“Global Medical Coding Market to reach a market value of 49.8 Billion by 2031 growing at a CAGR of 9.2%”
The Global Medical Coding Market size is expected to reach $49.8 Billion by 2031, rising at a market growth of 4.7% CAGR during the forecast period.
The dominance of the North America region is largely attributed to the region's advanced healthcare infrastructure, extensive adoption of electronic health records (EHRs), and stringent regulatory requirements for medical coding and billing practices. Thus, the North America segment acquired 51% revenue share in the medical coding market in 2023. Additionally, the presence of many healthcare providers and insurance companies, coupled with significant investments in healthcare IT solutions, has bolstered the demand for medical coding services in this region.
Medical coding, which involves translating medical diagnoses, procedures, and treatments into standardized codes, is crucial for these functions. In 2021, global healthcare spending reached approximately $9.8 trillion, accounting for 10.3% of the global GDP. This figure marked a significant increase from previous years, reflecting the heightened spending due to the COVID-19 pandemic and the associated need for enhanced healthcare services.
Additionally, as more patients seek treatment abroad, the need for efficient and reliable medical coding services has intensified. Thus, the rising trend of medical tourism has significantly increased the demand for standardized medical coding to handle the complexities of cross-border healthcare.
However, for healthcare organizations, restoring trust after a data breach is challenging and often costly, involving technical remediation, public relations efforts, and potentially long-term reputational damage. Thus, data security and privacy concerns are among the most significant challenges facing the medical coding industry today.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on component, the market is bifurcated into outsourced and in-house. The outsourced segment garnered 64% revenue share in the market in 2023. The driving factors behind the segment's growth include the increasing need for cost reduction and operational efficiency among healthcare providers, particularly in developed countries.
Free Valuable Insights: Global Medical Coding Market size to reach USD 49.8 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment recorded 26% revenue share in the market in 2023. Countries like India and the Philippines have become major hubs for outsourced medical coding services, driven by their large, skilled, English-speaking workforce and lower labor costs.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 24.9 Billion |
| Market size forecast in 2031 | USD 49.8 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 9.2% from 2024 to 2031 |
| Number of Pages | 111 |
| Tables | 158 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Region |
| Country scope |
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| Companies Included | 3M Company, Dolbey Systems, Inc., GeBBS Healthcare Solutions, Inc., Precyse Coding Solutions LLC, Microsoft Corporation, Change Healthcare, Inc. (Optum, Inc.) (UnitedHealth Group, Inc.), Oracle Corporation and The Coding Network, L.L.C. |
By Component
By Geography
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