Patient Engagement Solutions Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global patient engagement solutions market growth forecasted to transform from $22.5 billion in 2023 to $41.8 billion by 2028, driven by a CAGR of 13.2%. Factors such as the implementation of government regulations and initiatives to encourage patient-centric care, the growing demand for patient engagement solutions, the increasing number of collaborations and partnerships between stakeholders, and the rising use of mobile health apps are the factors driving the growth of this market. However, large investment requirements for healthcare infrastructure, inadequate interoperability across healthcare providers, and a dearth of skilled IT professionals in the healthcare industry are expected to restrain the growth of this market during the forecast period.

Patient Engagement Solutions Market Size, Dynamics & Ecosystem

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Patient Engagement Solutions Market Dynamics

Driver: Implementation of government regulations and initiatives to promote patient-centric care

In recent years, the implementation of government initiatives and regulations to promote patient-centric care has become a driving force in advancing the patient engagement solutions market. Governments worldwide have increasingly acknowledged the pivotal role of patient involvement in healthcare decision-making and overall outcomes. For instance, in the United States, the Centers for Medicare & Medicaid Services (CMS) launched the Promoting Interoperability program, which, since 2020, incentivizes healthcare providers to adopt electronic health records (EHRs) that enhance patient engagement. This initiative reflects a commitment to empowering patients by improving access to their health information. Furthermore, regulatory frameworks such as the Health Insurance Portability and Accountability Act (HIPAA) in the U.S., spanning the years 2020 to 2022, emphasize patient privacy and security, fostering trust and promoting the adoption of secure patient engagement solutions. Globally, initiatives like the European Commission's Digital Single Market strategy, ongoing throughout these years, aim to create a seamless digital healthcare experience for patients across European member states. These recent initiatives underscore a sustained effort to drive patient-centric care through the widespread adoption of advanced patient engagement solutions.

Restraint: Inadequate interoperability across healthcare providers

The lack of interoperability across healthcare providers is a barrier to advancing patient engagement. Confronted with poor interoperability, hospitals classically build or license interfaces to import and export information from internal and external sources, such as the hospital’s EHR, medical devices, laboratories, admit/discharge/transfer processes, and outside laboratories. Thus, a separate hospital may employ a few dozen interfaces, while a greater health system with several sites may have to hire hundreds or even thousands of interfaces. For care coordination models, far more complex interfaces will be important to accommodate data exchange. These interfaces prove costly and hard to maintain and demand highly skilled technicians for their effective operation. The health information exchanges employed by hospitals as a solution to interoperability barriers also pose several challenges involving capital-intensive operation and technical problems in their management.

Opportunity: Growth opportunities in emerging markets

Government initiatives promoting the adoption of Healthcare Information Technology (HCIT) solutions, increasing government expenditure on healthcare facilities, and the availability of skilled IT experts in emerging Asian countries, such as India and China, are anticipated to bolster the growth of the patient engagement solutions market in the Asia Pacific region. Technological advancements play a crucial role in reshaping the healthcare management sector of these countries.

Challenge: High deployment costs of healthcare IT systems

The high deployment cost of healthcare IT systems poses an important challenge to the industry. Implementing robust healthcare IT solutions demands substantial financial investment, encompassing software, hardware, infrastructure, and ongoing maintenance expenses. For healthcare providers, especially those operating on limited budgets, the upfront costs associated with acquiring and integrating sophisticated IT systems can be prohibitive. Additionally, the expenses related to staff training, data migration, and system customization contribute to the overall deployment cost burden. This challenge can impede the widespread adoption of advanced healthcare IT solutions, limiting their accessibility to a broader range of healthcare organizations. Addressing this challenge requires strategic planning, innovative financing models, and collaborative efforts to make cutting-edge healthcare IT systems more financially viable for healthcare providers of all sizes.

Patient Engagement Solutions Market Ecosystem

The patient engagement solutions market ecosystem comprises entities responsible for delivering these solutions to end users. The demand continues to grow and expand as healthcare providers and payers implement these solutions to optimize workload, improve data transfer, and focus on patient-centric care. Solution and service providers continue to enhance and mature their offerings to increase value addition.

The services offered consist of support & maintenance, upgradation, and managed services. The end users are mainly healthcare providers, payers, and patients.

Patient Engagement Solutions Market Segmentation & Geographical Spread

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By component, the software segment accounted for the largest share of the global patient engagement solutions industry in 2022.

Based on components, the patient engagement solutions market is bifurcated into software, hardware, and services. In 2022, the software segment accounted for the largest share of the global patient engagement solutions market by component. The hardware market is further segmented into integrated bedside terminals/assisted devices, in-room televisions, and tablets. The software market is further bifurcated into integrated software and standalone software. In 2023, the integrated software segment is expected to account for the largest share & this segment is also expected to grow at the highest CAGR during the forecast period. Integrated solutions help reduce the time spent manually entering data into a computer, thus enabling clinicians and administrative staff to spend more time with patients. Also, these solutions allow a user to complete multiple business functions from within the same interface.

By delivery mode, the on-premise solutions segment accounted for the largest share of the global patient engagement solutions industry.

Segmented by delivery mode, the patient engagement solutions market is categorized into on-premise and cloud-based/web-based modes. As of 2022, the on-premise mode segment secured the majority share in the global patient engagement solutions market. However, expectations indicate that the cloud-based/web-based mode segment is poised to achieve the most substantial CAGR throughout the forecast period. Factors such as scalability, flexibility, and affordability provided by cloud-based solutions support its growth in the patient engagement solutions market. These solutions also ease the limited costs incurred in the purchase of hardware and the licensing of software.

By application, the health management segment accounted for a considerable share in the patient engagement solutions industry in 2022.

Based on application, the patient engagement solutions market is bifurcated into health management, home health management, social & behavioral management, and financial health management. In 2022, the health management applications segment accounted for the largest share of the global patient engagement solutions market by application. Health management comprises a wide range of patient engagement tools that help patients engage with their providers and take initiatives to improve or maintain their health status and increased awareness among patients about health conditions are the factors driving market growth.

By region, North America accounted for the largest share of the global patient engagement solutions industry in 2022.

In 2022, North America accounted for the largest share of the global patient engagement solutions market by region. Favorable government initiatives and regulations, the need to curb healthcare costs, and the rising prevalence of chronic diseases are key factors driving market growth in the region. Several key players in the patient engagement solutions market are based in the US. This factor is also expected to contribute to the large share of North America in the global market.

Prominent players in patient engagement solutions market are McKesson Corporation (US), Veradigm (US), Oracle Corporation (US), Merative (US), Epic Systems Corporation (US), Orion Health (New Zealand), GetWellNetwork (US), athenahealth (US), Oneview Healthcare (Ireland), MEDITECH (US), IQVIA (US), Get Real Health (US), Cognizant (US), Harris Healthcare (US), Kareo (US), CureMD Healthcare (US), eClinicalWorks (US), Lincor Solutions (US), AdvancedMD (US), Luma Health Inc. (US), WellStack (US), Vivify Health (US), Medhost (US), MEDISYSINC (US), and Patient point LLC (US). These players are increasingly focusing on new product launches and partnerships to expand their product offerings in the patient engagement solutions market.

Scope of the Patient Engagement Solutions Industry

The study categorizes the Patient engagement solutions market to forecast revenue and analyze trends in each of the following submarkets:

By component

• Hardware
  • In-room televisions
  • Integrated bedside terminals/Assisted devices
  • Tablets
• Software
  • Standalone Software
  • Integrated Software
• Services

By Delivery Mode

• On-Premise Mode
• Cloud-Based Mode

By Application

• Health management
• Home health management
• Social & behavioral management
• Financial health management

By Therapeutic area

• Chronic diseases
  • Cardiovascular diseases (CVD)
  • Diabetes
  • Obesity
• Other chronic diseases
• Women’s health
• Fitness
• Other Therapeutic Areas

By Functionality

• Introduction
• E-Prescribing
• Telehealth
• Patient/Client Scheduling
• Document Management
• Patient Education
• Billing & Payments
• Others Functionality

By End user

• Providers
  • Hospitals and healthcare system
  • Ambulatory care centers
  • Home healthcare
• Payers
  • Private
  • Public
• Patients
• Other End users

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • Rest of Middle East & Africa

Recent Developments of Patient Engagement Solutions Industry

• In June 2022, Francisco Partners (US), a leading global investment firm that specializes in partnering with technology businesses, completed the acquisition of healthcare data and analytics assets that were chunk of IBM Watson Health. Under the ownership of Francisco Partners, the new standalone company has been called Merative. The company combines market-leading products that deliver value across the global healthcare ecosystem, serving clients in life sciences, imaging, health plans, and government health & human service sectors.
• In 2021, McKesson (US) announced a strategic agreement with Merck (US) that provided the two healthcare leaders to connect the power of real-world evidence (RWE) regarding the common goal of enhancing patient outcomes and the quality of cancer care.
• In 2021, Humana (US) collaborated with Merative (US) to install Merative Watson Assistant for Health Benefits; it is an AI-enabled virtual agent built in the Cloud. This agent helps offer a beneficial member experience while supporting greater clarity and transparency on benefits and other related matters for Humana Employer Group members.
• In 2021, Allied Digestive Health (ADH) selected Athenahealth’s (US) cloud-based healthcare payments and patient engagement solutions to direct patient relations and revenue cycle excellence, thus maintaining the organization’s growth in the coming years.

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