United States Healthcare Information Exchange Market Size

US Healthcare Information Exchange Market Analysis

The United States Healthcare Information Exchange Market size is estimated at USD 0.66 billion in 2024, and is expected to reach USD 1.17 billion by 2029, growing at a CAGR of 12.12% during the forecast period (2024-2029).

The COVID-19 outbreak had a significant impact on the market over the pandemic period. A profound impact on the electronic medical records market was observed, and health information systems were designed to track the rising number of Covid-affected patients and related diagnostics. Under these circumstances, the market players focused on the development and introduction of healthcare information systems, thereby impacting the market growth. For instance, in December 2021, the LigoLab Information system provided fully integrated and automated laboratory information system support for client laboratories in California, Washington, and New York that were using FDA-approved instruments to perform high-volume COVID-19 tests. Thus, the introduction of various advanced healthcare information exchange systems in the United States for COVID-19 data management had a notable impact on the growth of the market. In addition, the demand for healthcare information exchange in the United States is expected to remain intact due to the emergence of various mutant strains of the SARS-CoV-2 virus, thereby contributing to the growth of the market over the forecast period.

The main factors driving the market growth include increasing investment in healthcare technology advancements, government support via various programs and incentives, and reduction in healthcare costs and improved efficacy.

For instance, according to the Public Health Information and Technology Infrastructure Modernization Funding Report in 2022, the Healthcare Information and Management Systems Society (HIMSS) released a report recommending a 10-year investment of USD 36.7 billion in public health infrastructure modernization to ensure readiness for ongoing and emerging public health emergencies. Also, the investment included USD 25.6 billion for immediate State, Territorial, Local, and Tribal (STLT) public health data infrastructure and USD 11 billion for public health interoperability and sustainability.

In another instance, in April 2022, California launched its long-awaited state-wide health information exchange (HIE) to improve patient data sharing between payers and healthcare providers throughout the state. Similarly, in May 2021, Connecticut launched its state-wide health information exchange to streamline patient data exchange across the state in the United States.

Moreover, the launch of various advanced healthcare information exchange systems by various key market players is expected to contribute to the growth of the market. However, huge initial infrastructural investment, slow return on investment, and data privacy and security concerns are expected to restrain the growth of the market over the forecast period.