Electronic Health Records Market 2023 – 2030 by Type (Acute, Ambulatory, Post-acute), Product (Client-server-based, Web-based) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Healthcare | Pages : 187 Pages | Published On : Jul 2023
The estimated size of the global electronic health records market was USD 28.1 billion in 2023, with a projected compound annual growth rate (CAGR) of 4.1% from 2023 to 2030. The market is primarily driven by government initiatives to promote the use of healthcare IT. One example is Australia's national digital health record platform called "My Health Record," which is available to all citizens unless they choose to opt out. The platform aims to enable healthcare providers to contribute to and access healthcare information by the end of 2022. Furthermore, the introduction of technologically advanced healthcare services is expected to contribute to the growth of the electronic health records (EHR) market.
Since the beginning of 2020, the COVID-19 pandemic has placed significant pressure on healthcare organizations. This has led to a negative impact on the revenue of major market players, as new business bookings have declined due to delayed client purchasing decisions and projects. The focus has shifted towards patient care, procuring essential medical supplies, and managing organizations during the crisis. Companies like Allscripts have also experienced delays in deals involving upfront software revenue and professional services implementations across their outpatient and inpatient bases.
Recent years have seen positive developments in the EHR market, including expansion activities, product approvals, launches, partnerships, and acquisitions. The growing digitalization of healthcare has resulted in a significant increase in demand for electronic health records, driving market growth. The rising demand for centralization and streamlining of healthcare administration is also expected to contribute to the market growth. Centralization of health information management aligns with a value-based model that aims to streamline operations, standardize processes, reduce costs, and improve the quality of care, ultimately leading to patient satisfaction.
Additionally, the market is experiencing an increasing number of mergers and acquisitions among key players, further boosting growth. For example, in January 2021, Allscripts Healthcare Solutions announced a strategic partnership with the U.S. Orthopedic Alliance (USOA). This partnership aims to introduce efficient infrastructure to assist orthopedic practices in scaling with agility, improving electronic health records implementation timelines, providing evidence-based guidelines for evolving clinical protocols, and creating community-wide connectivity with value-based care analytics.
The market for electronic health records (EHR) was led by the web-based EHR segment, which accounted for the largest share of revenue in 2022 and is expected to experience significant growth throughout the forecast period. The popularity of web-based EHRs among physicians and healthcare providers operating on a smaller scale contributes to their substantial market share. One key advantage is that web-based EHRs can be installed without the need for in-house servers, offering flexibility for extensive customizations and improvements based on specific needs.
On the other hand, client-server-based EHRs provide a secure alternative for users by offering in-house data storage, thereby reducing the risk of data theft. These systems can also be tailored to meet specific customer requirements and are particularly advantageous for multi-physician facilities. Additionally, they do not rely on a stable internet connection like web-based EHRs, which further fuels the growth of this segment.
Report Coverage & Deliverables
PDF report & online dashboard will help you understand:
• Competitive benchmarking
• Historical data & forecasts
• Company revenue shares
• Regional opportunities
• Latest trends & dynamics
The hospital segment emerged as the dominant player in the electronic health records (EHR) market, holding the largest share of revenue in 2022. This dominance can be attributed to the substantial volume of medical data generated within hospital settings. Additionally, the cost of implementing EHR systems is lower in hospitals compared to ambulatory care centers, thereby driving market growth. EHRs also contribute to time savings in large-scale hospitals, further bolstering the market. Moreover, the high adoption of EHRs in small and mid-sized hospitals, facilitated by their ease of deployment, is expected to drive growth within this segment.
On the other hand, the ambulatory care centers segment is projected to witness lucrative growth during the forecast period. Ambulatory care centers offer convenience for both patients and healthcare providers. The increasing number of ambulatory care centers in developed and developing economies is expected to drive this segment. Among ambulatory care centers, larger-scale facilities exhibit higher adoption rates of EHRs compared to smaller-scale ones. This is attributed to the higher installation costs associated with EHRs in ambulatory care centers, and the availability of capital investments and the ability to handle productivity challenges in larger centers.
In terms of EHR types, the acute EHR segment dominated the market, accounting for the largest revenue share of approximately 45.0% in 2022. This growth can be attributed to government initiatives promoting EHR adoption in small-scale healthcare facilities. For example, acute care hospitals covered under the Inpatient Prospective Payment System (IPPS) in the U.S. are eligible for Medicare incentive payments for adopting EHR systems. Acute care EHRs capture comprehensive patient information for various clinical purposes, including ICU, emergency department, inpatient units, and operating rooms.
Ambulatory EHRs are designed for use in outpatient care facilities and small practices. Government support for the adoption of ambulatory EHRs, particularly during the COVID-19 pandemic, is expected to drive market growth. These EHR systems offer ease of use compared to inpatient EHRs and cater to the needs of single practices and their patients, simplifying the complexity associated with hospital departments. Key players in the ambulatory EHR market include Epic Corporation, eClinicalWorks, Allscripts Healthcare LLC, GE Healthcare, NextGen Healthcare, Practice Fusion, athenahealth, Greenway Medical Technologies, Vitera Healthcare Solutions, and McKesson Corporation.
The post-acute EHRs segment is projected to experience the fastest growth rate of over 5.0% during the forecast period. These EHR systems primarily serve the rehabilitation services provided to patients after their stay in acute care hospitals. Post-acute care facilities include inpatient rehabilitation centers and hospitals, home health agencies, and long-term care hospitals. Increased spending on post-acute care facilities is expected to boost market growth. The use of electronic health records in long-term care facilities facilitates seamless information exchange among departments, further contributing to market growth. However, a lack of awareness, particularly in developing economies of Asia Pacific and MEA, may have a negative impact on the market.
Business Model Insights
The professional services segment emerged as the dominant force in the electronic health records market, capturing the largest share of revenue, exceeding 31.0% in 2022. This segment is expected to experience substantial growth throughout the forecast period. Professional services play a crucial role in assisting healthcare systems with the implementation of information systems within their organizations. These services encompass various aspects such as project management, technical and application expertise, clinical process optimization, regulatory consulting, and end-user training for the design and implementation of electronic health record systems. The wide range of applications for information system implementation contributes to the segment's significant market share. Additionally, electronic health records are often provided through a time-based subscription model, which incurs periodic usage charges. This subscription-based approach serves as a primary means of packaging and delivering medical knowledge.
In the technology resale segment, licensed software is bundled with intellectual properties (IPs) from other companies, enabling the creation of comprehensive technology solutions for healthcare systems. Licensed software includes application software, architectures, executable and referential knowledge, as well as data and algorithms. Professional services continue to play a crucial role in facilitating information system implementation for healthcare systems, encompassing project management, technical and application expertise, clinical process optimization, regulatory consulting, and training for end-users involved in designing and implementing electronic health record systems. Other business models in this segment include managed services, support and maintenance, and various additional services.
In 2022, North America emerged as the dominant market for electronic health records, capturing the largest share of revenue at approximately 40.0%. The region's growth is primarily driven by supportive policies promoting the adoption of electronic health records and the presence of a robust infrastructure with high digital literacy. In May 2020, the federal government introduced the Federal Health IT Strategic Plan 2020-2025, which mandates healthcare providers to meaningfully utilize electronic health records. Similarly, the European Commission's Digital Single Market Strategy facilitates access to online services and goods across Europe, creating favorable conditions for the expansion of digital networks and related services, thereby maximizing the growth potential of the European economy.
The Asia Pacific region is poised to experience significant growth in the electronic health records market during the forecast period. This growth is attributed to the escalating demand for quality standards and services, which is driving the digitalization of healthcare in the region. In China, the Ministry of Health has implemented an action plan to promote the usage of e-health services nationwide, encompassing various aspects of medical services and insurance plans, with a particular emphasis on adopting electronic record systems to facilitate data sharing across the national healthcare system.
Key Companies & Market Share Insights
To maintain their competitive positions, market leaders are actively engaging in product launches, collaborations, expansions, and acquisitions. Both established organizations and smaller players are making investments in mergers and acquisitions to gain a competitive edge. For example, in December 2021, Oracle acquired Cerner Corporation for a substantial value of USD 28.3 billion. This strategic acquisition bolstered Oracle's position in the EHR Market, as Cerner Corporation was a prominent player in the industry. Additionally, in April 2021, Cerner Corporation acquired Kantar Health for approximately USD 375 million. This acquisition brought together Cerner's robust real-world data collection and technology with Kantar's expertise in life sciences, driving advancements in life sciences research and enhancing patient outcomes on a global scale.
Some of the prominent players in the electronic health records market include:
• Cerner Corporation (Oracle)
• GE Healthcare
• Allscripts Healthcare, LLC
• McKesson Corporation
• Epic Systems Corporation
• NextGen Healthcare, Inc.
• Medical Information Technology, Inc.
• Health Information Management Systems
• AdvancedMD, Inc.
• CureMD Healthcare
• Greenway Health, LLC
Global Electronic Health Records Market Report Segmentation
Product Outlook (Revenue, USD Million, 2023 - 2030)
• Client-server-based EHR
• Web-based EHR
Type Outlook (Revenue, USD Million, 2023 - 2030)
End-use Outlook (Revenue, USD Million, 2023 - 2030)
• Hospital Use
• Ambulatory Use
o Physician’s Clinic
Business Models Outlook (Revenue, USD Million, 2023 - 2030)
• Licensed Software
• Technology Resale
• Professional Services
Regional Outlook (Revenue, USD Million, 2023 - 2030)
• North America
• Asia Pacific
• Latin America
• Middle East & Africa
o South Africa
o Saudi Arabia
Table and Figures
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Covered Key Topics
Market Growth Drivers
Leading Market Players
Company Market Share
Market Size and Growth Rate
Market Trend and Technological