Electronic Health Record Market Size, Share, Growth & Industry Analysis, By Type (Ambulatory EHR, Inpatient EHR, Post-acute EHR), By Deployment (Cloud-based, On-premises), By Application (Clinical Records, Administrative Tasks and Billing, Physician Support, Patient Portal), By End User, and Regional Analysis, 2024-2031

Electronic Health Record Market Size

The global Electronic Health Record Market size was valued at USD 32.58 billion in 2023 and is projected to grow from USD 34.06 billion in 2024 to USD 48.58 billion by 2031, exhibiting a CAGR of 5.20% during the forecast period. Growing integration of artificial intelligence in Electronic Health Records (EHRs) and rising demand for telehealth integration with EHR are propelling the market growth.

In the scope of work, the report includes services offered by companies such as Koninklijke Philips N.V., Medical Information Technology, Inc., Oracle, Veradigm LLC, Epic Systems Corporation, athenahealth, Inc., eClinicalWorks, McKesson Corporation, NXGN Management, LLC, Greenway Health, LLC, and others.

The integration of electronic health record (EHR) systems with wearable and IoT devices represents a significant opportunity to revolutionize patient care by enabling continuous, real-time health monitoring. As wearable technology becomes increasingly sophisticated, devices such as smartwatches, fitness trackers, and remote monitoring equipment capture a wealth of health data, including vital signs, physical activity levels, and sleep patterns.

By integrating this data directly into EHR systems, healthcare providers can get a comprehensive view of a patient’s health status, facilitating more personalized and proactive care. This integration enhances chronic disease management by facilitating early detection of potential health issues and their timely interventions.

Additionally, it allows patients to take a more active role in managing their health, as they can monitor their own data and share it seamlessly with their healthcare providers. The opportunity for healthcare systems to harness this data is vast, which can potentially reduce hospital visits, improve patient outcomes, and reduce healthcare costs. However, successful integration requires overcoming challenges related to data interoperability, privacy concerns, and accuracy of data from various devices.

An electronic health record (EHR) is a digital version of patients’ paper chart, designed to be a comprehensive, real-time record of their medical history and care. EHRs are intended to go beyond standard clinical data collection to include a broader view of patient health, incorporating data from all the clinicians involved in treatment processes.

EHRs can be categorized by type into clinical EHRs that focus on direct patient care, and administrative EHRs that support back-office operations like billing and scheduling. In terms of deployment, EHR systems can be implemented on premise, where hospitals or clinics host the servers, or on cloud, which offers remote access with lower infrastructure costs.

Applications of EHRs include managing patient demographics, medical histories, medications, lab results, and imaging studies. The primary end users of EHR systems are healthcare providers, such as hospitals, outpatient clinics, and private practices, along with ancillary service providers like laboratories and pharmacies. EHRs are also used by patients themselves through patient portals that enable them to access their medical records, communicate with healthcare providers, and manage their own health information.

Analyst’s Review

In the highly competitive electronic health record market, companies are adopting various strategies to maintain and grow their market share. A key focus for many players is enhancing their product portfolios by integrating advanced technologies such as artificial intelligence, machine learning, and data analytics, which are becoming vital for predictive analytics and personalized medicine.

Growth in the current market is largely driven by the demand for cloud-based EHR solutions, which offer scalability, cost-efficiency, and flexibility; this makes them particularly attractive to small- and medium-sized healthcare providers. Companies also invest in R&D to develop interoperable EHR systems that seamlessly integrate with other healthcare IT systems, improving care coordination and data sharing across the continuum of care.

• For instance, in November 2023, NextGen Healthcare announced that clients using its population health platform saved a cumulative USD 82 million in Medicare costs through the Medicare Shared Savings Program (MSSP). The program encourages the formation of accountable care organizations (ACOs) to optimize resources and improve care quality. NextGen enabled actionable insights within EHR workflows for better patient outcomes.

Additionally, partnerships and collaborations with technology firms, healthcare providers, and government agencies are becoming imperative for driving innovation and ensuring compliance with the changing regulations. To stay competitive, key players must continue focusing on improving user experience, addressing data security concerns, and expanding their presence in emerging markets, where healthcare digitalization is rapidly progressing.

Electronic Health Record Market Growth Factors

The increasing adoption of electronic health record (EHR) solutions is a major trend that is expected to significantly propel the expansion of the electronic health record (EHR) market. As healthcare providers worldwide continue to transition from paper-based records to digital data, the demand for EHR platforms is expected to surge over the forecast period. This shift is driven by the growing need for efficient, accurate, and accessible patient data management, offered by EHR systems.

The widespread adoption of EHRs is further supported by government mandates and incentives aimed at improving healthcare quality, patient safety, and data interoperability.

• For instance, in June 2024, NextGen Healthcare expanded its AI-driven ambient listening technology with NextGen Ambient Assist and introduced NextGen Office Ambient Assist for small practices. This solution, including AI support for diagnosis codes and order management, enhances accessibility with Spanish language support and specialty-specific models for various medical fields.

The growing awareness regarding the benefits of EHRs, such as improved clinical workflows, reduced administrative burdens, and enhanced patient outcomes, further fuels this trend. As more healthcare providers adopt EHR solutions, the market is expected to witness robust growth, driven by continuous innovation and enhancement of EHR functionalities to meet the evolving needs of the healthcare sector.

However, the high costs associated with the implementation and maintenance of electronic health record (EHR) systems present a significant challenge for healthcare providers, particularly in small and medium-sized practices. Implementing an EHR system requires substantial upfront investment in software, hardware, and training, which are prohibitively expensive for many organizations.

Ongoing maintenance costs, including updates, data storage, and technical support, also add to the financial burden. These costs are often exacerbated by the need for customization to meet the specific needs of a healthcare facility, which further drives up expenses. The financial strain of adopting and maintaining EHR systems deter healthcare providers from transitioning to digital records, despite the long-term benefits of improved efficiency and patient care.

To mitigate this challenge, healthcare organizations explore various strategies such as opting for cloud-based EHR solutions that offer lower upfront costs and reduced maintenance expenses, seeking government grants and incentives designed to support EHR adoption, and partnering with vendors that offer flexible pricing models or financing options. This approach helps alleviate the financial burden and facilitates wider adoption of EHR systems.

Electronic Health Record Market Trends

Integration of Artificial Intelligence (AI) and voice recognition technology with electronic health record (EHR) systems is an emerging trend that is poised to transform the healthcare landscape. AI enhances the functionality of EHRs by enabling predictive analytics, routine task automation, and providing decision support to clinicians.

For instance, AI algorithms analyze large volumes of patient data within EHRs to identify patterns and trends, assisting healthcare providers in diagnosing conditions earlier and personalizing their treatment plans. Voice recognition technology further complements this by allowing clinicians to feed and retrieve data using voice commands, significantly reducing the time spent on manual data entry and improving overall efficiency.

• For instance, in August 2024, Greenway Health launched an initiative to incorporate AI and automation into its services. This initiative aims to alleviate common provider challenges such as administrative burden, staffing issues, and clinician burnout, reflecting a strategic focus on improving healthcare efficiency through technology.

This integration is particularly beneficial in high-pressure environments like emergency rooms, where speed and accuracy are crucial. Additionally, AI-powered voice recognition systems transcribe clinical notes in real-time, ensuring that EHRs are up-to-date, without disrupting clinicians’ workflow. Therefore, the trend of combining AI and voice recognition with EHRs will likely enhance usability of these systems and contribute to better patient outcomes and clinician satisfaction, driving the adoption of HER systems in the healthcare sector over the forecast period.

Segmentation Analysis

The global market has been segmented based on type, deployment, application, end user, and geography.

By Type

Based on type, the market has been categorized into ambulatory EHR, inpatient EHR, and post-acute her segments. The inpatient EHR segment captured the largest electronic health record market share of 48.62% in 2023. The segment growth is largely attributed to the comprehensive nature of inpatient care and the critical need for efficient data management in hospital settings.

Inpatient EHR systems are designed to manage the vast and complex array of patient information generated during hospital stays, including medical histories, treatment plans, lab results, and prescription records. The complexity and volume of data involved in inpatient care require robust EHR solutions that seamlessly integrate and provide real-time access to patient information across various departments. This is especially crucial in hospitals where multiple healthcare providers need to coordinate care for patients with acute or chronic conditions.

The high adoption of inpatient EHR systems is also driven by regulatory mandates that require hospitals to maintain detailed patient records and ensure data interoperability. Additionally, the increasing emphasis on improving patient outcomes and hospital efficiency has led to a growing reliance on inpatient EHR systems, which support clinical decision-making, reduce medical errors, and streamline administrative tasks. As a result, the inpatient EHR segment has emerged as the largest in the market, reflecting the critical role of these systems in modern healthcare delivery.

By Deployment

Based on deployment, the market has been classified into cloud-based and on-premises. The cloud-based segment of the electronic health record market is expected to achieve a staggering CAGR of 5.38% over the forecast period from 2024 to 2031. Cloud-based EHR solutions offer significant advantages over traditional on-premise systems, namely lower upfront costs, scalability, and enhanced accessibility. These systems allow healthcare providers to access patient data from anywhere at any time, which is particularly beneficial in the context of telehealth and remote care.

The flexibility of cloud-based EHRs enables healthcare facilities to scale their operations without the need for substantial investments in IT infrastructure. Moreover, cloud solutions often include automatic updates and maintenance, which reduces the burden on healthcare IT departments and ensures that systems are always up-to-date with the latest features and security protocols.

The increasing concerns around data security and compliance with regulations like HIPAA are also propelling the adoption of cloud-based EHRs as leading providers offer robust security measures and data encryption. Therefore, the global shift toward digitization and the need for interoperability across healthcare systems are further expected to boost the demand for cloud-based solutions, positioning this segment for significant growth over the forecast period.

By Application

Based on application, the market has been divided into clinical records, administrative tasks and billing, physician support, and patient portal. The clinical records segment led the electronic health record market in 2023, reaching a valuation of USD 13.47 billion, mainly due to the critical importance of maintaining accurate and comprehensive patient data in the healthcare industry.

Clinical records form the backbone of the electronic health record (EHR) systems, encompassing all essential patient information such as medical history, diagnoses, treatments, lab results, and imaging reports. The high revenue generated by this segment reflects the extensive use of clinical records across all healthcare settings, from primary care to specialized hospitals.

The growing emphasis on evidence-based medicine, which relies heavily on accurate clinical data, has driven healthcare providers to invest in advanced EHR systems that efficiently manage and utilize clinical records. Additionally, regulatory requirements for maintaining detailed and standardized patient records have contributed to the demand for robust EHR solutions capable of handling large volumes of clinical data.

The rise in chronic diseases, aging population, and increasing complexity of patient care have further aided the need for comprehensive clinical records as essential tools for coordinating care, reducing medical errors, and improving patient outcomes. As a result, the clinical records segment has emerged as a significant revenue generator in the market, reflecting its vital role in modern healthcare delivery.

Electronic Health Record Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America electronic health record market accounted for 36.81% of the global market share and was valued at USD 11.99 billion in 2023. This dominance is driven by several factors, including early adoption of EHR systems, well-established healthcare infrastructure, and strong government support through regulations and incentives in the region. The U.S., in particular, has been a frontrunner in the adoption of EHR systems, largely due to initiatives such as the HITECH Act, which provided financial incentives to healthcare providers for adopting EHR technology.

• For instance, in May 2024, Oracle successfully implemented its modern EHR system, MHS GENESIS, across all Department of Defense (DoD) garrison facilities worldwide. Supporting nearly 4,000 locations and over 197,000 users, this development represents the largest global EHR deployment, enhancing care for over 9.5 million beneficiaries across multiple regions.

The region's advanced technological landscape also supports the integration of innovative features, such as AI, machine learning, and telehealth capabilities into EHR systems, further driving market growth. Additionally, the high prevalence of chronic diseases in North America necessitates the use of comprehensive patient data management systems, bolstering the demand for EHRs. The presence of major EHR vendors in the region also contributes to market expansion, as these companies constantly innovate and offer solutions that cater to the specific needs of North American healthcare providers.

Asia-Pacific is expected to grow at the highest CAGR of 5.49% in the coming years, emerging as a significant market for electronic health record (EHR) systems. This growth rate is fueled by the increasing focus on healthcare modernization and digitalization, driven by both governmental initiatives and rising healthcare demands from its large and aging populations in the region.

Countries like China, India, and Japan are leading this transformation, investing heavily in healthcare infrastructure and IT systems to improve the quality and accessibility of healthcare services. The expansion of healthcare coverage in these countries, along with a growing emphasis on patient-centric care, is leading to greater adoption of EHR systems.

Additionally, the increasing prevalence of chronic diseases and the need for efficient healthcare management in densely populated areas are driving the demand for EHR solutions. Asia-Pacific's healthcare providers are also recognizing the value of EHRs in enhancing care coordination, reducing medical errors, and improving patient outcomes, further contributing to market growth.

Competitive Landscape

The global electronic health record market report will provide valuable insights with enhanced emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategies, including investments in R&D activities, establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Electronic Health Record Market

• Koninklijke Philips N.V.
• Medical Information Technology, Inc.
• Oracle
• Veradigm LLC
• Epic Systems Corporation
• athenahealth, Inc.
• eClinicalWorks
• McKesson Corporation
• NXGN Management, LLC
• Greenway Health, LLC

Key Industry Developments

• August 2024 (Partnership): Greenway Health expanded its partnership with Pediatric Associates, upgrading to a comprehensive solution suite from the Select solution. This marks a strategic move to enhance patient care and optimize practice management, demonstrating a commitment to improving healthcare delivery through innovative technology solutions.
• June 2024 (Product Launch): Philips launched the Cardiac Workstation across Europe, the Middle East, and Africa, a cutting-edge platform designed to enhance cardiology care. Utilizing advanced algorithms, the system streamlines ECG data management, aiding clinical decision-making and reducing administrative burdens, allowing healthcare teams to focus on patient care.

The global electronic health record market has been segmented as below:

By Type

• Ambulatory EHR
• Inpatient EHR
• Post-acute EHR

By Deployment

• Cloud-based
• On-premises

By Application

• Clinical Records
• Administrative Tasks and Billing
• Physician Support
• Patient Portal

By End User

• Hospitals and Clinics
• Physician Offices
• Ambulatory Surgical Centers

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America