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July 17, 2016

Chinese IT healthcare solutions market grows to 6.5 billion in 2020

IDC predicts the Chinese IT healthcare will grow to 6.5 billion dollars in 2020. That is almost double the size in 2015 (3.8 billion dollars). In 2015 tot 2020 the IT healthcare solutions market will grow with a CAGR (average growth per year) of 11.1 percent.

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Various measures are driving healthcare service process reengineering and upgrading in China healthcare IT, the market research firm  writes.  Such measures include Tripartite Healthcare Linkage (joint actions between healthcare service, health insurance and pharmaceutical management), promotions of hierarchical diagnosis and treatment, general practitioner pilot work, separation of clinic from pharmacy, development of private hospitals, and medical insurance payment reform trials.

The integration of new technology-driven Internet healthcare with health management and in-hospital healthcare services, has increased demand for hospital information systems renewal. The effective implementation of the healthcare reform policy and the continuous development of new healthcare service models based on emerging information technology accelerate changes in both healthcare service modes and healthcare IT architecture in China.

Cloud is becoming big in the IT healthcare market in China. In 2015, healthcare institutions in China formed a cloud service market size of US$28.6 million. Such services mainly consisted of IaaS (infrastructure-as-a-service) and SaaS (software-as-a-service). In the next few years, this market is expected to achieve a CAGR of 34%, reaching a size of US$125.0 million by 2020.

Healthcare in the cloud

Cloud service are expected to enter a period of continuous fast growth. In some applications, cloud HIS as the pioneer of the SaaS model has started to gradually grow in the market. Cloud HIS products introduced by DHC and Ali Healthcare are now in a process of deployment and promotion. More vendors have begun to pay attention to this field or are currently developing related products. In 2016 and the years after, specialized healthcare industry clouds will be established, with the government involved in certification and supervision of healthcare industry clouds. Provided that the government does its promotional work well, the cloud healthcare market will expand faster in the future, IDC predicts.

The market for mobile healthcare solutions is biggerat the moment,  but will grow somewhat slower than cloud based services. The in-hospital mobile application solution (including terminal devices and mobile software and services) market in China reached a size of US$156.6 million in 2015. This market is expected to have a CAGR of 24.6 percent in the next few years, reaching US$471.4 million in 2020.

Healthcare going mobile

Mobile application systems have been widely adopted in hospitals and will continue to grow. Mobile application systems used to support healthcare and nursing personnel are an important tool to support in-hospital diagnosis and treatment such as closed-loop nursing. Next to that, they lay the foundation for the development of integrated in-hospital and outside-hospital healthcare services.

In 2016 and beyond, various hospital information systems, hierarchical diagnosis and treatment systems and regional health information systems will benefit from innovative development. Zhuojian Technology, Quyiyuan.Com, SENYINT and other emerging healthcare vendors have begun to apply mobile healthcare and long-distance healthcare in hierarchical diagnosis and treatment systems. In the future, systems that support the integration of in-hospital and outside-hospital healthcare services will develop as industry platforms.

Healthcare delivery platforms will be built to connect all kinds of payers and healthcare institutions and provide service to users at large. Ping’an Group as a supersized health insurance company is also actively expanding such healthcare service business and actively takes part in Tripartite Healthcare Linkage.

Emerging tech, internet healthcare complement each other

Summarising, writes IDC, emerging technologies and internet healthcare will complement each other. Third platform technology-based emerging HIT systems are becoming a supporting pillar in the grand changes in healthcare service models. In 2016 and beyond, hospital information systems will be upgraded to next-generation hospital core management systems. Cloud service and mobile Internet will become the basic architecture for such system deliveries.

These architectures will adopt a B2B2C development model. Integrated solution platforms will drive the development of Internet healthcare and the Internet healthcare service market will grow faster. According to Leon Xiao, Senior Research Manager at IDC China, “an emerging information system architecture that integrates in-hospital and outside-hospital services will change the healthcare IT delivery model forever as the breadth of healthcare expands.”

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