U.S. Electronic Health Records (EHR) Market Analysis, By Solution (EHR Software, EHR Services), By End Use (Hospitals, Specialty Clinics, Ambulatory Surgical Centres, Diagnostic Labs) - United States Market Insights 2022 to 2032

U.S. Electronic Health Records Market Outlook (2022-2032)

The U.S. electronic health records market stands at a current valuation of US$ 8.1 billion and is estimated to surpass US$ 12.4 billion by the end of 2032. The market is projected to expand at a CAGR of 4.3% during the forecast years of 2022-2032. As such, the market is poised to generate an absolute dollar opportunity worth US$ 4.3 Billion by the end of 2032.

Application of electronic health record (EHR) software and solutions in the U.S. is likely to grow on the back of advanced technologies being introduced by market players in the country.

U.S. Demand Analysis of Electronic Health Record Solutions (2017-2021) Vs. Market Outlook (2022-2032)

An electronic health record (EHR) is a computerized version that stores information securely and is visible to medical health practitioners and other authorized users. It is an electronic version of the medical history of patients, and is maintained by a doctor or a practitioner. This can include information such as demographics, past medical history, medical issues, vital signs, medication, progress notes, laboratory data, immunizations, radiology reports, etc.

EHRs are being widely adopted by healthcare providers owing to greater demand in healthcare facilities. Growth of the U.S. electronic medical records market is driven by the incorporation of artificial intelligence in software, thereby playing an important role in managing patients and other tasks, and this is expected to fuel market growth in the U.S. over the coming years.

• Short Term (2022 Q2 to 2025): Efforts undertaken to reduce administrative and regulatory burden propelling the use of electronic health records.
• Medium Term (2025-2028): Augmented application of electronic health records in end-use areas such as hospitals, ambulatory surgical centres, specialty clinics, etc.
• Long Term (2028-2032): Incorporation of advanced technology along with development and modernization of clinical trial designs.

The U.S. market for electronic health records expanded at 2.8% CAGR from 2017 to 2021, and is projected to register a higher 4.3% CAGR during the forecast years (2022 to 2032), according to a recent analysis by Fact.MR, a market research and competitive intelligence provider.

Images provide analysis of market shares by end use and region. Under the end-use segment, hospitals held the largest market share of 29.8% in 2021.

What’s Driving Adoption of Electronic Health Record Solutions in the U.S.?

“Prominent Role of EHRs in Reducing Administrative & Regulatory Burden”

Adoption of electronic health records has risen over the years on the back of rising initiatives by the government to implement strategies that promote a reduction in administrative and regulatory burdens with the use of EHRs by medical practitioners.

For instance, the implementation of the Cures Act is designed to accelerate medical product development and incorporate innovations and advances for patients.

Modernization of clinical trial designs with the use of Real-World Data (RWD) and Real-World Evidence (RWE) can help in the reduction of required documentation and improve regulatory flexibility. Such initiatives are anticipated to augment the demand for electronic health record software and solutions across the U.S. over the coming years.

“Augmented Role & Application of EHR in Healthcare Information Systems”

Rising demand for strong Health Information Technology (HIT) to provide care of supreme quality at reduced costs is being witnessed. EHRs are now being considered an effective part of healthcare information systems. The role and application of EHR in clinical applications and healthcare systems are rising to gather valuable health information and data, management, decision supports, order entry, etc.

Furthermore, the use of EHR in healthcare financing and administrative applications is likely to support electronic health records market demand growth by ~17% over the decade.

These factors are expected to positively impact market demand for electronic health records in the United States over the coming years.

Region-wise Insights

Which U.S. Regions Account for High Electronic Health Record Solution Demand?

The West U.S. electronic health records market dominates the United States electronic health records market with 26.7% market share and is projected to expand at 4.9% CAGR by 2032.

The next leading region is the South-West U.S. electronic health records market, which holds 24.3% share. The segment is projected to register 4.5% growth rate over the assessment period.

Growth in both these regional markets is attributed to factors such as the augmented digitalization process undertaken in the healthcare sector along with favorable government policies and regulatory scenarios, such as the Cures Act, which are aiding regional market demand growth for digital medical information systems.

Category-wise Insights

Why Will EHR Software Continue Leading Market Growth in the United States?

The electronic medical records market, under solution, is segmented into EHR software and services. EHR software leads the market with 62.3% and the segment is projected to rise at 4.6% CAGR over the decade.

The hosting of software on in-house servers and the online implementation of software on the cloud, to be accessible by users via the Internet, will support market growth. Along with this, cloud-based EHR does not require any complex installation process or IT support, and can minimize additional costs. These factors are leading to enhanced adoption of EHR software in the United States.

The services segment, under solution, which includes services of consulting, implementation and integration, and support and maintenance, holds 37.7% share in the United States electronic health records market and is projected to rise at 4.1% CAGR during the forecast years. This is because of the augmented application of EHRs in services, which is anticipated to contribute highly to market growth over the coming years.

Why Should EHR Solution Providers Continue Targeting U.S. Hospitals?

Under the end-user segment, the electronic health records market in the U.S. is segmented into hospitals, specialty clinics, ambulatory surgical centres, diagnostic labs, and others.

Amongst them, hospitals hold 29.8% share in the overall market. The segment is projected to grow at 4.9% CAGR over the assessment period on the back of augmented adoption of electronic health records in hospital settings.

Also, rise in the number of multi-specialty hospitals implementing EHR solutions to streamline patient records and maintain workflow is anticipated to aid segment expansion over the coming years.

Along with this, escalating number of vendors offering EHR solutions for hospital settings is likely to accelerate demand from this segment going forward.

Ambulatory surgical centres and specialty clinics follow with 24.3% and 19.7% share, respectively, in the overall market. These segments are projected to register 4.5% and 4.1% CAGRs during the assessment period.

Competitive Landscape

Prominent players in the United States electronic health records market are focusing on advancements in software technology. They are also incorporating artificial intelligence in the development of electronic health record software and solutions to gain an edge over competitors in the market.

Increasing research & developmental activities along with constant technological innovations by prominent companies will support their growth in the market in the long run.

• Oracle Corporation agreed to acquire Cerner Corporation in 2021. The company is a leading provider of digital information systems that are used in hospitals, enabling medical professionals to deliver better healthcare.
• Constellation Software Inc. agreed to acquire Allscripts Healthcare Solutions in 2022. This acquisition is likely to be a cornerstone for the company providing key strategic components to become a digital health leader, benefitting customers over the coming years.

Fact.MR has provided detailed information about the price points of key electronic health record solution providers positioned across regions in the U.S., sales growth, production capacity, and speculative technological expansion, in the recently published report.

U.S. Electronic Health Records Industry Research Categorization

• U.S. Electronic Health Records Market by Solution:

  • EHR Software
    • Cloud-based EHR
    • On-premise EHR
  • Services
    • Consulting
    • Implementation & Integration
    • Support & Maintenance

• U.S. Electronic Health Records Market by End Use:

  • Hospitals
  • Specialty Clinics
  • Ambulatory Surgical Centers
  • Diagnostic Labs
  • Others

• U.S. Electronic Health Records Market by Region:

  • West U.S.
  • South-West U.S.
  • Mid-West U.S.
  • North-East U.S.
  • South-East U.S.