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Dec-2021

Global Healthcare API Market Size To Reach USD 300.72 Mn by 2026

North America led the global healthcare API market in 2020 with the U.S. accounting majority of the share among all countries across the globe.

As per our research report, the global healthcare API market size is forecasted to be growing at a CAGR of 5.95% from 2021 to 2026 and worth USD 225.25 million in 2021.

The COVID-19 pandemic has resulted in a labor shortage due to the imposed closures and restrictions. This required implementing a healthcare application programming interface to facilitate efficient healthcare operations in hospitals and other organizations. In addition, major companies were concerned with protecting their patient privacy to make it operable for COVID-19 research purposes. Industry players' increased funding and widespread popularity to develop a fully standardized API will drive market growth. The growing demand for telemedicine and digital health solutions after COVID-19 further increases the need for an integrated healthcare API.

The growing adoption of application programming interfaces integrated with electronic health records has eased access to simplified health data, driving the market's growth. API can easily integrate EHR with other platforms, facilitating seamless integration of data with some thirds. In addition, improved patient outcomes have raised patient satisfaction and the need for high-quality care, driving market expansion. Advancements in the IT sector with frequent updates, growing demand for healthcare integration, increased initiatives from EHR vendors, and healthcare IT start-ups are driving the market growth.

The integration of new workflows between providers and payers, applications that can access data, portable devices, and their services will result in greater adoption of the Healthcare APIs. According to NASSCOM, the IT industry for services raised from 2.75% to $ 99.9 billion during 2020-21. The IT sectors include e-commerce, business process management, and back offices collectively, growing by 2.32%. For instance, the government of India took strong measures to achieve broader self-reliance through internal standardization for various products or workflows for easy access to patient data.

However, security concerns related to patient health information and unreliable and secure data can create barriers to market growth. Additionally, lack of reliability and payment uncertainty are predicted to challenge the global healthcare API market during the forecast period.

KEY MARKET INSIGHTS:

Based on the service, the EHR access segment dominated the global healthcare API market with a revenue share of over 35% in 2020. Several EHR providers are actively developing APIs to deliver value-based patient care and increase their adoption. Meanwhile, the remote patient monitoring segment is estimated to show the fastest growth during the forecast period. Inter-connected healthcare and remote patient monitoring became famous in 2020 due to restrictions that reduced the risk of contamination. In addition, providers offer multiple patient engagement platforms with a built-in API for better treatment options.
Based on the mode of implementation, the cloud-based API held the largest market share of around 81% in 2020. The growth can be attributed to the availability of free storage space to store and organize patient and hospital health data, which is easily accessible during an emergency.
For the studied period, the on-premise healthcare application programming interface will also have a significant share of revenue, owing to associated benefits such as privacy and data security, easy software installation, and data storage for future reprocessing.
Based on the end-user, the provider segment generated the most considerable revenue with a revenue share of over 46.9% in 2020. Furthermore, the healthcare provider segment will hold the highest CAGR of 4.58% over the forecast period. Incorporating these APIs in hospitals is responsible for storing medical records, patient information, health data, patient history, and others.
The healthcare payers segment is estimated to show lucrative growth during the forecast period, increasing at a high CAGR of 4.37% between 2021 and 2027. The built-in API creates a customized platform that ensures easy approval and collection of the data by healthcare departments and caregivers for easy billing and management of patient appointments. Payors can securely access medical records and patient bills without unwanted phone calls and without going through receptionists.
North America dominated the market by region, with a revenue share of around 34.8% in 2020. This growth can be attributed to several factors, such as favorable policies for implementing the programming interface of health applications, established healthcare infrastructure with an integrated patient HER, adoption of digitalization in the healthcare sector, and growing popularity in key companies.
Europe is estimated to have the fastest CAGR during the forecast period due to the established healthcare infrastructure in this region and the advent of the Internet of Things (IoT) and related technologies. In addition, strict regulations on privacy and data protection are estimated to increase the adoption of healthcare APIs.
Companies playing a dominating role in the global healthcare API market are Practo Technologies Pvt. Ltd., Apple, Inc., General Electric Company, Athenahealth, Cerner Corporation, Microsoft Corporation, Epic Systems Corporation, eClinicalWorks LLC, Allscripts Healthcare Solutions Inc., Greenway Health, LLC., Practice Fusion, Inc. and MuleSoft, Inc.

MARKET SEGMENTATION:

By Services: