Electronic Health Record (EHR) Market Report - Size & Analysis 2028

[Research Report] The electronic health record (EHR) market was valued at US$ 14,054.05 million in 2020 and is projected to reach US$ 20,318.02 million by 2028; it is expected to grow at a CAGR of 4.9% during 2021–2028.

Market Insights and Analyst View:

Electronic health record is a digital version of patient’s medical records. Electronic health record EHR software are patient-centered and helps in maintaining the real-time records. This will help the authorized healthcare professionals to make patient data available instantly and securely. It contains patient's medical history, medications, allergies, treatment plans, diagnoses, immunization dates, radiology images, and laboratory test results. The increasing adoption of healthcare technologies by hospitals in emerging countries is the major driving factor for the growth of the market. For instance, in March 2019, Huawei Technologies signed a partnership agreement with Guangdong Provincial People's Hospital for building a wireless healthcare hospital in China. This would be achieved by integrating 5G, IoT, big data, artificial intelligence (AI), and other technologies to provide accessible healthcare services and better patient-doctor relationships. This factor is bolstering the electronic health records market growth.

Growth Drivers and Challenges:

Private and Public financial incentives are affiliated as never before to encourage physicians to adopt electronic health records services. To help in the transition, the government has also put billions into training health information technology workers and establishing regional extension centres to provide technical and other advice. For instance, in 2009, as part of the Health Information Technology for Economic and Clinical Health (HITECH) Act, the federal government set aside US$ 27 billion for an incentive program that inspires hospitals and providers to implement electronic health records systems. In addition, billions more were assigned to help train health information technology (HIT) workers. This will assist hospitals and providers in setting up EHR Services.

The incorporation of digital means has made the healthcare sector a target for cyber threats. The number of healthcare information and patient data breaches has gradually increased in the past years. As per the HIPPA Journal, in 2019, around 41.2 million healthcare records were exposed, stolen, or illegally disclosed in 505 healthcare data breaches. As per an IBM report, the average cost of a data breach in 2019 was US$ 3.92 million, while a healthcare industry breach typically costs US$ 6.45 million. The EHR systems are used to exchange and analyse the patient's clinical information. This  will be the major challenge faced by electronic health records service providers.

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Electronic Health Record (EHR) Market: Strategic Insights

Market Size Value in	US$ 14,054.05 Million in 2020
Market Size Value by	US$ 20,318.02 Million by 2028
Growth rate	CAGR of 4.9% from 2021-2028
Forecast Period	2021-2028
Base Year	2021

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Report Segmentation and Scope:

The “Global Electronic health records Market” is segmented based on Installation type, types, end use, and geography. Based on installation type, the electronic health records market is segmented into Cloud based and on premises. Based on type, the electronic health records market is segmented into Acute HER, Ambulatory HER, and Post acute EHR. Based on End Use, the electronic health records market is segmented into Hospital, Pharmacies, diagnostic and imaging centers and ambulatory care centers. The electronic health records market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on Installation type, the electronic health records market is bifurcated into cloud based and on-premises. The cloud-based segment held the largest share of the market in 2020, whereas the same segment is anticipated to register the highest CAGR of 5.3% in the market during the forecast period. A cloud-based EHR is a solution that allows patient health files to be stored in the cloud rather than saving them on internal servers of the healthcare facility. Cloud-based electronic health records allow collecting patient data, maintaining precise health information, organizing, and collecting data into actionable information. The cloud-based EHRs are popular amongst the physicians and healthcare providers operating on a smaller scale as these systems can be installed without any requirement of in-house servers and offer a wide range of customizations & improvements as per their needs. Cloud-based EHR solutions are cost-effective as cloud computing reduces the cost of managing and maintaining your IT systems. Cloud-based EHR offers flexibility and allows the user to access the data from any place Thus, the rising demand for cloud-based software is driving the electronic health records market growth.

Electronic health records Market, by Product Type – 2020 and 2028

Access Data

Based on end use, the electronic health record (EHR) market has been segmented into hospitals, pharmacies, diagnostic and imaging centers, ambulatory care centers, and other end users. Hospitals segment held the largest electronic health record market share of the market in 2020, and the same segment is estimated to register the highest CAGR of 5.4% in the market during the forecast period. Hospitals are primary contact points for the patients to get their diagnosis done and opt for treatment options and alternatives. Available infrastructure in hospitals is capable of providing high quality care on any kind of disease condition as they have access to advanced medical devices. Hospitals segment is estimated to hold considerable share as majority of the patients in emerging nations and developed countries as well prefer to visit hospitals for any kind of health-related problem. Further, growing hospital industry in developing nations is likely to propel the growth of the segment. For instance, as per the IBEF, the Indian hospital industry is expected to grow CAGR of 16–17% to reach US$ 132.84 billion by 2022 from US$ 61.79 billion in 2017. Additionally, as per the NITI Aayog, Government of India, by 2024, India would have 2,500 new hospitals. Moreover, increasing number of hospitals and growing accessibility in emerging nations are also estimated to offer lucrative opportunity for growth of the electronic health record software market in hospital segment during the forecast period.

Regional Analysis:

Based on geography, the electronic health records market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. In 2020, North America held the largest share of the global electronic health records market, and Europe is estimated to register the highest CAGR during the forecast period. The electronic health records market growth is attributed to the by increasing adoption of electronic health record (EHR), transformation of digital healthcare, increasing number chronic diseases and support from the federal government to implement electronic health record (EHR) to improve the quality of care. Other factors such as higher rate of software technologies in healthcare, higher number of hospitals, and implementation of strategic government policies are driving the US EHR market. Additionally, need for automated systems due to increasing patient population and crunch of healthcare resources are projected to fuel the adoption of electronic health records systems in the US. Additionally, emphasis on error reductions in hospital administrative work, which is causing considerable mortalities; is also prominently anticipated to drive the growth of the market during the forecast period. For instance, according to study published in Journal of Patient Safety, an estimated 400,000 patient casualties are caused due to administrative errors in the US each year.

Industry Developments and Future Opportunities:

Various initiatives taken by global electronic health records software providers are listed below:

1. In April 2021, NextGen Healthcare, Inc., announced the availability of its expanded platform for ambulatory providers, the Spring ‘21 release of NextGen Enterprise. The platform also gives patients easier access to their medical records and to their care team, which strengthens the patient’s loyalty to the practice.
2. In Feb 2021, NextGen Healthcare, Inc. announced that NextGen Enterprise EHR is the top ambulatory EMR (11-75 physicians) and NextGen Enterprise PM is the number one practice management solution (11-75 physicians) for the third consecutive year in the 2021 Best in KLAS
3. In Oct 2020, Epic to use InterSystems as data foundation for latest EHR release. Using the IRIS platform will allow Epic customers access to larger datasets and provide enhancements in asynchronous mirroring.
4. In Feb 2020, Allscripts has announced Allscripts Touchworks EHR 20.0, the company’s powerful, scalable, and flexible platform designed by clinical and industry experts for large ambulatory practices, is now generally available.
5. In July 2020, Cerner has launched a cloud-based electronic health records platform, Community Works Foundations, aiming to reduce costs with a fixed-fee payment structure and no up-front fees at critical access (CAHs) and rural hospitals.

Covid-19 Impact:

The COVID-19 pandemic affected economies and industries in various countries across the globe. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the Healthcare IT industry. North American region is highly affected due to the outbreak of the Covid-19 pandemic. Countries such as the US and Canada reported the highest numbers of COVID-19 positive cases. The US-registered highest number of deaths due to the COVID-19 pandemic. The chaotic situation was created in the medical industry across the countries, increased demand for COVID diagnostics and therapeutics have dramatically increased in the hospitals. According to the Epic Health Research Network report of electronic health records, the average weekly screenings for breast, colon, and cervical cancers decreased by 94%, 86%, and 94% during January 20 – April 21, 2020, relative to the averages before January 20, 2020. Further IQVIA analysis concluded that oncology visits for newly diagnosed cancer patients began to increase in summer but had still not reached baseline in October. If oncology cases are missed or patients are diagnosed at end stages, it could result in long-term impacts on both health outcomes and costs. Similar patterns were observed for other serious and chronic diseases. The continued decrease in health services utilization, including preventive services, may result in more serious diagnoses and increased disease burden in the future.

Electronic health records (EHRs) have important data elements that can help with a pandemic response. Multiple initiatives were conducted to physically or virtually aggregate EHR and related data for COVID-19. EHR-based COVID-19 data collection and sharing initiatives are being carried out to provide care, educate healthcare workers and conduct research, during the pandemic. This factor is expected to boost the electronic health records software market growth during the forecast period.

Competitive Landscape and Key Companies:

Some of the prominent players holding the global electronic health records market share include Cerner Corporation, Computer Programs and Systems, Inc., Allscripts Healthcare Solutions, Inc., McKesson Corporation, Epic Systems Corporation, NextGen Healthcare, eClinicalWorks, Greenway Health, AdvancedMD, Inc., CureMD Healthcare amongst others. These companies focus on new product launches and geographical expansions to meet the growing consumer demand worldwide and increase their product range in specialty portfolios. They have a widespread global presence, which provides them to serve a large set of customers and subsequently increases their market share.