The global medical terminology software market was surpassed at USD 991.91 million in 2021 and is expected to hit around USD 2.44 billion by 2030, growing at a CAGR of 10.52% from 2022 to 2030.
Report Highlights
The increasing demand for standardization of patient data and compliance with standard vocabularies, such as SONOMED CT, RxNorm, ICD, CPT and HCPCS, and others are driving the adoption of clinical terminology solutions. The software uses a set of standard clinical terms to enable communication between different hospitals, departments, and specialties. This can be useful in situations where doctors need to collaborate in patient care or when patients need to be transferred between hospitals.
Using medical terminology software can also help improve patient safety by reducing the risk of misunderstandings caused by incorrect terms. It also saves physicians time by assisting in the documentation and thereby reducing burnout. Hospitals, health systems, and payers are all seeking innovative while manageable ways for data integration. Moreover, the government is taking active steps by launching incentive programs for patient data integration. Computer-assisted coding and accurate clinical documentation by employing Artificial Intelligence (AI), such as Natural Language Processing (NLP) technology and medical machine learning, are accelerating this process.
In addition, the growing demand for advanced healthcare data solutions is expected to create better business opportunities for clinical terminology solution providers. For instance, in September 2022, XpertDox, a Birmingham-based company specializing in automated AI-powered medical coding solutions, received funding of USD 1.5 million from TN3, LLC, a privately held company based in Arizona. The COVID-19 pandemic slowed down the industry growth. Revenue loss and financial crises, created by the pandemic, restrained hospitals to invest in the deployment of medical terminology software. Furthermore, the postponement of clinical trials resulted in a decrease in the utilization of clinical terminology software by CROs.
Scope of The Report
Report Coverage | Details |
Market Size in 2021 | USD 991.91 million |
Revenue Forecast by 2030 | USD 2.44 billion |
Growth rate from 2022 to 2030 | CAGR of 10.52% |
Base Year | 2021 |
Forecast Period | 2022 to 2030 |
Segmentation | Application, end-use, region |
Companies Covered |
Wolters Kluwer N.V.; 3M; BT Clinical Computing; Intelligent Medical Objects, Inc.; Apelon, Inc.; CareCom; Clinical Architecture, LLC; BiTAC; B2i Healthcare; HiveWorx |
End-use Insights
In terms of end-uses, the healthcare providers segment dominated the global industry in 2021 and accounted for the maximum share of the overall revenue. The segment is anticipated to expand further at the fastest growth rate of 11.11% retaining its leading position throughout the forecast period. This growth can be attributed to the increasing deployment of EHR and clinical decision support systems in hospitals, increasing patient safety concerns, and rising demand for clinical interface terminologies in the healthcare system. In addition, compliance obligations imposed by governments for quality standards are contributing to segment growth.
Medical terminology software reduces inaccuracies caused by poor communication and paperwork, allowing professionals to quickly and accurately document patient histories, diagnoses, & treatment and identify potential health risks. It also helps in processing the natural language of doctors into a standard format for better understanding by other clinical staff. The healthcare IT vendors segment is also expected to have significant growth during the forecast period owing to partnerships between software providers. For instance, Intelligent Medical Objects, Inc. has partnerships with Epic, Cerner Corp., and Allscripts Healthcare. The others segment consists of CROs and medical/academic research institutes. A shift toward decentralized clinical trials is boosting the adoption of terminology software among CROs and academic research institutes.
Application Insights
Based on applications, the industry is further categorized into decision support, reimbursement, clinical trials, data aggregation, data integration, quality reporting, public health surveillance, and others. The quality reporting segment dominated the industry with a maximum revenue share of 21.64% in 2021. The segment is also projected to witness the fastest growth during the forecast period. This can be attributed to the increasing government steps to improve healthcare quality outcomes and develop standards for quality measurements. The reimbursement segment is expected to have lucrative growth during the forecast period.
An increasing number of hospitalizations and subsequent claim submissions are fueling the segment's growth. Correct codes and seamless medical billing are very important to ensure that healthcare providers get full reimbursement for care delivery. Discrepancies in the data collected from various sources for patient health surveillance results in incorrect data interpretation. Thus, clinical terminology solutions are widely used for standardization. An increase in investments in R&D, a rising number of clinical studies on novel drugs, and stringent government norms requiring proper documents for assessment and approvals are favoring the growth of the clinical trials segment.
Regional Insights
North America dominated the global industry in 2021 and accounted for the maximum share of 46.71% of the overall revenue. The growth of the region is attributed to the implementation of favorable government initiatives and support programs. The U.S. Centers for Medicare & Medicaid Services started Medicare Promoting Interoperability Program to encourage hospitals and professionals to adopt certified EHR technologies. The United States Core Data for Interoperability (USCDI) mandates the use of SONOMED CT and ICD-10-CM for documenting disease diagnoses, conditions, treatments, and health concerns. Hence, the service providers are focussing on launching new software for the same.
For example, in March 2022, Clinical Architecture, LLC announced the launch of SeekDx, which provides intelligent, doctor-friendly solutions that map the diagnosis to the appropriate ICD-10 CM code and SNOMED CT code, thus streamlining the documentation and saving physicians’ time. The Europe region is also estimated to register significant growth over the forecast period owing to the increasing investments by the government for the adoption of digital platforms in hospitals. Asia Pacific is anticipated to register the fastest growth rate during the forecast period. This can be attributed to the increasing focus of providers to expand their presence in emerging economies, the rising number of hospitals, and increasing investments in public health surveillance.
Key Players
Market Segmentation
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Medical Terminology Software Market
5.1. COVID-19 Landscape: Medical Terminology Software Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Medical Terminology Software Market, By Application
8.1. Medical Terminology Software Market, by Application, 2022-2030
8.1.1. Quality Reporting
8.1.1.1. Market Revenue and Forecast (2017-2030)
8.1.2. Reimbursement
8.1.2.1. Market Revenue and Forecast (2017-2030)
8.1.3. Data Aggregation
8.1.3.1. Market Revenue and Forecast (2017-2030)
8.1.4. Public Health Surveillance
8.1.4.1. Market Revenue and Forecast (2017-2030)
8.1.5. Decision Support
8.1.5.1. Market Revenue and Forecast (2017-2030)
8.1.6. Data Integration
8.1.6.1. Market Revenue and Forecast (2017-2030)
8.1.7. Clinical Trials
8.1.7.1. Market Revenue and Forecast (2017-2030)
8.1.8. Others
8.1.8.1. Market Revenue and Forecast (2017-2030)
Chapter 9. Global Medical Terminology Software Market, By End-use
9.1. Medical Terminology Software Market, by End-use, 2022-2030
9.1.1. Healthcare Payers
9.1.1.1. Market Revenue and Forecast (2017-2030)
9.1.2. Healthcare IT Vendors
9.1.2.1. Market Revenue and Forecast (2017-2030)
9.1.3. Healthcare Providers
9.1.3.1. Market Revenue and Forecast (2017-2030)
9.1.4. Others
9.1.4.1. Market Revenue and Forecast (2017-2030)
Chapter 10. Global Medical Terminology Software Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Application (2017-2030)
10.1.2. Market Revenue and Forecast, by End-use (2017-2030)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Application (2017-2030)
10.1.3.2. Market Revenue and Forecast, by End-use (2017-2030)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Application (2017-2030)
10.1.4.2. Market Revenue and Forecast, by End-use (2017-2030)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Application (2017-2030)
10.2.2. Market Revenue and Forecast, by End-use (2017-2030)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Application (2017-2030)
10.2.3.2. Market Revenue and Forecast, by End-use (2017-2030)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Application (2017-2030)
10.2.4.2. Market Revenue and Forecast, by End-use (2017-2030)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Application (2017-2030)
10.2.5.2. Market Revenue and Forecast, by End-use (2017-2030)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Application (2017-2030)
10.2.6.2. Market Revenue and Forecast, by End-use (2017-2030)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Application (2017-2030)
10.3.2. Market Revenue and Forecast, by End-use (2017-2030)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Application (2017-2030)
10.3.3.2. Market Revenue and Forecast, by End-use (2017-2030)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Application (2017-2030)
10.3.4.2. Market Revenue and Forecast, by End-use (2017-2030)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Application (2017-2030)
10.3.5.2. Market Revenue and Forecast, by End-use (2017-2030)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Application (2017-2030)
10.3.6.2. Market Revenue and Forecast, by End-use (2017-2030)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Application (2017-2030)
10.4.2. Market Revenue and Forecast, by End-use (2017-2030)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Application (2017-2030)
10.4.3.2. Market Revenue and Forecast, by End-use (2017-2030)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Application (2017-2030)
10.4.4.2. Market Revenue and Forecast, by End-use (2017-2030)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Application (2017-2030)
10.4.5.2. Market Revenue and Forecast, by End-use (2017-2030)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Application (2017-2030)
10.4.6.2. Market Revenue and Forecast, by End-use (2017-2030)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Application (2017-2030)
10.5.2. Market Revenue and Forecast, by End-use (2017-2030)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Application (2017-2030)
10.5.3.2. Market Revenue and Forecast, by End-use (2017-2030)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Application (2017-2030)
10.5.4.2. Market Revenue and Forecast, by End-use (2017-2030)
Chapter 11. Company Profiles
11.1. Wolters Kluwer N.V.
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. 3M
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. BT Clinical Computing
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Intelligent Medical Objects, Inc.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. LTE Scientific
11.5. Apelon, Inc
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. CareCom
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Clinical Architecture, LLC
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. BiTAC
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. B2i Healthcare
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. HiveWorx
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms