PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1532891
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1532891
Healthcare Electronic Data Interchange (EDI) Market size was valued at USD 4,701.09 million in 2023, expanding at a CAGR of 9.70% from 2024 to 2032.
Electronic Data Interchange (EDI) is a system that enables computer systems to exchange and utilize information. In the healthcare setting, EDI establishes a standard format for the exchange of healthcare data among different health organizations such as hospitals, insurance companies, government entities, and software development service providers. The common standards used in healthcare EDI are HL7 (Health Level Seven International) and X12. EDI streamlines the exchange of various electronic data interchange (EDI) documents, ultimately enhancing the caregiving experience and managing larger and more complex workloads.
Healthcare Electronic Data Interchange (EDI) Market- Market Dynamics
Rise in Data Analytics and Population Health Management is expected to drive the market
Healthcare providers can utilize data analytics to extract valuable insights from large datasets, while EDI systems play a crucial role in enabling the smooth exchange of this data. This, in turn, leads to more informed decision-making processes based on comprehensive and accurate information. Additionally, data analytics plays a key role in identifying inefficiencies within healthcare operations. According to the U.S. Bureau of Labor Statistics (BLS), the demand for healthcare professionals, including administrators, is expected to increase by approximately 13 percent between 2021 and 2031. Population health management heavily relies on the aggregation and analysis of health data from various sources, with EDI systems playing a vital role in facilitating the exchange of this data to ensure that all relevant information is available for analysis. The U.S. Bureau of Labor Statistics has also reported that the job outlook for health services managers is projected to grow by 28% by 2032 from 2022, as of May 2023. Moreover, the increasing focus on patient-centric care and the expansion of healthcare infrastructure may present growth opportunities for the market. However, it is important to note that complexity and interoperability issues may pose restrictions to the market's growth.
Healthcare Electronic Data Interchange (EDI) Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 9.70% over the forecast period (2024-2032)
Based on product type segmentation, Services was predicted to show maximum market share in the year 2023
Based on Transaction Type segmentation, Claims Management was the leading type in 2023
Based on Delivery Mode segmentation, Web and Cloud-based EDI was the leading type in 2023
Based on End-User segmentation, Healthcare Providers was the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global Healthcare Electronic Data Interchange (EDI) Market is segmented based on Product Type, Transaction Type, Delivery Mode, End-User, and Region.
The market is categorized into two segments according to product type: Services and Solutions. The Services sector holds the majority share of the market. These services play a crucial role in assisting healthcare institutions in the implementation, management, and optimization of EDI systems, ensuring adherence to regulations, and improving operational effectiveness.
The market is segmented into two divisions according to Transaction Type: Healthcare Supply Chain Management and Claims Management. Claims Management holds the majority share in the market. The Healthcare Electronic Data Interchange (EDI) Market, specifically in the realm of claims management, is essential for enhancing administrative procedures, cutting down expenses, and enhancing the precision and effectiveness of healthcare transactions.
The market is segmented into four divisions according to Delivery Mode: Web and Cloud-based EDI, EDI Value Added Network (VAN), Direct (Point-to-Point) EDI, and Mobile EDI. Web and Cloud-based EDI holds the largest share in the market. The Healthcare Electronic Data Interchange (EDI) Market is progressing as it incorporates web and cloud-based solutions, providing improved scalability, flexibility, and cost-effectiveness.
The market is segmented into three groups according to End-User: Healthcare Payers, Healthcare Providers, Pharmaceutical & Medical Device Industries, and Others. Healthcare Providers are the dominant force in the market. EDI solutions empower healthcare providers to securely and effectively manage a range of transactions, such as claims submission, eligibility verification, payment remittance, and more.
Healthcare Electronic Data Interchange (EDI) Market- Geographical Insights
The market is geographically widespread across North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided by nations that contribute to business activities. North America is the dominant market due to increased healthcare expenditure, leading to greater investment in research and development. The U.S. and Canada allocate substantial funds to their healthcare systems, supporting the adoption and implementation of advanced technologies like EDI. This investment ensures that healthcare providers have the necessary resources to integrate EDI systems into their operations. U.S. healthcare spending grew 4.1 percent in 2022, reaching USD 4.5 trillion or USD 13,493 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.3 percent, according to the Centers for Medicare & Medicaid Services. The well-established healthcare infrastructure in North America facilitates the widespread adoption of EDI systems. Health spending in the U.S. increased by 4.1% in 2022 to USD 4.5 trillion or USD13,493 per capita. North America is a hub for technological innovation, with significant investments in research and development driving the creation of advanced EDI solutions. Europe is the second largest region for market growth, due to the increased adoption of Electronic Health Records.
The Healthcare Electronic Data Interchange (EDI) market is fiercely competitive, as multiple companies are vying to introduce cutting-edge solutions and gain a larger portion of the market. Manufacturers are dedicating resources to research and development to develop advanced EDI solutions that incorporate features like AI, machine learning, and real-time analytics. They are also venturing into emerging markets such as Asia Pacific, Latin America, and the Middle East to seize new opportunities and expand their market presence. The Healthcare Electronic Data Interchange (EDI) Market is marked by stiff competition, with major players utilizing innovation, strategic partnerships, customer-focused strategies, and geographical expansion to secure their market share.
On June 25, 2024, Oracle launched the Oracle Health Insurance Data Exchange Cloud Service, an innovative solution aimed at assisting healthcare insurers in efficiently adapting to changing data formats and simplifying their intricate data exchange requirements
GLOBAL HEALTHCARE ELECTRONIC DATA INTERCHANGE (EDI) MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
OSP
MCKESSON CORPORATION
NXGN Management, LLC
Optum, Inc.
SSI Group LLC
Cleo
Oracle
Epicor Software Corporation
Effective Data
DataTrans Solutions
Others