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2025 Medical Software Market Outlook: Key Indicators Shaping Growth Through 2034
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsWhat Will the Medical Software Industry Market Size Be by 2025?
The size of the medical software market has experienced a rapid increase lately. The growth is projected to continue from $58.94 billion in 2024 to an estimated $67.73 billion in 2025, marking a compound annual growth rate (CAGR) of 14.9%. The adoption of healthcare information technology (HIT) solutions, the use of secure and reliable software systems, a heightened emphasis on interoperability and data exchange, advancements in medical imaging and diagnostic software, and a surge in the demand for healthcare analytics have contributed significantly to the expansion seen in the historical period.
What's the Long-Term Growth Forecast for the Medical Software Market Size Through 2029?
The market for medical software is set to experience swift expansion in the coming years, with its worth projected to hit $116.66 billion in 2029, demonstrating a compound annual growth rate (CAGR) of 14.6%. This upcoming growth can be accredited to numerous factors such as higher utilization of electronic health records (EHR) and electronic medical records (EMR) systems, an increased need for data-backed decision-making tools, heightened emphasis on telemedicine and remote patient monitoring solutions, coupled with governmental drives towards healthcare digitization. Looking into the future, key trends include a surge in the uptake of cloud-based solutions custom-made for medical software, further integration of artificial intelligence (AI) and machine learning (ML) technologies, growth in personalized medicine, enhanced demand for telehealth and virtual care platforms, focus toward interoperability standards and data exchange protocols, and the ascend of mobile health (mHealth) applications and wearable devices.
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What Are the Key Growth Drivers Fueling the Medical Software Market Expansion?
Anticipated growth in the medical software market is largely fuelled by an escalating aging population and the prevalence of chronic diseases. The term 'rising aging population' signifies an increasing percentage of elderly individuals within a populace, whereas 'chronic diseases' denote medical conditions that are enduring and typically incurable but can largely be controlled with appropriate medical treatment and modifications in lifestyle. A climbing figure in both the elderly population and chronic diseases are being observed due to longer life expectancy and various lifestyle factors, including a sedentary lifestyle, unhealthy dietary habits, smoking, and over-consumption of alcohol. Medical software plays an integral role in delivering individualized care, managing diseases and tracking health metrics for older adults living with chronic diseases. It enhances the care quality and life quality of these individuals via proactive health monitoring and effective disease management. As per data released by Population Reference Bureau (PRB), a nonprofit organization based in the US, in January 2024, it is projected that the number of Americans aged 65 and over will increase from 58 million in 2022 to 82 million in 2050 (a 47% surge), and their share in the total population will rise from 17% to 23%. Furthermore, Allergy UK, a national charity based in the UK, reported in April 2024, that over 21 million people in the UK are affected by allergies, which has emerged as the most routinely reported chronic health condition in 2022. It predicts that by 2026, half of Europe's population would have at least one allergy. Hence, the surging aging population and chronic diseases are fuelling the expansion of the medical software market.
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What Are the Key Trends Driving Medical Software Market Growth?
Leading firms in the medical software market are concentrating their efforts on crafting progressive technological solutions like smart health assistants to lighten the workload of healthcare staff and augment operational productivity, by utilizing AI to simplify both clinical and administrative duties. Smart health assistants, powered by AI, assist users in health management by extending services such as booking appointments and reminders for medication. For example, in October 2024, Microsoft Corporation, a technology firm based in the US, introduced the Health-Care AI Suite to aid healthcare entities in more effective AI application creation. This suite provides tools like medical imaging models, AI agents and automated paperwork solutions, all aimed towards lessening clinician tasks and improving output. The Health-Care AI Suite holds significance as it enables health systems to enhance administrative tasks, boost data precision and guarantee smooth retrieval of clinical data, all while tackling large-scale challenges in the sector such as burnout and inefficiencies in documentation.
How Is the Medical Software Market Segmented?
The medical software market covered in this report is segmented -
1) By Software Type: Electronic Health Records (EHR), Medical Practice Management Software, Telemedicine Software, Medical Billing And Coding Software, Clinical Decision Support Systems (CDSS), Other Software Types
2) By Application: Hospitals, Clinics, Ambulatory Care Centers, Other Applications
3) By End-User: Providers, Payers, Patients
Subsegments:
1) By Electronic Health Records (EHR): Cloud-Based EHR, On-premise EHR, EHR For Small Practices, EHR For Large Healthcare Institutions
2) By Medical Practice Management Software: Appointment Scheduling, Patient Registration And Management, Medical Billing And Coding Integration, Reporting And Analytics Tools
3) By Telemedicine Software: Video Consultation Platforms, Remote Patient Monitoring, Telehealth Platforms For Specialists, Virtual Care Communication Tools
4) By Medical Billing And Coding Software: Billing Software For Clinics And Hospitals, Automated Coding Systems, Revenue Cycle Management Solutions
5) By Clinical Decision Support Systems (CDSS): Drug Interaction Checkers, Diagnostic Support Tools, Evidence-Based Medicine Tools, Alerting And Reminder Systems
6) By Other Software Types: Radiology Information Systems (RIS), Laboratory Information Management Systems (LIMS), Patient Portal Software, Healthcare CRM Software, Healthcare Analytics Software
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Which Companies Are Leading the Charge in Medical Software Market Innovation?
Major companies operating in the medical software market are McKesson Corporation, OptumHealth, Dell Technologies Inc., International Business Machines Corporation (IBM), Siemens Healthineers, Koninklijke Philips NV, GE HealthCare Technologies, Henry Schein Inc., Quest Diagnostics Incorporated, Cerner Corporation, Epic Systems Corporation, Lexmark International Inc., Athenahealth Inc., CompuGroup Medical SE & Co KGaA, eClinicalWorks, Allscripts Healthcare Solutions Inc., Greenway Health LLC, Computer Programs and Systems Inc., Sunquest Information Systems Inc., Merge Healthcare Incorporated, NextGen Healthcare Inc., First Databank Inc., CureMD Healthcare, Practice Fusion Inc., Updox LLC
Which Regions Are Leading the Global Medical Software Market in Revenue?
North America was the largest region in the medical software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the medical software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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