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The medical terminology software market size is forecast to increase by USD 1.70 billion at a CAGR of 19.34% between 2022 and 2027. 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. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by end-user (healthcare providers, healthcare payers, and healthcare IT vendors), type (services and platforms), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
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.
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 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.
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.
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The healthcare providers segment was valued at USD 235.68 million in 2017 and continued to grow until 2021. 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.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during 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 industry report includes the adoption lifecycle of the market, 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 growth strategies.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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 report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027.
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 |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.34% |
Market growth 2023-2027 |
USD 1.70 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.75 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, Canada, China, UK, 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, 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, West Coast Informatics LLC, Wolters Kluwer NV, BITAC MAP SL, and Spellex Corp. |
Market dynamics |
Parent market analysis, Market forecasting, 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.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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