HEALTHCARE API MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The healthcare API market is estimated to be valued at USD 228.3 Mn in 2024 and is expected to reach USD 345.5 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The growing adoption of cloud-based healthcare solutions and increasing focus on improving patient outcomes are expected to drive significant growth in the demand for Healthcare APIs. The healthcare API market is expected to witness considerable growth over the forecast period. This can be attributed to the increasing investments by pharmaceutical and healthcare IT companies to integrate APIs into their platforms and solutions. Moreover, the rising demand for more personalized care and shift towards value-based reimbursements are pressuring healthcare providers to deploy digital technologies, thereby augmenting the need for APIs.

Healthcare APIs enabling more efficient and personalized care

The healthcare industry has increasingly embraced digital transformation to improve patient outcomes and enhance the care experience. However, legacy systems remain fragmented with silos of clinical and administrative data. Healthcare APIs are allowing providers to break down these data silos by integrating disparate applications and sharing information more seamlessly. APIs are serving as the crucial middle layer that enables seamless interoperability between existing systems. This is streamlining workflows for clinicians and allowing them to focus more on direct patient care. APIs are empowering providers to access patient records, lab results, imaging scans and other critical data in real-time from a single interface. This level of data consolidation and accessibility is helping improve diagnostic and treatment decisions. APIs are also facilitating automation of routine tasks like retrieving insurance eligibility and submitting claims. This is reducing administrative burden on providers and healthcare staff. 

Market Concentration and Competitive Landscape

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Rising chronic disease burden, aging populations and increasing healthcare costs are intensifying focus on preventive strategies, remote care delivery and personalized medicine. Emerging technologies like telehealth, digital health solutions, Artificial Intelligence/Machine Learning (AI/ML) applications and wearables are improving access and facilitating more customized care approaches. However, legacy systems remain poorly equipped to support these dynamic technologies and analytic approaches. Healthcare APIs have now become essential to fully realizing the potential of these technologies by integrating disparate systems and sharing critical data sources. APIs are enabling telehealth providers to utilize patient records during virtual visits and share follow up notes with primary physicians. APIs are powering remote patient monitoring solutions by facilitating real-time transmission of vital signs and symptoms from wireless devices. 

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The healthcare API market faces several challenges. Strict privacy regulations like Health Insurance Portability and Accountability Act (HIPAA) complicate how patient data can be accessed and shared through APIs. Healthcare providers also tend to prioritize patient care over technical initiatives, so investing in API development is challenging. Legacy systems make integration difficult, and a lack of standardization between providers creates silos of data. New players must convince risk-averse hospitals and insurers to embrace open APIs and new technologies.

Market Opportunities – Demand for integration of multiple applications in one platform

Demand is growing for APIs that can integrate disparate systems and power digital health tools. This opens avenues for companies to build experience layers or marketplaces on top of provider APIs. There is also a need for APIs that can analyze or transport large datasets while maintaining privacy. If these challenges can be addressed, APIs may help reduce costs, improve care coordination, and empower patients with their own medical data.

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The application segment includes remote patient monitoring, payment, EHR access, wearable medical device, and others. The EHR access segment is estimated to hold 27.9% share of the market in 2024. Healthcare providers are under growing pressure to reduce costs and improve patient outcomes, driving greater utilization of digital tools and technologies. EHR systems provide a centralized platform to securely manage patient medical records and streamline clinical workflows. However, accessing and sharing health data between different EHR systems remains challenging due to issues of interoperability. This has spurred strong demand for APIs that allow seamless transfer of EHR information. APIs enable applications to retrieve and input patient health records from multiple EHR databases, avoiding manual re-entry of data. This saves valuable time for clinicians and support staff. It also helps deliver higher quality and coordinated care by giving healthcare professionals a unified view of a patient’s medical history. APIs are therefore integral to achieving the full benefits of EHR systems through easy sharing of health information both within individual provider organizations and across different care settings.

Insights, By Deployment: Scalability, Flexibility, and Lower Costs drives cloud-based segment growth

The deployment segment includes cloud based and on premise. The cloud-based segment is estimated to hold 76.9% of the market share in 2024. Cloud platforms have emerged as the largest segment in terms of healthcare API deployment due to their scalability, flexibility, and lower costs compared to on-premise solutions. Legacy on-premise infrastructure requires substantial upfront capital expenditure on hardware, software licenses and dedicated IT resources for maintenance and support. However, cloud deployment offers a pay-as-you-go model with no major initial outlay. Providers can scale cloud-hosted API services up or down instantly as needs change, avoiding over-provisioning of resources. Transitioning API infrastructure to the cloud also lightens the management burden on in-house IT teams. Cloud vendors handle maintenance of servers, databases, networking equipment and regular software/security updates in their highly secure data centers. This frees up internal resources to focus more on strategic digital initiatives rather than day-to-day IT operations. The cloud architecture is also more resilient, with built-in redundancy and business continuity features to minimize disruptions from outages or natural disasters.

Insights, By End User: Growing adoption drives providers segment growth

The end user segment includes healthcare providers, healthcare payers, patients, and vendors. The healthcare providers segment is estimated to hold 43.9% of the market share in 2024. Traditionally, providers were reimbursed on a fee-for-service basis based solely on volume of procedures and visits. However, there is an industry-wide shift towards alternative payment models (APM) such as bundled payments, episodic payments and capitation rates based on patient outcomes. Under these models, providers assume full or partial financial risk for treating a health condition over the entire care cycle instead of single visits. To succeed in this new environment and avoid financial penalties, providers need tools for managing populations, coordinating care across settings and measuring quality metrics. Healthcare APIs are crucial enablers of population health management and value-based reimbursement programs. APIs power data aggregation and analytics solutions that give providers actionable patient insights. This helps identify at-risk individuals, close gaps in care, adhere to evidence-based guidelines, and lower overall costs through preventive interventions.

Regional Insights

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North America has firmly established itself as the dominant region in the healthcare API market and is estimated to hold 42.1% of the market share in 2024. With countries like the U.S. and Canada having well-developed healthcare systems, there is considerable focus on digitization and integration of services. Many leading healthcare IT players have their headquarters in the region and develop cutting-edge digital health solutions. This has also led to higher adoption of APIs to facilitate connectivity across different platforms and applications. Major hospitals, insurers, and pharmacies in North America rely on APIs to share patient data, process claims and payments, and enhance patient experiences. Industry stakeholders recognize the importance of APIs in supporting value-based care models.

Asia Pacific is positioned as the fastest growing regional market for healthcare APIs. Countries like China, Japan, and India are modernizing their healthcare infrastructure at a rapid pace. There is increased government focus and spending on digital initiatives to make services accessible to wider populations. This has provided a fertile ground for API-based health solutions to take off. Asia Pacific also has a large patient pool which makes it attractive for developers. Several global healthcare IT companies have established R&D centers in Asia to tap into the development talent pool and gain first-mover advantages. Local API players in Asia Pacific cater to regional needs around electronic health records, telehealth, remote patient monitoring, and online pharmacies. The region exhibits immense untapped market potential with scope for innovations around affordable healthcare delivery solutions.

Market Report Scope

Key Developments

• In November 2023, Oneview Healthcare, a leading provider of patient experience solutions, announced the latest edition of its Care Experience Platform (CXP), which includes the groundbreaking new Virtual Care API, Caregility certification, and other improvements. The new Virtual Care API allows users to use the Oneview patient television for inpatient virtual care, such as virtual observation and nursing.
• In September 2023, Metriport, a company dedicated to providing instant and efficient access to comprehensive patient medical data, launched its Medical API, the world's only healthcare API platform built entirely on open-source code, which will retrieve patient clinical histories from all major electronic health records (EHR) systems
• In July 2023, The Los Angeles Network of Enhanced Services (LANES), the first and only regional health information organization (HIO) in the greater Los Angeles area, adopted Google Cloud's Healthcare API and BigQuery to enable significant advances in interoperability and big data analytics for its participant network, which includes leading hospitals, health systems, health plans, behavioral health services, and ambulatory providers.
• In February 2023, Redox, a leader in healthcare interoperability, and Google Cloud announced a partnership to ease healthcare data interchange, allowing enterprises to make better and faster decisions. Organizations can develop longitudinal views to better serve their patients and members by seamlessly transferring health data from old systems to Google Cloud products such as Healthcare Data Engine and Healthcare API.

*Definition: The Healthcare API Market provides development and access to application programming interfaces (APIs) that enable integration of various healthcare data and systems. APIs in this market allow developers to build applications that retrieve and utilize patient records, insurance information, provider directories, clinical/medical data, and other healthcare data. Healthcare organizations and technology companies use APIs from this market to develop innovative digital healthcare solutions that improve patient outcomes, streamline clinical workflows, facilitate research, and enhance data-driven decision making.

Market Segmentation

• Application Insights (Revenue, USD Mn, 2019 - 2031)
  • Remote patient monitoring
  • Payment
  • EHR access
  • Wearable medical device
  • Others
•  Deployment Insights (Revenue, USD Mn, 2019 - 2031)
  • Cloud Based
  • On Premise
•  End User Insights (Revenue, USD Mn, 2019 - 2031)
  • Healthcare Providers
  • Healthcare Payers
  • Patients
  • Vendors
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • eClinical Works LLC
  • Greenway Health, LLC
  • Allscripts Healthcare Solutions Inc.
  • Microsoft Corporation
  • Cerner Corporation
  • Athenahealth
  • Epic Systems Corporation
  • MuleSoft, Inc.
  • Practice Fusion, Inc.
  • DrChrono
  • Salesforce, Inc.
  • TrueVault
  • Apple Inc.
  • GE Healthcare
  • McKesson Corporation
  • NextGen Healthcare
  • Datica
  • Zocdoc