Healthcare Electronic Data Interchange Market Size, Share, By Component [Software, Hardware, Services (Claims Management and Healthcare Supply Chain)], By Delivery Mode (Web and Cloud-based EDI, Mobile EDI, EDI Value Added Network, and Direct EDI), By End User (Healthcare Providers, and Healthcare Payers) and By Region - Trends, Analysis and Forecast till 2034

• In 2023, healthcare electronic data interchange market was estimated to be worth USD 3.88 Billion.
• By 2034, the target market is expected to grow to USD 10.6 Billion.
• Target market is expanding at a CAGR of 10.5%

Market Overview:

Growing support from the government for various healthcare facilities, coupled with increasing patient pool especially, in developed economies are key factors driving growth of the global electronic data interchange (EDI) market. In addition, growing adoption and benefits of EDI software by the pharmaceutical companies, such as cost savings, standardization, faster processing, improved productivity, and funding policies. These factors are expected to fuel growth of the global market over the forecast period.

Moreover, development of web-based EDI that provides functionality such as data integrity and authentication is also another factor expected to propel growth of the industry over the forecast period. However, concerns related to data security are a major factor restraining growth of the industry growth. In addition, high costs associated with implementation of EDI software and lack of awareness about healthcare EDI especially in developing economies are some other factors expected to hamper growth of the global market over the forecast period.

Key Takeaways:

• North America held the largest share of the market in 2024.
• Europe is projected to be the fastest-growing market in the coming years.
• By component, the services segment dominates the growth of the market.
• By delivery mode, the web and cloud based EDI accounted for the largest share of the healthcare electronic data interchange market.
• By end user, the healthcare payers segment dominated the market.

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Key Drivers of Target Market:

High Level of Security

Healthcare EDI assures transmission of secure data between authorized parties, supplies, insurers, as well as patients. The process of transformation files into EDI format because of EDI mapping. The risk of data leakage is lowered due to the factors such as the information is transmitted into a human-readable way, only authorized users access the information as per the HIPPA law, all the files are shared by using B2B file transfer over secure protocols including AS2, MLLP, SFTP, etc. 

• For Instance, in April 2024, according to data provided by Spiceworks Inc., EDI provides enhanced security and compliance capabilities to accelerated business operations and time-saving features. EDI streamlines the documentation process to guarantee that organizations comply with regulations and service standards, ensuring businesses avoid violations, potential delays, and performance gaps.  

Increases Accuracy

EDI in healthcare allows faster and more efficient data exchange. It helps to send and processed data digitally with reducing the time required for the manually data exchange. It also shows great result in reducing human mistakes such as typos, incorrect entries, lost mail or faxes, etc.

• For Instance, in June 2024, according to the Clarity, EDI enhances accuracy by reducing errors due to manual inputting of data into various systems which results in fewer discrepancies between parties involved in transactions.

Restrains:

High Installation Costs

EDI is one of the key component in healthcare industry, but the cost of installing it is very high. Implementation of EDI requires authentic investment in software, hardware, as well as training. This can be a major issue for small to medium size businesses or organization having limited or lowered budgets.

• Counterbalance Statements: One of the major solutions to this problem are understanding of supply chain relationships, smooth implementation, use of managed services, etc.

Opportunities:

Economies of Growth in Infancy

Emerging markets in North America, Europe and Asia Pacific regions, due to the growing factors including rising adoption of healthcare information technology, rising demands for EDI services in healthcare sector, rapidly growing industries such as IT, government policies and support, etc.

• For instance, in May 2024, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman inaugurated the Electronic Data Interchange (EDI) at Land Customs Stations (LCS) of the North East Region (NER), via virtual mode in New Delhi.

Development of Novel Applications

The multifunctional properties of EDI with high level of securing, increasing productivity as well as accuracy, reducing cost and time, especially in healthcare sectors including healthcare providers, payers, pharmaceutical industries, etc

The market is segmented based on Component, Delivery Mode, End User, and Region.

Component Insights:

The healthcare electronic data interchange market by component is segmented into Software, Hardware, and Services (Claims Management and Healthcare Supply Chain). The services segment dominates the growth of the market segment is expected to account for the largest share of the market during forecast period.

Delivery Mode Insights:

On the basis of Delivery Mode Healthcare Electronic Data Interchange Market is segmented into Web and Cloud-based EDI, Mobile EDI, EDI Value Added Network, and Direct EDI. Web and Cloud Based EDI dominate the target market growth as its affordable solutions coupled with improved flexibility and scalability.

• For Instance, in June 2024, Oracle has introduced the Oracle Health Insurance Data Exchange Cloud Service which is a new solution designed to help healthcare insurers easily onboard evolving data formats and simplify complex data exchange needs.

End User Insights:

The healthcare electronic data interchange market by end user is segmented into Healthcare Providers, and Healthcare Payers. Healthcare payers segment dominated the market with largest revenue due to growing demand from insurance plans, and healthcare payer organizations.  

Regional Insights

North America: The market in North America is expected to account for largest share in terms of revenue and is expected to maintain its dominance over the forecast period. This dominance can be attributed to increasing demand for advanced IT solutions in healthcare industry to streamline workflows in countries in the region.

Europe: The market in the Europe is expected to account for second-highest share in terms of revenue, owing to increasing government investment and initiatives for development of healthcare industry in the region.

Healthcare Electronic Data Interchange Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels, analyzing industry trends and opportunities across sub-segments from 2024 to 2034. It segments the market by Component, Delivery Mode, End User, and Region.

Segmentation:

By Component:

• Software
• Hardware
• Services
  • Claims Management
  • Healthcare Supply Chain

By Delivery Mode:

• Web and Cloud-based EDI
• Mobile EDI
• EDI Value Added Network
• Direct EDI

By End User:

• Healthcare Providers
• Healthcare Payers

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating in the Healthcare Electronic Data Interchange Market include McKesson Corporation, GE Healthcare Inc., Allscripts Healthcare Solutions Inc., Cognizant Technology Corporation, SSI Group LLC, Cerner Corporation, Comarch SA, Axway Software SA Optum Inc., Atena Health, Nextgen Healthcare, Change Healthcare, Experian Plc., SYNNEX Corporation, Waystar Health, and Dell Technologies Inc.

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• In September 20234 according to the Centers for Medicare & Medicaid Services, HIPPA required HHS to establish national standards for electronic transactions to improve the efficiency and effectiveness of nation’s healthcare system. These standards includes health plans, healthcare clearinghouses, and healthcare providers.
• In September 2024, Bellevue-based healthcare technology company Edifecs and Burlington announced partnership which will make easier for payers to exchange and connect healthcare data.

Analyst View:

The industry for healthcare electronic data interchange market is placed for substantial growth due to growing support from the government for various healthcare facilities, coupled with increasing patient pool especially, in developed economies. Growing adoption and benefits of EDI software by the pharmaceutical companies, such as cost savings, standardization, faster processing, improved productivity, and funding policies helps to boost the growth of the market in upcoming years.

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• McKesson Corporation
• GE Healthcare Inc.
• Allscripts Healthcare Solutions Inc.
• Cognizant Technology Corporation
• SSI Group LLC
• Cerner Corporation
• Comarch SA
• Axway Software SA Optum Inc.
• Atena Health
• Nextgen Healthcare
• Change Healthcare
• Experian Plc.
• SYNNEX Corporation
• Waystar Health
• Dell Technologies Inc.