Computer-assisted Coding Market Size (2024 - 2029)

The computer-assisted coding market is projected to experience substantial growth over the forecast period, driven by the increasing adoption of electronic health record systems and the need to manage rising healthcare costs. The market's expansion is further supported by regulatory requirements for patient data management and the heightened use of digital health solutions post-COVID-19. Advances in medical coding software and increased research funding for coding platform development are also key factors contributing to market growth. Despite these positive trends, challenges such as high maintenance costs and a shortage of skilled professionals may hinder the market's full potential.

Market Size of Computer-assisted Coding Industry

Computer-assisted Coding Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 5.73 Billion
Market Size (2029) USD 9.66 Billion
CAGR (2024 - 2029) 11.02 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Computer-assisted Coding Market Major Players

*Disclaimer: Major Players sorted in no particular order

Computer-assisted Coding Market Analysis

The Computer-assisted Coding Market size is estimated at USD 5.73 billion in 2024, and is expected to reach USD 9.66 billion by 2029, growing at a CAGR of 11.02% during the forecast period (2024-2029).

  • The COVID-19 pandemic significantly impacted the computer-assisted coding (CAC) market since many healthcare organizations implemented CAC, which enabled the translation of patient information more accurately during the pandemic. 
  • For instance, a study published in October 2022 in PubMed discusses the introduction of a new diagnosis code (U09.9) by the Centers for Disease Control and Prevention (CDC) in October 2021. This code, found in the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM), is designed for identifying cases of post-COVID-19 conditions. In the context of the post-COVID-19 situation, the market is anticipated to experience steady growth due to the heightened adoption of coding systems in hospitals and the increased prevalence of digital health solutions in healthcare systems.
  • Some factors driving the market growth include increasing implementation of electronic health record (EHR) systems, increasing utilization of computer-assisted coding (CAC) solutions to curtail the rising healthcare costs, and increasing regulatory requirements for patient data management. 
  • For instance, according to the European Commission's June 2022 report, the European Commission issued a recommendation on a European electronic health record exchange standard to enable the transfer of health data across borders. It accomplishes this by supporting European Union (EU) nations in their initiatives to ensure that residents can safely access and exchange their health data from any location within the EU. Hence, such initiatives associated with the advancements in healthcare are anticipated to boost market growth over the forecast period.
  • Furthermore, an increase in software launches and related advancements in medical coding is expected to fuel the market growth over the study period. For instance, in October 2022, Nym launched radiology coding solutions for radiology departments across the United States. This expansion offers the company's autonomous medical coding technology to a third outpatient specialty area, expanding access to the company's industry-leading solution for revenue cycle management (RCM). Moreover, an increase in research funding for the development of coding platforms is expected to drive market growth over the forecast period.
  • For instance, in November 2022, Fathom, an AI-powered medical coding automation platform, raised USD 46 million in Series B funding co-led by Alkeon Capital and Lightspeed Venture Partners with participation from Vituity's Inflect Health, Cedars-Sinai, ApolloMD, Jonathan Bush, and other healthcare executives. They utilized the funding to advance the standard in automated medical coding in response to the challenges faced by the providers. Hence, owing to such research, funding to develop and promote coding platforms is expected to augment the market growth over the forecast period.
  • Thus, owing to the government initiatives to implement digital health care and the rise in strategic activities by the key players, the studied market is expected to witness significant market growth over the forecast period. However, the high maintenance cost and lack of skilled professionals for system support have restrained market growth.

Computer-assisted Coding Industry Segmentation

A computer-assisted coding system is software that analyzes all the documents of healthcare and produces a suitable medical code for specific phrases and terms within the document. This coding helps in the escalation of productivity and reduces the processing time of the administrative person or coder.

The computer-assisted coding market is segmented by product (software (standalone software and integrated software) and services), mode of delivery (web and cloud-based and on-premise), application (automated computer-assisted encoding, management reporting and analytics, and clinical coding auditing), end-user (hospitals, clinical laboratories and diagnostic centers, and other end-users), geography (North America, Europe, Asia Pacific, Middle East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally.

The report offers the value (in USD) for the above segments.

By Product
Software
Standalone Software
Integrated Software
Services
By Mode of Delivery
Web and Cloud Based
On-premise
By Application
Automated Computer-assisted Encoding
Management Reporting and Analytics
Clinical Coding Auditing
By End-User
Hospitals
Clinical Laboratories and Diagnostic Centers
Other End-Users
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle East and Africa
GCC
South Africa
Rest of Middle East and Africa
South America
Brazil
Argentina
Rest of South America
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Computer-assisted Coding Market Size Summary

The computer-assisted coding market is poised for substantial growth, driven by the increasing adoption of digital health solutions and the implementation of electronic health record systems. The market's expansion is further fueled by the rising need to manage healthcare costs effectively and comply with regulatory requirements for patient data management. The COVID-19 pandemic has accelerated the adoption of computer-assisted coding systems, as healthcare organizations sought to enhance the accuracy of patient information translation. This trend is expected to continue, with advancements in medical coding software and increased research funding further propelling market growth. Government initiatives and strategic activities by key players, such as the development of cloud-based platforms and sovereign cloud services, are also contributing to the market's positive outlook.

North America is anticipated to experience significant growth in the computer-assisted coding market, driven by the widespread adoption of digital healthcare services and strategic investments in healthcare digitalization. The region's market growth is supported by the introduction of innovative coding solutions and strategic acquisitions by key players, which are enhancing the efficiency and accuracy of medical coding processes. The market is characterized by moderate fragmentation and competitiveness, with major players focusing on product launches, collaborations, and acquisitions to strengthen their global presence. As the demand for digital health services continues to rise, the computer-assisted coding market is expected to witness notable growth, supported by technological advancements and strategic initiatives in the healthcare sector.

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Computer-assisted Coding Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Implementation of Electronic Health Record (EHR) Systems

      2. 1.2.2 Rising Utilization of Computer Assisted Coding Solutions to Curtail the Rising Healthcare Costs

      3. 1.2.3 Increasing Regulatory Requirements for Patient Data Management

    3. 1.3 Market Restraints

      1. 1.3.1 High Implementation and Maintenance Costs

      2. 1.3.2 Lack of On-site Support and In-house Domain Knowledge

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers/Consumers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size by Value - USD)

    1. 2.1 By Product

      1. 2.1.1 Software

        1. 2.1.1.1 Standalone Software

        2. 2.1.1.2 Integrated Software

      2. 2.1.2 Services

    2. 2.2 By Mode of Delivery

      1. 2.2.1 Web and Cloud Based

      2. 2.2.2 On-premise

    3. 2.3 By Application

      1. 2.3.1 Automated Computer-assisted Encoding

      2. 2.3.2 Management Reporting and Analytics

      3. 2.3.3 Clinical Coding Auditing

    4. 2.4 By End-User

      1. 2.4.1 Hospitals

      2. 2.4.2 Clinical Laboratories and Diagnostic Centers

      3. 2.4.3 Other End-Users

    5. 2.5 Geography

      1. 2.5.1 North America

        1. 2.5.1.1 United States

        2. 2.5.1.2 Canada

        3. 2.5.1.3 Mexico

      2. 2.5.2 Europe

        1. 2.5.2.1 Germany

        2. 2.5.2.2 United Kingdom

        3. 2.5.2.3 France

        4. 2.5.2.4 Italy

        5. 2.5.2.5 Spain

        6. 2.5.2.6 Rest of Europe

      3. 2.5.3 Asia-Pacific

        1. 2.5.3.1 China

        2. 2.5.3.2 Japan

        3. 2.5.3.3 India

        4. 2.5.3.4 Australia

        5. 2.5.3.5 South Korea

        6. 2.5.3.6 Rest of Asia-Pacific

      4. 2.5.4 Middle East and Africa

        1. 2.5.4.1 GCC

        2. 2.5.4.2 South Africa

        3. 2.5.4.3 Rest of Middle East and Africa

      5. 2.5.5 South America

        1. 2.5.5.1 Brazil

        2. 2.5.5.2 Argentina

        3. 2.5.5.3 Rest of South America

Computer-assisted Coding Market Size FAQs

The Computer-assisted Coding Market size is expected to reach USD 5.73 billion in 2024 and grow at a CAGR of 11.02% to reach USD 9.66 billion by 2029.

In 2024, the Computer-assisted Coding Market size is expected to reach USD 5.73 billion.

Computer Assisted Coding Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)