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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST MarketResearch.com

2 HEALTHCARE IT INTEGRATION MARKET By Products (Interface Engine, Medical Device Integration, Media Integration), Services (Implementation, Maintenance, Training), By Applications (Hospitals, Radiology, Laboratory, Clinics, HIE) Global Forecast to 2018 MarketsandMarkets

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets Sample Page 2

4 1 EXECUTIVE SUMMARY Healthcare IT integration platforms and tools form the backbone of any successful healthcare information network. The global healthcare IT market has experienced a substantial growth phase in the past decade, and so has the market for integration tools and platforms. However, in the past two to three years, the market growth in Europe has been somewhat restricted due to the impact of the Eurozone debt crisis and the global recession in the past few years. The growth in the healthcare IT integration market can be mainly attributed to rising healthcare costs, which has compelled governments across many developed countries to initiate cost control initiatives in their respective healthcare systems. There has been a continuous demand for healthcare IT integration worldwide triggered primarily by strong government support and initiatives, the growing need to integrate healthcare systems, and efforts from healthcare providers to maximize their returns on investment. However, various interoperability issues, a fragmented end-users market, and the high cost of implementation still remain some of the challenges for greater adoption of integration tools within the healthcare industry, thus restraining the healthcare IT integration market growth. MarketsandMarkets Sample Page 3

5 FIGURE 1 GLOBAL HEALTHCARE IT INTEGRATION MARKET REVENUE TREND, ($MILLION) 4, ,000.0 Market Size ($Million) 2, , CAGR ( ) % % % % ABC CDE DEF EFG Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis For the purpose of this study, the global healthcare IT integration market is divided into four major geographies, namely, North America, Europe, Asia, and the Rest of the World (RoW). The market was valued at $ million in 2013 and is poised to grow at a CAGR of % in the forecast period, to reach $ million by By 2018, North America will continue to dominate the healthcare IT integration market, followed by Europe, Asia, and RoW. The U.S. has been a frontrunner in the development of IT infrastructure for the healthcare industry and is a well-established market for healthcare IT solutions. However, there lies a further growth opportunity for the healthcare IT integration market in the U.S considering the presence of large hospitals in the country demanding integrated healthcare networks and availability of government funding for healthcare providers towards the development of statewide and nationwide healthcare information exchanges. MarketsandMarkets Sample Page 4

6 As the Asian market is relatively new to healthcare IT integration, the market share of this region is not expected to change significantly in the next five years. However, the increasing number of government initiatives towards implementation of IT in the healthcare industry will propel the demand for healthcare IT solutions, which in turn will drive the HCIT integration market at a greater than average CAGR during 2013 and FIGURE 2 GLOBAL HEALTHCARE IT INTEGRATION APPLICATION TYPES MARKET, BY GEOGRAPHY, 2013 North America ($Million) Europe ($Million) APAC ($Million) RoW ($Million) ABC BCD CDE DEF EFG FGH GHI Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis The healthcare IT integration market is broadly divided into two application areas, namely, internal and external applications. The internal HCIT integration application areas include hospital integration, lab integration, medical device integration along with integration of clinics, laboratories and radiology centers, medical device integration, and others like telehealth and ambulatory services. Hospital integration dominated the global healthcare IT internal MarketsandMarkets Sample Page 5

7 integration market with a share of % in North America accounted for the largest share of the hospital integration market and was valued at $ million in 2013, followed by Europe which was valued at $ million in the same year. The large share of the North American hospital integration market was mainly attributed to the large number of government initiatives providing incentives for healthcare providers at various stages of implementation of healthcare IT solutions. The growing commitment from healthcare service providers in the region to improve quality of care by improving workflow efficiency and timely availability of healthcare data across the system further drive the market in North America FIGURE 3 HEALTHCARE IT INTEGRATION PRODUCTS MARKET, SEGMENTAL ANALYSIS, % 12% CAGR (%) 10% 8% CDE EFG ABC GHI 6% 4% Market Size ($Million) Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis The healthcare IT integration market includes integration/interface engines, medical device integration software, media integration solutions, and other integration tools. Interface engines dominated the healthcare data integration market with a majority share of % in The market was valued at $ million in 2013 and is expected to grow at a CAGR of % in the MarketsandMarkets Sample Page 6

8 forecast period. The growth of this market was mainly driven by the emergence of health information exchanges (HIE) backed by government initiatives to promote integrated healthcare infrastructure. The prominent players in the healthcare IT integration market are InterSystems (U.S.), Corepoint (U.S.), Siemens AG (Germany), Orion Health (New Zealand), Infor (U.S.), Interfaceware (Canada), Enovacom (France), Cerner Corporation (U.S.), Capsule (U.S.), Accenture (Ireland), Capgemini (France), IBM Corporation (U.S.), Allscripts (U.S.), Oracle (U.S.), and AVI-SPL (U.S.). MarketsandMarkets Sample Page 7

9 2 PREMIUM INSIGHTS 2.1 HOSPITAL INTEGRATION REMAINS THE LARGEST APPLICATION AREA OF HEALTHCARE IT INTEGRATION ACROSS GEOGRAPHIES Hospital integration improves sharing of information seamlessly, which in turn improves care continuity and reduces the risk of medical errors. It also enhances the quality of patient care and thus helps in optimizing reimbursements, resulting in reduction of healthcare expenditures of patients. FIGURE 4 GLOBAL HEALTHCARE IT INTEGRATION MARKET, BY APPLICATION, 2013 VS 2018 ($MILLION) ABC BCD CDE EFG GHI JKL Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis The hospital integration market remains the largest application area of healthcare IT integration with a share of close to % of the global market and a share of % of the internal integration market. The market is expected to grow at a CAGR of % in the forecast period to reach $ million by 2018 from $ million in This is mainly attributed to the significant shortage of physician and nurses, rising healthcare costs, and the move by the federal government and commercial payers to enable value-based reimbursement. MarketsandMarkets Sample Page 8

10 3 MARKET DYNAMICS 3.1 MARKET SHARE ANALYSIS MEDICAL DEVICE INTEGRATION SOFTWARE MARKET Cerner Corporation dominated the global medical device integration software market with a share of % in The company is a leading supplier of healthcare information technology (HCIT) solutions, services, devices, and hardware to hospitals, physicians, ambulatory facilities, home health facilities, employer sites, and retail pharmacies. With its strong presence in more than 25 countries, the company offers the CareAware connectivity architecture that helps to connect various medical devices, such as ventilators, infusion pumps, and laboratory equipment to the electronic medical record. The company is expected to sustain its leading position in the next few years in the medical devices integration market, primarily due to its strong footprint in the global market that helps the company to establish a strong distribution channel for medical device integration products. FIGURE 5 GLOBAL MEDICAL DEVICE INTEGRATION SOFTWARE MARKET SHARE ANALYSIS, BY KEY PLAYERS, 2013 % ABC % CDE EFG % Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis MarketsandMarkets Sample Page 9

11 4 HEALTHCARE IT INTEGRATION MARKET, BY PRODUCTS AND SERVICES 4.1 HEALTHCARE IT INTEGRATION MARKET, BY PRODUCTS Based on products, the healthcare IT integration market studied in this report primarily focuses on the software and tools used for healthcare IT integration. The market is influenced by an increasing need for integration in continually expanding hospitals and other healthcare organizations, which require healthcare IT integration tools for building the interfaces between various departments/systems. As the adoption of electronic medical records grows, so does the importance of integrating increasingly complex data sets. However, most of the time, this data resides in disparate systems, thereby threatening the integrity of enterprise collaboration and efficient workflow operations. Thus, an integration engine/interface engine and other integration tools are used in order to simplify the complexities involved in data transfer inside and outside healthcare organizations. Based on products, the healthcare IT integration market includes integration/interface engines, medical device integration software, media integration solutions, and other integration tools. Interface engines form the backbone of healthcare data integration, and hence the integration/interface engines segment dominated the healthcare IT integration market with a majority share of % in Integration engines help to develop data interfaces quickly and efficiently and support various data formats and healthcare standards, including Health Level 7 (HL7), Digital Imaging and Communications in Medicine (DICOM), The National Council for Prescription Drug Programs (NCPDP), Continuity of Care Record (CCR), Clinical Document Architecture (CDA), and Continuity of Care Document (CCD). Thus, interface engines ensure constant flow of patient data between various applications without any need for clustered and complex interfaces. The global healthcare IT integration market, by product, was valued at $ million in 2013 and is poised to grow at a CAGR of % in the forecast period ( ), to reach $ million by MarketsandMarkets Sample Page 10

12 The major players in this market are InterSystems (U.S.), Corepoint Health (U.S.), Siemens AG (Germany), Orion Health (New Zealand), Infor (U.S.), Interfaceware (Canada), and Enovacom (France), Cerner Corporation (U.S.), Capsule (U.S.), and AVI-SPL (U.S.). TABLE 1 GLOBAL HEALTHCARE IT INTEGRATION MARKET, BY PRODUCT, ($MILLION) Product CAGR ( ) Integration/Interface Engines % Medical Device Integration Software % Media Integration Solutions % Other Integration Tools % Total % Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis The integration/interface engines segment dominated the healthcare IT integration market at the highest share of % in This segment was valued at $ million in 2013 and is expected to reach $ million by 2018, growing at a CAGR of % from 2013 to The medical device integration software segment, on the other hand, is poised to grow at the highest CAGR of % during the forecast period. This segment was valued at $ million in 2013 and is expected to reach $ million by This growth can be attributed to the growing number of initiatives towards better patient safety across the globe and the rise in the number of outpatient visits demanding improved equipment utilization and efficient data management and data transfer from medical devices. MarketsandMarkets Sample Page 11

13 5 GEOGRAPHIC ANALYSIS 5.1 INTRODUCTION TABLE 2 HEALTHCARE IT INTEGRATION MARKET, BY GEOGRAPHY, ($MILLION) Region CAGR ( ) North America % Europe % Asia % RoW % Total % Source: Annual Reports, SEC Filings, Integrated Healthcare Association (IHA), Health Level Seven International (HL7), Healthcare Information and Management System Society (HIMSS), American Health Information Management Association (AHIMA), other Healthcare IT Integration Associations, Expert Interviews, and MarketsandMarkets Analysis North America was the largest healthcare IT integration market with a % share in 2013; this market was valued at $ million in 2013 and is expected to reach $ million by The U.S. has been a prime market for healthcare IT companies, owing to the initiatives undertaken by the U.S. Federal government to provide incentives for the adoption of electronic medical records and integration of healthcare IT infrastructure. The European market is expected to grow at a CAGR of %, as the market is gradually moving towards recovery from the Eurozone debt crisis; the market is improving with the help of initiatives from various governments that are aimed towards reconstructing HCIT systems, in order to curtail their respective national healthcare expenditure. MarketsandMarkets Sample Page 12

14 Asia, with countries like China and India, is the most lucrative market for healthcare providers, owing to the presence of a large disease population. The Asian market is estimated to grow at a CAGR of % in the next five years. Government initiatives in Asian countries like Japan (e- Japan Policy) are also expected to fuel the growth of the healthcare IT integration market in the Asian region. MarketsandMarkets Sample Page 13

15 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to noncustomers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. MarketsandMarkets Sample Page 14

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