Electronic Health Records (EHR) Market is Projected to Reach 23.98 Billion by 2020

Date: 2015-12-20

The global EHR market was valued at USD 15.56 billion in 2013 and is expected to grow at a CAGR of 6.4% from 2014 to 2020, to reach an estimated value of USD 23.98 billion in 2020.

An electronic health record (EHR) is the digital version of health information of an individual patient or population. An EHR stores a wide range of data such as medical history of a patient, medication, laboratory test results, diagnostic images and demographics. The system allows access to patient-related data only to authorized users. The world is witnessing growing adoption of EHR systems across healthcare facilities. In the past, EHR adoption has been higher among medium to large-sized hospitals as compared to small-sized practices, primarily because hospitals have a larger budget than small-sized practices. However, during the forecast period from 2014 to 2020, the market for EHR systems used in small-sized practices is expected to witness significant growth rate.

Significant advantages associated with EHR systems and financial incentives by the governments of various countries are some major factors that are driving the growth of EHR market globally. Some major advantages offered by an EHR system include accurate and up-to-date patient information, reduced healthcare cost in long term, quick access to patient related data, reduced medical errors, increased patient participation and improved efficiency of healthcare providers. These advantages encourage healthcare providers to equip themselves with technically advanced EHR systems, and thereby drive the market growth. The U.S. federal government allocated USD 27 billion with the intent to encourage EHR adoption across the nation as part of the Health Information Technology for Economic and Clinical Health (HITECH) Act in 2009. As a result of this incentive program, a large number of healthcare facilities have already implemented EHR systems. During the forecast period from 2014 to 2020, financial incentives by governments will continue to drive the growth of EHR market.

On the other hand, factors such as high costs associated with the adoption of an EHR system and lack of skilled healthcare IT professionals create hesitance among healthcare providers, and thus affect market growth.

The global market for EHR has been segmented into web-based EHR and client server-based EHR, based on the two major ways of implementation. In terms of end-users, the global market for EHR has been segmented into hospitals and ambulatory centers. Hospitals constituted the larger segment of the overall EHR market revenue in 2013. Ambulatory centers usually opt for web-based EHR systems as they do not require high initial capital expenditure.

Based on geography, the global EHR market has been segmented into North America, Europe, Asia-Pacific and Rest of the World (RoW). North America represented the largest regional market for EHR in terms of revenue in 2013. Expanding at a CAGR of 5.8% during the forecast period from 2014 to 2020, it is expected to retain its leading position through 2020. Government funding encouraging the meaningful use of certified EHR technology across healthcare facilities, increasing pressure for healthcare cost containment and rising demand for improved quality of healthcare services are among the major factors driving the growth of EHR market in the North American market. India, China, Brazil, Mexico and South Africa are some developing nations that have been experiencing impressive growth in their economy over the past few years. During the forecast period from 2014 to 2020, these countries are expected to offer immense potential for EHR market as the continuously growing economy of these nations will encourage healthcare providers to adopt technically advanced EHR systems.

Allscripts Healthcare Solutions, Inc., Cerner Corporation, Epic Systems, Medical Information Technology, Inc. (MEDITECH), McKesson Corporation, NextGen Healthcare (Quality Systems, Inc.), Computer Programs and Systems, Inc. (CPSI), GE Healthcare and eClinicalWorks are some major players in the global EHR market.

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