North America Electronic Health Records Market (By Type: Acute, Post Acute; By Application: Radiology, Oncology; By Product; By Business Models; By End-use) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

North America Electronic Health Records Market Size and Trends

The North America electronic health records market size was estimated at around USD 12.99 billion in 2023 and it is projected to hit around USD 16.6 billion by 2033, growing at a CAGR of 2.48% from 2024 to 2033.

Key Pointers

• The U.S. dominated the market with the largest market share in 2023.
• By Product, the web-based EHR segment held the largest revenue share of 56% in 2023.
• By Type, the acute care segment generated the maximum market share of 47% in 2023.
• By Type, the post-acute care segment is estimated to expand the fastest CAGR during the forecast period.
• By Business Model, the professional services segment captured the maximum market share of 33% in 2023.
• By End-use, the hospitals segment contributed the largest market share of 61% in 2023.

North America Electronic Health Records Market Overview

The North America electronic health records (EHR) market showcases a dynamic landscape driven by technological advancements and regulatory initiatives aimed at enhancing healthcare delivery. As of the latest assessments, the market is characterized by robust adoption across various healthcare facilities, including hospitals, clinics, and specialty centers. Key factors influencing market growth include the increasing need for interoperability, patient data security measures, and the integration of artificial intelligence to streamline healthcare workflows.

North America Electronic Health Records Market Growth Factors

The growth of the North America electronic health records (EHR) market is driven by an increasing emphasis on interoperability and data exchange within the healthcare sector. This demand is fueled by efforts to enhance care coordination and patient outcomes across diverse healthcare settings. Additionally, stringent regulations like HIPAA (Health Insurance Portability and Accountability Act) drive the adoption of EHR systems, ensuring compliance with data security and privacy standards. The integration of advanced technologies such as artificial intelligence (AI) and machine learning further accelerates market growth, enabling healthcare providers to optimize workflows and decision-making processes. Moreover, the shift towards cloud-based EHR solutions offers scalability and cost-efficiency advantages, appealing to healthcare organizations looking to modernize their operations.

North America Electronic Health Records Market Trends:

• Interoperability and Data Exchange: There is a growing focus on interoperability standards and data exchange protocols to facilitate seamless communication between healthcare systems and improve care coordination.
• Integration of AI and Machine Learning: The integration of artificial intelligence (AI) and machine learning technologies enhances EHR systems by enabling predictive analytics, personalized medicine, and automated decision support.
• Cloud-Based Solutions: There is a noticeable shift towards cloud-based EHR solutions, offering scalability, flexibility, and cost-efficiency advantages over traditional on-premises systems.
• Patient Engagement Tools: Increasing emphasis on patient-centered care has led to the development of EHR systems with enhanced patient portals and engagement tools, promoting active patient involvement in their healthcare journey.
• Telehealth Integration: The COVID-19 pandemic has accelerated the integration of telehealth capabilities into EHR platforms, enabling virtual consultations, remote monitoring, and telemedicine services.

North America Electronic Health Records Market Restraints:

• High Implementation Costs: The initial costs associated with implementing EHR systems, including software, hardware, training, and data migration, can be substantial for healthcare organizations, particularly smaller practices.
• Complexity of Integration: Integrating EHR systems with existing healthcare IT infrastructure and legacy systems can be challenging and time-consuming, leading to potential disruptions in workflow and patient care.
• Data Security Concerns: Despite regulatory measures like HIPAA, concerns persist regarding the security and privacy of patient data stored within EHR systems, leading to hesitancy among healthcare providers to fully adopt cloud-based solutions.
• Interoperability Issues: While there is a push towards interoperability, achieving seamless data exchange between different EHR systems and healthcare providers remains a significant challenge, impacting care coordination and continuity.
• Provider Resistance and Training Needs: Some healthcare professionals may resist using EHR systems due to perceived usability issues, requiring extensive training and support to effectively navigate and utilize these platforms.

Product Insights

In 2023, the web-based EHR segment dominated the market with a commanding 56% market share and is poised to exhibit the highest growth rate during the forecast period. This segment's popularity among smaller-scale healthcare providers and physicians stems from its ability to be implemented without in-house servers and its flexibility in customization to meet specific customer needs. Major EHR vendors are launching new web-based solutions and expanding their service offerings to meet escalating demand, further driving segment growth. For example, in March 2022, MEDITECH extended its Expanse Ambulatory system to independent and physician-owned practices, independent of requiring an Expanse EHR in a hospital setting.

Additionally, the client-server-based EHR segment is expected to experience significant growth. This system type provides secure, in-house data storage, which appeals to multi-physician facilities seeking tailored solutions. Unlike web-based EHRs, these systems operate independently of constant internet connectivity, a key driver for their adoption.

Type Insights

The acute care segment commanded a 47% market share in 2023, driven by widespread adoption in hospitals to enhance patient care, streamline workflows, and meet regulatory standards. For instance, according to ONC, by 2021, 86% of non-Federal general acute care hospitals had adopted a 2015 Edition certified EHR.

The post-acute care segment is projected to grow most rapidly during the forecast period. Market players are pursuing merger and acquisition strategies to expand their service portfolios, improve care coordination, and strengthen their market position. For example, in January 2024, PointClickCare Technologies acquired American HealthTech, a CPSI subsidiary specializing in EHR solutions for post-acute care. This acquisition enhances PointClickCare's presence in this sector, facilitating greater provider connectivity and improving care collaboration and value-based care delivery.

Business Model Insights

In 2023, the professional services segment led the market with a 33% share and is expected to grow most rapidly during the forecast period. These services enable healthcare organizations to design and implement EHR systems effectively, enhancing patient outcomes, optimizing resource utilization, and facilitating data-driven decision-making. Continuous advancements in the professional services EHR business model in North America are driving this growth. For example, in January 2021, the U.S. Orthopedic Alliance (USOA) partnered with Veradigm LLC to accelerate the adoption of EHRs in orthopedic practices, offering evidence-based guidelines and value-based care analytics.

The EHR subscription model is gaining traction among small and medium-sized healthcare organizations due to its affordability compared to licensed software. It eliminates costs such as license fees, regular upgrades, and device maintenance, reducing the need for in-house IT staff. This model's popularity is expected to increase further, driven by its cost-effectiveness and user-friendly operation. Larger healthcare facilities may incur annual subscription fees up to USD 500,000 for leading EHR software like Epic EHR.

Application Insights

The cardiology segment is anticipated to grow rapidly, driven by rising hospitalizations due to cardiovascular diseases like coronary heart disease and stroke. According to the American Heart Association's 2024 Statistical Update, cardiovascular diseases remain leading causes of death in the U.S., underscoring the need for efficient EHR systems to monitor and prevent medication errors.

The oncology segment is also expected to capture a significant market share, fueled by increasing cancer incidence rates. The National Cancer Institute estimates over 2 million new cancer cases in 2024, highlighting the demand for effective EHR solutions to manage patient data and treatment protocols.

End-use Insights

Hospitals dominated the EHR market in 2023 with a 61% share, driven by efforts to enhance clinical, financial, and administrative efficiency. The shift towards value-based care further boosts EHR adoption, with U.S. hospital adoption reaching 96% by 2021, according to ONC.

The ambulatory care segment is projected to grow fastest, supported by technological advancements and government initiatives promoting seamless healthcare information exchange. Adoption of enterprise-wide patient flow systems is high, especially in critical care areas, as reported by the College of Healthcare Information Management Executives.

Country Insights

The U.S. held the largest share of the EHR market in 2023, driven by robust regulatory frameworks, substantial R&D investments, and increasing interoperability needs. Key players like Oracle, GE Healthcare, and Epic Systems compete based on factors such as cost, functionality, and customer support, reflecting a competitive landscape focused on advancing healthcare IT solutions.

North America Electronic Health Records Market Key Companies

• AdvancedMD, Inc.
• CureMD Healthcare
• eClinicalWorks
• Epic Systems Corporation
• GE Healthcare
• Greenway Health, LLC
• McKesson Corporation
• Medical Information Technology, Inc. (Meditech)
• NXGN Management, LLC.
• Oracle
• TruBridge (CPSI)
• Veradigm LLC

Recent Developments

• The Department of Veterans Affairs extended its one-year EHR contract with Oracle in May 2024 to modernize its legacy health record system.
• In March 2024, eClinicalWorks, a cloud-based EHR provider for ambulatory care, announced the successful completion of synthetic testing for UDS Patient Level Submission (UDS+) reporting using Fast Healthcare Interoperability Resources (FHIR).
• Veradigm LLC acquired ScienceIO, an AI platform and foundation model provider for the healthcare ecosystem, in March 2024. This acquisition aims to expedite the delivery of actionable insights from unstructured data across the healthcare sector.
• In September 2023, Oracle incorporated generative AI into its EHR policies with the Oracle Clinical Digital Assistant tool. This tool interacts with clinicians through conversational voice prompts, aiming to reduce repetitive tasks and alleviate burnout among healthcare professionals.

North America Electronic Health Records Market Segmentation:

By Product

• Client-server Based EHR
• Web-based EHR

By Type

• Acute
• Ambulatory
• Post Acute

By Business Model

• Licensed Software
• Technology Resale
• Subscriptions
• Professional Services
• Others

By Application

• Cardiology
• Neurology
• Radiology
• Oncology
• Others

By End-use

• Hospital Use
• Ambulatory Use

By Country

• U.S.
• Canada
• Mexico