Electronic Health Records (EHR) Market Size, Share & Industry Analysis, By Product (Web-based and On-premise), By Type (Standalone and Integrated), By End-User (Physician Offices, Hospitals, and Others), and Regional Forecast, 2024-2032

The global Electronic Health Records (EHR) market size was valued at USD 29.68 billion in 2023. The market is projected to grow from USD 31.00 billion in 2024 to USD 46.63 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period. North America dominated the global electronic health records (EHR) market with a market share of 46.77% in 2023.

Electronic Health Records (EHR) are a systematized collection of information regarding a patient’s medical history, such as diagnoses, medicines, tests, allergies, immunizations, and treatment plans. The rising adoption of digital health solutions across healthcare facilities globally is a major factor boosting the demand for EHR software among these facilities.

In addition, the growing efforts of companies to increase funding for the development and introduction of technologically advanced software and tools are another major factor that is favorable to the expansion of the global market.

• In May 2024, Athenahealth, Inc., one of the leading providers of network-enabled software and services to healthcare facilities, launched athenaOne for women’s health and urgent care.

The overall impact of the COVID-19 pandemic on the global market for Electronic Health Records (EHR) was negative. The reduced demand for software and implementation services among hospitals and clinics due to the pandemic was one of the major factors responsible for the decline of the market in 2020. Most of the prominent players in the market witnessed a decline in their revenue owing to the reduced demand for their solutions, as patient volumes were low during the year.

Electronic Health Records (EHR) Market Trends

Integration of Artificial Intelligence and Machine Learning Tools in EHR Solutions

Technological advancements such as artificial intelligence, machine learning tools, and others are revolutionizing the healthcare industry, including the EHR platforms. The AI and machine learning algorithms hold promising potential for improving patient care and reducing medical errors, transforming the overall healthcare systems.

The increasing emergence of companies in the market to develop and introduce AI-integrated EHR solutions and strategic collaborations with other companies is expected to foster the ongoing trend in the market.

• In June 2024, Keragon, an AI-powered HIPAA-compliant automation healthcare platform, announced its first funding of USD 3 million. The platform aims to enable healthcare practitioners to improve their automation processes and overall workflow.

Thus, the growing focus of companies to integrate AI-powered solutions in the Electronic Health Records (EHR) systems owing to the rising benefits is a vital trend expected to spur digital transformation among healthcare organizations.

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Electronic Health Records (EHR) Market Growth Factors

Increasing Adoption of Telehealth Solutions to Drive Market Growth

Rising awareness regarding the various telehealth platforms and tools among the general population, especially post the COVID-19 pandemic is a major factor expected to boost the demand for EHR systems and solutions. The industry expansion is further boosted by the increasing focus of companies to increase the accessibility of these solutions to the majority of the population in both developed and emerging countries.

The incorporation of Electronic Health Records (EHR) systems in the telehealth and telemedicine field is crucial, owing to the rising demand for this software in the market. This results in a rising product integration among healthcare providers and facilities.

• In May 2024, Medical Information Technology, Inc., one of the leading Electronic Health Records (EHR) systems providers, integrated ambient listening technology into its Expanse EHR solution. The solution is expected to leverage the vendors to support data consumption through the Expanse Now mobile app and web-based physician solutions.

Therefore, the increasing adoption of telehealth platforms and solutions among the population globally is a key factor anticipated to foster the demand for Electronic Health Records (EHR) software and innovations in the market.

RESTRAINING FACTORS

Limited Healthcare Infrastructure in Emerging Countries May Hinder Product Adoption

The limited healthcare infrastructure among low and middle-income countries is a major barrier resulting in the lower implementation of EHR systems in the healthcare systems in these countries. The lack of awareness regarding the EHR systems and limited technical knowledge and skills among healthcare providers are a few other factors expected to hamper the adoption of Electronic Health Records (EHR) solutions among these countries.

• According to an article published by the World Health Organization (WHO) in 2020, only 15% of low-income countries have nationally adopted electronic health record systems in healthcare organizations.

Thus, the growing challenges in the implementation of EHR systems in low and middle-income countries, including African countries, Southeast Asian countries, and others, may hinder the Electronic Health Records (EHR) market growth during the forecast period.

Electronic Health Records (EHR) Market Segmentation Analysis

By Product Analysis

Increasing Preference toward Web-based EHR Systems Leads to its Dominance

Based on product, the market is segmented into web-based and on-premise.

The web-based segment dominated the global Electronic Health Records (EHR) market share in 2023. The rising adoption of web-based solutions among healthcare providers and facilities is owing to certain benefits such as increased scalability, increased efficiency, and reduced cost, among others.

The on-premise segment is expected to register a slower growth during the forecast period. The increasing adoption of EHR systems among physician offices and small-sized hospitals owing to rising awareness regarding the benefits of these software and solutions is one of the crucial factors driving segment growth.

• According to 2021 statistics published by the U.S. Assistant Secretary for Technology Policy, nearly 88.0% of the U.S. office-based physicians adopted EHR as of 2021, witnessing a growth from around 78.4% in 2013.

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By Type Analysis

Integrated EHR Systems Hold Leading Position Owing to its Benefits and Increased Adoption

Based on type, the market is divided into standalone and integrated.

The integrated segment accounted for the highest market share in 2023. The growing focus of companies on developing and introducing integrated Electronic Health Records (EHR) systems, along with increasing awareness and adoption of integrated software among healthcare providers, are some of the key factors driving the dominance of the segment.

• In October 2022, Emory Healthcare adopted Epic’s integrated and comprehensive healthcare software. The adoption is aimed at aligning its hospitals and clinics onto one integrated and modernized platform.

The standalone segment is expected to register slower growth during the forecast period. The standalone EHR systems are adopted by smaller organizations that require basic functions and do not require comprehensive systems.

By End-User Analysis

Hospitals are the Leading End User Due to Their Increasing Number and Improved Infrastructure

On the basis of end-user, the market is segmented into physician offices, hospitals, and others.

The hospitals segment accounted for the largest share in 2023. The increasing number of hospitals in developed and emerging countries, along with the rising focus of hospitals to expand their infrastructure and services, are the main factors bolstering the segment growth.

• In July 2023, Vandalia Health extended Oracle Health’s EHR across the network with an aim to enhance patient care and overall experience.

The physician offices segment is anticipated to grow at a moderate rate during the forecast period. The rising number of clinics and physician offices and the increasing adoption of Electronic Health Records (EHR) software among these settings are supporting the segment growth.

• In March 2023, Coryell Health launched OracleCerner (EHR) to promote efficiencies across the healthcare system. The adoption of the system is aimed at streamlining the accessibility for healthcare providers and improving overall patient care.

REGIONAL INSIGHTS

Based on geography, the market for Electronic Health Records (EHR) is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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North America dominated the market with a revenue of USD 13.88 billion in 2023. The rising adoption of EHR systems among hospitals and clinics in the U.S. and Canada, along with growing strategic collaborations among companies and healthcare providers, are some of the prominent factors favoring the regional growth.

• In July 2023, Universal Health Services (UHS), one of the leading hospital and healthcare services providers, expanded the Oracle EHR across its broad network of behavioral health facilities.

Europe’s market for Electronic Health Records (EHR) is expected to grow during the forecast period with a nominal growth rate. The increasing number of hospitals and rising adoption of EHR systems among physician offices, clinics, and others in the U.K., Germany, and other countries are a few of the crucial factors favoring the growth of the market in the region.

• According to a 2023 article published by NHS, 90% of NHS trusts have electronic patient records in hospitals. Furthermore, NHS England shared plans to invest USD 2.36 billion with the aim of supporting hospital trusts in adopting or improving their existing EHR systems and digitally transforming their facilities.

Asia Pacific is projected to grow at a steady rate during the forecast period owing to the improving healthcare infrastructure in the region. The industry expansion is further favored by growing awareness regarding the benefits of EHR systems in healthcare facilities to transform the overall care and workflow of patient care procedures.

• In March 2024, Medical Information Technology, Inc., one of the leading cloud-based EHR solution providers, launched MEDITECH Expanse as a subscription service for the Australian healthcare market.

Similarly, Latin America and the Middle East & Africa are anticipated to grow during the forecast period. The growth can be primarily attributed to factors such as the growing number of solution approvals and launches by companies in Brazil and Mexico and rising initiatives to expand the accessibility and adoption of these platforms among healthcare facilities.

KEY INDUSTRY PLAYERS

Strong Emphasis on Strengthening Product Portfolio by Companies to Consolidate Market Share

The global market for Electronic Health Records (EHR) is semi-consolidated with a few players accounting for a majority of the market share.

Epic Systems Corporation, Veradigm LLC, and eClinicalWorks are some of the prominent players in the market. The robust efforts of these companies to expand their customer base and product portfolio to cater to the rising demand among healthcare providers in various specialties are some important attributes for the growing market shares of these companies in the global market.

• In May 2024, eClinicalWorks introduced Sunoh.ai, a revolutionary AI-powered technology, for dental clinics in the U.S.

Oracle, Athenahealth, and NextGen Healthcare are some of the other leading players operating in the market. The strategic collaborations and acquisitions by these companies to strengthen the brand presence globally are crucial factors that favor the market positions of these companies.

• In June 2022, Oracle acquired Cerner Corporation, one of the leading digital information system providers, with the aim of expanding its product portfolio and customer base in the market.

Several emerging players in the market with a robust R&D focus and investments are expected to contribute to the growing EHR market share during the forecast period.

List of Top Electronic Health Records (EHR) Companies:

• Epic Systems Corporation (U.S.)


• Veradigm LLC (U.S.)


• Oracle (U.S.)


• eClinicalWorks (U.S.)


• Athenahealth (U.S.)


• NextGen Healthcare (U.S.)


• Medical Information Technology, Inc. (U.S.)


• Kareo, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2024 – Medical Information Technology Inc. released its newly designed Patient and Consumer Health Portal, a cloud-based enhancement to improve accessibility and ease of deployment.


• June 2024 – NextGen Healthcare expanded the capabilities of NextGen Ambient Assist for mid-sized and large practices and introduced NextGen Office Ambient Assist, a tailored solution for small practices.


• May 2024 – eClinicalWorks announced the integration of Sunoh.ai for dermatology clinics in the U.S. The integration aims to improve the clinical documentation of patient information and streamline the overall workflow.


• April 2024 – Athenahealth collaborated with the American Council of the Blind with the aim of expanding digital accessibility for Athenahealth patients.


• March 2024 – Veradigm LLC acquired ScienceIO, a leading AI platform and foundation model provider for healthcare facilities. The acquisition is aimed at enhancing healthcare data, patient privacy, and data integrity.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects, such as market size and forecast, segmentation based on product, type, end-user, and competitive landscape. It also gives an overview of the regulatory scenario, insights on service penetration, and analysis for significant companies. Besides, the report offers insights into the latest market trends, market statistics, and key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market’s growth in recent years.

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