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Starting from healthcare resource management to efficient handling of medical records and patient data, the Medical Info Systems industry is rapidly expanding its boundaries with each passing day. Added to this is the latest GenAI wave, which has significantly accelerated the acceptance and usage of advanced digital healthcare and telemedicine on a global scale. The year 2025 is expected to witness a significant expansion of the Medical Info Systems space, influenced by several new federal policies and regulatory supports. Particularly, Donald Trump's newly announced $500 billion Stargate project aims to revolutionize AI infrastructure in the United States, with significant implications for the digital healthcare sector.
Per a Business Research Company report, the use of AI in the medical device market is expected to witness a CAGR of 29.9% during 2026-2029. The market’s growth will be propelled by a patient-centric approach, increasing healthcare expenditure, regulatory support, enhanced clinical decision support and AI in disease prediction and prevention. The growing demand for all kinds of digital healthcare support has created a unique opportunity for companies like Enovis ENOV, Omnicell OMCL and Phreesia PHR. However, the healthcare system’s excessive dependence on IT comes with its share of risks. Any data disruption in the cloud-based service might result in a massive loss of information, thereby leading to a breakdown of the system.
Industry Description
The Zacks Medical Info Systems industry comprises companies that develop and market healthcare information systems. These companies offer software and hardware solutions to healthcare providers with secure access to real-time clinical, administrative and financial data in a time-efficient manner. Focus on patient satisfaction, security of patient data and administrative cost control has increased the need for big data, 3D printing, blockchain and AI. Industry players like Omnicell and Allscripts are raking in millions from the sale of software and related hardware, professional services and IT outsourcing services, and recurring service contracts for software maintenance and transaction processing services.
3 Trends Shaping the Future of the Medical Information Industry
AI and Health: The medical sector is one of the major adopters of AI, which is currently being used to synthesize new compounds for drugs and create devices for more precise measurement and faster and more accurate diagnosis. Starting from generative AI to surgical robotics, one common application of these has been in diagnostic settings, where it quickly and precisely detects image abnormalities that might be challenging for the human eye to spot. Further, electronic health records, electronic medical records, predictive analytics and real-time alerting have been gaining prominence. Trump 2.0’s new $500-billion Stargate project to fund infrastructure for artificial intelligence is expected to further enhance the medical information systems space by supporting the maintenance and analysis of electronic health records, enabling better data management and interoperability among healthcare providers. Going by a Pragma Market Research report, by 2025, the global AI in healthcare market is projected to reach $95.65 billion. AI-powered tools are enhancing diagnostics, with solutions like Google's DeepMind Health achieving higher accuracy in detecting conditions such as breast cancer. Wearable devices, such as Medtronic's AI-enabled glucose monitors and Apple's advanced health metric trackers, are empowering continuous patient monitoring and preventive care.
Growing Demand for Remote Healthcare: Within the medical information systems space, remote patient monitoring segments continue to grow at a fast rate, courtesy of the rapid increase in usage of wearable devices and telehealth services. The major driver behind this growth is the increasing awareness about the usefulness of continuous patient monitoring devices. This has proved to be a game-changer in increasing the standard and efficiency of medical care. Further, health tech products are also accelerating the diagnosis process and automating hospital workflows through robotics, AI-driven chatbots and so on. Going by a Custom Market Insights report, the global smart healthcare products market was valued at $145.9 billion in 2023 and is expected to reach $485.71 billion by 2032, at a CAGR of 12.78%.
Rising Instances of Cyber Attacks: As healthcare becomes more wired and interconnected, cybersecurity is the primary concern of hospitals. In fact, security flaws are being increasingly found in electronic medical device operating systems or other devices like ECG machines, imaging scanners, infusion pumps and telemetry systems. Indeed, the pandemic has resulted in growing cyber dependency, which has made the space vulnerable to cyber-attacks. Between October and December 2023, Henry Schein became the victim of consecutive cyberattacks. Further, in February 2024, Change Healthcare — a unit of UnitedHealth Group — was impacted by a cybersecurity incident.