Electronic Medical Record Market

Market Overview

The global electronic medical record market size was valued at USD 30.4 billion in 2023 and is projected to reach a value of USD 52.6 billion by 2032, registering a CAGR of 6.3% during the forecast period (2024-2032). Government initiatives to promote healthcare IT adoption are a major driver of the Electronic Medical Record Market share.

Electronic medical records (EMRs) are digital versions of paper charts that healthcare practitioners use to keep patient health information electronically. These records include patient data, such as medical history, diagnoses, prescriptions, treatment plans, immunization dates, allergies, laboratory test results, radiological pictures, and demographic information. EMRs are intended to simplify clinical workflows, improve patient care coordination, increase communication among healthcare personnel, and enable the secure sharing of health information between various healthcare locations.

Electronic medical record market growth is primarily driven by advancements in software technology and the healthcare sector. Furthermore, the use of artificial intelligence (AI) in the creation of EHR software helps to drive market growth. Furthermore, electronic medical records were vital in managing and recording patient data throughout the COVID-19 epidemic. Furthermore, research and development in cloud storage technology and an increase in electronic medical record service providers in the global electronic medical records market are expected to contribute to market growth. Furthermore, the increasing elderly population fuels market expansion.

Highlights

• Services influenced the market growth by component.
• General Application accounts for the largest share by application.
• On-premise generates the highest revenue share by delivery mode.
• Hospitals and Clinics are the major end-users of the market.

Market Dynamics

Global Electronic Medical Record Market Drivers:

Government Initiatives and Mandates

Electronic medical records (EMRs) are digital versions of paper charts that healthcare practitioners use to keep patient health information electronically. These records include patient data, such as medical history, diagnoses, prescriptions, treatment plans, immunization dates, allergies, laboratory test results, radiological pictures, and demographic information. EMRs are intended to simplify clinical workflows, improve patient care coordination, increase communication among healthcare personnel, and enable the secure sharing of health information between various healthcare locations.

The Meaningful Use (MU) program, also known as the EHR Incentive Program, is a set of objectives established by the US government to encourage healthcare providers to use certified electronic health records (CEHRT) meaningfully. The Centers for Medicare and Medicaid Services (CMS) designed the program, which began in 2011. As of August 2023, 85% of office-based physicians in the United States used electronic health records (EHRs). This represents a massive growth from a few years ago when just a small percentage of healthcare professionals used EHRs. EHRs are also used by roughly 96% of non-federal acute care institutions. The Meaningful Use program's financial incentives, technical help, and regulatory restrictions contributed to the broad use of EMRs.

Similarly, programs in the European Union, such as the Digital Health Strategy, seek to encourage the use of digital health technology, including EMRs, to improve healthcare outcomes and patient care among member states. The plan focuses on interoperability, data interchange, and patient access to electronic health records to encourage the deployment of EMRs and digital health solutions in healthcare organizations throughout Europe. These programs seek to standardize health information sharing, improve care coordination, and improve healthcare quality and outcomes by promoting the broad use of EMRs and interoperable health IT systems. 

Global Electronic Medical Record Market Restraints:

High Implementation Cost

One of the foremost obstacles to EMR adoption is the high upfront cost necessary for implementation. Healthcare businesses must invest in software licensing, hardware infrastructure, training programs, and implementation services, which can be costly, particularly for small and medium-sized healthcare providers. The cost of moving from paper-based records to electronic systems and continuous maintenance costs can prevent companies from using EMRs, especially in resource-constrained environments.

Electronic medical records (EMR) systems can cost USD300 to several thousand dollars per month or more. In addition to monthly expenditures, behavioral health clinics may incur implementation fees and other upfront and continuing expenses, such as system and training costs. 

Additionally, the typical cost of adopting an Electronic Medical Records (EMR) system varies from USD 33,000 to USD 700,000, depending on the deployment type and solution. Cloud-based options are often less expensive than on-premises solutions, which require hosting EMR on your servers and obtaining a permanent software license. For example, self-hosted solutions can start at USD 1,200, whereas clinics and hospitals may pay around USD 500,000 on average. Custom EHR solutions, suited to your individual needs, can cost between USD 500,000 and USD 700,000 for mid-sized businesses.

Furthermore, in addition to initial deployment costs, healthcare institutions must account for continuing maintenance and support expenditures associated with EMR systems. According to a study published in the Journal of the American Medical Informatics Association, annual maintenance expenditures for EMR systems might be between 15-20% of the initial deployment cost. 

Global Electronic Medical Record Market Opportunity:

Expansion of Cloud-Based Solutions

Cloud-based EMR solutions provide healthcare organizations with a significant opportunity to streamline IT operations, minimize infrastructure costs, and improve scalability and flexibility. Cloud-based EMR systems offer benefits such as remote access, automatic updates, and data redundancy, allowing healthcare providers to safely access patient information from any location or device. The increased demand for flexible, cost-effective, and interoperable EMR solutions propels cloud-based alternatives into the global market.

Furthermore, cloud-based EMR solutions are more cost-effective than traditional on-premises systems. According to Black Book Market Research, healthcare firms can save up to 20% by switching to cloud-based EMR systems. The study discovered that cloud-based EMRs eliminate upfront hardware expenditures, lower IT maintenance costs, and increase operational efficiency, resulting in significant cost savings over time.

In addition, cloud-based EMR suppliers invest significantly in data security measures to protect patient health information from unauthorized access, breaches, and cyber threats. Cloud infrastructure companies, such as Amazon Web Services (AWS) and Microsoft Azure, provide robust security features, encryption techniques, and compliance certifications to protect data privacy and regulatory compliance. Healthcare firms can improve data security, reduce risk, and comply with healthcare standards like HIPAA and GDPR by utilizing cloud-based EMR solutions.

Regional Analysis

The global electronic medical record market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global electronic medical record market shareholder and is estimated to grow at a CAGR of 6.7% over the forecast period. North America dominates the EMR market due to government backing and advantageous incentives for implementing EHR solutions in hospitals, clinics, and medical help institutes. The region is additionally supported by a strong presence of prominent market participants such as Epic Systems Corporation (the United States), Cerner Corporation (the United States), MEDITECH (the United States), GE Healthcare (the United States), and Allscripts Healthcare Solutions, Inc. (the United States).

Furthermore, continuous technical breakthroughs in Silicon Valley have significantly impacted the creation of next-generation EMR software systems that are cloud-based, cost-effective, and innovative. As a result, the CDC reports that 88.2% of office-based physicians in the United States use electronic medical records (EMR)/electronic health records (EHR) systems. By 2023, more than 96% of hospitals and physicians will have used digital technologies.

Asia-Pacific is anticipated to exhibit a CAGR of 7.0% over the forecast period. India dominates Asia-Pacific's EMR market due to a consistent increase in the healthcare industry's use of electronic medical records and other electronic and digital equipment. India has emerged as one of the fastest-growing digital economies among developing nations, thanks to the Indian government's digitization push, resulting in a 90% increase in digital usage during the last 6-8 years. The Indian government's digitization activities include implementing digital biometric identification cards (Aadhaar) and creating a favorable ecosystem for the digital healthcare business.

In addition, e-gov programs like the National Health Portal, e-hospital, and Integrated Health Information Program (IHIP) drive industry growth. For example, some of the country's most well-known commercial hospital franchises, such as Fortis, Max, and Apollo, and government institutions like the All India Institutes of Medical Sciences (AIIMS), are substantially investing in EMR technology.

Europe's electronic medical records accounted for the second most significant market share in 2023, owing to the existence of developed economies, which are likely to fuel the EHR market in Europe throughout the forecast period. The European Commission's Digital Single Market Strategy provides consumers and businesses access to online services and goods across Europe, thereby creating the necessary conditions for the growth of the digital network and related services, which is expected to maximize the European economy's growth potential.

Segmental Analysis

The global electronic medical record market is segmented based on component, application, delivery mode, and end-user.

The market is further segmented by component into Software, Services, and Hardware.

The services component of EMR systems includes various professional services and support options offered by EMR suppliers and third-party partners. These services may include implementation, training, customization, consultation, maintenance, and technical support. Implementation services include designing the EMR software to match the workflow and requirements of the healthcare business, facilitating seamless adoption and integration into current systems. Training services offer healthcare personnel the information and skills they need to use EMR software successfully, increasing productivity and reducing user errors. Consulting services provide strategic counsel and expertise to help organizations maximize EMR utilization, increase workflow efficiency, and achieve their goals.

The software component of Electronic Medical Record (EMR) systems is the fundamental program that allows healthcare practitioners to store, manage, and access patient health information electronically. EMR software contains capabilities including electronic documentation, clinical decision support, order input, prescription management, and patient portal access. It is the primary platform for collecting and organizing patient data, streamlining clinical workflows, and promoting evidence-based treatment. EMR software is configurable to match the unique demands of healthcare organizations, allowing for efficient recordkeeping, streamlined communication, and comprehensive patient care delivery.

The market can be bifurcated by application into general applications and specialty-based applications.

EMR systems developed for general use meet the needs of various healthcare settings and specialties. These systems provide extensive functionality and capabilities for primary care, family medicine, internal medicine, and other general medical practices. General applicability EMRs often feature vital modules such as patient demographics, medical history, progress notes, medications, laboratory findings, imaging reports, and appointment scheduling. They are versatile and adaptable to various clinical workflows and care settings, making them appropriate for usage in hospitals, clinics, outpatient facilities, and multispecialty offices.

Specialty-based EMR systems are designed to satisfy the unique needs and workflows of medical specialties, subspecialties, and specialized healthcare practices. These EMRs are intended to meet the specific clinical demands, documentation standards, and terminology used in specialist areas of medicine such as cardiology, cancer, orthopedics, pediatrics, obstetrics, dermatology, and mental health. Specialty-based EMRs may include unique templates, forms, order sets, and clinical decision support tools specific to a specialty's practice patterns and diagnostic processes. They help healthcare providers record and store specialty-specific data, expedite clinical procedures, and provide tailored care interventions to patients with complex medical conditions.

Based on delivery mode, the market for electronic medical record is classified into on-premise and cloud-based.

The on-premise category dominates the market (55%), providing users with a safer alternative to storing data in-house via private servers/clouds. On-premise EMR systems require installing and hosting Software and hardware on the healthcare organization's physical infrastructure. In this strategy, EMR software is placed on local servers and workstations at the healthcare facility. The organization is responsible for procuring, installing, and maintaining all necessary hardware and managing software upgrades, backups, and security precautions. On-premise EMR systems provide more control and customization choices because the organization keeps complete ownership and administration of the IT infrastructure. However, they usually necessitate a considerable initial capital investment, continuous maintenance expenditures, and dedicated IT resources to maintain system reliability and performance. Public concern has been a significant impediment to the adoption of EMRs.

Cloud-based EMR systems, called Software as a Service (SaaS) solutions, are hosted and managed by third-party cloud service providers. In this scenario, the EMR software is accessed and used via the internet, with data stored and processed on remote servers managed by the cloud provider. Cloud-based EMR solutions have various benefits, including scalability, flexibility, accessibility, and cost-effectiveness. Healthcare businesses can scale resources up or down as needed, securely access patient records from any place or device with internet access, and benefit from the cloud provider's automatic software updates and maintenance. 

Based on end-users, the market is fragmented into Hospitals and Clinics, Diagnostic Centers, Ambulatory Care, and Research Laboratories.

Hospitals and clinics are among the main end-user categories for EMR systems. These hospitals provide comprehensive healthcare services, including inpatient, outpatient, emergency, surgical, and specialized clinics. EMR systems in hospitals and clinics facilitate comprehensive patient care delivery, clinical recording, care coordination, and quality improvement programs. They allow healthcare providers to more efficiently handle patient information, expedite workflows, and improve communication and collaboration among care team members.

Diagnostic centers conduct various medical tests, imaging procedures, and diagnostic evaluations to help with disease diagnosis, monitoring, and treatment. Diagnostic centers employ EMR systems to capture, store, and evaluate diagnostic test findings, which include laboratory tests, imaging studies (such as X-rays, MRIs, and ultrasounds), and pathology reports. These systems work together with diagnostic equipment and laboratory information systems to guarantee seamless data transmission, prompt reporting, and accurate interpretation of diagnostic results.

Recent Developments

• March 2024- Oracle announced the general availability of Oracle's Globally Distributed Autonomous Database. A globally Distributed Autonomous Database, built on Oracle's proven sharding technology, provides the same benefits as Oracle's Autonomous Database while allowing users flexibility over data distribution and placement policies.
• January 2024- Trinity and Anthem formed a new Value-Based Epic Partnership.
• March 2024- MEDITECH collaborates with several early adopters to use generative AI to minimize clinical documentation burdens by incorporating ambient listening technology into their Expanse EHR.
• March 2024- GE HealthCare announced the publication of AI Models using Routinely Collected Clinical Data to Predict Patient Response to Immunotherapy.