The global medical terminology software market is a crucial part of the healthcare industry. Medical terminology software helps map healthcare data to standard clinical terminologies and ontologies that allow interoperability between systems. It is used to normalize patient medical records, search unstructured clinical text, code clinical documentation for reimbursement purposes, and analyze real-world data. The need for data interoperability and effective clinical documentation is driving increased adoption of medical terminology software.
The Global Medical Terminology Software Market is estimated to be valued at US$ 1,439.9 Mn in 2024 and is expected to exhibit a CAGR of 20.% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the global medical terminology software are Wolters Kluwer, 3M, Apelon, Intelligent Medical Objects, Clinical Architecture, Bitac, B2i Healthcare, HiveWorx, BT Clinical Computing, EzCoder, Savante International, Stryker, CloudPital, SoftMed Systems, DXC Technology Company, and GenoLogics. These companies are focusing on developing advanced solutions and enhancing capabilities of existing products to expand their presence in the market.
The growing need for improved clinical documentation and coding presents significant growth opportunities for medical terminology software vendors. Medical terminology software helps minimize errors in documentation, expedite coding workflows, and ensure regulatory compliance for reimbursement. It can also facilitate health information exchange by standardizing clinical data.
The market leaders are focusing on global expansion by entering into strategic partnerships and acquisitions. For example, Wolters Kluwer acquired CompuGroup Medical's UK subsidiary Clinithink and expanded its presence in UK and Ireland. 3M acquired M*Modal's technology business to broaden its clinical documentation portfolio. Such activities are helping players tap growth opportunities in international markets.
Market Drivers:
1) Increasing need for healthcare data standardization and interoperability. Medical terminology software helps normalize data from disparate clinical systems for improved clinical decision making and care coordination.
2) Rising demand for clinical documentation improvement and accuracy in coding. It minimizes documentation errors, expedites coding workflows, and ensures compliance.
Market Restraints:
1) Integration challenges with existing healthcare IT infrastructure. Integrating medical terminology solutions with legacy systems requires significant time and effort from healthcare providers.
2) Resource requirements for customizations. Higher costs are incurred for customizing software as per organizational needs and workflows which can hinder adoption.
Segment Analysis
Medical terminology software market is divided into multiple sub segments based on end user and product. In terms of end users, healthcare providers hold the largest share as the software helps in easily encoding all medical documentation and records generated during patient care. In terms of product, services segment dominates as comprehensive medical coding and indexing services helps healthcare organizations to maintain compliance with regulatory standards. Consulting services help medical care providers to effectively implement medical terminology software solutions.
Global Analysis
North America region dominates the global medical terminology software market owing to presence of advanced healthcare infrastructure and stringent regulatory standards regarding electronic health records in countries like United States and Canada. Availability of favorable regulations encouraging adoption of healthcare IT solutions also augments the market growth. Asia Pacific is the fastest growing region on account rapid evolution of healthcare sector and rising medical tourism across countries like India, China and Japan. Growing government focus on developing digital healthcare ecosystem and increasing healthcare expenditure also boosts the demand.
