare products, thereby reinforcing its market position.

    As of November 2025, the healthcare IT market is witnessing trends such as increased digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances are becoming increasingly vital, as companies recognize the need to collaborate to enhance their service offerings and technological capabilities. Looking ahead, competitive differentiation is likely to evolve, with a shift from price-based competition to a focus on innovation, technology integration, and supply chain reliability. This evolution suggests that companies that prioritize these aspects will be better positioned to thrive in an increasingly competitive landscape.

    Key Companies in the US Healthcare IT Market market include

    Industry Developments

    Recent developments in the US Healthcare IT Market have seen significant advancements, particularly in the area of digital health solutions. Allscripts Healthcare Solutions announced enhancements to their EHR platforms in September 2023 aimed at improving interoperability. Verily Life Sciences has been garnering attention for its role in various health data initiatives, particularly in collaborating with pharmaceutical companies to leverage data for better healthcare outcomes. In terms of mergers and acquisitions, McKesson Corporation completed the acquisition of a leading HealthTech firm in August 2023, enhancing their capabilities in pharmacy automation.

    Furthermore, Optum has expanded its technological services through partnerships aimed at streamlining patient management processes. The valuation growth of companies like Cerner Corporation and Epic Systems continues to reflect the increasing reliance on digital solutions in healthcare, with overall market growth driven by innovation and demand for EHR systems.

    Major occurrences over the last few years, such as the widespread implementation of telehealth technologies during the pandemic, have significantly influenced the market landscape, establishing a long-term trend toward digital transformation across all healthcare sectors in the United States.

    Future Outlook

    US Healthcare IT Market Future Outlook

    The healthcare IT market is projected to grow at a 6.74% CAGR from 2024 to 2035, driven by technological advancements, regulatory changes, and increasing demand for efficient healthcare solutions.

    New opportunities lie in:

    • Telehealth platform integration with existing EHR systems
    • AI-driven predictive analytics for patient management
    • Blockchain solutions for secure health data exchange

    By 2035, the healthcare IT market is expected to be robust, driven by innovation and strategic investments.

    Market Segmentation

    US Healthcare IT Market End User Outlook

    • Hospitals
    • Ambulatory Surgical Centers
    • Clinics
    • Pharmaceutical Companies
    • Research Organizations

    US Healthcare IT Market Application Outlook

    • Electronic Health Records
    • Telemedicine
    • Healthcare Analytics
    • Patient Engagement Solutions
    • Healthcare Information Exchange

    US Healthcare IT Market Functionality Outlook

    • Administrative Solutions
    • Clinical Solutions
    • Financial Solutions

    US Healthcare IT Market Deployment Mode Outlook

    • On-Premise
    • Cloud-Based
    • Hybrid

    Report Scope

    MARKET SIZE 2024 61.0(USD Billion)
    MARKET SIZE 2025 65.11(USD Billion)
    MARKET SIZE 2035 125.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 6.74% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled Epic Systems Corporation (US), Cerner Corporation (US), Allscripts Healthcare Solutions (US), McKesson Corporation (US), Athenahealth, Inc. (US), Philips Healthcare (NL), Siemens Healthineers (DE), GE Healthcare (US), Oracle Corporation (US)
    Segments Covered Application, End User, Deployment Mode, Functionality
    Key Market Opportunities Integration of artificial intelligence in clinical decision support systems enhances patient outcomes and operational efficiency.
    Key Market Dynamics Rapid technological advancements drive innovation and competition in the healthcare IT market, reshaping service delivery and efficiency.
    Countries Covered US

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    FAQs

    What is the projected market size of the US Healthcare IT Market by 2035?

    By 2035, the US Healthcare IT Market is expected to be valued at 165.0 USD Billion.

    What is the expected CAGR for the US Healthcare IT Market from 2025 to 2035?

    The expected CAGR for the US Healthcare IT Market from 2025 to 2035 is 6.863%.

    How much is the Electronic Health Records segment valued in 2024?

    The Electronic Health Records segment is valued at 20.0 USD Billion in 2024.

    What are the projected values for the Telemedicine segment by 2035?

    The Telemedicine segment is projected to be valued at 30.0 USD Billion by 2035.

    Which application segment is expected to have the highest market value in 2035?

    Healthcare Information Exchange is expected to have the highest market value at 48.0 USD Billion in 2035.

    Who are the major competitors in the US Healthcare IT Market?

    Major players include Allscripts Healthcare Solutions, NextGen Healthcare, Optum, and Cerner Corporation among others.

    What is the market size for Healthcare Analytics in 2024?

    The market size for Healthcare Analytics is valued at 12.5 USD Billion in 2024.

    What is the anticipated market size for Patient Engagement Solutions by 2035?

    The anticipated market size for Patient Engagement Solutions is expected to be 20.0 USD Billion by 2035.

    What challenges may impact the US Healthcare IT Market growth?

    Potential challenges include increasing cybersecurity threats and regulatory compliance complexities.

    What trends are emerging in the US Healthcare IT Market?

    Emerging trends include increased adoption of telemedicine and advancements in artificial intelligence for healthcare solutions.

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