Medical Coding Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032
The global medical coding market was valued at USD 14.4 billion in 2023 and is projected to grow at a CAGR of 10.1% from 2024 to 2032. This growth is driven by the need to streamline healthcare processes, increased hospital visits, and a focus on fraud detection and control. The rising prevalence of chronic conditions also significantly impacts market growth. Government regulations will further accelerate market growth by 2032. For instance, in July 2024, the U.S. Department of Health and Human Services proposed a new rule for physician payments to improve patient care and healthcare service quality. The increasing volume of healthcare data, driven by chronic diseases and an aging population, necessitates medical coding services. Technological advancements are boosting the adoption of medical coding platforms.
The overall medical coding industry is classified based on the category, mode, application, end-user, and region.
The medical coding market is segmented into CPT, ICD, and HCPCS. The ICD segment generated USD 7 billion in revenue in 2023. ICD codes are used globally for classifying and coding mortality data, billing, and diagnosis. The ICD category holds a major market share due to its wide adoption and regulatory requirements. Frequent updates and the inclusion of new diseases drive its dominance. Government mandates, such as the World Health Organization's release of ICD-11 in February 2023, also impact segment growth.
The market is classified into outsourced and in-house modes. The outsourcing segment dominated in 2023 with a 73% market share. Outsourced medical coding is expected to grow due to its cost-effectiveness and scalability. It involves contracting external vendors, reducing overhead costs, providing specialized expertise, and ensuring adherence to coding standards. This trend is driven by the complexity of medical coding, evolving regulations, and a shortage of skilled coders.
North America's medical coding market, including Canada, accounted for USD 7 billion in revenue in 2023 and is anticipated to grow at a CAGR of 9.1% from 2024 to 2032. The market is expanding due to advanced healthcare IT systems, a focus on healthcare data management, and the need for accurate billing and insurance claims. The aging population and the prevalence of chronic diseases further drive demand for skilled medical coders to ensure regulatory compliance and operational efficiency.
- Chapter 1 Methodology and Scope
- 1.1 Market scope and definitions
- 1.2 Research design
- 1.2.1 Research approach
- 1.2.2 Data collection methods
- 1.3 Base estimates and calculations
- 1.3.1 Base year calculation
- 1.3.2 Key trends for market estimation
- 1.4 Forecast model
- 1.5 Primary research and validation
- 1.5.1 Primary sources
- 1.5.2 Data mining sources
- Chapter 2 Executive Summary
- 2.1 Industry 360° synopsis
- Chapter 3 Industry Insights
- 3.1 Industry ecosystem analysis
- 3.2 Industry impact forces
- 3.2.1 Growth drivers
- 3.2.1.1 Increasing focus on streamlining of healthcare processes
- 3.2.1.2 Growing emphasis on fraud detection
- 3.2.1.3 Government regulatory compliances
- 3.2.2 Industry pitfalls and challenges
- 3.2.2.1 Data security concerns
- 3.3 Growth potential analysis
- 3.4 Regulatory landscape
- 3.5 Technological landscape
- 3.6 Porter's analysis
- 3.7 PESTEL analysis
- 3.8 Future market trends
- Chapter 4 Competitive Landscape, 2023
- 4.1 Introduction
- 4.2 Company matrix analysis
- 4.3 Company market share analysis
- 4.4 Competitive analysis of major market players
- 4.5 Competitive positioning matrix
- 4.6 Strategy dashboard
- Chapter 5 Market Estimates and Forecast, By Category, 2021 – 2032 ($ Mn)
- 5.1 Key trends
- 5.2 ICD (International Classification of Diseases)
- 5.3 CPT (Current Procedural Terminology)
- 5.4 HCPCS (Healthcare Common Procedure Coding System)
- Chapter 6 Market Estimates and Forecast, By Mode, 2021 – 2032 ($ Mn)
- 6.1 Key trends
- 6.2 Outsourced
- 6.3 In-house
- Chapter 7 Market Estimates and Forecast, By Application, 2021 – 2032 ($ Mn)
- 7.1 Key trends
- 7.2 Oncology
- 7.3 Neurology
- 7.4 Cardiology
- 7.5 Anesthesia
- 7.6 Emergency services
- 7.7 Other applications
- Chapter 8 Market Estimates and Forecast, By End-Use, 2021 – 2032 ($ Mn)
- 8.1 Key trends
- 8.2 Hospitals
- 8.3 Diagnostic centers
- 8.4 Other end-users
- Chapter 9 Market Estimates and Forecast, By Region, 2021 – 2032 ($ Mn)
- 9.1 Key trends
- 9.2 North America
- 9.2.1 U.S.
- 9.2.2 Canada
- 9.3 Europe
- 9.3.1 Germany
- 9.3.2 UK
- 9.3.3 France
- 9.3.4 Spain
- 9.3.5 Italy
- 9.3.6 Netherlands
- 9.3.7 Rest of Europe
- 9.4 Asia Pacific
- 9.4.1 China
- 9.4.2 Japan
- 9.4.3 India
- 9.4.4 Australia
- 9.4.5 South Korea
- 9.4.6 Rest of Asia Pacific
- 9.5 Latin America
- 9.5.1 Brazil
- 9.5.2 Mexico
- 9.5.3 Argentina
- 9.5.4 Rest of Latin America
- 9.6 Middle East and Africa
- 9.6.1 South Africa
- 9.6.2 Saudi Arabia
- 9.6.3 UAE
- 9.6.4 Rest of Middle East and Africa
- Chapter 10 Company Profiles
- 10.1 3M
- 10.2 Access Healthcare
- 10.3 Aviacode Inc.
- 10.4 Dolbey Systems Inc.
- 10.5 Episource
- 10.6 Maxim Health Information Services
- 10.7 Medical Record Associates, LLC.
- 10.8 Nuance Communications, Inc.
- 10.9 Optum, Inc.
- 10.10 Oracle Corporation
- 10.11 Parexel International Corporation
- 10.12 Precyse Solutions LLC
- 10.13 Talix
- 10.14 The Coding Network
- 10.15 Verisk Analytics, Inc.
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