Software Development in Healthcare: Key Industry Statistics

The views expressed in this post are the writer's and do not necessarily reflect the views of Aloa or AloaLabs, LLC.

Technology is making a big difference in healthcare. Every time you visit a doctor or a hospital, software plays a key role in making sure you get the best care. Software development in healthcare means using technology to make things better and safer. For example, it helps doctors diagnose diseases more quickly and accurately and ensures that treatments are just right for each patient. It's all about making healthcare smarter, faster, and more personalized.

Here at Aloa, we're deeply involved in this transformation. We've worked closely with various startups and healthcare professionals to find innovative software solutions that address real-world healthcare challenges. 

Our guide aims to uncover the latest trends in healthcare software development. We're not just listing new developments; we're breaking them down in a straightforward, easy-to-understand manner. We'll explore the key trends of healthcare software development, their benefits, and how they can positively impact healthcare delivery.

Let’s start!

Top 7+ Software Development in Healthcare Trends

Knowing the top 7+ software development trends in healthcare is crucial as we understand the rapidly evolving world of healthcare. These trends are not just reshaping medical care; they're setting new benchmarks for efficiency and patient outcomes. Let's explore these pivotal advancements.

Let’s dive in!

1. Telemedicine

Telemedicine software is a product of software development in healthcare that allows physicians to deliver medical services remotely, manage patient records, and handle financial operations. This innovation has made healthcare more accessible and convenient, especially during global health crises like COVID-19.

Widely adopted across developed countries such as the United States, Canada, and numerous European nations, telemedicine is also gradually embraced in growing regions, filling significant healthcare gaps in hard-to-reach communities.

The global telemedicine market, valued at USD 114.98 billion in 2023, is projected to soar to a compound annual growth rate (CAGR) of 17.96% from 2024 to 2030 

Telemedicine market
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The development of various healthcare software development applications, including on-demand urgent care apps, planned care apps, mental health apps, and self-care apps, underscores the role of telemedicine in diversifying and expanding healthcare delivery.

This technology has become essential across healthcare establishments of all sizes, enhancing patient experience, reducing costs, and streamlining operations. As technological advancements continue, telemedicine is set to be the backbone of healthcare, with substantial potential for growth and innovation.

2. Electronic Health Record Software

Due to advanced healthcare software development, EHR Software digitizes patient medical information for easy access and management. As a major component of software development in healthcare, EHRs offer a comprehensive view of any patient's history, aiding physicians in crafting the most effective care plans.

Global healthcare providers are employing EHR software for managing and tracking patients' data, further highlighting the influence of software development in healthcare. Hospitals, clinics, private practices, and more utilize this tool for improved patient care and monitoring.

Currently, specific statistics on EHR Software usage are limited. However, diverse features and the various types of EHR software—Cloud-Based, On-Premises, Web-Based, Mobile, and Personal Health Records—prove its widespread adoption in the healthcare industry.

Undeniably, EHR software is significantly impacting healthcare delivery. This efficient digital solution simplifies administrative processes and heightens patient care standards and outcomes. The future of healthcare depends on the continued progress in healthcare software development.

In fact, numerous countries across the globe have already adopted open-source electronic health record (EHR) systems, particularly benefiting regions with limited resources. These systems are notably prevalent in continents like Africa and South America, with countries such as Rwanda, Senegal, Sierra Leone, South Africa, Tanzania, Uganda, and Zimbabwe making significant use of them. Also, nations like Sweden, Thailand, Turkey, and the USA have implemented these open-source EHRs. 

Electronic Health Record Software
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This global trend highlights the widespread acceptance and utility of open-source EHR systems, especially in areas where resources are scarce.

3. Mental Health Software

The demand for Mental Health Software is rapidly increasing as a critical trend in software development in healthcare. These digital tools facilitate the delivery of mental health services, greatly simplifying patient data management and mental condition treatment protocols.

Mental Health Software comes in various forms, such as applications and websites, and some blend the two. This type of healthcare software development aids mental health clinics and professionals in managing patient data, observing mood changes, reacting timely to emergencies, and transparently organizing treatment processes.

This trend is appearing in mental health clinics globally and in the devices of individual practitioners and patients. The versatility of this technology affirms its status as a key player in software development and healthcare advances.

With mental health disorders affecting about 20.6% of the US population, there is an urgent need for mental health support. The worldwide market for mental health services is projected to expand significantly, with an estimated increase of USD 201.41 billion from 2021 to 2026. 

Mental Health Software
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This market is expected to grow at a compound annual growth rate (CAGR) of 9.06% during this period. Additionally, this growth rate is anticipated to gain momentum over time. A major factor contributing to the expansion of the mental health market is the increasing incidence of mental health disorders globally. 

Therefore, it is evident that mental health software is a major component in software development in healthcare. As such, healthcare practitioners and institutions must stay ahead of this trend, embracing this cutting-edge technology to deliver more efficient and effective mental health services.

4. Blockchain

Blockchain has emerged as a promising trend within software development in healthcare. It introduces transparency, security, and innovation, thereby revolutionizing HealthTech. It optimizes administrative operations and drastically reduces the risk of health data breaches.

Blockchain is a technology known for providing a secure, decentralized platform for many purposes. It securely stores health data in healthcare, making it easily accessible to patients, healthcare providers, and insurance companies. The efficiency, accuracy, and security it offers to the healthcare system show that blockchain could be the game-changer in software development in healthcare.

The use of blockchain is worldwide, with major corporations such as Google and Microsoft investing in blockchain research for healthcare. Its market size is forecasted to reach $7308 million by 2028, with a CAGR of 76.30% from 2021. Undoubtedly, blockchain is rapidly becoming critical in software development healthcare improvements.

The Global Blockchain Identity Management Market is also set to grow and will reach $36,591.4 million by 2028.

Blockchain market
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Using blockchain technology in healthcare can result in significant cost savings. In the next few years, it is estimated that blockchain integration could save billions of dollars by reducing expenditures related to software development, operations, support staff, and health data breaches.

The benefits of blockchain in healthcare are evident, from providing enhanced data security to streamlining administrative tasks. As such, healthcare practitioners and institutions must stay ahead of this trend, incorporating the potential of blockchain technology to deliver more efficient and effective healthcare services and drive future healthcare software development advancements.

5. Artificial Intelligence

AI in healthcare involves systems that analyze, understand, and learn from diverse healthcare data. AI helps monitor, diagnose, treat, and advise medical professionals and patients, enhancing patient care while cutting costs. Healthcare software development integrates AI technologies with medical software to help make the healthcare sector smarter, faster, and more efficient.

AI in healthcare is a global trend. It's becoming increasingly popular, with IBM, Apple, Microsoft, and Amazon boosting investments in healthcare AI. Artificial intelligence in the healthcare sector market size is forecasted to increase by USD 11.827 billion between 2022 and 2027, accelerating at a CAGR of 23.5%. 

Artificial Intelligence
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Researchers also predict that the healthcare artificial intelligence industry could be worth USD 44.5 billion by 2026, showing a CAGR of 46.21% globally. This significant growth is influenced by AI's ability to analyze vast amounts of clinical data quickly, leading to more accurate diagnoses and enabling more personalized treatments.

6. Big Data Analytics 

Big data analytics in healthcare software development refers to examining large and varied data sets, i.e., big data, to uncover valuable information, patterns, correlations, trends, patient preferences, and other insights helpful in making informed healthcare decisions. Gathering insights from big data allows for improved patient care, cost reductions, and an overall more efficient healthcare system.

The reach of big data analytics is extensive, covering hospitals, research institutions, clinics, and other healthcare facilities. This digital transformation reshapes interactions and decision-making processes among healthcare providers, patients, and stakeholders.

The global market for big data analytics in healthcare is anticipated to expand at a compound annual growth rate (CAGR) of 19.2%, culminating in an estimated value of US$ 194.7 billion by the end of 2032.

Big Data Analytics  market
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Big data analytics plays a crucial role in healthcare software development by uncovering patterns and trends that have the potential to significantly enhance patient outcomes, streamline operations, and enable proactive care. As healthcare providers invest in robust data infrastructure and analytics capabilities, their capacity to fully see the potential of big data analytics will continue to expand, paving the way for significant changes in software development in healthcare. 

7. Cloud Transformation

The fusion of cloud technology and the healthcare industry is reshaping the future of patient care. By enhancing healthcare software development and providing more access to healthcare services, cloud transformation is creating a promising landscape for providers and patients alike.

Cloud transformation refers to shifting business elements such as applications, data, and services from physical storage to a cloud-based network. This means more streamlined operations, real-time access to vital data, and better software deployment for healthcare software development, leading to improved patient services.

The healthcare sector incorporates cloud technologies from large hospitals to small clinics. This shift enables healthcare facilities to efficiently manage vital data, streamline operations, and deploy healthcare software solutions faster and more effectively.

According to a HIMSS Annual Cloud Survey, 83% of IT healthcare organizations have adopted cloud services, while 9.3% plan to do so. Meanwhile, 6% have decided against adopting cloud-based applications, with the remaining percentage uncertain about their organization's plans. Overall, this indicates that a significant 92% of healthcare providers recognize the value of cloud services for their organizations, either now or in the future.

Cloud Transformation
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Integrating cloud technology into healthcare software development brings significant benefits like improved data management, cost reductions, and more efficient healthcare services. As healthcare providers continue to leverage the technological experts of the cloud, it's exciting to envision how much more accessible and efficient patient care could be in the future.

8. Security 

The healthcare sector is transforming digitally with innovations to enhance care delivery. However, this transition comes with increased risks, making security in healthcare software development a vital necessity rather than an optional consideration.

Security in healthcare software development is about implementing protective measures to safeguard sensitive patient data from unauthorized access. This involves ensuring system integrity, performance, and availability. Additionally, it includes compliance with regulatory standards governing healthcare data handling and patient privacy.

Security concerns are pervasive throughout various aspects of software development in healthcare, impacting digital systems housing patient records, telemedicine platforms providing remote care services, and digital health apps managing sensitive health data. This becomes especially crucial with the growing prevalence of cloud computing and Internet of Things (IoT) technologies in healthcare.

Healthcare data breaches are escalating, with a 25% increase in 2020, leading to over 400 breaches and 28 million compromised records. The financial impact on the U.S. healthcare industry is estimated at $25 billion in 2021, according to cybersecurity firm Bitglass and health IT security provider HIPAA Journal.

Security trends
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Securing healthcare software development is now crucial due to heightened digital risks. Instead of seeing rising breach numbers as discouraging, the healthcare industry should use them to motivate efforts. 

9. IT Outsourcing 

IT outsourcing in healthcare software development is a growing trend in the current digital transformation, offering significant benefits. With a projected market value of $64 billion by 2027, it enhances end-to-end operations for healthcare organizations.

IT outsourcing involves healthcare organizations delegating IT-related tasks to third-party vendors, covering software development, data management, and infrastructure management. This strategic approach aims to enhance operational efficiency, reduce costs, implement technology more effectively, and improve healthcare delivery.

Healthcare providers outsource IT for tasks requiring specialized knowledge or involving repetitive and systematic processes. This includes integrating and managing Electronic Health Record (EHR) systems, medical billing and coding, telemedicine, remote patient monitoring solutions, IT infrastructure management, and cybersecurity solutions. The adoption of IT outsourcing is wider than large hospitals; even small-scale clinics are leveraging it to stay competitive in the evolving digital healthcare landscape.

The healthcare IT outsourcing market is projected to reach $1,799.390.27 by 2030, indicating a significant demand for outsourcing services in healthcare. This surge in outsourcing is fueled by factors like technological complexity, the requirement for scalability, adherence to regulatory compliance, rapid technological advancements, and improved data security.

IT Outsourcing trends
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Outsourcing IT in healthcare is a wise strategy. It helps organizations tackle digital challenges, prioritize patient care, and improve healthcare delivery. As IT outsourcing becomes more popular, it emphasizes the value of smart collaborations for delivering the best healthcare services.

The Influence of Software Development in Healthcare 

Healthcare software development is pivotal in modernizing healthcare globally, offering streamlined procedures, improved patient interactions, and precise, personalized care. Electronic Health Records (EHRs) centralize a patient's healthcare journey, providing immediate access to critical information for licensed practitioners. This facilitates coordinated care, informed treatment plans, accurate diagnoses, safe prescriptions, and reduced paperwork.

Telemedicine extends healthcare to remote communities, enabling clinicians to monitor patients remotely and reduce hospital readmissions. These software solutions contribute to more efficient and accessible healthcare practices, marking a substantial shift towards effectiveness and patient-centric care.

The Influence of Software Development in Healthcare 

Precision Medicine

Healthcare software development brings precision to medicine, moving away from one-size-fits-all approaches. Advanced algorithms in software tools help healthcare professionals predict and prevent illnesses, challenging traditional health management.


Telehealth, powered by healthcare software, is transforming healthcare, especially during the recent global pandemic. Software advances have made telemedicine a key player, allowing healthcare providers to offer vital services while following social distancing rules. The global telemedicine market's impressive growth reflects software development's impact on healthcare.

Personalized Patient Care

Healthcare software development makes patient care personal with tailored portals, wellness apps, and virtual assistants. Customized medical software considers each patient's unique traits, letting them actively engage in their care. Devices provide real-time health data, helping healthcare pros deliver precise care.

Administrative Efficiency

Healthcare software isn't just about patient care; it's streamlining behind-the-scenes tasks. From scheduling and billing to inventory and payroll, software automates these jobs, reducing stress, cutting errors, and using resources wisely. Adding artificial intelligence to admin tasks automates processes like billing and appointment reminders, making everything run smoother.

Considerations to Stay Ahead in the Healthcare Industry

With constant technological innovation, healthcare providers must adapt to maintain a commanding position. You must ensure that your healthcare software development strategies meet the demands, providing world-class patient care while remaining competitive.

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is one fundamental way to address this demand.

SWOT Analysis

The SWOT analysis is fundamental in strategic planning within the healthcare software development sector. This actionable framework organizes your strengths, weaknesses, opportunities, and threats so you can strategize effectively and adjust your plans as necessary.


What does your healthcare organization excel at, and what separates you from competitors? It could be superior software architecture, a dedicated IT team, a strong product suite, or robust alliances. These should be leveraged to maximize your unique selling proposition.


Areas that need improvement within your organization. This could include talent attrition, inadequate IT infrastructure, or subpar cybersecurity measures. Recognizing weaknesses and building corrective actions in your strategic plan is essential.


Situations or trends in the external environment could give you a competitive edge. With AI, blockchain, and wearables, healthcare software providers have many opportunities to develop superior services.


Any external factors that pose challenges to your business include regulatory changes, new entrants, patient data security, or data infrastructure. Solving these issues proactively can help you stay ahead in the game.

Conducting a SWOT analysis provides healthcare providers with a clear vision of their position and a strategic advantage in the form of invaluable insights.

Other Recommendations 

Upon completing a SWOT analysis, healthcare organizations should further their strategic plan by considering the following:

Other Recommendations 

Stay Ahead of the Curve: Always monitor technology trends, changes in healthcare industry regulations, and shifts in your patient demographics.

Achieving Regulatory Compliance: Strict adherence to healthcare regulations like HIPAA or GDPR is no longer optional. It is critical.

Invest in Employee Development: Continuous employee training and skill upgrades are crucial as technology evolves.

Invest in Cybersecurity: With increasing digitization comes increasing risk. Invest sufficiently in cybersecurity to protect sensitive patient data.

Patient-centric Innovations: Ensure all innovations and improvements benefit your patients. Keeping patient welfare as your core objective will surely gear you in the right direction.

By combining a comprehensive SWOT analysis with these strategic initiatives, healthcare software development organizations can chart their way toward increased efficiency, stay ahead of regulatory changes, and continue providing the best patient care.

Key Takeaway

As software development in healthcare continues to advance, it will bring about significant improvements in areas like automation. Healthcare organizations that adopt these software solutions early can leverage these advancements for their benefit, from AI-enhanced healthcare operations to patient-centric applications.

The availability of diverse software options in the market makes it increasingly feasible for healthcare providers to customize their technology choices to meet specific needs and goals.

Taking advantage of these opportunities allows healthcare organizations to boost their efficiency, patient care quality, and overall performance while enhancing data security and compliance.

For more insights into how software development solutions can transform your healthcare services, contact [email protected]. Our team of experts is ready to guide you in creating and implementing customized software solutions that optimize healthcare delivery and foster growth. You can also check out our comprehensive resources for outsourcing software development in healthcare, a practice we’re experts in.

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