Health Information Exchange Market Size, Trends and Growth Analysis by 2027

The health information exchange (HIE) market was valued at approximately US$ 1,411.56 million in 2020 and is anticipated to grow to US$ 3,326.98 million by 2028, reflecting a compound annual growth rate (CAGR) of 11.4% from 2021 to 2028.

This growth can be largely attributed to increasing government initiatives aimed at promoting the adoption of electronic medical records (EMR) and electronic health records (EHR) systems, alongside a growing focus on optimizing healthcare costs. Nevertheless, concerns regarding data security and patient privacy pose significant challenges to market expansion.

The swift advancement of health information technology has facilitated the electronic exchange of patient medical data through EHRs. These systems not only gather patient information but also enable sharing among various healthcare professionals involved in a patient's care. Governments, healthcare authorities, and industry stakeholders are actively endorsing the implementation of EHR systems to enhance healthcare processes. Furthermore, these systems support efficient data collection and sharing, which ultimately improves the quality of patient care.

In 2009, the U.S. federal government allocated US$ 27.0 billion as part of an incentive program to encourage hospitals and healthcare providers to adopt EHR/EMR systems under the Health Information Technology for Economic and Clinical Health (HITECH) Act. Additional funding was also designated for training health information technology professionals to facilitate the implementation of EHRs, thereby streamlining healthcare information exchange and record-keeping.

In Canada, a strategic initiative was launched in 2001 to modernize the healthcare ICT infrastructure and promote EHR adoption. According to data from the National Center for Biotechnology Information (NCBI), by 2015, approximately 91.0% of Canadians had their health data recorded in EHRs, with around 91,000 physicians utilizing these systems in their daily practice. A 2017 survey by the Canadian Medical Association revealed that about 85.0% of physicians were using EMR systems. Furthermore, estimates from Canada Health Infoway in 2020 indicated that EHR data was accessible for around 93.8% of Canadians.

In the UK, the National Plan for IT was introduced in 2002 to enhance the existing healthcare system's functionalities. The Health and Social Care Act, passed in 2012, allowed for the use of patient information for research purposes. Such initiatives are expected to further drive EHR adoption in the UK. In Germany, it was reported that around 90% of private practice physicians were using EHR systems as of 2020. Additionally, EHR adoption in New Zealand reached approximately 97% in 2020. In India, the government initiated the Transforming India Mission, aiming to create digital health records for all citizens by 2022. These governmental efforts are projected to significantly boost EHR system adoption, thereby fostering growth in the health information exchange market by 2028.

The health information exchange market has experienced notable growth during the COVID-19 pandemic. Factors such as an increased focus on utilizing healthcare IT infrastructure for data transfer, user-friendliness, and cost efficiency have driven the adoption of health information exchange solutions during this period. For example, in March 2020, HealtHIE Nevada in the U.S. reported a 36% increase in patient data exchange since the onset of the pandemic. The surge in patient volumes has heightened the demand for EMR and EHR platforms to manage complex patient data, further accelerating market growth during this time.

In terms of market segmentation, the health information exchange market is divided into private and public setups. In 2020, the private segment held a significant market share and is projected to experience a higher CAGR during the forecast period.

By type, the market is categorized into query-based, direct, and consumer-mediated exchanges. The direct-mediated segment accounted for a substantial market share in 2020 and is expected to register the highest CAGR moving forward.

Regarding implementation models, the market is segmented into centralized, decentralized, and hybrid models. The hybrid segment held a significant market share in 2020 and is anticipated to achieve the highest CAGR in the coming years.

Applications of health information exchange include workflow management, internal interfacing, web portal development, and other uses. The web portal development segment held a considerable market share in 2020, while the internal interfacing segment is projected to grow at the highest CAGR during the forecast period.

By end user, the market is segmented into pharmacies, healthcare payers, and healthcare providers. The healthcare providers segment held a significant market share in 2020 and is expected to see the highest CAGR in the future.

In terms of deployment, the market is divided into on-premise and cloud-based solutions. The on-premise segment held a substantial market share in 2020, but the cloud-based segment is expected to grow at a higher CAGR during the forecast period.

Key organizations and sources referenced in the analysis of the health information exchange market include the World Health Organization (WHO), the Australian Digital Health Agency, the Centers for Medicare & Medicaid Services, the Food and Drug Administration (FDA), the National Coordinator for Health Information Technology, and the National Health Information Standard Committee.