According to a new report from Fact.MR, the electronic health records market is expected to garner a market value of $ 6.78 billion in 2022, anticipated to register a positive CAGR of 4.5% in the forecast period 2022-2032 and reach a value of $41.8 billion.

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April 22, 2022 — According to a new report from Fact.MR, the electronic health records market is expected to garner a market value of $ 6.78 billion in 2022, anticipated to register a positive CAGR of 4.5% in the forecast period 2022-2032 and reach a value of $41.8 billion.

From 2015 to 2021, the global electronic health records market registered significant gains, reaching a valuation of $26 billion in 2021. As per market research and competitive intelligence provider Fact.MR, electronic health records uptake surged at a CAGR of 3% during the said historical period. Rapid digitization of healthcare, with regard to patient care and workflow optimization, have contributed to the rising scope of the market.

Demand for web-based electronic health records (EHRs) is anticipated to show the largest growth during the forecast period. These EHRs are convenient for use in pharmacies, small-scaled laboratories, and clinics, as they require limited hardware infrastructure, which reduces the cost of installation. During the COVID-19 pandemic, the need to maintain EHRs accentuated, given the emphasis on avoiding face-to-face contact between patients and hospital staff alike to reduce the transmission of the disease.

The introduction of EHRs for medical coding and billing has eased the process as data entering into computerized systems is more convenient than paper-based methods. EHRs also minimize the risk of errors in patient data as well as financial details. Considering these factors, the market is projected to witness high growth over the coming years, registering a CAGR of 4.5% to top US$ 41.8 Bn by 2032.

Increased demand for Centralizing and Streamlining Healthcare Workflow

New expansion activities, product approvals, product launches, partnerships, and acquisitions have positively impacted the EHR market in recent years. Furthermore, there has been a significant increase in the demand for electronic health records due to the growing digitalization which in turn is fueling the market growth.

Rising demand for centralization and streamlining of healthcare administration is also anticipated to drive the market for electronic health records. Centralization of health information management is driven by a value-based model which aims towards streamlining operations, standardizing processes, reduction of costs, and improving the quality of care that results in patient satisfaction.

Co-operation between Multiple Service Providers and Government to Bolster Prospects

An increasing number of mergers and acquisitions by market players are also boosting market growth. For instance, in January 2021, Allscripts Healthcare Solutions announced a strategic partnership with the U.S Orthopedic Alliance (USOA). This partnership is aimed at bringing to market efficient infrastructure designed to assist orthopedic practices scale with agility, improving electronic health records implementation timelines, providing evidence-based guidelines to support evolving clinical protocols, and creating community-wide connectivity with value-based care analytics.

Government initiatives to encourage healthcare IT usage is the key driver to this market. For instance, My Health Record is a national digital health record platform in Australia. Every Australian citizen has a “My Health Record” unless they have chosen that they don’t want it. The agency claims that by the end of 2022, all healthcare providers in the country will be able to contribute to and use healthcare information available on the platform. Moreover, the introduction to technologically advanced healthcare services is also expected to drive electronic health record (EHR) market growth.

Likewise, the Digital Single Market Strategy by the European Commission furnishes consumers and businesses with access to online services and goods across Europe, thus providing necessary conditions for the growth of the digital network and allied services, which is expected to maximize the growth potential of the European economy.

How is North America Propelling the Demand for Electronic Health Records?

North America dominates the market with 45.4% revenue share. The major factor contributing to the growth of this region is the policies that support the adoption of electronic health records and the availability of infrastructure with high digital literacy.

In May 2020, the federal government proposed the Federal Health IT Strategic Plan 2020 - 2025 that mandates the meaningful usage of electronic health records by healthcare providers.

What Drives the Demand for Electronic Health Records in Asia Pacific Countries?

In the Asia Pacific, the market for electronic health records is anticipated to demonstrate lucrative growth during the forecast period, growing at a CAGR of 5%. This growth can be attributed to the ever-increasing demand for quality standards and services which are boosting the digitalization of healthcare in the region.

The Ministry of Health in China has defined an action plan for the usage of services related to e-health across the country encompassing broad areas of medical services, insurance plans, and with a large focus on the adoption of electronic record, systems to allow data sharing across the national healthcare system.

Demand for Web-Based EHRs to Flourish in the Long Run

The web-based EHR segment led the market for electronic health records with the largest revenue share of more than 50%. This large market share is attributed to their popularity amongst the physicians and healthcare providers, which operate on a smaller scale. This is because web-based EHRs can be installed without the requirement of in-house servers and can also offer extensive customizations and improvements, as per need.

The client server-based EHR segment is anticipated to show significant growth during the forecast period. Client-server-based EHRs provides a safer alternative for users as it offers in-house data storage, hence preventing data theft.  These can also be customized as per customer requirements and also are a favorable option in the case of multi-physician facilities. Furthermore, they do not require a stable internet connection as compared to web-based EHRs, which further drives segment growth.

EHRs for Hospitals to experience maximum revenue growth

The hospital segment accounts for a revenue share of more than 60%. The growth can be attributed to the large amount of medical data generated in hospitals. Furthermore, the cost of installation in electronic health records is less in hospitals as compared to ambulatory care centers, which also boosts the market growth.

They also help in saving time for large-scaled hospitals, which further fuels the market. Furthermore, the high adoption of electronic health records in small and midsized hospitals, due to factors such as ease of deployment, is expected to drive the segment. Ambulatory care centers provide convenience to the patients as well as healthcare providers. The rising number of ambulatory care centers in the developed as well as developed economies is expected to drive the segment.

Acute EHRs to Experiencing Rising Adoption

The acute EHR segment dominates the market for electronic health records and accounts for the largest revenue share of about 46.8%. The growth can be attributed to the government initiatives for the adoption of electronic health records in small-scale facilities.

For instance, acute care hospitals in the U.S. which are covered under the Inpatient Prospective Payment System (IPPS) are eligible for the Medicare incentive payment system. Acute care electronic health records generate patient information that can provide all clinical details. These details can also be used for ICU, emergency department, inpatient unit, and operating room purposes.

Electronic Health Records for Professional Services likely to Dominate

The professional services segment dominated the market for electronic health records and accounts for the largest revenue share of more than 31%. Professional services help healthcare systems in the implementation of information systems in their organizations.

They are usually in the form of project management, technical and application expertise, clinical process optimization, regulatory consulting, and training of end-users for designing and implementing electronic health record systems.  It is also expected to garner the largest market share owing to its wide range of applications for the implementation of information systems in organizations.

For more information: https://www.factmr.com/

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