Medical Software Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The medical software market size has grown rapidly in recent years. It will grow from $58.94 billion in 2024 to $67.73 billion in 2025 at a compound annual growth rate (CAGR) of 14.9%. The growth in the historic period can be attributed to the implementation of healthcare information technology (HIT) solutions, adoption of secure and compliant software systems, increasing focus on interoperability and data exchange, advances in medical imaging and diagnostic software, and growing demand for healthcare analytics.

The medical software market size is expected to see rapid growth in the next few years. It will grow to $116.66 billion in 2029 at a compound annual growth rate (CAGR) of 14.6%. The growth in the forecast period can be attributed to the increasing adoption of electronic health records (EHR) and electronic medical records (EMR) systems, growing demand for data-driven decision-making tools, rising focus on telemedicine and remote patient monitoring solutions, and government initiatives promoting the digitization of healthcare services. Major trends in the forecast period include the adoption of cloud-based solutions for medical software, increasing integration of artificial intelligence (AI) and machine learning (ML) technologies, personalized medicine, growing demand for telehealth and virtual care platforms, emphasis on interoperability standards and data exchange protocols, and rise of mobile health (mHealth) applications and wearable devices.

The growth of the medical software market is projected to be driven by the increasing aging population and the rise of chronic diseases. The aging population refers to a higher percentage of elderly individuals within a given population, while chronic diseases are long-term health conditions that are typically not curable but can be managed through appropriate treatment and lifestyle changes. Both of these factors are on the rise due to longer life expectancies and various lifestyle choices, such as sedentary behavior, poor diets, smoking, and excessive alcohol consumption. Medical software is used to enhance care for the elderly with chronic diseases, helping with personalized treatment, disease management, and health monitoring. This technology helps improve both the quality of care and the overall well-being of older individuals by supporting proactive health monitoring and efficient management of their conditions. For example, the Population Reference Bureau (PRB), a U.S.-based nonprofit, projected in January 2024 that the number of Americans aged 65 and older will grow from 58 million in 2022 to 82 million by 2050, representing a 47% increase. This group will make up 23% of the U.S. population, up from 17%. Additionally, a report from Allergy UK in April 2024 noted that more than 21 million people in the UK are affected by allergies, which became the most common chronic health condition in 2022. By 2026, it is expected that half of Europe’s population will suffer from at least one allergy. As a result, both the aging population and the rise in chronic diseases are fueling the demand for medical software.

Leading companies in the medical software market are concentrating on creating advanced technological solutions, such as smart health assistants, to alleviate the burden on healthcare staff and boost operational efficiency by utilizing AI to simplify both clinical and administrative tasks. Smart health assistants are AI-powered digital tools designed to help individuals manage their health by providing services like scheduling appointments and reminding users to take their medications. For example, in October 2024, Microsoft Corporation, a U.S.-based technology company, introduced the Health-Care AI Suite to aid healthcare organizations in more efficiently developing AI applications. This suite includes tools like medical imaging models, AI agents, and automated documentation solutions, all designed to reduce clinician workloads and improve productivity. The Health-Care AI Suite is especially important as it enables healthcare systems to streamline administrative processes, enhance data accuracy, and provide smoother access to clinical information, helping to tackle widespread issues such as clinician burnout and inefficiencies in documentation.

In April 2024, GE HealthCare Technologies Inc., a prominent US-based medical technology company, completed the acquisition of MIM Software for an undisclosed sum. This strategic move aims to strengthen GE HealthCare Technologies' support for provider needs by providing established solutions that simplify, streamline, and automate essential tasks, thereby optimizing workflows. MIM Software, based in the US, specializes in medical software solutions for radiation oncology, nuclear medicine, and medical radiology, among others. The acquisition aligns with GE HealthCare Technologies' commitment to delivering innovative solutions that meet the evolving demands of the healthcare industry.

Major companies operating in the medical software market are McKesson Corporation, OptumHealth, Dell Technologies Inc., International Business Machines Corporation (IBM), Siemens Healthineers, Koninklijke Philips NV, GE HealthCare Technologies, Henry Schein Inc., Quest Diagnostics Incorporated, Cerner Corporation, Epic Systems Corporation, Lexmark International Inc., Athenahealth Inc., CompuGroup Medical SE & Co KGaA, eClinicalWorks, Allscripts Healthcare Solutions Inc., Greenway Health LLC, Computer Programs and Systems Inc., Sunquest Information Systems Inc., Merge Healthcare Incorporated, NextGen Healthcare Inc., First Databank Inc., CureMD Healthcare, Practice Fusion Inc., Updox LLC.

North America was the largest region in the medical software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the medical software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the medical software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The medical software market includes revenues earned by entities by providing services, such as telehealth and telemedicine solutions, clinical decision support systems, health information exchange (HIE), and patient portals. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Medical software encompasses specialized applications and platforms tailored to aid healthcare professionals in diverse aspects of patient care within medical facilities. Its purpose is to streamline the management of patient records, facilitate diagnosis, treatment planning, and support healthcare administration.

The primary categories of medical software include electronic health records (EHR), medical practice management software, telemedicine platforms, medical billing and coding solutions, clinical decision support systems (CDSS), among others. Electronic health records (EHR) serve as digital counterparts to traditional paper charts, enabling seamless access to patient information across various healthcare settings such as hospitals, clinics, and ambulatory care centers. These solutions cater to multiple end users including healthcare providers, payers, and patients themselves.

The medical software market research report is one of a series of new reports that provides medical software market statistics, including the medical software industry global market size, regional shares, competitors with medical software market share, detailed medical software market segments, market trends, and opportunities, and any further data you may need to thrive in the medical software industry. This medical software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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