Ambulatory EHR Market Size & Forecast

The Ambulatory EHR Market is expected to reach $7.84 billion by 2031, at a CAGR of 5.3% from 2024 to 2031. The growth of the ambulatory EHR market is driven by supportive government initiatives aimed at promoting EHR adoption, the rising preference for ambulatory care over in-patient services among patients, and the growing need to reduce operational costs in the healthcare sector. Additionally, the integration of artificial intelligence (AI) and machine learning (ML) technologies with ambulatory EHRs and the evolving technological landscape in developing countries are expected to create market growth opportunities.

Ambulatory EHR Market Growth Drivers

Supportive Government Initiatives Aimed at Promoting EHR Adoption

Governments worldwide are increasingly promoting the adoption of EHR solutions due to their benefits over traditional paper-based health records. This support has resulted in the widespread implementation of EHRs, providing several advantages for both patients and ambulatory practices. These benefits include enhanced patient treatment, improved care coordination, quick access to records, enhanced practice efficiency, cost savings through reduced paperwork, increased patient participation & transparency, and improved diagnostic accuracy, leading to better patient outcomes.

According to the National Coordinator for Health Information Technology, EHR adoption in medical practices has doubled since 2008. As of 2021, nearly 4 in 5 office-based physicians have adopted a certified EHR. Additionally, over 50% of upper-middle-income and high-income countries have implemented national EHR systems. Numerous country-level and regional initiatives have been launched to facilitate the implementation of EMR/EHR systems.

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Rising Preference for Ambulatory Care Over In-patient Services Among Patients

Many patients opt for outpatient care over in-patient care due to its convenience. The adoption of ambulatory EHR has surged significantly over the past decade, largely driven by the preference for outpatient treatments among patients. Ambulatory surgical centers enable patients to be discharged within 23 hours of care, thereby reducing the risk of hospital-acquired infections. Costs in ambulatory settings are lower for both patients and payers due to reduced expenses associated with staffing, space, and supplies. These factors have led to the proliferation of ambulatory care centers, with patients increasingly favoring ambulatory care over in-patient alternatives.

According to the Ambulatory Surgery Center Association (U.S.), As of 2022, there were approximately 6,200 Medicare-certified Ambulatory Surgery Centers (ASCs) in the U.S. Additionally, in recent years, there has been a notable increase in patient preference for ambulatory care. This shift is primarily attributed to advancements in clinical technology, the healthcare system's transition towards value-based care, and the shorter duration of hospital stays in ambulatory care settings.

Ambulatory EHR Market Trends

Integration of Telemedicine in Ambulatory EHRs

Telemedicine has rapidly evolved within the healthcare system, particularly after the COVID-19 pandemic. It facilitates real-time interactions between patients and healthcare providers while managing and securely storing private health information (PHI). Integrating telehealth functionalities into EHRs offers numerous advantages, including virtual visits, streamlined documentation and charting, secure messaging, patient education, prescription management, compliance & regulation adherence, and healthcare provider training.

The incorporation of telehealth systems also reduces healthcare costs. Furthermore, EHR telehealth integration automates data entry, eliminating the need for redundant patient information input. Telehealth software integrated with EHR capabilities enables healthcare professionals to remotely treat patients using secure communication tools and manage the entire patient care process. When combined, telemedicine and EHR software significantly enhance patient care delivery.

Ambulatory EHR Market Opportunity

Integration of Artificial Intelligence (AI) And Machine Learning (ML) Technologies with Ambulatory EHRs

Electronic health records (EHRs) are a digital collection of all sources of patient data consolidated into a single database that includes medical histories, data related to treatments, diagnoses, prescriptions, allergies to medications or foods, immunization records, images generated in laboratories, or test results. The primary aim of implementing EHR is to enhance patient care through improved treatment quality. The integration of artificial intelligence and machine learning into EHRs is expected to help achieve this goal.

The easy accessibility of data in EHRs makes them highly suitable for various machine learning-powered data science operations. AI enhances the flexibility and intelligence of EHR solutions, enabling a wide range of applications. These include data mining, natural language processing, data analytics and visualization, predictive analytics, and ensuring regulatory compliance.

AI is increasingly deployed across different fields to augment clinical decision-making by analyzing EHR data. For instance, AI tools have been extensively applied in cardiology studies utilizing EHR data for early heart failure detection, predicting the onset of congestive heart failure, and enhancing risk assessment in patients suspected of coronary artery disease. Additionally, companies are incorporating features such as data extraction from free text, diagnostic and predictive algorithms, clinical documentation and data entry, and clinical decision support to enhance treatment quality.

Evolving Technological Landscape in Developing Countries

Emerging economies Countries like India, Malaysia, and Brazil are characterized by their growing GDPs and widespread adoption of new technologies. Healthcare organizations in these nations have substantial opportunities to embrace healthcare IT solutions such as EHR, particularly in ambulatory settings. The large populations in these countries result in high patient volumes, placing significant strain on their healthcare systems. As a result, most developing economies are prioritizing the development of their healthcare infrastructures through the adoption of advanced technologies. The rapid infrastructural growth in these regions is expected to offer significant growth opportunities for players operating in this market.

According to the India Brand Equity Foundation (IBEF), India has emerged as one of the fastest-growing digital economies in recent years. In order to improve the quality and accessibility of healthcare services, the Indian healthcare sector is increasingly relying on digital transformations. In the Union Budget 2020, the Indian government allocated USD 9.87 billion for the healthcare sector, with the aim of increasing healthcare spending to 3% of GDP by 2022.

Ambulatory EHR Market Analysis: Key Findings

By Deployment Mode: In 2024, the Cloud/Web-based Deployment Mode Segment to Dominate the Ambulatory EHR Market

Based on deployment mode, the market is segmented into cloud/web-based deployment mode and on-premise ambulatory deployment mode. In 2024, the cloud/web-based deployment mode segment is expected to account for the larger share of 77.5% of the ambulatory EHR market. Cloud/web-based solutions are increasingly being adopted as they facilitate the exchange and integration of data from multiple locations or systems in real time. This segment's large market share can be attributed to several factors, including the growing preference for cloud-based deployment due to its numerous benefits, including flexibility, real-time monitoring capabilities, data security features, and lower implementation costs compared to on-premises deployment.

By Type: In 2024, the All-in-One Segment to Dominate the Ambulatory EHR Market

Based on type, the market is segmented into all-in-one ambulatory EHR and modular ambulatory EHR. In 2024, the all-in-one ambulatory EHR segment is expected to account for the larger share of 66.3% of the ambulatory EHR market. This segment's large market share can be attributed to the benefits offered by all-in-one ambulatory EHRs, such as ease of use, comprehensive functionalities, absence of compatibility issues, and seamless integration of software and hardware.

By Practice Size: In 2024, the Large Practices Segment to Dominate the Ambulatory EHR Market

Based on practice size, the market is segmented into large practices, small to medium-sized practices, and solo practices. In 2024, the large practices segment is expected to account for the largest share of the ambulatory EHR market. Large practices are typically conducted within sizable organizations housing over 50-100 physicians. This segment's large market share can be attributed to the rising need for efficient administration and coordination within such extensive setups and equitable distribution of costs and tasks among staff.

By Application: In 2024, the Practice Management Segment to Dominate the Ambulatory EHR Market

Based on application, the market is segmented into practice management, computerized physician order entry (CPOE), patient portals, clinical decision support, referral management, population health management, and other applications. In 2024, the practice management segment is expected to account for the largest share of 25.9% of the ambulatory EHR market. Practice management typically encompasses appointment scheduling, patient demographics, visual resource planning, document management, billing, and claim management—all essential components utilized in the daily operations of ambulatory practices. This segment's large market share can be attributed to factors such as the widespread adoption by ambulatory surgical centers, primarily due to the advanced features offered by these EHRs, including efficient patient scheduling and streamlined management of billings and claims.

However, the referral management segment is projected to register the highest CAGR of 9.7% during the forecast period. A referral management system serves as a vital tool for healthcare providers to oversee patient referrals. It facilitates the smooth transition of patients to the next stage of their care process. The primary objective of referral management is to streamline communication among primary care physicians, specialists, and other healthcare professionals involved in a patient's care.

By End User: in 2034, the Hospital-owned Ambulatory Centers Segment to Dominate the Ambulatory EHR Market

Based on end users, the market is segmented into Hospital-owned Ambulatory Centers and Independent Ambulatory Centers. In 2024, the Hospital-owned Ambulatory Centers segment is expected to account for the larger share of the market. Hospital-owned ambulatory centers, integrated within hospitals, represent a prevalent clinical model in integrated healthcare systems. They typically adhere to higher hospital accreditation standards compared to outpatient clinics, ensuring the delivery of high-quality care. This segment's large market share can be attributed to factors such as the robust financial capabilities of these centers, facilitating significant investments in advanced EHRs. Additionally, the increasing need to streamline unstructured healthcare data further drives the adoption of ambulatory EHRs within these centers.

Geographical Analysis

By Geography: North America to Dominate the Ambulatory EHR Market in 2024

In 2024, North America is expected to account for the largest share of 51.2% of the ambulatory EHR market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America's significant market share can be attributed to the region's well-established healthcare system, supportive government initiatives aimed at promoting EHR adoption, the growing geriatric population, and the rising preference for ambulatory care over in-patient care among patients.

However, the market in Asia-Pacific is projected to register the highest CAGR of 7.0% during the forecast period. The growth of this regional market can be attributed to the increasing need to organize unstructured healthcare data, supportive government initiatives aimed at promoting EHR adoption, and evolving technological landscapes in developing countries within the region.

Ambulatory EHR Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the ambulatory EHR market are Epic Systems Corporation (U.S.), Cerner Corporation (U.S.), Medical Information Technology, Inc. (U.S.), Computer Programs and Systems, Inc. (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), athenahealth, Inc. (U.S.), NextGen Healthcare, Inc (U.S.), eClinicalWorks (U.S.), Greenway Health, LLC (U.S.), CureMD Healthcare (US), and AdvancedMD, Inc. (U.S.).

Ambulatory EHR Industry Overview: Latest Developments from Key Industry Players

• In September 2023, the Georgian Bay Information Network (GBIN), a partnership of six Ontario healthcare organizations, announced its plans to expand the utilization of Oracle Corporation's (U.S.) EHRs by integrating new capabilities for advanced clinical services, optimized medicine administration, and oncology specialty support.

• In March 2023, NextGen Healthcare, Inc. (U.S.) launched Mirth Cloud Connect, a cloud-based solution offering interoperability as a managed service.

• In October 2021, United Surgical Partners International (U.S.), a subsidiary of Tenet Healthcare Corporation (U.S.), acquired nine ambulatory surgery centers (ASCs) from Compass Surgical Partners (U.S.).

Ambulatory EHR Market Research Summary

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