Clinical Decision Support Systems (CDSS) Market

Market Overview

The global clinical decision support systems (CDSS) market size was valued at USD 2.1 billion, and it is anticipated to reach USD 3.81 billion by 2030 with a CAGR of 6.83%. 

Under the umbrella of clinical knowledge management, clinical decision support systems are a form of technology. It is a computer-based program which uses Electronic Health Records (EHRs) to make an evidence-based decision about a patient's health. It is an application that evaluates data to help healthcare providers make clinical decisions. Preparing and reviewing diagnoses to improve end outcomes can be aided by using a clinical decision support system by nurses, physicians, and other healthcare providers.

These systems combine patient data and a medical knowledge base into their operations. There are two distinct categories of clinical decision support systems market. The first category is made up of knowledge-based decision support systems, and the second category is made up of decision support systems that do not use knowledge.

Knowledge-based decision support systems apply rules to patient data with the assistance of an inference engine and then present the results to the person using the system. In contrast, clinical data analysis depends on machine learning without knowledge-based decision support systems.

The domains of biotechnology and bioinformatics are undergoing rapid advancements, driving improvements and optimizations in data storage, administration, and analytics systems. Following the completion of research and development initiatives supported by significant financial contributions from businesses, it is anticipated that the market will undergo significant shifts. The usage of CDSS is expected to increase due to the integration of cloud computing and interoperability programs into various systems, which will further improve the systems' capacity for smooth operation and flawless data flow.

Market Dynamics

Clinical Decision Support Systems (CDSS) Market Drivers

• An increase in the number of cases of medication errors

According to the National Institutes of Health, the ordering or prescribing stage is where medical errors occur at a higher rate than any other stage. According to the Food and Drug Administration estimates, pharmaceutical errors affect around 1.3 million people annually in the United States. In addition, medical errors are the third most significant cause of death in the United States, accounting for nearly 250,000 deaths each year. It is anticipated that the rising rate of medical errors will drive the adoption of CDSS throughout the projection period. It is because CDSS assists healthcare providers in making successful clinical decisions.

• Wide application of CDSS in numerous healthcare functions

At the moment, CDSS is being extensively deployed across a wide variety of healthcare functions, including diagnosis, the prescription of medication, and clinical investigations, amongst others. The significance of CDSS has been recognized by various healthcare organizations, including those operating in public and private healthcare sectors. Additionally, healthcare organizations promote installing and integrating electronic health record systems and clinical decision support systems (CDSS) market. It is anticipated that these initiatives will have a positive effect on market growth by incentivizing hospitals and healthcare organizations to implement such solutions.

To acquire a competitive advantage over one another, participants in the market engage in strategic activities such as introducing new products, improving existing products, mergers and acquisitions, and collaborations. For example, in October 2021, DreaMed Diabetes AI LTD. announced that it had obtained FDA Clearance for its Type 2 Diabetes AI-based CDSS, which enabled the company to improve its services.

Clinical Decision Support Systems (CDSS) Market Opportunities

• The emerging Asian nations and their respective agendas

Because of government regulations encouraging the adoption of HCIT solutions, increased government healthcare expenditure, and the availability of IT expertise in emerging Asian countries like China and India; the CDSS market in Asia is expected to grow in the near future. The Chinese government is working to improve the country's healthcare management system, which is currently beset by problems such as a shortage of doctors across the country, underfunding in rural health centers, overcrowding in urban hospitals, and a muddled data system for patients.

In July 2015, the Indian government announced the Digital India program to improve the country's IT infrastructure and Internet connectivity so that citizens can access government services electronically. Patients' electronic health records (EHRs) would be stored in a "digital locker" as part of the Digital India campaign's e-health initiative. Standards for electronic medical records and health records were released by the federal government in September 2013 and later revised in December 2016. The CDSS market in Japan, likewise, is expected to grow rapidly in the near future. Government initiatives like the e-Japan policy, IT reform plan, and i-Japan Strategy 2015 have been implemented to combat lifestyle diseases as Japan's elderly population grows. Because of government regulations encouraging the adoption of HCIT solutions, increased government healthcare expenditure, and the availability of IT expertise in emerging Asian countries like China and India; the CDSS market in Asia is expected to grow in the near future. The Chinese government is working to improve the country's healthcare management system, which is currently beset by problems such as a shortage of doctors across the country, underfunding in rural health centers, overcrowding in urban hospitals, and a muddled data system for patients.

In July 2015, the Indian government announced the Digital India program to improve the country's IT infrastructure and Internet connectivity so that citizens can access government services electronically. Patients' electronic health records (EHRs) would be stored in a "digital locker" as part of the Digital India campaign's e-health initiative. Standards for electronic medical records and health records were released by the federal government in September 2013 and later revised in December 2016. The CDSS market in Japan, likewise, is expected to grow rapidly in the near future. Government initiatives like the e-Japan policy, IT reform plan, and i-Japan Strategy 2015 have been implemented to combat lifestyle diseases as Japan's elderly population grows.

Clinical Decision Support Systems (CDSS) Market Restraints

• Cloud-based CDSS raises data security concerns

Data hosted by the vendor is not as secure as data hosted on-premise, which is a big problem with cloud-based CDSS. Patient information is deemed sensitive, and a high level of privacy must be maintained so that only authorized people can access it. Patient information has been scrutinized by regulatory frameworks globally, such as the HIPAA data privacy standards (Health Insurance Portability and Accountability Act). Similarly, the European Union has enacted the EU Data Protection Regulation, which has consequences for protecting sensitive health information. A patient's protected health information (PHI) cannot be moved out of the country of origin. It is not recommended because the public cloud has the same security vulnerabilities as traditional IT systems. Even though private clouds provide greater access to procedures and systems, the healthcare business is sceptical of their efficacy.

According to a survey by Ermetic, a cybersecurity investigation firm, over 81 per cent of healthcare firms had experienced cloud data security breaches. In almost 31.25 per cent of healthcare businesses, user access was denied due to a breach. Due to the necessity for access to patient data across many departments, significant data security risks develop. As a result, security flaws emerge, which hackers might exploit to obtain access to critical information. As a result, several large hospitals prefer on-premise solutions to cloud-based options.

Segmental Analysis

The CDSS market is segmented by delivery mode, component, application, end-user, and region. Furthermore, each segment is divided into sub-segments. Based on the delivery mode, the market is divided into a standalone delivery system and a cloud-based delivery system. The standalone delivery system presently holds a significant share of the CDSS market and is projected to continue to do so during the forecast period. It is frequently used due to its low cost and ease of use. Its highest share is due to its ease of usage in hospitals and therapeutic settings.

The market is classified into hardware, software and services based on components. During the forecast period, CDSS services are expected to increase profitably. It is because software is updated regularly, as well as the knowledge base that is available for use. The high cost is associated with premium access to the most advanced and precise data, which will likely benefit the segment's revenue creation.

According to applications, the market is divided into clinical drug information, disease and condition management, clinical informatics and surveillance. Clinical informatics and surveillance will likely dominate the market over the forecast period, owing to the increased implementation of CDSS for this purpose.

Based on the end-users, the market is classified into clinics, hospitals, ambulatory surgical centres and others. Hospitals have the highest portion of the market. Market demand is driven by factors such as well-resourced diagnostic rooms, enormous purchasing power, the availability of highly skilled healthcare personnel, and expanded health coverage for hospital-based healthcare services.

The region divides the market into North America, Europe, Asia-Pacific and the rest of the world. The North American region currently holds the largest market share.

Regional Analysis

The region divides the market into North America, Europe, Asia-Pacific and the rest of the world.

The market for clinical decision support systems in North America is significantly larger than in any other region. It is a result of early acceptance by healthcare service providers, the availability of advanced technologies, and increased investment from stakeholders in the healthcare information technology industry. Nevertheless, throughout the past few years, a few Asian nations have continued to garner a significant amount of interest. Opportunities in the clinical decision support systems (CDSS) market are bolstered by the rapidly increasing adoption of electronic health records across Asia and the Pacific. It is anticipated that China, India, and Japan will show a high growth rate due to the increased elderly population and chronic disease incidence. Additionally, an increase in the amount of cash the government provides for healthcare IT systems is anticipated to support growth in these industries.

Recent Developments

• January 2022, it is now possible for healthcare providers to better serve transgender and non-binary patients by implementing new features in athenaOne, Athenahealth's cloud-based EHR, healthcare billing and patient engagement system.

• In May 2022, Morris Heights Health Center has chosen NextGen Enterprise Electronic Health Records (EHR) and Practice Management (PM) Solutions.

• In May 2022, the largest international hospital chain in Central and Eastern Europe, Penta Hospitals International, made a deal with Siemens Healthineers for a strategic partnership worth more than 30 million euros.

Clinical Decision Support Systems (CDSS) Market Segmentation

By Delivery Mode

• Standalone Delivery System
• Cloud-Based Delivery System

By Component

• Hardware
• Software
• Services

By Application

• Clinical Drug Information
• Disease and Condition Management
• Clinical Informatics and Surveillance
• Others

By End-Users

• Clinics
• Hospitals
• Ambulatory Surgical Centres
• Others

By Region

• North America
• Europe
• Asia-Pacific
• The rest of the world