Global Medical Terminology Software Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Global Medical Terminology Software Market (2024-30):

The Global Medical Terminology Software Market size was valued at around USD 1.3 billion in 2023 & is estimated to grow at a CAGR of around 17.44% during the forecast period, i.e., 2024-30. The market size of Global Medical Terminology Software is expected to reach USD 4.7 billion by 2030. The market growth has been attributed to the various governments’ initiatives encouraging the adoption of healthcare information technology (HCIT) across the globe.

Further, the globalization of healthcare, where patients are moving across borders to get medical treatment, requires the standardization and use of common terms and languages for better communication and data sharing. This thereby promotes the adoption of medical terminology software in various medical facilities across the world, promoting the growth of the overall Medical Terminology Software Market. Countries like India, the UAE, Thailand, the Philippines, the UK, Turkey, Canada, Japan, and the US are focusing on the framework to invite an increasing number of medical tourists. For instance, India is emerging as one of the preferred destinations for medical tourism for patients in Africa, the Middle East, Southeast Asia, and Europe. The Government of India is also working with private sector stakeholders to foster the growth of this industry. Eventually, the total number of medical tourists in India is expected to exceed 7 million in 2024, a massive rise from around 2 million in 2022. Moreover, around one million medical tourists are expected to visit Dubai and Abu Dhabi in 2024, as stated by the government of Dubai.

Besides, the leading market players massively investing in numerous R&D activities to introduce new software & products integrated with modern technologies and thus strengthen their position in the industry is another crucial aspect for the Global Medical Terminology Software Market. 

Global Medical Terminology Software Market Driver:

Increasing Necessity to Reduce Medical Errors to Improve Patient Lives – The market growth is due to the occurrence of medical errors across various hospitals worldwide due to poor handling or mismanagement of patient healthcare data. This directly affects the lives of patients, causing delayed diagnosis, misdiagnosis, patient misidentification, etc. For instance, the World Health Organization stated in 2023 that globally, 1 in every 10 patients is harmed in healthcare, with patient misidentification, diagnostic errors, and others being the sources of patient harm. On average, around 0.8 million Americans are the victims of diagnostic errors every year, and this number is considerably higher in emerging countries. This thereby necessitates the adoption of medical terminology software to organize patient data, minimize medical errors, and store extensive healthcare information, eventually benefiting the patients.

Further, in countries with higher populations like India, China, the United States, etc., the adoption of medical terminology software becomes more important as higher density causes the spread of diseases at a faster rate, ultimately increasing the number of patients in hospitals and other medical facilities. Here, it becomes necessary to give a proper diagnosis without making a mistake in the whole treatment process. With that, the demand for medical terminology software increases, propelling the overall market growth for the same.

Global Medical Terminology Software Market Opportunity:

Integration of AI for Enhanced Data Accuracy and Efficiency to Offer Lucrative Opportunities – The integration of AI in medical terminology software presents an exciting opportunity for the industry. It offers advantages such as significantly enhanced efficiency and accuracy in medical coding and terminology management. Also, the likelihood of errors getting reduced or prevented with the adaptation of AI in medical coding and other terminology management saves time. It allows professionals to emphasize more on complex tasks that require human expertise, thereby increasing its acceptance.

Further, healthcare standards and coding guidelines across the nations continuously evolve and necessitate coders to take assistance from AI, which helps them stay up-to-date with the latest changes. Leveraging AI becomes more essential as the healthcare industry evolves and generates vast amounts of data. In the coming years, the successful incorporation of AI in medical terminology software would propel the overall growth of the Medical Terminology Software Market. 

Global Medical Terminology Software Market Challenge:

Data Breach and Security Issues Hinder Market Growth & Expansion – Despite the benefits of improving data integrity and easing the delivery of healthcare services, there is still uncertainty among the stakeholders in the healthcare sector over the incorporation of innovative technologies. With soaring cyber-attacks amid growth in digitalization and a lack of advanced IT expertise among healthcare personnel, the threats of organized cyber-attacks have arisen, limiting the adoption of the medical terminology software market’s growth.

According to the European Union Agency for Cybersecurity (ENISA), between January 2021 and March 2023, the majority of security incidents related to the exploitation of vulnerabilities in software or hardware were reported in the healthcare sector, eventually affecting around 42% of the European hospitals and 53% of the regional healthcare service providers. Furthermore, the poor healthcare infrastructure based on legacy platforms and low internet penetration in major portions of emerging economies like India, Indonesia, etc., have been hampering the growth of the overall Medical Terminology Software Market.

Global Medical Terminology Software Market (2024-30): Segmentation Analysis

The Global Medical Terminology Software Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Application:

• Data Aggregation
• Reimbursement
• Public Health Surveillance
• Data Integration
• Decision Support
• Clinical Trials
• Quality Reporting
• Clinical Guidelines

Of them all, the Clinical Trials application acquired a significant market share of the Global Medical Terminology Software Market. Driven by the prevalence of multiple chronic and infectious diseases and the lack of efficacy of current diagnostic and treatment methods, there has been an increase in the number of clinical trials in the search for newer drugs and devices. This has successfully contributed to the demand for medical terminology software such as MedDRA to standardize medical terms in clinical trials. For instance, as per the National Library of Medicine, about 477,230 clinical studies were registered in 2023, up from 437,508 in 2022. Also, the fact that clinical trials are most of the time conducted at the global level in collaboration with different parties or organizations contributes to the increasing demand for medical terminology software for better understanding and communication of medical terms. In the coming years as well, the above-mentioned factors are collectively going to drive segmental market growth.

Based on End User:

• Healthcare Providers
• Healthcare Payers
• Healthcare IT Vendors
• Others (Pharmaceutical Companies, Medical Students, etc.)

Among them, the healthcare provider category held the largest market share in 2024. Healthcare providers in countries like Germany, France, Spain, Italy, the US, the UK, Japan, South Korea, etc., are at the forefront of the adoption of medical terminology software in 2024. The growing concern over patient safety and the requirement for precise medical documentation to ensure accurate diagnosis, treatment, and billing have increased the demand for medical terminology software among healthcare providers in these countries. Therefore, medical terminology software programs facilitate healthcare vendors to accurately record patient histories, diagnoses, and treatment plans while quickly recognizing potential health hazards, thereby increasing their recognition. Also, with the accelerated integration of digital health records (EHRs), the demand for medical terminology software will increase in healthcare settings to ensure accuracy and consistency in affected person statistics. Further, the reality that the incorporation of medical terminology software helps healthcare companies lessen errors and avoid costly mistakes contributes to the segment’s growing market size.

Global Medical Terminology Software Market (2024-30): Regional Projections

Geographically, the Global Medical Terminology Market expands across:

• North America
• Latin America
• Europe
• Middle east & Africa
• Asia-Pacific

North America is projected to attain the largest share of the Medical Terminology Software Market by 2030. The escalating adoption of electronic health records (EHRs) across the region’s hospitals and other medical facilities has increased the usage of medical terminology software for the standardization of medical language and an efficient and accurate exchange of data. For instance, as per the Office of the National Coordinator for Health Information Technology (ONC), about 78% of office-based physicians and nearly 96% of non-federal acute care hospitals adopted EHR in 2021 in the US.

Also, a need for compliance and a mandate to use standard medical terminologies by regulatory bodies such as the Centers for Medicare & Medicaid Services (CMS) and the Health Information Technology Economic and Clinical Health (HITECH) Act have further contributed to the expansion of medical terminology software’s market in the North American region.

In addition, the extensive presence of prominent medical terminology software providers, particularly across the US, and the growing need for adequate management of patient records to enhance operational efficiency and reduce medical errors would further boost the regional market in the upcoming timeline.

Global Medical Terminology Software Industry Recent Development:

• 2023: Intelligent Medical Objects, Inc. announced the launch of a cloud-based platform for clinical terminologies, code sets, and data quality.

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