Market Size of Medical Coding Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 22.69 Billion |
| Market Size (2029) | USD 35.63 Billion |
| CAGR (2024 - 2029) | 9.45 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Medical Coding Market Analysis
The Medical Coding Market size is estimated at USD 22.69 billion in 2024, and is expected to reach USD 35.63 billion by 2029, growing at a CAGR of 9.45% during the forecast period (2024-2029).
The COVID-19 pandemic significantly impacted healthcare systems across the world. As per the WHO, in February 2020, emergency codes were activated for the confirmed diagnosis of COVID-19 and clinical or epidemiological diagnosis (suspected or probable) of COVID-19. Also, in April 2020, the international guidelines for certification and classification (coding) of COVID-19 as the cause of death were published in seven languages by the WHO. Moreover, the Centers for Medicare and Medicaid Services (CMS) was at the forefront of helping providers handle the medical billing and coding aspect of COVID-19 testing and treatment. For instance, in March 2020, CMS released two Healthcare Common Procedure Coding System (HCPCS) codes that laboratories can use to bill for certain COVID-19 diagnostic tests, including those developed in-house according to the new United States Food and Administration (USFDA) guidelines. Hence, the COVID -19 outbreak led to many changes in the market studied, and these changes are expected to have an impact in the long term on the market. Thus, the market studied is expected to regain its pace in the upcoming years.
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. For instance, as per the American Hospital Association's (AHA) Hospital Statistics 2022, there were around 33,356,853 admissions in all the hospitals in the United States. Thus, there is a high demand for medical billers and coders in the market studied, which, in turn, is expected to propel the growth of the medical coding market.
Moreover, there is also a demand to switch to a more streamlined and convenient coding and billing solution. Medical coding also enables uniform documentation between medical facilities. Medical coding companies enable administrations to look at the incidence and effectiveness of treatments in their facility. This is particularly important to large medical facilities, like tertiary-care hospitals. Frequent launches are expected to drive the market. For instance, in March 2021, Athenahealth launched the athenaOne Medical Coding Solution, an EHR coding solution that could mitigate clinician coding-related work and ultimately reduce clinician burnout.
However, continuously changing regulations, data security concerns, and the lack of adequately equipped information technology (IT) professionals in the healthcare sector are expected to hinder the growth of the market.
