Europe Healthcare IT Market Size, Growth, Share & Trends Analysis
Europe Healthcare IT Market by Solution (Clinical [EHR, PHM, PACs & VNA, Telehealth, PMS, CDSS, RIS, LIS], Nonclinical [RCM, Asset Management, Supply Chain], Service [Claim, Billing, Fraud]), End User (Hospital, ASC, Pharmacy, Payer) - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Europe healthcare IT market, valued at US$124.70 billion in 2024, stood at US$142.76 billion in 2025 and is projected to advance at a resilient CAGR of 14.7% from 2025 to 2030, culminating in a forecasted valuation of US$283.12 billion by the end of the period. The market is growing steadily, driven by increasing adoption of digital health solutions, cloud platforms, AI, and interoperability technologies, supported by government-led healthcare digitization initiatives across the region.
KEY TAKEAWAYS
-
By CountryIn Europe, Germany led the market with a share of 26.5% in 2024
-
By Solution & ServiceBy solution & service, the healthcare provider solutions segment is expected to register the highest CAGR of 16.3%.
-
By ComponentBy component, the services segment accounted for 47.2% of the market in 2024.
-
By End UserBy end user, the healthcare providers segment held the largest share of 73.7% in 2024.
-
Competitive Landscape: Key PlayersSiemens Healthineers AG, Oracle, and Dedalus S.p.A. were identified as some of the star players in the Europe healthcare IT market, given their strong market share and product footprint.
-
Competitive Landscape: Start-ups & SMEsInfermedica and LIO, among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The Europe healthcare IT market is expanding rapidly, supported by rising investments in healthcare digitalization, growing demand for data-driven care delivery, and the modernization of hospital and payer IT systems. Additionally, regulatory focus on interoperability, data security, and cross-border health data exchange is accelerating the adoption of advanced healthcare IT solutions across Europe.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The European healthcare IT market is being reshaped by EHR/HIS modernization, AI-enabled imaging and clinical decision support, and increased automation of coding, claims, and reimbursement. Driven by interoperability mandates and GDPR-aligned digital frameworks, these disruptions are improving diagnostic speed, operational efficiency, and care delivery across healthcare systems in Europe.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
-
EU-led digitization mandates and national eHealth initiatives
-
Growing use of data analytics in care delivery
Level
-
High healthcare IT deployment costs
-
Strict GDPR and cybersecurity requirements
Level
-
Expansion of AI-enabled clinical and administrative automation across European healthcare providers
-
Rising adoption of cloud-based and interoperable EHR adoption
Level
-
Shortage of skilled IT talent
-
Integration challenges with healthcare IT systems
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: EU-led digitization mandates and national eHealth initiatives
EU-led digitization mandates and national eHealth initiatives are a key driver of the European healthcare IT market, as governments actively promote the adoption of electronic health records, interoperable data platforms, and digital care solutions. The European Health Data Space (EHDS) initiative is enabling cross-border health data exchange, while country-level programs such as the UK’s NHS digital hospital initiatives, Germany’s Hospital Future Act (KHZG), and France’s national eHealth and interoperability programs are accelerating investments in modern healthcare IT.
Restraint: High healthcare IT deployment costs
High costs of implementing healthcare IT act as a major limitation in Europe, primarily because of the complexity involved in the deployment of such innovative technology in the existing legacy infrastructure. The healthcare organization faces heavy capital and operational expenses, such as licensing, customization, and training, in order to comply with security and other standards. The added expenses of maintaining and upgrading the technology act as barriers to implementing such solutions, particularly in the case of small to medium-scale organizations.
Opportunity: Expansion of AI-enabled clinical and administrative automation across European healthcare providers
The growth of automation of healthcare and clinical AI technology is accelerating the European healthcare technology industry, with healthcare providers employing machine learning-driven CDS, NLP-based documentation and coding, RPA-based scheduling and billing, and AI-based imaging analytics. The NHS AI Lab, in the UK, is catalyzing the adoption of AI solutions for diagnostic and efficiency gains among NHS trusts, while Health Data Hub makes it feasible to handle health data at a scale to build and validate AI-based apps. The above-mentioned examples highlight the use of AI technology to increase diagnostic precision, simplify the working process, and overcome the challenges of healthcare capacity while keeping within the tight regulatory requirements of the European healthcare industry.
Challenge: Shortage of skilled IT talent
The lack of professionals continues to pose a challenge for Europe's healthcare IT, given that adoption of cloud, digital, and AI technology happens more quickly than readiness and skills by the workforce. For instance, there are skills shortages related to healthcare informatics, data analytics, cybersecurity, and AI governance within healthcare providers in the EU region, even with programmes geared towards upskilling and reskilling members of the workforce through Digital Europe and digital healthcare training programmes offered by various European nations, such as the German and French governments.
EUROPE HEALTHCARE IT MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
 |
Cloud-based EHR, interoperability, analytics, and revenue cycle solutions for European hospitals and payers | Improved interoperability, scalability, cost efficiency, and regulatory compliance |
 |
Improved interoperability, scalability, cost efficiency, and regulatory compliance | Better care coordination, clinical efficiency, and data-driven decisions |
 |
Hospital IT solutions for pharmacy, supply chain, and connected clinical systems | Reduced medication errors and improved hospital operations |
 |
Imaging IT, diagnostics software, and AI-enabled workflow integration | Streamlined diagnostics and faster clinical workflows |
 |
Streamlined diagnostics and faster clinical workflows | Improved care continuity and administrative efficiency |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The Europe healthcare IT market ecosystem is a dynamic and multifaceted landscape that encompasses a variety of key stakeholders, including prominent vendors, innovative startups, regulatory bodies, and end users. Major players like Dedalus S.p.A., Oracle, and Siemens Healthineers AG provide essential technologies and services that drive the efficiency and effectiveness of healthcare IT systems. At the same time, emerging startups such as LIO and Infermedica are pioneering novel solutions that address specific challenges within the healthcare sector. These organizations are instrumental in fostering advancements in healthcare technology, ensuring that the industry's needs are met with cutting-edge solutions. Regulatory frameworks play a critical role in shaping the Europe healthcare IT market, with initiatives such as the General Data Protection Regulation (GDPR), the European Health Data Space, and the Medical Device Regulation establishing guidelines for data protection, interoperability, and safety. These regulations help ensure that patient data is handled with the utmost care while also promoting innovation within the sector. End users, including healthcare providers, payers, and life sciences industries, rely on these frameworks and technological solutions to support accurate code assignment, maintain compliance with regulations, and streamline claims processing. By collaborating effectively, all these stakeholders contribute to a robust healthcare system that prioritizes not only efficiency but also patient safety and quality of care.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Europe Healthcare IT Market, by Solution & Service
In 2024, the healthcare provider solutions segment held the largest share of the Europe healthcare IT market, as hospitals and regional health infrastructure spend increasingly on the modernization of EHRs at an increased pace. Germany has its Hospital Future Act (KHZG), which is investing in the upgrading of hospital IT infrastructure on a macro level, and digital transformation schemes in the UK NHS, which accelerate the adoption of EHR and Interoperability within trusts. Support from EU digital health programs and public health strategies, as well as compliance requirements from regulations like GDPR, EHDS, and cybersecurity, among other regulations, has increased the adoption of hospital-centric healthcare IT solutions within European nations.
Europe Healthcare IT Market, by Component
In 2024, the services segment accounted for the largest share of the Europe healthcare IT market, driven by the strong demand for healthcare IT services in Europe, which is rising as providers and payers invest in EHR modernization, integration, cybersecurity, and managed services. Programs such as France’s Ségur du numérique en santé, combined with GDPR compliance and country-specific regulations, are driving reliance on specialized service providers for system deployment, customization, and ongoing optimization across European healthcare systems.
Europe Healthcare IT Market, by End User
In 2024, the healthcare providers segment held the largest share of the Europe healthcare IT market, driven by widespread adoption of EHR/HIS, FHIR-based interoperability, CDSS, PACS/VNA, and analytics across European hospitals and health networks. Public digitization funding, such as Germany’s Hospital Future Act (KHZG), along with EU frameworks like the European Health Data Space and GDPR compliance, is accelerating investment in secure, cloud-enabled, and interoperable healthcare IT platforms.
REGION
UK to be fastest-growing region in Europe healthcare IT market during forecast period
The UK is projected to be the fastest-growing region in the Europe healthcare IT market, driven by strong government initiatives, NHS-led digital transformation programs, and increasing adoption of electronic health records, cloud platforms, healthcare analytics, and AI-enabled clinical solutions. Rising focus on interoperability, virtual care, and data-driven healthcare delivery continues to accelerate healthcare IT investments across the UK.
EUROPE HEALTHCARE IT MARKET: COMPANY EVALUATION MATRIX
In the Europe healthcare IT market matrix, Dedalus S.p.A. (Star Player) leads with a dominant presence, supported by electronic health records (EHR/HIS), laboratory and radiology systems (LIS/RIS), and population health management workflows. Cognizant (Emerging Leader) is driven by its wide range of technology-driven products, services, and platforms designed for healthcare providers, payers (insurers), and life sciences organizations.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Dedalus S.p.A. (Italy)
- Oracle (US)
- Koninklijke Philips N.V. (Netherlands)
- Siemens Healthineers AG (Germany)
- CompuGroup Medical (Germany)
- Optum, Inc. (US)
- ChipSoft B.V. (Netherlands)
- GE HealthCare (US)
- SAS Institute Inc. (US)
- Inovalon (US)
- Infor (US)
- Agfa-Gevaert Group (Belgium)
- Nuance Communications, Inc. (Microsoft) (US)
- Solventum (US)
- Epic Systems Corporation (US)
- InterSystems Corporation (US)
- SOPHiA GENETICS (Switzerland)
- Salesforce, Inc (US)
- CitiusTech Inc. (US)
- Cognizant (US)
- Infermedica (Poland)
- Teckel Medical (Spain)
- QMENTA (US)
- LIO (UK)
- SeqOne (France)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 124.70 BN |
| Market Forecast in 2030 (Value) | USD 283.12 BN |
| Growth Rate | CAGR of 14.7% |
| Years Considered | 2023–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD MN/BN) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
|
| Countries Covered | Germany, France, UK, Italy, Spain, Rest of Europe |
WHAT IS IN IT FOR YOU: EUROPE HEALTHCARE IT MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Local Competitive Landscape | Benchmarking of European healthcare IT vendors across EHR/HIS interoperability, AI capabilities, GDPR compliance, cybersecurity, and pricing models | Supports informed vendor selection and competitive positioning across EU markets |
| Pricing Analysis | Analysis of healthcare IT pricing models across Europe, including public tenders, subscriptions, and country-specific funding structures | Analysis of healthcare IT pricing models across Europe, including public tenders, subscriptions, and country-specific funding structures |
| Go-to-Market Strategy | Europe-focused market entry plan covering country prioritization, regulatory compliance, and channel partnerships | Europe-focused market entry plan covering country prioritization, regulatory compliance, and channel partnerships |
| Technology Adoption by Region | Mapping adoption of AI coding, EHR-integrated workflows, cloud platforms, and analytics across Europe | Guides regional technology strategy and automation-led growth |
RECENT DEVELOPMENTS
- November 2025 : Philips launched a web-based diagnostic viewer that provides fast, secure access to medical imaging data anywhere, enabling clinicians to view, share, and collaborate on imaging studies through a browser-based interface.
- September 2025 : Siemens Healthineers and Aiforia Technologies partnered to expand AI-powered digital pathology solutions across European diagnostic laboratories, boosting clinical IT capabilities with AI-driven image analysis.
- September 2025 : Philips and Getinge partnered in Europe to deliver an integrated anesthesia and patient monitoring solution, offering a single point of purchase and support to streamline operating room workflows and enhance clinical care.
Table of Contents
Exclusive indicates content/data unique to MarketsandMarkets and not available with any competitors.
Methodology
The study involved five major activities to estimate the current size of the Europe healthcare IT market. Exhaustive secondary research was done to collect information on the market and its different subsegments. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources such as annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, gold-standard & silver-standard websites, regulatory bodies, and databases (such as D&B Hoovers, Bloomberg Business, and Factiva) were referred to in order to identify and collect information for the study of Europe healthcare IT market. It was also used to obtain important information about the top players, market classification, and segmentation according to industry trends to the bottom-most level, geographic markets, and key developments related to the market. A database of the key industry leaders was also prepared using secondary research.
Primary Research
Extensive primary research was conducted after acquiring basic knowledge about the global Europe healthcare IT market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand side (Hospital directors, Hospital Vice Presidents, Department heads, and Critical care specialists ) and supply side (such as C-level and D-level executives, technology experts, product managers, marketing and sales managers, among others) across five major regions—North America, Europe, the Asia Pacific, Latin America, Middle East, and Africa. This primary data was collected through questionnaires, e-mails, online surveys, personal interviews, and telephonic interviews
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Europe healthcare IT market. These methods were also used extensively to estimate the size of various subsegments in the market.
Data Triangulation
After arriving at the overall market size—using the market size estimation processes—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and sub-segment, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the Europe healthcare IT market.
Market Definition
Healthcare Information Technology (HCIT) involves designing, developing, creating, using, and maintaining information systems related to the healthcare industry. Healthcare IT digitizes existing paper-based healthcare systems, ensuring effective care and patient safety. The solutions encompass the use of software, or infrastructure to record, store, protect, and retrieve clinical, administrative, or financial information by healthcare providers, payers, or other end users.
Stakeholders
- Healthcare IT solution providers
- Healthcare IT vendors
- Healthcare IT service providers
- Healthcare payers
- Academic research institutes
- Government institutes
- Market research and consulting firms
- Venture capitalists and investors
Report Objectives
- To define, describe, and forecast the global Europe healthcare IT market based on solution & service, component, end user, and region.
- To provide detailed information regarding the major factors (such as drivers, restraints, opportunities, and challenges) influencing the market growth
- To strategically analyze micro-markets with respect to individual growth trends, prospects, and contributions to the overall Europe healthcare IT market
- To analyze opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders.
- To strategically analyze the market structure profile of the key players of the Europe healthcare IT market and comprehensively analyze their core competencies.
- To forecast the size of the market segments with respect to five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
- To track and analyze competitive developments such as product launches and enhancements and investments, partnerships, collaborations, acquisitions, expansions, agreements, sales contracts, and alliances in the Europe healthcare IT market during the forecast period.
Need a Tailored Report?
Customize this report to your needs
Get 10% FREE Customization
Customize This ReportPersonalize This Research
- Triangulate with your Own Data
- Get Data as per your Format and Definition
- Gain a Deeper Dive on a Specific Application, Geography, Customer or Competitor
- Any level of Personalization
Let Us Help You
- What are the Known and Unknown Adjacencies Impacting the Europe Healthcare IT Market
- What will your New Revenue Sources be?
- Who will be your Top Customer; what will make them switch?
- Defend your Market Share or Win Competitors
- Get a Scorecard for Target Partners
Custom Market Research Services
We Will Customise The Research For You, In Case The Report Listed Above Does Not Meet With Your Requirements
Get 10% Free Customisation
Growth opportunities and latent adjacency in Europe Healthcare IT Market