[Research Report] The eHealth market size is projected to grow from US$ 195.42 billion in 2022 to US$ 641.15 billion by 2031; the market is estimated to record a CAGR of 16.0% during 2022–2031.

Market Insights and Analyst View:

eHealth is broadly defined as the use of information and communication technology (ICT) in health. ICT has been broadly used in the form of medical health records, medical apps, and telemedicine. With the help of e-health, it is possible to electronically store the data associated with patients, staff, and finances of hospitals. This has resulted in a transformation in the means of storing healthcare data. Primarily, data was recorded manually by the healthcare staff. However, currently, a single unique identification number is required to be entered, and all the data of patients is available within seconds. eHealth offers multiple advantages over conventional methods of clinical data management, such as preventing the use of manual records and facilitating timely access to patient data. Furthermore, automated and interoperable healthcare information systems are expected to improve medical care, reduce healthcare costs, increase efficiency, reduce error, and improve patient satisfaction while optimizing reimbursement for inpatient and ambulatory healthcare providers.

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eHealth Market: Strategic Insights

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Growth Drivers:

Increasing Adoption of Electronic Health Records and Rising Incentives by Federal Government Bolsters eHealth Market Growth

EHRs are becoming increasingly popular with the growing digitization of the healthcare industry. As per The New England Journal of Medicine, as soon as the Health Information Technology for Economic and Clinical Health (HITECH) Act became law in 2009, the federal government dedicated US$ 300 million to help healthcare facilities adopt a nationwide health information exchange system. The Centers for Medicare and Medicaid Services (CMS) also offered more than US$ 35,000 million in incentive payments for EHR adoption. According to the Office of the National Coordinator for Health Information Technology (ONC), as of 2021, about 4 in 5 office-based physicians (78%) and almost all non-federal acute care hospitals (96%) adopted a certified EHR. This marked considerable 10-year progress when 28% of hospitals and 34% of physicians had implemented an EHR since 2011. As per DefinitiveHealthcare data from 2021, more than 89% of all hospitals had employed inpatient or ambulatory EHR systems.

Further, in May 2021, the US federal government proposed the Federal Health IT Strategic Plan 2021–2031 to mandate the use of EHR by healthcare providers. With the facts and statistics stated above, it is evident that the adoption rate of EHRs is expected to continue to improve during the forecast period.

The government has invested billions in training health information technology workers and founding regional extension centers to provide technical advice. In 2009, as part of the Health Information Technology for Economic and Clinical Health (HITECH) Act, the federal government reserved US$ 27 billion for an incentive program that inspires hospitals and providers to implement EHR systems that would enable the health data historically confiscated in paper files to be shared among providers and use to improve the health care quality.

The Medicare Electronic Health Record Incentive Program is governed by the Centers for Medicare & Medicaid Services (CMS). In the US, the Medicare and Medicaid EHR Incentive Programs offer incentives to hospitals, physicians, and other healthcare facilities for meaningful use of certified EHR technology. A qualified professional or hospital can get a maximum incentive amount of up to US$ 63,750 through the Medicaid EHR Incentive Program and up to US$ 44,000 through the Medicare EHR Incentive Program. This incentive program succeeded in inspiring many healthcare facilities to adopt EHR systems.

Report Segmentation and Scope:

The “eHealth Market” is segmented on the basis of component, type of service, and end user. Based on components, the market is categorized into electronic health records, e-prescribing, clinical decision support systems, telemedicine, and other components. In terms of type of service, the eHealth market is segmented into monitoring services, diagnosis services, and other types of services. Based on end users, the market is categorized into healthcare providers, payers, healthcare consumers, and others.

Segmental Analysis:

Based on components, the eHealth market is segmented into electronic health records, e-prescribing, clinical decision support systems, telemedicine, and other components. In 2022, the e-prescribing segment held a significant market share, and the same segment is estimated to register the fastest CAGR during 2022–2031. E-prescribing or electronic prescribing is a technology framework that allows physicians and other medical practitioners to write and share prescriptions to a participating pharmacy in an electronic format instead of using written prescriptions.

The segment is expected to grow during the forecast period owing to the rising demand for e-prescriptions due to the minimization of prescription errors, cost reduction, and increasing technological advancements and launches by market players. For instance, as per an article published in the British Medical Journal in December 2022, adverse drug events and medication errors are common among the aging population in nursing homes in Japan. The rising focus on reducing the abuse of controlled substances and increasing focus on reducing medical errors will accelerate the adoption of an e-prescribing system in the forecast period.

Based on the type of service, the eHealth market is segmented into monitoring services, diagnosis services, and other types of services. In 2022, the monitoring segment held the largest share of the market. Growing demand for self-monitoring devices that automatically monitor various physical activities and vital signs and generate a database is expected to propel the growth of this segment.

Based on end users, the eHealth market is segmented into healthcare providers, payers, healthcare consumers, and others. In 2022, the healthcare providers segment held a significant share of the market, and the same segment is estimated to register the fastest CAGR during 2022–2031. The rise in the adoption of electronic health records (EHR) and other hospital information systems by healthcare providers are the factors driving the growth of this segment. Also, eHealth offers great convenience to healthcare professionals in terms of patient workflow and data management.

Regional Analysis:

Based on geography, the global eHealth market is segmented into Asia Pacific, Europe, Middle East & Africa, North America, and South & Central America. In 2022, North America held the largest share of the global eHealth market. Asia Pacific is expected to register the highest CAGR during 2022–2031.

The eHealth market in North America is split into the US, Canada, and Mexico. The transformation of digital healthcare majorly drives the market, the increasing number of chronic diseases, and support from the federal government to implement EHR in order to improve the quality of care. Other factors, such as the introduction of advanced software technologies in healthcare, a higher number of hospitals, and the implementation of strategic government policies, also aid in promoting the eHealth market.

The US is the largest contributor to the eHealth market in North America and the world. The presence of major market players in the country, along with their developments, is likely to favor the growth of the market. In September 2023, the Georgian Bay Information Network (GBIN), a partnership of six Ontario healthcare organizations, advanced its use of OracleHealth’s electronic health records (EHR) by adding new capabilities for advanced clinical services, optimized medication administration, and oncology specialty support under its recently launched multi-year project called eNautilus. These additions are expected to help caregivers improve patient safety, enhance collaboration between caregivers across facilities, and reduce the administrative burden on clinicians across the GBIN’s combined 15 hospitals.

In April 2023, Microsoft Corp. and Epic expanded their established strategic collaboration to develop and integrate generative AI into healthcare by merging the scale and power of Azure OpenAI Service1 with Epic's industry-leading EHR software. The collaboration expands the long-standing partnership, which includes allowing organizations to run Epic environments on the Microsoft Azure cloud platform. This co-innovation is focused on delivering an inclusive array of generative AI-powered solutions integrated with Epic's EHR to increase productivity, improve patient care, and improve the financial integrity of health systems.

Industry Developments and Future Opportunities:

Various initiatives taken by leading players operating in the eHealth market are listed below:

1. In November 2023, A Kerala-based startup launched a first-of-its-kind digital health kiosk that claims to provide basic diagnostics like blood pressure, blood sugar, and heart conditions instantly with utmost accuracy in multiple languages and at extremely low prices. Prognosis, the kiosk launched by Versicles Technologies, is equipped with a touch screen that offers video instructions to users to receive accurate readings. It aims to make healthcare facilities more easily accessible.
2. In July 2023, Oracle Corp announced that Universal Health Services (UHS) has incorporated OracleHealth electronic health record (EHR) across its broad network of behavioral health facilities. The expansion has enabled the organization to access a single, unified EHR in acute and behavioral health facilities across the US to inform care decisions better and help improve patient safety practices.
3. In April 2022, Telehealth platform Docty installed 100 digital health kiosks across Telangana, Andhra Pradesh and Maharashtra. As a part of this ‘Phygital Care’ program, ‘Gali Gali Mein Digital Clinic,’ the company has partnered with 100+ offline stores, local pharmacies, photo-copy centers, and internet cafes in these geographies. This initiative is dedicated to improving digital healthcare accessibility for the rural and impoverished urban communities of India. Through these 100 kiosks managed by Docty’s local partners, the financially weak and non-tech-savvy residents of these states would have faster accessibility to online consultations, prescriptions, EMRs, discounted pharmacies, and lab services. Additionally, these kiosks will also enable residents to consult doctors across 28+ specialties.
4. In May 2022, Cantata Health Solutions was selected by Mental Health Resources (MHR) in New Mexico as its technology partner and will deploy the Arize Electronic Health Record (EHR) solution.
5. In October 2021, Allscripts Healthcare LLC launched guided scheduling by leveraging artificial intelligence to improve patient care and increase healthcare operational efficiencies. In February 2021, Northern Inyo Healthcare District collaborated with Cerner Corporation to transform its Electronic Health Record (EHR). The collaboration involved Northern Inyo Healthcare District moving to an updated electronic system that supports physicians, nurses, and clinicians to share data across the district’s multiple offices.
6. In March 2021, Abbott launched its new digital health service in India as a part of its global care program, which offers doctors and consumers services and information to help people achieve better health.

Competitive Landscape and Key Companies:

Oracle Corporation, McKesson Corporation, Allscripts Healthcare, LLC., Atena Health, CitiusTech Inc., Cisco Systems, Inc., Health Catalyst., VantageHealth, Advanced MD, and Cure MD are the prominent eHealth market companies. These companies focus on new technologies, existing product advancements, and geographic expansions to meet the burgeoning consumer demand worldwide.