Medical Terminology 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 terminology software market size has grown rapidly in recent years. It will grow from $1.3 billion in 2024 to $1.5 billion in 2025 at a compound annual growth rate (CAGR) of 15.8%. The growth in the historic period can be attributed to disparity & fragmentation in the terminology content of healthcare organizations, rising focus on minimizing medical errors, increasing attention to reduce medical errors, increasing adoption of electronic health records (EHR), and rising adoption of data integrity is driving the market growth.

The medical terminology software market size is expected to see rapid growth in the next few years. It will grow to $2.73 billion in 2029 at a compound annual growth rate (CAGR) of 16.1%. The growth in the forecast period can be attributed to increasing need to maintain data integrity, government initiatives for HCIT adoption, governmental programs to promote the adoption of HCIT, growing emphasis on personalized & precision medicine, and increased inventory control and tracking new product launches. Major trends in the forecast period include reluctance to use medical terminology solutions over conventional practices, developing nations, advancements in natural language processing (NLP), integration with electronic health records (EHR), genomic data integration.

The growing emphasis on reducing medical errors is expected to drive the growth of the medical terminology software market in the future. Minimizing medical errors involves efforts and strategies aimed at reducing mistakes in healthcare that could harm patients. Medical terminology software is essential for enhancing the accuracy and efficiency of healthcare documentation and communication, thereby lowering the risk of medical errors. For example, a report from the Institute of Global Health Innovation, a UK-based research institute, revealed that approximately 237 million errors occur annually in England. As a result, the increasing focus on reducing medical errors is contributing to the growth of the medical terminology software market.

Major companies operating in the medical terminology software market are developing innovative technologies, such as natural language processing solutions, to understand and respond to human language. Natural Language Processing (NLP) refers to the branch of computer science and artificial intelligence concerned with giving computers the ability to understand and respond to human language in text or voice data. For instance, in March 2023, Kensho Technologies Inc., a US-based artificial intelligence company, launched a new Natural Language Processing (NLP) solution called Kensho Classify. This solution is designed to conceptually understand and classify documents, enabling analysis of text, smart search, content recommendations, and streamlined research and analysis. It is specifically tuned for complex business and finance use cases, allowing users to find concepts and topics within documents quickly and efficiently without requiring machine learning or technical skills.

In March 2022, Thomas H. Lee Partners L.P., a US-based private equity company, acquired Intelligent Medical Objects (IMO) for $1.5 billion. The acquisition allows THL to expand its presence in the healthcare technology market and capitalize on the growing demand for medical terminology software. Further, the acquisition provides THL opportunities to invest in research and development initiatives and expand IMO's product offerings to meet evolving healthcare needs. Intelligent Medical Objects is a US-based healthcare data enablement company that provides clinical interface terminology solutions.

Major companies operating in the medical terminology software market are 3M Health Information Systems, Wolters Kluwer N.V, Cerner Corporation, M*Modal, Nuance Communications Inc., CareCom A/S, Orion Health, First Databank, SemanticBits, Phastar Corporation, Intelligent Medical Objects Inc., Rhapsody, Clinical Architecture LLC, Infermedica, Apelon Inc., HiveWorx Private Ltd., SNOMED International, B2i Healthcare Kft, BITAC Inc, BT Clinical Computing, West Coast Informatics Inc., Health Navigator, Medical Database, Inc., Prismatik, RealTime Medical, Snomed International, Terminologik, TermSolution Gmbh.

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

The medical terminology software market includes revenues earned by entities by electronic health record (EHR) software, medical database software, hospital management software, medical diagnosis software, medical research software. 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 medical terminology software market consists of sales of software used for the storage, management, and analysis of medical terminology. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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 terminology software aids healthcare professionals, and students in learning medical terms through interactive quizzes, flashcards, and games. It's utilized in healthcare settings, educational institutions, and by patients to grasp medical terminology, prefixes, suffixes, and abbreviations, enhancing communication and understanding.

The main products and services of medical terminology software are services and platforms. Medical terminology software services refer to a range of offerings related to the development, deployment, and maintenance of software applications that standardize and manage medical terminology in healthcare settings. It is used for data aggregation, reimbursement, public health surveillance, data integration, decision support, clinical trials, quality reporting, and clinical guidelines applications of healthcare providers, healthcare payers, healthcare information technology (IT) vendors, and other end users.

The main products and services of medical terminology software are services and platforms. Medical terminology software services refer to a range of offerings related to the development, deployment, and maintenance of software applications that standardize and manage medical terminology in healthcare settings. It is used for data aggregation, reimbursement, public health surveillance, data integration, decision support, clinical trials, quality reporting, and clinical guidelines applications of healthcare providers, healthcare payers, healthcare information technology (IT) vendors, and other end users.

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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