Electronic Health Records (EHR) Market Size, Share & Industry Analysis, By Product (Web-based, On-premise), By Type (Stand Alone, Integrated) By End User (Physician’s Office, Hospitals, Others) and Regional Forecast, 2019-2032

The global electronic health records (EHR) market size was valued at USD 26,200.5 million in 2018 and is projected to reach USD 54,262.8 million by 2026, exhibiting a CAGR of 5.3% during the forecast period based on our analysis in the existing report.

Electronic health records (EHR), also known as electronic medical records (EMR) is the digital technique of sharing a patient’s information via cloud based or through on-premise platforms. These are transferable, secure records with incredible potential to enhance the quality of care medical practitioners provide for patients. 

It contains all the information associated with a patient's medical history including diagnoses, medications, immunization dates, radiology images, treatment plans, and test results from laboratories. Implementation of EHR have helped to automate and streamline the workflow in a medical setting, by allowing access to evidence-based tools for enhanced decision support pertaining to a patient’s treatment plan. Growing adoption of EHR solution due to its increasing applications in the medical systems is one of the major growth driving factors.

MARKET TRENDS

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Combining Artificial Intelligence and Voice Recognition with EHR

Incorporation of artificial intelligence in the electronic health record solutions will significantly drive the market.

Artificial intelligence has already been assisting physicians and specialists with recognizing historical trends and diagnoses about a patient’s condition. Moreover, various vendors are focusing on the idea to incorporate artificial intelligence in electronic health records via voice recognition capabilities. For instance, a physician can access a voice-enabled EHR solution to understand and analyze the patient’s last recorded medical history. 

The technology would notify the specialist about the patient’s health condition and whether they’re in a healthy range. Few of the companies have also started working on the implementation of such technology. For instance, in October 2019, All scripts along with Northwell Health, announced an innovative agreement to create the next-generation electronic health record. The launch of this artificial intelligence-based electronic health records will strongly support revenue generation and thereby, augment market growth. 

MARKET DRIVERS

Increasing Adoption Rate of EHR Solutions will Significantly Propel Market Expansion

Increasing adoption of EHR solutions across the world is one of the significant factors supporting the market growth. This is majorly occurring due to the growing initiatives by the governments to implement strategies for reducing administrative and regulatory burdens on health care providers pertaining to the use of electronic medical records. 

For instance, the introduction of the Cures Act, in December 13, 2016, is designed to enhance medical product development and create innovations and advances in the medical technology. The implementation of the Cures Act assisted the healthcare IT industry stakeholders to develop recommendations and strategies designed to address key burdens associated with the use of electronic health records. It is achieved by reducing documentation requirements and improving regulatory flexibility within the medicare program. Hence, such initiatives will considerably augment the electronic health records market growth across the forecast period.

Increasing Role and Application of EHR in Healthcare Systems to Significantly Boost Product Demand

In the recent years, there has been a growing interest for EHR adoption in several countries. This is primarily due to growing demand for a stronger health information technology (HIT) that is crucial to achieve a higher quality care at lower costs. EMR has been considered to be an integral part of an effective health care information system. The growing usage of  EHR in clinical applications pertaining to health information and data, order entry and support, results management, and decision supports, will considerably drive the market growth across the forecast period. 

Moreover, usage of electronic health records  in administrative applications, healthcare financing, and others will strongly support global sales. Hence, the aforementioned factors will positively impact the global revenue.   

MARKET RESTRAINT

High Cost Associated with the Implementation and Maintenance of EHR to Limit Growth up to Certain Extent

Despite the increasing usage of EHR in clinical, as well as administrative applications, there are certain factors that are limiting the adoption of these devices. One of the major factors restraining the growth of the market is high cost associated with the implementation and maintenance of EHR. Several developing economies are facing difficulties in the adoption of electronic health records pertaining to its high price. Also, dearth of health care IT support in various developing countries of the world is another important factor restricting the market growth.

SEGMENTATION

By Product Analysis

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Web-Based electronic health records to Dominate the Global Market

Based on product type, the  market is segmented into web-based and on premise. The major difference between the web-based and on premise solution is that, on-premise EHR involves hosting the software on in-house servers that are implemented and maintained by an organization, while the web-based or the cloud-based solution is the online implementation of the software in cloud where users access it via the internet. The on-premise segment is estimated to experience a sluggish growth as compared to the web based segment. However, the segment will hold stable revenue size during the analysis period, owing to the increasing adoption of such  devices across the globe.

The web-based segment is projected to register a significant CAGR during the forecast period. Also, the segment held significant market revenue in 2018 and is estimated to dominate the market throughout the forecast timeframe. Cloud-based electronic health records does not require complex installation processes where technicians need to set up intense infrastructure to host data. It can all be done through the internet, excluding the need for an IT support and minimizing additional cost. Also, increasing adoption rate of EHR owing to its efficiencies in terms of clinical application is another significant factor boosting product demand.

By Type Analysis

Clinically Proven Effectiveness of Integrated EHR to Aid Dominance of the Segment

Based on type, the market is segmented into stand-alone and integrated. The integrated EHR refers to an EHR that is integrated with practice management software. It has been evident in terms of the adoption rate that healthcare organizations mostly prefer purchasing a fully integrated product which performs all the functions of practice management software. 

The advantages of an integrated system are having a centralized technology to monitor all aspects of operating a healthcare business, that includes clinical, financial, and administration aspects.  Vendors such as Allscripts, eClinicalWorks and, GE Centricity are few of the popular vendors offering both integrated and stand-alone electronic health records suites. Hence, the aforementioned factors will strongly suggest a positive growth trajectory in terms of segmental growth across the forecast period.

The stand-alone EHR segment is estimated to witness stable growth across the forecast period. Medical facilities consider a stand-alone EHR suite if they have specific needs that a vendor cannot address such as if they have already invested heavily in an existing billing solution or if they outsource their medical billing. The segment held significant market size in 2018, owing to the increasing prevalence of chronic diseases. Evidence suggests that  EHR tools, data, and clinical decision support systems can be utilized to improve chronic disease management.

By End User Analysis

Higher Adoption of EHR Solutions by Hospitals to Enable Dominance of the Segment

The end user segment is classified as physician’s office, hospitals, and others. The emergence of physicians’ offices in the developed and emerging countries is attracting a large patient pool suffering from chronic and acute conditions. The patient pool mainly comprises of patients suffering from conditions which can be treated in outpatient settings and do not require inpatient admission and hospital stay. Growing number of physician’s offices, along with the presence of adequate reimbursement policies provided by these settings, are some of the major factors responsible for higher adoption of electronic health records in these facilities.

The hospitals segment is projected to hold maximum share in the EHR market by the end of the forecast period. The segment is estimated to showcase substantial growth across the analysis period, owing to the increasing adoption of EHR in the hospital settings. Rise in the number of multi-specialty hospitals implementing electronic health records technology to streamline workflow will strongly propel market expansion. Moreover, increasing number of vendors offering EMR solutions for acute care in the hospital settings will further accelerate segmental growth.

REGIONAL ANALYSIS

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Geographically, the electronic medical record market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The EHR market size in North America stood at USD 12,123.12 million in 2018. The U.S. is projected to exhibit lucrative growth due to factors, such as increasing digitalization in the healthcare sector coupled with favorable government policies, and flexible regulatory scenario. 

Moreover, increasing private and public funding pertaining to the adoption of electronic health records will further propel regional growth during the forecast period. For instance, in June 2019, the Office of the National Coordinator for Health Information Technology (ONC) released the Cooperative Agreement Notice of Funding Opportunity (NOFO). The purpose of this program is to enable developments in the technical standards, essential to attain interoperability among healthcare IT systems. The program has been funded up to USD 500,000 in the initial year. Hence, such factors are responsible for the positive growth of market in North America.

In Asia Pacific, the EHR market is projected to grow at a lucrative rate, owing to the increasing number of vendors penetrating the untapped emerging Asian economies. For instance, in February 2020, MEDITECH International partnered with MedPower LLC, one of the leading cloud-based e-learning technology providers, with the aim to offer mobile EHR training via their innovative mobile micro learning platform in their growing network of healthcare facilities throughout Asia Pacific, and few other countries. The market in Europe is forecasted to hold substantial market share by the end of 2026. High growth is due to the presence of major vendors operating in the European market. 

Moreover, the increasing adoption rates of healthcare IT across several European countries will further propel the industry growth. Latin America and the Middle East & Africa are projected to experience a stable CAGR in the market, owing to the increasing awareness among the population regarding the associated benefits of EMR solutions in a healthcare facility. Also, the growing prevalence of chronic ailments that require proper management in a medical facility is another significant factor boosting product adoption.

KEY INDUSTRY PLAYERS

Increasing Research and Development Activities by Epic Systems Corporation, Cerner, and Allscripts to Propel Their Market Position

The competitive landscape of electronic health records market depicts an oligopoly industry scenario dominated by major vendors such as Cerner, Allscripts, and Epic Systems Corporation. An extensive product portfolio of EHR suites, coupled with the constant technological innovations by these companies, is a prominent factor responsible for the industry dominance.

However, other players such as MEDITECH, Athenahealth, and eClinical Works were holding considerable market share in 2018. This is projected to positively impact the global market as these companies are anticipated to augment their market share during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Epic Systems Corporation


• Cerner Corporation


• Allscripts Healthcare, LLC


• Medical Information Technology, Inc. (MEDITECH)


• Athenahealth


• eClinicalWorks


• NextGen Healthcare


• MEDHOST


• CareCloud Corporation


• Others

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Datavant and Ciox Health entered into a definitive agreement to form a new company which will be the nation’s largest health data ecosystem. It will aid patients, providers, payers, health data analytics firms, patient-facing applications, government organizations, and life science firms to exchange their patient-level data in a secured manner.


• May 2021 – The federal Centers for Medicare and Medicaid Services (CMS) released a draft rule “the Inpatient Prospective Payment Systems Rule”, on May 10^th 2021 that will transform how electronic health records support care. The changes will help modernize how hospitals share information through electronic health records systems so doctors and nurses can provide the better care possible.


• April 2021 – Microsoft Corp acquired Nuance Communications, Inc. with an aim to empower healthcare providers through the power of ambient clinical intelligence and other Microsoft cloud services.


• February 2021 – Capital Health, a regional leader in providing progressive, quality patient care, introduced a new electronic health record (EGR) across its two hospitals’ acute care areas to better serve its patients.

REPORT COVERAGE

An Infographic Representation of Electronic Health Records (EHR) Market

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The electronic health records EHR market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, novel product launch, and technological overview pertaining to the solutions. Besides this, the report offers insights into the industry trends and highlights key industry developments, coupled with adoption rate of EHR solutions in key countries. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the recent years.

Report Scope & Segmentation