ELECTRONIC HEALTH RECORDS MARKET ANALYSIS

The global electronic health records market was valued at US$ 28.14 Bn in 2022 and is forecast to reach a value of US$ 35.23 Bn by 2030 at a CAGR of 2.8% between 2023 and 2030. The global electronic health records market is experiencing strong growth due to the rise in adoption healthcare IT solutions and growing usage of electronic health record (EHR). Moreover, increasing prevalence of chronic diseases and growing geriatric population is expected to boost the growth of the market. However, factors such as high cost of EHR implementation and reluctance to adopt EHRs are expected to hamper the growth of the market.

Global Electronic Health Records Market: Regional Insights

Based on geography, the global electronic health records market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period owing to the increasing adoption healthcare IT solutions, growing usage of electronic health records (EHRs) in healthcare settings, and well-established healthcare infrastructure in the United States. For instance, according to the US Office of the National Coordinator for Health Information Technology, as of 2021, nearly 4 in 5 office-based physicians (78%) and all non-federal acute care hospitals (96%) adopted a certified EHR. This marks substantial 10-year progress since 2011 when 28% of hospitals and 34% of physicians had adopted an EHR.

Europe is also expected to witness significant growth in the global electronic health records market due to the increasing adoption healthcare IT solutions, increasing prevalence of chronic diseases, growing geriatric population, and growing awareness about the benefits of EHR in these regions. For instance, the European Commission (EC) has adopted a Recommendation on a European EHR exchange format to unlock the flow of health data across borders. Moreover, the EC is looking to digitise all medical records in the European Union (EU) by 2025 to make it easier for individuals to access and share their personal data with medical professionals.

Figure 1. Global Electronic Health Records Market Share (%), by Region, 2023

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Global Electronic Health Records Market Drivers:

Increasing adoption healthcare IT solutions to drive market growth

One of the key factors expected to augment growth of the global electronic health records market is the increasing adoption healthcare IT solutions and/or government initiatives to encourage HCIT usage. For instance, in January 2023, India's National Health Authority is providing incentives to healthcare providers and stakeholders of the country's digital health ecosystem who are promoting the creation of digital health records. Digital Health Incentive Scheme will accelerate digital health transactions in India under Ayushman Bharat Digital Mission (ABDM). The Government of India has set aside US$ 6 million to deliver the scheme over the next six months.

Growing use of electronic health records to propel market growth

Another factor which is driving the growth of the global electronic health records market during the forecast period is the growing usage of electronic health record (EHR) in healthcare settings. For instance, an electronic health record (EHR) is a systematic collection of patient and population health information stored electronically in a digital format. In September 2013, Indian Government (the Ministry of Health & Family Welfare) notified the Electronic Health Record (EHR) Standards for India. Moreover, the Indian government has begun its Digital Health Mission, which seeks to digitize all of the country's citizens' medical records by 2022.  

Global Electronic Health Records Market Opportunities:

Increasing prevalence of chronic diseases around the world is expected to offer significant growth opportunities for players in the global electronic health records market. For instance, EHR systems can help improve the care of patients with multiple chronic diseases. EHRs provide an excellent way to help patients and doctors manage chronic disease. According to the Centers for Disease Control and Prevention (CDC), chronic diseases such as heart disease, cancer, and diabetes are the leading causes of death and disability in the United States. Thus, with the increasing prevalence of chronic diseases, the use of HER is also increasing worldwide.

Growing geriatric population across the globe is expected to offer significant growth opportunities for players in the electronic health records market. For instance, elderly people are highly prone to multiple diseases, and it is difficult for physicians to maintain health records. EHRs help seniors access and understand their own medical situation while doctors can follow up with their patients while tracking their continuing care. According to the World Health Organization (WHO), one in six people in the world will be aged 60 years or over by 2030, and the world’s population of people aged 60 years and older will double (2.1 billion) by 2050.

Global Electronic Health Records Market Trends:

Increasing adoption of cloud-based EHR is a recent trend

Cloud-based EHRs provide various benefits over web-based EHRs, such as lower installation cost, easy maintenance, accessibility, and scalability. Cloud-based software can promote data security. Moreover, cloud-based HER offers easy remote access to data, real-time data tracking guarantees proper disaster recovery, and business continuity solutions support quality patient care. They also have the potential to overcome interoperability and data exchange challenges in the future, which in turn is expected to increase the use of cloud-based EHR. This trend is expected to continue over the forecast period, driving the growth of the market.

Increasing healthcare expenditure is another trend

Governments of many developing economies are investing in and launching novel initiatives for ensuring better healthcare facilities for their citizens. Several governments worldwide are looking to digitise all medical records to make it easier for individuals to access and share their personal data with medical professionals. EHR implementation can provide a robust system for integrating various patient records within a single system, which in turn helps improve the patient outcomes, increasing the use of cloud-based EHR. This trend is also expected to continue during the forecast period, driving the growth of the market.

Global Electronic Health Records Market Restraints:

High cost of EHR implementation to hinder market growth

One of the key factors expected to hamper the growth of the global electronic health records market is the high cost of EHR implementation. Implementation of HER can be a costly process and some small-scale physicians are unable to afford it. They can face an inability in calculating the total cost after training, support, and maintenance costs, which also need to be considered. Moreover, EHR implementation need extensive commitment to system administration, control, maintenance, and support for effective & efficient working. These ongoing costs include long-term expenditure due to monitoring, modifying, upgrading, and maintaining EHRs.   

Reluctance to adopt EHRs to hamper market growth

Another factor which is hampering growth of the electronic health records market is the reluctance to adopt EHRs among physicians and patients. For instance, absence of computer skills can lead to reluctance of physicians from using EHRs. EHRs require a significant level of concentration, typing skills, and familiarity with the application’s user interface, which can appear as a complex process for physicians. Another major barrier to EHR adoption is the lack of technical training and support from vendors. This is because doctors believe that there will be substantial financial risk in their practice and it may take many years for them to experience ROI.

Figure 2. Global Electronic Health Records Market Share (%), by Product, 2023

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Global Electronic Health Records Market Segmentation:

The global electronic health records market report is segmented into Product, Type, End Use, Business Model, and Geography.

Based on Product, the market is segmented into Client Server based EHR and Web-based EHR. Out of which, Client Server based EHR Segment is expected to dominate the electronic health records market over the forecast period and this is attributed to the increasing adoption of cloud-based EHR or Client Server-based HER.

Based on Type, the market is segmented into Acute, Ambulatory, and Post-Acute. Out of which, Acute Segment is expected to dominate the market over the forecast period and this is attributed to the government initiatives for the adoption of electronic health records in small-scale facilities. Acute EHR software is designed specifically for tracking patient's overall health status effectively as he/she switches to outpatient treatment from an inpatient setting.

Ambulatory Segment is also expected to witness significant growth in the near future and this is owing to increasing adoption of ambulatory EHRs, especially during the COVID-19 pandemic. Ambulatory EHRs are meant for use in outpatient care facilities and small practices.

Based on End Use, the market is segmented into Hospital Use and Ambulatory Use. Out of which, Hospital Use Segment is expected to dominate the market over the forecast period and this is attributed to the large amount of medical data generated in hospitals.

Ambulatory Use Segment is also expected to witness robust growth in the near future and this is owing to rising number of ambulatory care centers in the developed and developed economies.

Based on Business Model, the market is segmented into Licensed Software EHR, Technology Resale, Subscriptions, Professional Services, and Others. Out of which, Licensed Software EHR Segment is expected to dominate the market over the forecast period and this is attributed to the rise in adoption of licensed EHR software/solutions.

Subscriptions Segment is also expected to witness significant growth in the near future and this is owing to rise in adoption of subscription EHR models.

Global Electronic Health Records Market: Key Developments

In December 2022, Charles River Community Health announced the launch of new epic electronic health records system. Epic helps improve patient care, streamlining & supporting clinical practice to create better outcomes.

In November 2022, EvidenceCare, a local healthcare tech company, announced a new partnership with Williamson Medical Center (WMC) to deliver real-time clinical insight to physicians inside the Electronic Health Record (EHR).  

In November 2022, CareArc launched an Epic EHR implementation through a partnership with Health Choice Network (HCN) to improve the patient experience.

In November 2021, MyHealthcare launched electronic medical record (EMR) systems to maintain a database of patients and assist help doctors working in the field of cardiology, ENT, paediatrics, endocrinology, and obstetrics and gynaecology to ensure better medical outcomes to improve the delivery of care across its healthcare network.

Global Electronic Health Records Market: Key Companies Insights

The global electronic health records market is highly competitive. This is attributed to the growing adoption healthcare IT solutions or government initiatives to encourage HCIT usage, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global electronic health records market are eClinicalWorks, Cerner Corporation, GE Healthcare, Allscripts Healthcare, LLC, and Epic Systems Corporation.

*Definition: Electronic health record (EHR) is a systematized collection of patient and population electronically stored health information in a digital format. EHRs are real-time, patient-centered records that make information available instantly & securely to authorized users. EHR is a digital version of the patient’s paper chart.