Healthcare Claims the Lead as the Industry Providing the
Highest Growth Potential for Software Vendors, According to
IDC
FRAMINGHAM, Mass., July 28, 2005 Increasing IT adoption rates
within the U.S. healthcare industry are expected to fuel the growth
of the software market over the next five years, according to IDC.
On average, the healthcare market will represent a 9.7% five-year
compound annual growth rate (CAGR) within the packaged
applications, infrastructure software, and application and
development and deployment markets. Together, these markets totaled
$98.1 billion in 2004.
Professional services, discrete manufacturing, banking, other
financial services, and retail will also account for a significant
portion of revenue generated within these three software segments
over the forecast period. Alone, professional services is estimated
to account for the largest share of revenue generated within both
the infrastructure software and application development and
deployment markets by 2009, at $3.5 billion and $3.1 billion
respectively.
Laptop Battery Noel Stevens, senior research analyst for IDC's Software
Vertical Views programs, explained that the significant increase in
software spending within the healthcare industry is based upon the
fact that, "until recently, a distinct polarity has existed in the
healthcare industry with respect to its use of medical technology
and information technology. Although at the forefront of technology
in terms of diagnostic and treatment equipment, the industry has
long been deemed the laggard with regard to information technology.
However, now faced with an aging population requiring at-home or
long-term care, escalating overhead costs, and information privacy
regulations such as HIPAA, the industry is under intense pressure
to bring its information technology into the 21st century."
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Thinkpad In particular, increased software adoption within the healthcare
industry will allow for more effective cost control and better
patient care, as well as improvements in employee productivity and
overall competitiveness of provider networks.
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Microsoft IDC's newly released forecasts for the packaged applications,
infrastructure software, and application development and deployment
markets present industry-specific outlooks for each of these
software markets over the next five years. They include, North
American Packaged Application Software 2005-2009 Forecast by
Vertical Market (IDC #33579), North American Systems Infrastructure
Software 2005-2009 Forecast by Vertical Market (IDC #33650), and
North American Application Development and Deployment Software
2005-2009 Forecast by Vertical Market (IDC #33633). On a more
granular level, this forecast series delves into the drivers
influencing end-user software spending within 18 different vertical
industries, and by company size, thus underscoring opportunities
for software vendors to penetrate verticals providing the fastest
growth and adoption rates.
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