China's Health Care IT Market to Reach $4 Billion by 2020
Last year, China’s health care IT market earned revenues of $1.24 billion and is estimated to triple that number within the next few years, according to an analysis by Frost and Sullivan.
By 2020, the health care IT market is expected to reach $3.97 billion, as the Chinese government has recognized health care as a priority area for reform. The country additionally hopes to achieve international care standards by the same year.
“The government is doggedly pushing for the use of regional health information networks that will integrate health care services and information across hospitals and regions,” said Natasha Gulati, health care industry manager at Frost and Sullivan. “A dense regional network will open doors for advanced analytics and population health management solutions, simultaneously creating opportunities for IT integration and security vendors.”
According to Gulati, government initiatives are promoting local companies but at the same time sending out the message to foreign participants that doing business in China is expected to become more challenging and less profitable for foreign firms.
Leading multinationals are joining efforts with large health care IT vendors in China to combat this. Partnerships with Neusoft and Shanghai Kingstar Winning Software will help penetrate the Chinese market and design a suitable strategy for success.
“IT system vendors are also partnering with hospitals, health administrative agencies, government agencies and residents to provide a full range of customized support including networking, wireless technology, information security, cloud platforms, Big Data, telehealth and telemedicine,” said Gulati. “Strong engagement with local healthcare providers will allow access to local distribution channels, reduce solution adoption risks, lower component incompatibility risks, and help tap unmet local needs in the Chinese healthcare IT domain.”