Europe Healthcare Information Technology (IT) Market

Europe Healthcare Information Technology (IT) Market Analysis

The Europe Healthcare Information Technology Market size is estimated at USD 114.94 billion in 2025, and is expected to reach USD 226.19 billion by 2030, at a CAGR of 14.5% during the forecast period (2025-2030).

In Europe, the growing demand for paperless technology, coupled with heightened government funding for healthcare services and infrastructure, is poised to propel market growth during the forecast period. For example, in September 2022, health ministers at the WHO Regional Committee for Europe approved the Regional Digital Health Action Plan for 2023–2030. This plan, spearheaded by WHO/Europe and the European Commission, aims to develop and implement telemedicine through various policies.

In another instance, Bertelsmann Investments, in May 2023, injected EUR 10 million (USD 11.02 million) into Patient21, a Berlin-based healthcare technology firm. Patient21's proprietary software platform streamlines the entire patient journey, enhancing treatment digitization, simplifying patient processes, and alleviating the administrative load on medical staff. Such significant investments and bolstered government initiatives underscore the anticipated growth of Europe's healthcare IT market during the forecast period.

Moreover, the strategic maneuvers of key players, including the launch of software and cloud-based healthcare services and collaborative efforts to broaden product availability, are set to further bolster the market. For instance, in June 2022, Vodori, a cloud-based software developer automating workflows for life science companies, made its European market debut. This expasion, driven by market demand, was facilitated through a long-term partnership with 3SIX Health. Vodori is leveraging dedicated resources to establish a robust European clientele spanning pharmaceuticals, biotechnology, medical devices, and diagnostics.

Additionally, in May 2023, Hexarad, a United Kingdom-based teleradiology service provider, unveiled OptiRad, a workflow management software aimed at enhancing efficiency in radiology departments. Given the surge of advanced technologies in healthcare IT and the active penetration of key players across Europe, the demand for the healthcare IT market is set to escalate during the forecast period.

In summary, bolstered by rising investments, supportive government initiatives, and proactive strategies from key players, Europe's healthcare IT market is on track for significant growth. However, challenges loom in the form of a skilled personnel shortage and high maintenance costs, which are expected to hinder this growth trajectory.

Europe Healthcare Information Technology (IT) Market Trends

Software Segment is Expected to Witness a Positive Growth Over the Forecast Period

Healthcare software solutions primarily assist medical professionals in training, research, diagnosis, database management, and equipment planning. Hospitals commonly utilize software for remote patient monitoring, telemedicine, electronic health records (EHR), hospital management, and appointment scheduling. The segment's growth is fueled by the rising launch of diverse healthcare software and strategic partnerships with medical centers across Europe. For example, in April 2023, the Princess Alexandra NHS Trust (PAHT) inked a decade-long deal with Oracle Health EHR. This collaboration aims to streamline PAHT's systems, consolidating multiple legacy digital and paper-based platforms into a unified EHR, thereby enhancing patient medication and treatment delivery.

Key players' presence, coupled with their strategic collaborations and acquisitions in various healthcare IT segments, is set to propel market growth. For instance, in July 2022, Dedalus Group, a prominent player in the European Digital Health arena, acquired the Healthcare Software Division of Italy's Lutech Group, a leading ICT services and solutions provider in Europe. This acquisition bolsters Dedalus' leadership in Italy's Hospital Information System/Laboratory Information System services. Additionally, government investments in software development for chronic disease detection significantly boost the segment's growth.

Further, in October 2022, the European Institute of Innovation & Technology (EIT) awarded EUR 3 million (USD 3.2 million) in EIT Health support over two years to two teams, Bonescreen and NIB Biotec, for their cancer early detection initiatives in Europe. Bonescreen, comprising five innovators, translates medical and AI research into software, aiding oncologists, radiologists, and patients in assessing bone health. Given such European government investments, the software segment is poised for robust growth.

In summary, driven by heightened software adoption, increased product launches, and surging investments, the segment is set for significant growth.

United Kingdom is Expected to Witness Healthy Growth in the Market Over the Forecast Period

The United Kingdom (UK) is poised for substantial growth in its healthcare IT market, driven by a robust digital health infrastructure, strategic government investments, and the presence of key industry players. For example, in March 2022, the Department for Business, Energy & Industrial Strategy (BEIS) and the Department of Health and Social Care (DHSC) allocated GBP 200 million (USD 255.4 million) to bolster NHS-led health research. This funding aimed to enhance diagnostics and treatment through innovative privacy-preserving platforms and clinical research services. Such significant government investments are set to boost the availability of advanced healthcare software in the UK, propelling market growth during the forecast period.

Moreover, the rising adoption of healthcare IT services in hospitals, coupled with expanded offerings from key players, is set to fuel the UK's market growth. For instance, between January and October 2022, Babylon Health's network of over 870 virtual healthcare providers in the UK facilitated over 1 million appointments within a year. This surge in healthcare IT service adoption underscores the growing demand, further driving the market's expansion in the UK. Similarly, in January 2023, CloudWave partnered with MEDITECH UK to deliver MEDITECH’s Expanse EPR (Electronic Patient Record) and MEDITECH Cloud Hosted offering to East Cheshire NHS Trust and Mid Cheshire Hospitals NHS Foundation Trust.

Hence, due to the increase in the adoption of healthcare IT services and a rise in financial support by government agencies to support the development of various software-based services, the United Kingdom is expected to witness significant growth over the forecast period.

Europe Healthcare Information Technology (IT) Industry Overview

The Europe healthcare IT market is fragmented in nature due to the presence of several companies operating globally as well as regionally. A few of the major companies in the market are Veradigm (Allscripts Healthcare Solutions Inc.), Sysmex Corporation, Epic Systems Corporation, Siemens Healthcare GmbH, and Oracle.

Europe Healthcare Information Technology (IT) Market Leaders

Europe Healthcare Information Technology (IT) Market News

• March 2024: Oracle Health's electronic health record (EHR) became fully operational across the acute care facilities of the North West London Integrated Care System (ICS). This implementation equips caregivers with real-time access to patient information, facilitating informed care decisions and improved care coordination. With the successful integration of Oracle Health's EHR, the 12 acute care facilities within the North West London ICS are unified under a single EHR domain, catering to a patient population of 2.4 million.
• March 2024: inHEART, a private medical device firm known for its cutting-edge, AI-driven digital twin technology for the heart, secured FDA 510(k) clearance for its AI software module. This pioneering AI module offers fully automated segmentation of CT images, facilitating the swift creation of 3D cardiac models. This enhancement empowers inHEART to provide its solutions to physicians more rapidly and efficiently.