Enjoy complimentary customisation on priority with our Enterprise License!
The medical terminology software market size is projected to increase by USD 2.76 billion, at a CAGR of 24% between 2023 and 2028. The growth of the market depends on several factors, including a rising focus on minimizing medical errors, increasing demand for medical terminology software, and disparities in terminology content across countries. The market is defined as the market that provides software tools and solutions that make it easier to manage, standardize, and utilize medical terminologies and vocabularies in various healthcare settings. Healthcare practitioners, medical coders, administrators, researchers, and other stakeholders can benefit from these software solutions by more easily comprehending, expressing, and documenting medical concepts, diagnoses, procedures, and treatment information.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including Apelon Inc., B2i Healthcare Pte Ltd, BITAC MAP SL, Clinical Architecture LLC, Dreamsoft4u, Epic Systems Corp., Henry Schein Inc., HiveWorx, Intelligent Medical Objects Inc., Medaara Healthcare Solutions, Meditab Software Inc., Medocomp Systems Inc., Regenstrief Institute, Rhapsody, SNOMED International, Spellex Corp., West Coast Informatics LLC, and Wolters Kluwer NV. Additionally, 3M Co. company offers medical terminology software such as health information systems that support the entire journey from patient visit to payment.
For More Highlights About this Report, Download Free Sample in a Minute
The market is driven by various factors, such as Government initiatives aimed at improving healthcare, the need for Interoperability between different systems within Healthcare organizations, and the growing focus on Patient safety concerns. Medicare providers and Hospital departments rely heavily on EHR systems and Clinical decision support systems to enhance patient care and reduce Medical errors. Compliance obligations and Reimbursement processes are critical for healthcare organizations, prompting them to invest in advanced software solutions. Moreover, Data aggregation and Data integration capabilities are essential for accurate Quality reporting and effective Public health surveillance. The rise of Decentralized clinical trials and the need for efficient R&D operations have led to increased demand for sophisticated Decision support tools and comprehensive Clinical studies software. Government norms also play a significant role in shaping the market, influencing the development of new software products and technologies that comply with regulatory requirements. Overall, the market is dynamic and continuously evolving to meet the changing needs of the Healthcare industry. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for medical terminology software is the key factor driving the growth of the market. Due to the differences in vocabulary or terminology found in different EHRs, mapping represents a major obstacle to interoperability. As a result, demand for medical terminology software has increased as it provides clinically verified terminology, proactively identifies information gaps, and improves data quality.
For instance, Intelligent Medical Objects Inc. provides terminology solutions, such as IMO Core, which not only provide descriptions written in a language familiar to the clinician but also adapt the clinician's language to rigid administrative coding systems and simplify workflows to access and analyze critical patient data. Hence, such factors are expected to drive the demand for medical terminology software, thereby increasing the growth of the market during the forecast period.
Increasing strategic alliances and product launches is the primary trend in the market. Ensuring that products comply with all regulatory standards applicable to the healthcare industry and earn the trust of potential customers and business partners requires compliance with regulations such as HIPAA (Health Insurance Disclosure and Accountability Act). The current 2023 Code of Procedural Terminology (CPT), published by the American Medical Association (AMA), incorporates updates to codes and rules for most assessment and management services, which eases the burden of using the primary nomenclature for data exchange for health activities and services.
Similarly, in June 2022, the CDC's National Center for Health Statistics introduced 1468 new ICD-10-CM concepts. This massive release added 3,000 new ICD-10-CMs to the SNOMED CT chart, 1,200 new attributes, 2,000 improvements, 15,000 new supplier-friendly terms, and 836 consumer-friendly descriptions. Hence, these factors will fuel the demand for medical terminology software, which will increase the growth of the market.
Challenges associated with the development of healthcare software affect the growth of the market. Software requirements often depend on the class to which it is associated. Software classification is based on a variety of factors and may vary by region and country. Healthcare applications and software must be thoroughly prepared for technical and security testing against HL7 FHIR and MedMij or other required healthcare standards. In addition, the audit process is divided into several stages and it takes time to pass through the various regulatory processes.
Likewise, every year, new trends are observed in the medical field. The ever-changing scenario is mainly due to changes in lifestyle habits, new types of devices being introduced, new technologies, ideas, and compliance standards. In such a case, investors look for solutions that incorporate the most popular and accepted trends in the industry. Therefore, dealing with constant changes has become a challenge for the development of healthcare applications and software. Thus, such factors are impeding the growth of the market during the forecast period.
The market is driven by Government initiatives aimed at enhancing healthcare efficiency and reducing Medical errors. Interoperability between Healthcare organizations and Hospital departments is a key driver, along with the increasing adoption of EHR and Clinical decision support systems to address Patient safety concerns. Trends include the rise of Decentralized clinical trials, the need for robust Data aggregation and Data integration capabilities, and the demand for advanced Decision support tools. However, challenges such as Compliance obligations, Reimbursement complexities, and Government norms pose significant hurdles to market growth.
The market share growth by the healthcare providers segment will be significant during the forecast period. The group of end users that use medical terminology software in their Medicare facilities or organizations is known as the medicare provider segment in the market. These end users include many healthcare organizations that provide medical services and care to patients, such as hospitals, clinics, doctors' offices, long-term care facilities, and other healthcare institutions.
Get a glance at the market contribution of various segments Download the PDF Sample
The healthcare providers segment was valued at USD 277.6 million in 2018. To manage redundant patient information in hospitals, there is a need for medical terminology software among hospitals, pharmacies, and other Medicare-related businesses. For example, in Budget 2023, the President of the United States announced a USD 5 billion commitment to ARPA-H, which would significantly increase direct federal funding for medical research and development. This significant investment will drive transformative innovation in health research and accelerate the adoption and uptake of health discoveries, with an initial focus on cancer and disorders. other disorders, including diabetes and dementia. These factors will drive the growth of medical terminology software in the medicare provider segment, which in turn will fuel the growth of the global market during the forecast period.
The services segment accounted for the largest share of the global market. Medicare information systems should collect clinical data in a structured and preferably encrypted format. There are several providers in the market that provide medical terminology services. For instance, Apelon provides health information technology solutions and services to governments around the world, individual physicians, and EMR providers. The Apelon Content Subscription Service offers over 50 terms and cross-maps in a consistent format for easy integration into the information ecosystem. Therefore, these factors are expected to drive the demand for medical terminology software in the service segment, thereby driving the growth of the global market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 45% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Growing investment in medicare systems and infrastructure is increasing the adoption of medicare information software, which will drive demand for medical terminology software solutions. Some providers, such as CareCom, Smart Medical Objects, and Apelon Inc. (Apelon), operate in North America. They form strategic partnerships and focus on mergers and acquisitions (M and A) to improve their offerings. For example, in December 2020, J2 Interactive announced a strategic partnership with term solutions provider CareCom. Therefore, these factors will boost the growth of the market in the region during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is influenced by several factors, including clinical errors that drive the need for accurate terminology, government initiatives shaping regulatory norms, and hospital departments adopting digital solutions like EHR and clinical decision support systems. Patient safety concerns and compliance obligations further emphasize the importance of precise medical language. CROs and medical/academic research institutes rely on these tools for decentralized clinical trials and decision support. Key trends include data integration for quality reporting and public health surveillance, alongside reimbursement and claim submission optimization. However, challenges such as R&D operations, fragmentation, and trade regulations impact HCIT adoption and reliable data sharing among healthcare professionals. The market's future hinges on technological innovations, government norms, and awareness among healthcare stakeholders to enhance healthcare operations and facilitate accurate and timely updates in medical terminology solutions.
Moreover, the market plays a crucial role in healthcare operations, facilitating data aggregation from various sources like clinical studies, hospitalizations, and healthcare data. It streamlines claim submissions and medical billing, ensuring accuracy and compliance with regulatory frameworks. Advanced tools enable expert analysis, pricing analysis, and pipeline analysis for improved patient epidemiology understanding. They also aid in the documentation of clinical information, reducing medical blunders through linguistic solutions and replacing traditional techniques. With new healthcare solutions emerging, there's a shift towards data integrity and government agencies focusing on product approvals and therapy advancements. However, challenges like disparity in technology adoption and the need for dominance in application niches remain. The market's growth is fueled by its ability to bridge gaps in healthcare data understanding, ensuring accurate representation of human body components and conditions while addressing evolving needs during the projection period.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24% |
Market Growth 2024-2028 |
USD 2.76 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
20.16 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 45% |
Key countries |
US, Canada, UK, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Apelon Inc., B2i Healthcare Pte Ltd, BITAC MAP SL, BT Clinical Computing, Clinical Architecture LLC, Dreamsoft4u, Epic Systems Corp., Henry Schein Inc., HiveWorx, Intelligent Medical Objects Inc., Medaara Healthcare Solutions, Meditab Software Inc., Medocomp Systems Inc., Regenstrief Institute, Rhapsody, SNOMED International, Spellex Corp., West Coast Informatics LLC, and Wolters Kluwer NV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.