NHS IT market to reach £4bn by 2022

The NHS IT market is forecast to be worth over £4bn by 2022, according to the latest edition of Digital Health Intelligence’s report, Market Forecast, NHS IT spend in the UK, 2016-22.

According to the forecast, the UK health IT market will continue to grow over the next four years, reaching £4bn per year by 2022.

The key findings also reveal a significant shift in where national NHS IT money is spent. Key elements of central funding, such as the £4.2bn investment announced in February 2016 by health secretary Jeremy Hunt, will be reprioritised away from paperless initiatives into areas such as cybersecurity and infrastructure.

Jon Hoeksma, CEO of Digital Health said: “The key takeaway from our latest edition of the NHS IT Market Forecast is that spend on information technology as an enabler of health service modernisation will continue to rise year-on-year through to 2022.”

The report forecasts IT services will be a highest growth area, largely driven by the move towards new cloud-based services and delivery models, overtaking IT staff and software in terms of NHS IT spend.

Market opportunities will increase for outsourcing, cloud and specialist service providers, as well as for cyber security and analytics specialist services. Clinical systems that help NHS reduced costs, improve patient safety and minimise unnecessary admissions will be another focus for national and local investment.

The English health IT market will continue to see significantly higher spend than the devolved nations, with most of its spend remaining in the acute sector. For Scotland, Wales and Northern Ireland, a combined 15% total local NHS IT spend across for 2016-17 represents a significantly smaller share of the total market.

 

Detailed report

Now in its fourth edition, Digital Health Intelligence’s Market Forecast is the only report of its kind to cover England and the devolved nations, analysing current and future spend for acute, secondary, community, mental health sectors across key market segments: software, staff, services, hardware and communications.

Based on a detailed economic model developed by Digital Health, and using data supplied by individual NHS trusts gathered over six-months, the forecast is the most detailed and accurate picture of current and future NHS IT spend.

The report provides a detailed analysis and breakdown of spend for each of the Home Nations. In Scotland, for example, the main driver for spend will be both the integration of health and social care and demand for mobility across healthcare services, and as such a 6% increase spend on software is expected.

Hoeksma commented: “The report, which is exclusively available to NHS Intelligence subscribers, provides the essential reference data source for all companies seeking to understand the key trends in this key market, set to soon reach £4 billion per annum.”

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