Digital Transformation Market in Healthcare: Custom Application Development Software and Rising Adoption of Integration Service Key Trends, Says Future Market Insights

The healthcare industry is consistently evolving, from the adoption of telemedicine to the use of robotic process automation (RPA) to enhance patient experience. According to a new study by Future Market Insights (FMI), with the advent of innovative technologies, patients can undergo enhanced treatment with the help of virtual reality, wearable devices, and other advances. These developments are expected to drive digital transformation in healthcare.

Augmented reality and virtual reality are innovative solutions that are revolutionizing the healthcare industry. From 2018 to 2023, the value of the healthcare-based AR and VR industry is expected to increase exponentially. Thus, there is significant untapped growth opportunities for the digital transformation in healthcare market.

Among various end users, hospitals & clinics are anticipated to account for the leading share in the digital transformation in healthcare market, backed by the rise in adoption of IoT which ensures better connectivity in the healthcare industry

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digital transformation market in healthcare key countries and end user mekko chart, 2021
Digital Transformation in Healthcare Market

Key Takeaways: Digital transformation in Healthcare Market

  • The global digital transformation in healthcare market is estimated to register a CAGR of over 14% during the forecast period of 2021-2031
  • Presence of a sophisticated healthcare infrastructure supports expansion in the U.S., which accounts for over 80% of total demand in North America
  • Investment in smart healthcare will push y-o-y growth in the U.K. at 14.4% in 2021
  • Exponential growth is likely in Germany and France, especially due to the increasing spending on expansion of healthcare
  • While China is expected to remain a leading market for digital transformation in healthcare within East Asia, Japan is likely to grow at a higher pace

“Enabling smart technology with a view to enhance organizational flexibility and mobility has accelerated digital transformation across professional settings. These technological advancements are generating an upswing in business models and value chains. To ensure healthy growth, companies must continue investing in digital transformation and integration and enhance revenue pools,” says FMI analyst.  

COVID-19 Impact on Digital Transformation in Healthcare Market

COVID-19 is disrupting businesses and industries nationwide, and somewhat disproportionately healthcare. This dire situation ushered in a massive digital transformation of the healthcare industry to reduce operational costs, save time for treatments, and ultimately improve care quality. Healthcare advancement is considered as a phased evolution, the pandemic only accelerated the transformation and saw pioneering research in medical science.

For instance, telehealth software (or remote patient monitoring) became a norm in 2020 as it eliminated the need for physical human interactions. This became the most significant advantage during the COVID-19 crisis. Additionally, telehealth software offered healthcare professionals a wider geographical reach, especially where medical resources are limited.

Hence, the digital transformation in healthcare market is estimated to grow around 10% to 12% Y-o-Y from 2019 to 2021.

Rapid Adoption of Mobility Services and Healthcare Mobile Apps to Become a Key Trend

Healthcare organizations are increasingly inclined towards mobile-based communication and encouraging staff to bring their own device for work-related purposes, which in turn, reduces the cost associated with purchase of healthcare communication devices. This is expected to increase the demand for mobility services. In addition, healthcare mobility services enable healthcare service organizations to access patient data from anywhere and share their insights with patients in real time.

Healthcare organizations around the world are focused on providing custom-made healthcare apps for wearable fitness and medical devices. Such applications enable patients to access healthcare information via mobile and devices. This, in turn, is expected to fuel the market growth in the near future.

Who is Winning?

Companies operating in the market currently have their focus on introducing advanced technologies. With their intent on making healthcare smarter, digital transformation will continue to gain pace within the healthcare sector. Some of the leading companies operating in the market are IBM Corporation, CGI Group Inc., Accenture PLC, Deloitte LLP, and HCL Technologies among others.

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More Valuable Insights on Digital Transformation in Healthcare Market

FMI’s report on the digital transformation in healthcare market is segmented into three major sections – solution (software – electronic health record (EHR) software, connected medical billing, healthcare information system (HIS), healthcare CRM software, healthcare ERP software, healthcare collaboration tools, telehealth software, and others, and service – digital transformation consulting, digital transformation technology implementation & integration, support & maintenance, and others), end user (hospitals & clinics, pharma companies, life science & biotech companies, healthcare insurance providers, and others), and region (North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa), to help readers understand and evaluate lucrative opportunities in the digital transformation in healthcare market.

Key Segments Covered


  • Software
    • Electronic Health Record (EHR) Software
    • Connected Medical Billing
    • Healthcare Information System (HIS)
    • Healthcare CRM Software
    • Healthcare ERP Software
    • Healthcare Collaboration Tools
    • Telehealth Software (Remote Patient Monitoring)
    • Others
  • Service
    • Digital Transformation Consulting
    • Digital Transformation Technology Implementation & Integration
    • Support & Maintenance
    • Others

End User

  • Hospitals & Clinics
  • Pharma Companies
  • Life Science & Biotech Companies
  • Healthcare Insurance Providers
  • Others


  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa (MEA)

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