Medical Coding Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

The Global Medical Coding Market Report is Segmented by Classification System (International Classification of Diseases (ICD) and Healthcare Common Procedure Code System (HCPCS)), Component (In-House and Outsourced), End User (Hospitals, Diagnostic Centers, and Other End Users), and Geography (North America, Europe, Asia-Pacific, The Middle East and Africa, and South America).

Medical Coding Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2025 - 2030)

Medical Coding Market Size

Medical Coding Market Summary
Study Period 2021 - 2030
Market Size (2025) USD 24.83 Billion
Market Size (2030) USD 39.01 Billion
CAGR (2025 - 2030) 9.45 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

Medical Coding Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Medical Coding Market with other markets in Healthcare Industry

Biotechnology

Pharmaceuticals

Healthcare IT

Medical Devices

Animal Health

Device Drug Combination

Medical Coding Market Analysis

The Medical Coding Market size is estimated at USD 24.83 billion in 2025, and is expected to reach USD 39.01 billion by 2030, at a CAGR of 9.45% during the forecast period (2025-2030).

The factors responsible for the growth of the market include the escalating demand for coding services, the rising need for a universal language to reduce frauds and misinterpretations associated with insurance claims, and the high demand for streamlining hospital billing procedures.

The demand for coding services is significantly increasing owing to the rise in medical admissions. For instance, as per the American Hospital Association's (AHA) Hospital Statistics 2024, there have been around 34 million admissions in all the hospitals in the United States so far in 2024. The high number of hospital admissions raises the demand for skilled medical billers and coders to manage medical billings, which is anticipated to catalyze the growth of the medical coding market over the forecast period.

There's a growing inclination within the medical coding market to transition toward a more efficient and user-friendly coding and billing solution that offers streamlined processes and enhanced convenience. This, in turn, is increasing the demand for skilled medical coders professionals in the market. For instance, according to a report published by the Association of American Medical Colleges in February 2024, the demand for medical coders is high. It continues to rise due to the historic shift in age demographics in the United States. This growth of the older population poses healthcare challenges, including an anticipated shortage of 105,000 physicians by 2030. Additionally, according to the Bureau of Labor Statistics (BLS), in September 2023, the BLS projected an 8% increase in medical records and health information technician positions, including medical billers and coders, between 2022 and 2032. Thus, the rising demand for medical coders underscores the imperative for an efficient, user-friendly coding and billing solution to address healthcare challenges effectively.

Medical coding facilitates standardized documentation across healthcare facilities, enabling administrators to analyze the frequency and efficacy of treatments within their organization. This capability is especially crucial for large-scale medical institutions such as tertiary-care hospitals.

Advancements in coding software are expected to help clinicians effectively manage the large amount of data across healthcare facilities. For instance, in July 2023, Amazon Web Services Inc. (AWS) launched AWS HealthScribe. This new HIPAA-eligible service empowers healthcare software providers to build clinical applications that use speech recognition and generative artificial intelligence (AI) to save clinicians time by generating clinical documentation. Thus, the introduction of advanced clinical documentation technology leveraging speech recognition and generative AI is poised to drive significant expansion in the medical coding market over the forecast period.

Major players in the market are introducing new products to cater to the rising demand for medical coding, which is further expected to propel the market growth. For instance, in December 2023, the new PULSE technology, a landmark and transformative SaaS product, was launched by CorroHealth for the healthcare industry, advancing and forever changing how hospitals and clinics code and recover revenue. PULSE is an innovative medical coding automation platform designed to streamline and expedite the coding process. This automated solution significantly boosts productivity in fee-for-service and value-based care scenarios, providing substantial benefits to healthcare organizations.

There has been a high demand for investments in medical billing and coding software programs that can lead to long-term financial benefits and a positive return on investment (ROI) to its major investors. For instance, in March 2023, CodaMetrix, an AI-powered platform for healthcare revenue cycle management, secured USD 55 million in Series A funding led by SignalFire. The company utilizes machine learning, natural language processing, and deep learning to analyze electronic health records for autonomous medical coding.

Thus, the escalating demand for coding services and the high demand for streamlining hospital billing procedures are expected to propel the market's growth. However, continuously changing regulations, data security concerns, and the need for adequately equipped information technology (IT) professionals in the healthcare sector are expected to hinder the market's growth.

Medical Coding Industry Overview

The medical coding market is moderately competitive due to the presence of many local and international providers offering a wide array of services. All the players are adopting various growth strategies to enhance their market presence. Companies are strategically leveraging the development of highly efficient technologies, including integrating artificial intelligence into medical coding systems, to improve the operational capabilities of hospitals, ambulatory centers, and diagnostic units. Some of the key players in the market include 3M, Nuance Communications Inc., Oracle Corporation, The Coding Network, and Optum Inc.

Medical Coding Market Leaders

  1. 3M

  2. Nuance Communications Inc.

  3. Oracle Corporation

  4. The Coding Network

  5. Optum, Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Medical Coding Market Concentration
Need More Details on Market Players and Competiters?
Download PDF

Medical Coding Market News

  • April 2024: XpertDox signed a strategic alliance with Positive Results Billing, a medical billing service provider. This partnership announced the integration of XpertCoding, XpertDox's advanced AI medical coding software, into the workflow of Positive Results Billing, resulting in a new era of efficiency in medical coding.
  • February 2024: RapidClaims, United States, was backed by a substantial initial funding round to transform the healthcare industry by leveraging artificial intelligence (AI) to streamline the complex medical coding and claim submission processes.

Medical Coding Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Escalating Demand for Coding Services
    • 4.2.2 Rising Need for a Universal Language to Reduce Frauds and Misinterpretations Associated with Insurance Claims
    • 4.2.3 High Demand to Streamline Hospital Billing Procedures
  • 4.3 Market Restraints
    • 4.3.1 Changing Regulations Related to Medical Coding
    • 4.3.2 Data Security Concerns
    • 4.3.3 Lack of Adequately Equipped IT Professionals
  • 4.4 Porter's Five Forces Analysis
    • 4.4.1 Threat of New Entrants
    • 4.4.2 Bargaining Power of Buyers/Consumers
    • 4.4.3 Bargaining Power of Suppliers
    • 4.4.4 Threat of Substitute Products
    • 4.4.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size by Value - USD)

  • 5.1 By Classification System
    • 5.1.1 International Classification of Diseases (ICD)
    • 5.1.2 Healthcare Common Procedure Code System (HCPCS)
  • 5.2 By Component
    • 5.2.1 In-house
    • 5.2.2 Outsourced
  • 5.3 By End User
    • 5.3.1 Hospitals
    • 5.3.2 Diagnostic Centers
    • 5.3.3 Other End Users
  • 5.4 Geography
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.2 Europe
    • 5.4.2.1 Germany
    • 5.4.2.2 United Kingdom
    • 5.4.2.3 France
    • 5.4.2.4 Italy
    • 5.4.2.5 Spain
    • 5.4.2.6 Rest of Europe
    • 5.4.3 Asia-Pacific
    • 5.4.3.1 China
    • 5.4.3.2 Japan
    • 5.4.3.3 India
    • 5.4.3.4 Australia
    • 5.4.3.5 South Korea
    • 5.4.3.6 Rest of Asia-Pacific
    • 5.4.4 Middle East and Africa
    • 5.4.4.1 GCC
    • 5.4.4.2 South Africa
    • 5.4.4.3 Rest of Middle East and Africa
    • 5.4.5 South America
    • 5.4.5.1 Brazil
    • 5.4.5.2 Argentina
    • 5.4.5.3 Rest of South America

6. COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 3M Company
    • 6.1.2 Aviacode Inc.
    • 6.1.3 Dolbey Systems Inc.
    • 6.1.4 Maxim Health Information Services
    • 6.1.5 MRA Health Information Services
    • 6.1.6 Nuance Communications Inc.
    • 6.1.7 Optum Inc.
    • 6.1.8 Oracle Corporation
    • 6.1.9 Talix
    • 6.1.10 The Coding Network LLC
    • 6.1.11 Precyse Solutions LLC
    • 6.1.12 Access Healthcare
    • 6.1.13 Global Healthcare Resource
    • 6.1.14 Episource
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
**Competitive Landscape Covers - Business Overview, Financials, Products and Strategies, and Recent Developments
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Medical Coding Industry Segmentation

Medical coding transforms healthcare diagnoses, procedures, services, and equipment into universal medical alphanumeric codes. Medical coding is increasingly used in the present scenario to create a proper patient care record, streamline the medical billing process, accelerate payments to physicians, and identify the healthcare areas requiring focus.

The medical coding market is segmented by classification system, component, end user, and geography. By classification system, the market is further segmented into the international classification of diseases and the healthcare common procedure code system. By component, the market is further segmented into in-house and outsourced. By end user, the market is further segmented into hospitals, diagnostic centers, and other end users. By geography segment, the market is further segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. For each segment, the market size is provided in terms of value (USD).

By Classification System International Classification of Diseases (ICD)
Healthcare Common Procedure Code System (HCPCS)
By Component In-house
Outsourced
By End User Hospitals
Diagnostic Centers
Other End Users
Geography North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa GCC
South Africa
Rest of Middle East and Africa
South America Brazil
Argentina
Rest of South America
Need A Different Region or Segment?
Customize Now

Medical Coding Market Research FAQs

How big is the Medical Coding Market?

The Medical Coding Market size is expected to reach USD 24.83 billion in 2025 and grow at a CAGR of 9.45% to reach USD 39.01 billion by 2030.

What is the current Medical Coding Market size?

In 2025, the Medical Coding Market size is expected to reach USD 24.83 billion.

Who are the key players in Medical Coding Market?

3M, Nuance Communications Inc., Oracle Corporation, The Coding Network and Optum, Inc. are the major companies operating in the Medical Coding Market.

Which is the fastest growing region in Medical Coding Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).

Which region has the biggest share in Medical Coding Market?

In 2025, the North America accounts for the largest market share in Medical Coding Market.

What years does this Medical Coding Market cover, and what was the market size in 2024?

In 2024, the Medical Coding Market size was estimated at USD 22.48 billion. The report covers the Medical Coding Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Medical Coding Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Medical Coding Industry Report

The global medical coding market is geared for robust growth, underpinned by the accelerating digitization of healthcare infrastructure and an increasing demand for automated medical billing systems. This market, poised for substantial expansion, benefits from strategic investments in transforming healthcare facilities and modernizing laboratory and diagnostic services. Medical coding systems are essential in enhancing billing and payment procedures, helping hospitals and clinics streamline operations through the integration of digital platforms with diagnostic devices. This integration transforms equipment data for medical analysis, boosting the utility of medical coding. There is significant growth within specific market segments such as HCPCS, ICD, and CPT coding systems, each serving unique functions in clinical applications, health management, and epidemiological monitoring. As regions like North America and Asia-Pacific continue to pour investments into healthcare digitization and the standardization of billing systems, driven by governmental initiatives to upgrade healthcare technology, the demand for advanced medical coding solutions is expected to surge. For detailed insights on medical coding market size, share, and growth projections, refer to the latest report by Mordor Intelligence™. Get a sample of this industry analysis as a free report PDF download.