GLOBAL MEDICAL TERMINOLOGY SOFTWARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Global Medical Terminology Software Market size is expected to reach US$ 4.39 Billion by 2030, from US$ 1.41 Billion in 2023, at a CAGR of 17.6% during the forecast period.

Medical terminology software helps healthcare organizations and professionals store, retrieve, and integrate medical terms and vocabularies into various applications such as EHRs, clinical decision support, revenue cycle management, and data aggregation. The software enhances clinical documentation, streamlines reimbursements, improves patient care quality, and reduces medical errors. The key drivers of the market are the growing focus on reducing medical errors, need to curtail healthcare costs, rising adoption of EHRs and other HCIT solutions, and increased government support and funding.

The Global Medical Terminology Software Market is segmented by product type, application, end user, and region. By product type, the market is segmented into services, platforms, and integrated platforms. The services segment accounts for the largest market share due to the recurring nature of services and their indispensability. Based on application, the market is segmented into data aggregation, reimbursement, clinical decision support, clinical trials, and others. The clinical decision support segment dominates the market owing to the critical role played by medical terminology software in decision support systems. In terms of end user, the market is segmented into healthcare providers, healthcare payers, healthcare IT vendors, and others. The healthcare providers segment leads the market share driven by the utilization of the software to optimize clinical documentation.

Global Medical Terminology Software Market Regional Insights:

• North America is expected to be the largest market for Global Medical Terminology Software Market during the forecast period, accounting for over 40.5% of the market share in 2023. The growth of the market in North America is attributed to favorable government initiatives, prevalence of major market players, and growing adoption of HCIT solutions in the region.
• The Europe market is expected to be the second-largest market for Global Medical Terminology Software Market, accounting for over 32.2% of the market share in 2023. The growth of the market in is attributed to the rising healthcare expenditure, stringent regulations, and increasing focus on patient safety and care quality in the region.
• The Asia Pacific market is expected to be the fastest-growing market for Global Medical Terminology Software Market, with a CAGR of over 19.3% during the forecast period. The growth of the market in Asia Pacific is attributed to the improving healthcare IT infrastructure, growing medical tourism, and increasing focus on value-based care in the region.

Figure 1. Global Medical Terminology Software Market Share (%), by Region, 2023

Global Medical Terminology Software Market Drivers:

• Need to Reduce Medical Errors and Improve Patient Safety: The need to reduce medical errors and improve patient safety is a major driver fostering the growth of the medical terminology software market. Medical errors arising from inaccuracies in clinical documentation can have severe implications on patient health. According to WHO, medication errors alone contribute to over 1 million patient harms each year globally. Medical terminology software enhances clinical documentation quality by integrating standard terminologies into EHRs and other healthcare IT systems. This pre-coordination of medical phrases and terms eliminates ambiguity and enhances clarity in clinical notes. Smooth data mapping and seamless integration of medical vocabulary enhances patient safety by reducing misinterpretation of clinical information. Medical terminology software is being increasingly adopted to minimize medical errors and advance patient safety.
• Adoption of Electronic Health Record (EHR) Solutions: The growing adoption of electronic health records (EHR) and other healthcare IT solutions is driving the demand for medical terminology software. EHR systems contain large volumes of patient health data recorded by multiple caregivers. Medical terminology software becomes indispensable in such systems to allow standardized capture, retrieval and interpretation of medical data. It enables aggregation of patient data from disparate systems into EHRs by seamlessly mapping different medical vocabularies. Medical terminology solutions enhance EHR functionalities such as clinical decision support, quality reporting and care coordination by integrating medical dictionaries into workflows. The integration eliminates ambiguity and enhances clinical documentation quality. The broadening adoption of EHR solutions will consequently fuel the uptake of medical terminology software.
• Need to Curtail Healthcare Costs: The pressing need to curtail healthcare costs and enable better reimbursement outcomes is augmenting the demand for medical terminology software. Medical vocabulary management software allows the seamless capture of clinical data in a standardized form. This enhances the efficiency and accuracy of medical coding and billing processes. Accurate documentation and coding is imperative for securing optimal reimbursement outcomes. According to a survey, up to 90% of denied claims result from improper clinical documentation and coding. By integrating medical terminology into workflows, the software solution enhances coding precision. It also reduces billing errors and minimizes revenue leakage, driving better financial outcomes. The cost-curbing benefits offered by medical terminology software make it an indispensable tool for healthcare organizations.
• Regulatory Requirements Mandating Use of Standard Terminologies: Regulatory requirements making the use of standardized medical vocabularies mandatory is fueling the adoption of medical terminology software. Regional regulations such as the US' Meaningful Use Stage 2 make the use of terminologies such as SNOMED CT mandatory for EHR certification. International standards such as ICD-10 CM necessitate standardized capture of clinical data for smooth cross-border healthcare data exchange. Medical terminology software solutions enable seamless mapping and integration of such standardized vocabularies into healthcare IT systems and workflows. This allows care providers to comply with regulatory terminology requirements efficiently. The software tools are therefore becoming indispensable assets for healthcare organizations looking to comply with norms and access incentives linked to terminology adoption.

Global Medical Terminology Software Market Opportunities:

• Integration of Medical Terminology Software with Big Data Analytics: The integration of medical terminology software with big data analytics presents significant growth opportunities. As healthcare becomes increasingly data-driven, analytics integration can derive meaningful insights from the massive volumes of standardized clinical data. Medical terminology software harmonizes patient data captured in disparate formats into a standardized structure. This data can be aggregated into data lakes and integrated with analytics tools. Big data analytics when combined with semantically-interoperable data can uncover game-changing insights to transform population health management. Players offering integrated terminology management and analytics solutions can differentiate their offerings. In August 2022, Wolters Kluwer partnered with TransformativeMed to integrate medical terminology software with analytics capabilities.
• Adoption in Emerging Markets: Emerging markets across Asia Pacific, Latin America and Middle East offer lucrative growth opportunities for medical terminology software vendors. These markets are witnessing steady growth in EHR adoption driven by population health pressures and digital health investments. Medical terminology tools allow the standardization required for optimal utilization of EHR systems being rapidly adopted across emerging economies. Localization support also enables localized implementations tuned to regional care settings and terminology needs. Companies that can cater to diverse regional requirements can obtain a strong competitive footing. In May 2022, Wolter Kluwer expanded its medical terminology solutions in China through a partnership with Medbanks.
• Incorporation of AI Capabilities: Incorporating AI-driven natural language processing and clinical decision support capabilities into medical terminology software solutions offers significant opportunities for growth and product differentiation. NLP integration can allow automated extraction of medical phrases and concepts from unstructured clinical notes using terminology knowledge. CDSS integration can link medical terms to clinical protocols enabling evidence-based guidance. Companies developing AI-enabled terminology management solutions to automate clinical documentation and supercharge decision support can obtain traction. In March 2021, HealthTerm partnered with Saykara to integrate AI-driven voice documentation capabilities into its app.
• Cloud-based SaaS Delivery Models: Cloud-based delivery models present lucrative prospects for medical terminology software vendors. Amid the remote health paradigm, clinicians are demanding better accessibility to medical vocabulary resources. Companies are transitioning from legacy client-server models to SaaS delivery that allows anywhere anytime access via web apps and mobile apps. Cloud-based tools also enable frequent updates to dynamically maintain standards compliance. According to a poll by Black Book, over 90% of hospitals intend to switch to cloud-based EHR solutions by 2027. Medical terminology software providers embracing next-gen SaaS platforms and cloud technology can future-proof their solutions while meeting changing care delivery needs. In July 2021, Intelligent Medical Objects migrated its terminology tools to a cloud-based platform for enhanced agility.

Global Medical Terminology Software Market Trends:

• Demand for Semantic Interoperability Capabilities: The growing need for semantic interoperability is a key trend fostering demand for advanced medical terminology software. Lack of standardized capture of clinical data has led to challenges in healthcare data exchange across systems, care settings and borders. This hampers population health management and coordinated care delivery. Medical terminology solutions that allow semantic interoperability—consistent interpretation of data meaning across systems—address this gap. Mapping clinical data to standardized code systems and terminologies creates ‘shareable data’ by preserving context. Solutions allowing enterprise-wide mapping to support use of multiple terminologies are gaining traction. Integration of terminology standards like SNOMED CT, ICD, RxNorm into EHRs is rising to achieve semantic interoperability.
• Utilization of Mobile and Cloud Capabilities: Healthcare organizations are demanding medical terminology solutions harnessing mobility and cloud capabilities. With digitization, clinicians are relying on web and mobile apps to access medical vocabulary on-the-go for point-of-care use. Solutions utilizing responsive web design and cross-platform mobile apps are gaining prominence. Cloud-hosted solutions allowing anywhere anytime access via latest apps and browsers are also rising in demand. Cloud integrations also enable frequent updates to maintain dynamic curation of medical vocabulary. Medical terminology providers are enhancing their solutions with mobile capabilities and secure cloud integrations to provide easy access and seamless workflows for clinicians. In January 2022, HealthAware unveiled a mobile app delivering medical terminology lookup and code search on mobile devices.
• Application of Natural Language Processing: Natural language processing techniques are being increasingly integrated into medical terminology software solutions to automate clinical documentation workflows. NLP algorithms allow automated extraction of medical concepts and terms from unstructured physician notes. This eliminates the need for manual review and coordination of clinical notes with standard vocabularies. NLP techniques like text segmentation and named entity recognition identify medical phrases using vocabulary ontology and derieve meaningful insights from free text. Solutions incorporating NLP deliver higher documentation throughput. In September 2021, SyTrue partnered with Azure Healthcare API for NLP to enhance its terminology management platform.
• Increasing Consolidation Among Vendors: The medical terminology software space is witnessing increasing consolidation through partnerships and acquisitions among vendors to enhance product capabilities. In February 2022, 3M acquired LeanTaaS to leverage its semantic search and NLP capabilities to advance 3M's terminology tools. Wolters Kluwer acquired Health Language to strengthen its clinical decision support solutions with medical vocabulary capabilities in December 2020. The trend towards consolidation is likely to rise as vendors seek to derive synergies from combined complementary strengths to deliver end-to-end clinical terminology solutions.

Global Medical Terminology Software Market Restraints:

• Interoperability and Integration Challenges: Interoperability and integration challenges pose a key restraint to the adoption of medical terminology software. Disparate vendor solutions and localized customizations make cross-platform data mapping highly complex. Varying standards adoption across care networks also hinders interoperability. Complex integrations with existing health IT systems deter end-users. Lack of regulatory clarity regarding standard terminologies adds to the challenge. Medical terminology software vendors are working to address this by partnering with health IT vendors and developing interfaces leveraging FHIR and other standards. Data harmonization frameworks are being developed to facilitate system-wide implementations. Advances in integration technologies will help overcome interoperability barriers and drive adoption.
• Cost Constraints Among Healthcare Organizations: High costs involved in the procurement and implementation of medical terminology software solutions restrain smaller clinics and healthcare organizations from their adoption. High licensing costs and significant investments needed for integrations dissuade many care centers from investing in these solutions. Lack of skilled staff to implement and manage terminology software also escalates costs for healthcare groups with constrained IT budgets. Vendors are addressing this through flexible subscription models and scalable pricing strategies to ease procurement. Rise of cloud-based solutions and automation capabilities will help curb implementation costs and support uptake across healthcare organizations.
• Complexity in Deployment and Usability: The complexities surrounding deployment and usability of medical terminology software solutions pose adoption challenges. Integrating new workflows and maneuvering complex interfaces requires significant end-user training which is difficult for many organizations. Frequent version updates to maintain standards compliance also complicates usability. Vendors are focusing on enhancing UI/UX design to ease navigation and improving LMS systems to simplify deployment. Emergence of self-learning interfaces driven by AI/ML will help tackle usability challenges and accelerate mainstream adoption.

Recent Developments:

New product launches:

• In September 2022, Wolters Kluwer launched the Lippincott Advisor Florida for medical terminology and documentation guidance specific to Florida. It enhances regulatory compliance and reimbursements.
• In January 2021, 3M launched the 3M Codefinder Software tool to integrate terminology management into clinicians' workflow. It enables enhanced clinical documentation.
• In June 2020, Apelon rolled out TermPASS v2.0 to offer new features such as workflow enhancements and value set editing capabilities. It improves interoperability and data mapping.

Acquisition and partnerships:

• In January 2022, Wolters Kluwer acquired Oridion Medical expanding its patient surveillance and clinical decision support capabilities.
• In June 2021, 3M acquired Cano Health's medication management platform to strengthen its pharmaceutical offerings.
• In August 2020, Apelon partnered with 4medica to integrate terminology capabilities into 4medica's healthcare data exchange platform.

Figure 2. Global Medical Terminology Software Market Share (%), by Application, 2023

Top companies in Global Medical Terminology Software Market:

• Wolters Kluwer
• 3M
• Intelligent Medical Objects
• Apelon
• Clinical Architecture
• CareCom
• Bitac
• B2i Healthcare
• HiveWorx
• BT Clinical Computing
• EzCoder
• Acupedia
• Savante International
• Vocera Communications
• IntraMed Abbreviation Engine
• CloudPital
• SoftMed Systems
• DXC Technology Company
• DECISIONQ
• GenoLogics

*Definition: Medical terminology software refers to specialized vocabulary and language management solutions designed for healthcare organizations and professionals. It comprises pre-defined medical concepts, terms and codes mapped to various medical applications such as EHRs, e-prescribing, clinical decision support, data aggregation, and reimbursement management. Medical terminology software enhances clinical documentation, improves patient care and safety, increases efficiency in medical coding and billing processes, and enables seamless healthcare data exchange through standardized terminologies. It allows easy access to medical dictionaries, ontologies, classifications and codings within healthcare IT systems and applications. The software provides clinicians and medical coders with point-of-care access to accurate medical terms and codes, enhancing clinical workflows.

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