Digital Transformation in Healthcare Market Report 2025

This Digital Transformation in Healthcare market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The digital transformation in healthcare market size has grown rapidly in recent years. It will grow from $81.02 billion in 2024 to $97.19 billion in 2025 at a compound annual growth rate (CAGR) of 20%. The growth in the historic period can be attributed to increasing demand for asset tracking, growing focus on workflow optimization, the need for improved patient safety, and increased focus on the safety and security of patients.

The digital transformation in healthcare market size is expected to see rapid growth in the next few years. It will grow to $198.91 billion in 2029 at a compound annual growth rate (CAGR) of 19.6%. The growth in the forecast period can be attributed to growing global population, rising number of patients, the rising demand for enhance patient care and safety, adoption of the real-time location systems (RTLS) in healthcare, increasing healthcare spending on a global scale, and governments prioritize modernizing healthcare systems. Major trends in the forecast period include launch of healthcare apps, new product launches, partnerships and collaborations, technological advancements, and integration of artificial intelligence and machine learning.

The increasing adoption of electronic health records (EHRs) is expected to drive the growth of digital transformation in the healthcare market moving forward. EHRs are digital versions of patients' paper charts, providing real-time, patient-centered records that are securely accessible to authorized users. The adoption of EHRs is being driven by factors such as improved patient care, regulatory incentives, better data sharing, patient engagement, data analytics, and enhanced population health management. Digital transformation in healthcare plays a crucial role in optimizing EHR systems, incorporating advanced technologies that improve system functionality and ensure seamless data sharing and coordinated patient care across healthcare providers. For example, in October 2023, a report from Oxford Academic revealed a significant rise in the adoption of EHR systems, with basic EHR adoption increasing from 6.6% to 81.2%, and comprehensive EHR systems growing from 3.6% to 63.2%. Large hospitals have a 7% higher adoption rate of comprehensive EHRs compared to medium-sized hospitals, and they are over 34% ahead of small hospitals in adoption. Therefore, the increasing adoption of electronic health records is a key driver of digital transformation in the healthcare market.

Leading companies in the healthcare digital transformation market are concentrating on developing innovative technologies such as digitalization solutions to strengthen their market position. Digitalization solutions encompass technologies, strategies, and services that convert traditional processes into digital formats, enhancing operational efficiency and productivity. For instance, Huawei Technologies Co. Ltd. launched its Medical Technology Digitalization Solution in February 2024, employing AI and machine learning for advanced medical imaging analysis and real-time patient monitoring through IoT devices. This solution revolutionizes healthcare practices by improving accessibility and patient outcomes.

In September 2023, Accenture plc, an Irish professional services firm, purchased Nautilus Consulting for an undisclosed sum. This acquisition is intended to bolster Accenture's healthcare sector capabilities, utilizing Nautilus' expertise in digital transformation to enrich its solutions and deliver pioneering services to healthcare clients. Nautilus Consulting Limited, based in the UK, specializes in electronic patient record (EPR) solutions within the healthcare industry.

Major companies operating in the digital transformation in healthcare market are Roche Diagnostics, Midea Group, Medtronic plc, ABB Ltd., Siemens Healthineers, Philips Healthcare, Stryker Corporation, GE Healthcare, Boston Scientific, Omron Corporation, Intuitive Surgical Inc., KUKA AG, Omnicell Inc., Allscripts Healthcare Solutions, InTouch Health, Kinova Robotics, Blue Ocean Robotics ApS, Vecna Robotics, Stereotaxis Inc., Aethon Inc., Intuition Robotics, Ateago Technology, VGo Communications Inc., ReWalk Robotics Ltd., Futronics Corporation.

North America was the largest region in the digital transformation in healthcare market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital transformation in healthcare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital transformation in healthcare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Digital transformation in healthcare encompasses the integration of digital technologies across all aspects of healthcare services and operations. This includes adopting tools such as electronic health records (EHRs), telemedicine, wearable devices, artificial intelligence (AI), and big data analytics. These technologies aim to improve the efficiency, accessibility, and quality of patient care. The objective is to create a healthcare system that is more efficient, effective, and patient-centered, capable of adapting to the changing needs of both patients and healthcare providers.

Key components of digital transformation in healthcare include software and services. Software comprises instructions, data, or programs that operate computers and perform specific tasks. It spans various organizational sizes, from small and medium-sized enterprises to large enterprises, and involves technologies such as artificial intelligence, cloud computing, big data analytics, the internet of things, and cybersecurity. End users benefiting from these advancements include hospitals, clinics, pharmaceutical companies, life sciences and biotechnology firms, and healthcare insurance providers.

The digital transformation in healthcare market research report is one of a series of new reports that provides digital transformation in healthcare market statistics, including digital transformation in healthcare industry global market size, regional shares, competitors with a digital transformation in healthcare market share, detailed digital transformation in healthcare market segments, market trends and opportunities, and any further data you may need to thrive in the digital transformation in healthcare industry. This digital transformation in healthcare market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The digital transformation in healthcare market consists of revenues earned by entities by providing clinical transformation, operational transformation, patient experience transformation, data-driven transformation, interoperability transformation, and consumer health transformation. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital transformation in healthcare market also includes sales of telemedicine platforms, wearable health devices, mobile health apps, artificial intelligence (AI) and machine learning tools, big data analytics platforms, and robotic process automation (RPA) systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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