Hospital Information System Market Size & Share, by Component (Software, Services); Deployment - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Integration of AI and ML: Advanced technologies such as cloud computing, artificial intelligence (AI), and machine learning (ML) are widely adopted in several sectors and healthcare is no exception. For instance, around 18.7% of hospitals in the U.S. adopt some form of artificial intelligence in their systems. Hospital information system are being increasingly integrated with these technologies to improve the features and overall operations in healthcare facilities. In the long-term view, these technologies are estimated to evolve more and transform the landscape of healthcare management systems.
• Investments to improve healthcare facilities: Public healthcare facilities witness a high intake of patients, and due to less availability of digital technologies most of the administrative work is carried out on paper. The loss of one document can significantly hamper patient care and challenge the workflow. Thus, to overcome this issue, governments worldwide are spending more on advancing their healthcare facilities. Hospital information system such as electronic health records, administrative information systems, and clinical informative systems enhance administrative and patient care environments in public settings. Apart from this, some governments are also engaging in initiatives to improve healthcare systems in other regions. For instance, the U.S. Agency for International Development invests in strengthening the healthcare systems in different regions to reduce the risk of any future pandemics and optimize administrative work.

Challenges

• Data privacy concerns: The rise in the adoption of software solutions can attract several cyber attackers even in healthcare settings. Hackers often try to steal the financial information of patients, which can lead to high losses due to ransom payments. Also, high-profile breaches can lead to public distrust hampering the goodwill of healthcare providers and limiting the adoption of information systems. For instance, the U.S. Department of Health and Human Services, Tri County Medical Supply and Respiratory Services Inc. reported a data breach in October 2024 affecting around 8000 people.
• Resistance to change: Many hospital facilities in developing economies often resist adopting advanced technologies due to lack of knowledge and familiarity with existing conventional systems. The integration of advanced technologies also requires high investments in terms of installation and maintenance. Many healthcare facilities don’t employ skilled IT technicians and rely on third-party service providers, which again contributes to the overall costs.