Healthcare IT market destined to boom in the coming five years

Increased demand for clinical systems is expected to fuel growth in the North American healthcare IT segment by more than $10 billion in the next five years.

Just in case you were wondering where the money in IT was going, I have the answer: Healthcare. In fact, there's a whole lot of money going into healthcare IT each year.

A new study is out by Texas-based RnR Market Research. Analysts claim:

The North American HCIT market is forecast to grow at a CAGR [Compound Annual Growth Rate] of 7.4 percent to reach $31.3 billion by 2017 from $21.9 billion in 2012 due to the increasing demand for clinical information technology, and administrative solutions and services.

Yes, that's $10 billion in market growth in just five years.

Interestingly, the analysts predict that Canada will grow at a faster rate (CAGR 7.7 percent) than the US (CAGR 7.2 percent). Even so, the US market is so big (some might say bloated) that it dwarfs others in overall value. The US share of the market is expected to be $22.6 billion (out of all of North America's $31.3 billion) by 2017.

Healthcare IT isn't one monolithic market, though. The researchers broke out a number of key areas, including clinical information systems, hospital information systems, electronic medical records, picture archiving and communication systems, radiology information systems, computerized physician order entry, cardiovascular information and imaging systems, clinical decision support systems, laboratory information systems, pharmacy information systems, non-clinical information systems, payroll, account payable, automatic patient billing, claim management, revenue cycle management, cost accounting, workflow systems, and other administrative systems.

There is, of course, one other market that RnR didn't spotlight that shows quite some promise. That's the market analysis market. If you want to read the full report, it will set you back $4,650.