×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

US Medical Terminology Software Market

ID: MRFR/HC/13078-HCR
100 Pages
Garvit Vyas
October 2025

US Medical Terminology Software Market Research Report: By End User (Healthcare Providers, Healthcare Payers, Healthcare IT Vendors), By Product & Services (Services, Platforms) and By Application (Data Aggregation, Reimbursement, Public Health Surveillance, Data Integration, Decision Support, Clinical Trials, Quality Reporting, Clinical Guidelines) - Forecast to 2035

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

US Medical Terminology Software Market Infographic
Purchase Options

US Medical Terminology Software Market Summary

As per MRFR analysis, the US medical terminology-software market Size was estimated at 156.87 USD Million in 2024. The US medical terminology-software market is projected to grow from 166.55 USD Million in 2025 to 303.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 6.17% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US medical terminology-software market is experiencing transformative growth driven by technological advancements and evolving healthcare needs.

  • The integration of AI and machine learning is reshaping the capabilities of medical terminology software, enhancing accuracy and efficiency.
  • Interoperability remains a critical focus, facilitating seamless data exchange across various healthcare systems and platforms.
  • User-centric design is gaining traction, ensuring that software solutions are intuitive and accessible for healthcare professionals.
  • The rising demand for electronic health records and regulatory compliance are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 156.87 (USD Million)
2035 Market Size 303.0 (USD Million)

Major Players

Epic Systems Corporation (US), Cerner Corporation (US), Allscripts Healthcare Solutions (US), McKesson Corporation (US), Athenahealth, Inc. (US), Optum, Inc. (US), MEDITECH (US), NextGen Healthcare, Inc. (US)

US Medical Terminology Software Market Trends

the medical terminology-software market is evolving significantly, driven by the increasing demand for efficient healthcare data management. As healthcare systems become more complex, the need for precise and standardized medical terminology has intensified. This software facilitates accurate communication among healthcare professionals, thereby enhancing patient care and safety. Furthermore, the integration of artificial intelligence and machine learning technologies into these systems appears to be transforming the landscape, allowing for more sophisticated data analysis and improved clinical decision-making. The ongoing shift towards electronic health records (EHR) and telemedicine is also contributing to the growth of this market, as healthcare providers seek tools that streamline operations and ensure compliance with regulatory standards. In addition, the emphasis on interoperability among various healthcare systems suggests a growing recognition of the importance of seamless data exchange. This trend may lead to increased collaboration among software developers, healthcare providers, and regulatory bodies. As the medical terminology-software market continues to expand, it is likely to attract investments aimed at enhancing functionality and user experience. The focus on user-friendly interfaces and customizable solutions indicates a shift towards meeting the specific needs of diverse healthcare settings, from small clinics to large hospitals. Overall, the future of this market appears promising, with ongoing innovations poised to further enhance its relevance in the healthcare sector.

Integration of AI and Machine Learning

The incorporation of artificial intelligence and machine learning technologies into medical terminology-software is becoming increasingly prevalent. These advancements enable more efficient data processing and analysis, which can lead to improved clinical outcomes. By automating routine tasks, healthcare professionals can focus more on patient care, thereby enhancing overall service delivery.

Emphasis on Interoperability

There is a growing focus on interoperability within the medical terminology-software market. This trend highlights the necessity for different healthcare systems to communicate effectively, ensuring that patient data is accessible across various platforms. Enhanced interoperability may facilitate better care coordination and reduce the risk of errors.

User-Centric Design

The design of medical terminology-software is shifting towards a more user-centric approach. Developers are increasingly prioritizing intuitive interfaces and customizable features to cater to the diverse needs of healthcare providers. This trend aims to improve user satisfaction and adoption rates, ultimately leading to more effective utilization of the software.

US Medical Terminology Software Market Drivers

Increased Focus on Patient Safety

Patient safety remains a top priority within the healthcare industry, significantly impacting the medical terminology-software market. Accurate medical terminology is essential for preventing errors in patient care, particularly in medication administration and treatment protocols. As healthcare organizations strive to enhance patient safety measures, the demand for software that ensures precise terminology usage is likely to rise. In 2025, it is projected that investments in patient safety technologies will exceed $5 billion in the US. This focus on safety not only drives the adoption of medical terminology software but also encourages the development of advanced solutions that integrate safety features, thereby fostering a culture of quality care.

Advancements in Telehealth Services

The rise of telehealth services is reshaping the landscape of the medical terminology-software market. As more healthcare providers offer remote consultations, the need for precise medical terminology becomes critical to ensure effective communication between patients and providers. In 2025, it is anticipated that telehealth will account for approximately 30% of all healthcare visits in the US. This shift necessitates the integration of medical terminology software that can support virtual care environments, enhancing the accuracy of diagnoses and treatment plans. Consequently, the medical terminology-software market is likely to experience growth as telehealth continues to gain traction, driving demand for innovative solutions that cater to this evolving healthcare model.

Regulatory Compliance and Standardization

Regulatory compliance is a significant factor influencing the medical terminology-software market. Healthcare organizations in the US are required to adhere to various regulations, such as HIPAA and ICD-10 coding standards. These regulations mandate the use of standardized medical terminology to ensure accurate documentation and billing practices. As compliance becomes increasingly stringent, healthcare providers are investing in software solutions that facilitate adherence to these standards. The medical terminology-software market is projected to expand as organizations prioritize compliance, with an estimated growth rate of 10% annually. This trend underscores the importance of integrating reliable terminology software to mitigate risks associated with non-compliance.

Rising Demand for Electronic Health Records

The increasing adoption of electronic health records (EHR) in the healthcare sector is a primary driver for the medical terminology-software market. As healthcare providers transition from paper-based systems to digital solutions, the need for accurate medical terminology becomes paramount. In 2025, it is estimated that over 85% of hospitals in the US utilize EHR systems, which necessitates robust medical terminology software to ensure proper coding and billing. This shift not only enhances patient care but also streamlines administrative processes, thereby driving the demand for specialized software solutions. the medical terminology-software market is expected to grow alongside this trend, as healthcare organizations seek to improve efficiency and compliance with regulatory standards.

Growing Need for Data Analytics in Healthcare

The increasing emphasis on data analytics within the healthcare sector is a notable driver for the medical terminology-software market. As healthcare providers seek to leverage data for improved decision-making and patient outcomes, the role of accurate medical terminology becomes crucial. In 2025, it is estimated that the healthcare analytics market will reach $50 billion in the US, highlighting the demand for software that can effectively manage and analyze medical data. This trend suggests that medical terminology software will need to evolve to support data integration and analytics capabilities, thereby enhancing its value proposition in the healthcare ecosystem. The medical terminology-software market is poised for growth as organizations recognize the importance of data-driven insights.

Market Segment Insights

By End User: Healthcare Providers (Largest) vs. Healthcare IT Vendors (Fastest-Growing)

In the US medical terminology-software market, Healthcare Providers hold the largest market share, driven by increasing demand for efficient and accurate documentation practices in hospitals and clinics. This segment benefits from the need for enhanced patient care solutions, fostering a competitive environment among service providers to optimize software solutions that support clinical operations. On the other hand, the Healthcare IT Vendors segment is emerging as the fastest-growing segment. The rise in digital transformation initiatives, coupled with the increasing need for interoperability and streamlined software solutions, has driven growth in this area. Innovations such as artificial intelligence and machine learning in medical terminology software are further propelling this segment forward, creating new opportunities for vendors.

Healthcare Providers (Dominant) vs. Healthcare IT Vendors (Emerging)

Healthcare Providers represent the dominant segment within the US medical terminology-software market, focusing on efficient health records management and compliance with regulatory standards. This sector heavily invests in technologies that enhance clinical workflows and improve patient outcomes. Conversely, Healthcare IT Vendors, classified as an emerging segment, are leveraging advancements in technology to deliver innovative solutions that address the evolving needs of healthcare institutions. They are pivotal in providing tools that facilitate integration, analytics, and effective management of medical terminology, thus driving their rapid growth in the market.

By Product & Services: Platforms (Largest) vs. Services (Fastest-Growing)

In the US medical terminology-software market, the distribution of market share among segment values reveals that platforms hold a significant lead, dominating the landscape. This dominance is indicative of a broad adoption of comprehensive software solutions that streamline medical data management and enhance operational efficiency. In contrast, services are gaining traction, showing a notable rise in market interest and engagement as healthcare providers seek tailored solutions that integrate seamlessly with existing systems. Growth trends highlight that services are rapidly becoming the fastest-growing segment due to an increased emphasis on customized solutions and support. This shift is driven by the need for improved interoperability amid evolving healthcare regulations and technological advancements. As healthcare organizations aim to enhance patient care and administrative efficiency, the demand for service-oriented offerings is set to surge, further benefiting this segment's growth trajectory.

Platforms: Dominant vs. Services: Emerging

Platforms in the US medical terminology-software market are characterized by their robust features and comprehensive capabilities, often serving as the backbone for managing complex medical terminologies. These platforms provide users with powerful tools for data analysis, management, and reporting, making them essential for healthcare providers looking to enhance their operational workflows. In contrast, services are emerging as an essential complement to these platforms, focusing on providing specialized support, training, and implementation assistance. As organizations prioritize tailored solutions that fit their unique needs, the demand for services is expected to increase, fostering a collaborative approach that enhances the overall functionality and user experience of the platforms.

By Application: Data Aggregation (Largest) vs. Decision Support (Fastest-Growing)

In the US medical terminology-software market, Data Aggregation holds the largest share among the application segments, representing a significant focus on compiling vast amounts of health data for analysis and reporting. This segment is vital for enhancing data-driven decision-making across healthcare settings, empowering providers with necessary insights to improve patient outcomes and operational efficiency. On the other hand, Decision Support is emerging as the fastest-growing segment, driven by the increasing demand for advanced analytical tools that assist healthcare professionals in making informed clinical decisions. The growing integration of AI and machine learning into medical software is enhancing decision support capabilities, propelling its growth as healthcare shifts toward more personalized and evidence-driven treatment pathways.

Data Aggregation (Dominant) vs. Decision Support (Emerging)

Data Aggregation serves as the dominant force in the US medical terminology-software market, characterized by its ability to centralize and harmonize comprehensive datasets from various sources, facilitating enhanced analytics and reporting. This feature ensures that healthcare providers have access to accurate and timely information, leading to improved patient care and operational efficiencies. In contrast, Decision Support is rapidly emerging, leveraging cutting-edge technologies like artificial intelligence and machine learning to provide real-time insights that empower clinicians in their decision-making processes. As healthcare evolves, the demand for robust decision support tools is expected to accelerate, positioning it as a critical segment for future growth.

Get more detailed insights about US Medical Terminology Software Market

Key Players and Competitive Insights

The medical terminology-software market is currently characterized by a dynamic competitive landscape, driven by technological advancements and an increasing demand for efficient healthcare solutions. Key players such as Epic Systems Corporation (US), Cerner Corporation (US), and Allscripts Healthcare Solutions (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Epic Systems Corporation (US) focuses on innovation through continuous software updates and user-friendly interfaces, while Cerner Corporation (US) emphasizes partnerships with healthcare providers to expand its service offerings. Allscripts Healthcare Solutions (US) is actively pursuing digital transformation initiatives, aiming to integrate artificial intelligence (AI) into its software solutions, thereby enhancing clinical decision-making processes. Collectively, these strategies contribute to a competitive environment that is increasingly centered around technological innovation and customer-centric solutions.

In terms of business tactics, companies are increasingly localizing their operations and optimizing supply chains to enhance efficiency and responsiveness. The market structure appears moderately fragmented, with several key players exerting substantial influence. This fragmentation allows for a diverse range of offerings, catering to various segments of the healthcare industry. However, the collective actions of these major companies suggest a trend towards consolidation, as they seek to leverage synergies and enhance their competitive edge.

In October 2025, Epic Systems Corporation (US) announced a strategic partnership with a leading AI firm to integrate advanced machine learning capabilities into its software. This move is likely to enhance the predictive analytics features of its products, enabling healthcare providers to make more informed decisions based on real-time data. Such integration not only positions Epic as a leader in innovation but also reflects a broader trend towards AI adoption in healthcare technology.

In September 2025, Cerner Corporation (US) launched a new cloud-based platform designed to streamline interoperability among various healthcare systems. This initiative is significant as it addresses a critical challenge in the industry—data silos—by facilitating seamless data exchange. By enhancing interoperability, Cerner aims to improve patient outcomes and operational efficiency, thereby solidifying its market position.

In August 2025, Allscripts Healthcare Solutions (US) unveiled a new suite of telehealth solutions aimed at expanding access to care. This strategic move is particularly relevant in the current healthcare landscape, where remote patient monitoring and virtual consultations are becoming increasingly vital. By investing in telehealth, Allscripts not only diversifies its product offerings but also aligns with the growing demand for accessible healthcare services.

As of November 2025, the competitive trends in the medical terminology-software market are heavily influenced by digitalization, sustainability, and AI integration. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing service delivery. Looking ahead, it appears that competitive differentiation will increasingly hinge on technological advancements and the reliability of supply chains, rather than solely on price. This shift suggests a future where innovation and quality of service will be paramount in determining market leadership.

Key Companies in the US Medical Terminology Software Market market include

Industry Developments

The US Medical Terminology Software Market has recently seen notable developments. In September 2023, Nuance Communications announced enhancements to its voice recognition technology, significantly improving transcription accuracy in Electronic Health Records (EHRs). Allscripts recently secured a partnership with Walmart Health to integrate healthcare services, reflecting a trend toward combining retail and healthcare software solutions.

Meanwhile, Cerner continues to advance interoperability with its software, promoting seamless data exchange across platforms. In August 2023, Change Healthcare expanded its solutions portfolio to facilitate billing and revenue cycle management, addressing increasing demand for efficient healthcare operations.

In terms of mergers and acquisitions, Wolters Kluwer acquired Enablon in October 2023, further strengthening its analytics capabilities in healthcare. McKesson finalized its acquisition of Rx Savings Solutions in June 2023, enhancing its medication cost transparency tools.

Additionally, in the past couple of years, companies such as Epic Systems and Philips Healthcare have invested heavily in Artificial Intelligence technologies to augment their software's capabilities. Overall, these developments highlight an industry focus on technological advancement and the integration of services aimed at improving operational efficiency and patient care in the US healthcare system.

Future Outlook

US Medical Terminology Software Market Future Outlook

the medical terminology-software market is projected to grow at a compound annual growth rate (CAGR) of 6.17% from 2024 to 2035, driven by technological advancements and increasing healthcare data management needs.

New opportunities lie in:

  • Integration of AI-driven coding solutions for enhanced accuracy
  • Development of customizable terminology databases for niche markets
  • Expansion into telehealth platforms for real-time terminology support

By 2035, the market is expected to achieve robust growth, reflecting evolving healthcare demands.

Market Segmentation

US Medical Terminology Software Market End User Outlook

  • Healthcare Providers
  • Healthcare Payers
  • Healthcare IT Vendors

US Medical Terminology Software Market Application Outlook

  • Data Aggregation
  • Reimbursement
  • Public Health Surveillance
  • Data Integration
  • Decision Support
  • Clinical Trials
  • Quality Reporting
  • Clinical Guidelines

US Medical Terminology Software Market Product & Services Outlook

  • Services
  • Platforms

Report Scope

MARKET SIZE 2024 156.87(USD Million)
MARKET SIZE 2025 166.55(USD Million)
MARKET SIZE 2035 303.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 6.17% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Epic Systems Corporation (US), Cerner Corporation (US), Allscripts Healthcare Solutions (US), McKesson Corporation (US), Athenahealth, Inc. (US), Optum, Inc. (US), MEDITECH (US), NextGen Healthcare, Inc. (US)
Segments Covered End User, Product & Services, Application
Key Market Opportunities Integration of artificial intelligence enhances efficiency in the medical terminology-software market.
Key Market Dynamics Growing demand for interoperability drives innovation in medical terminology-software, enhancing healthcare data exchange and efficiency.
Countries Covered US

Leave a Comment

FAQs

What is the projected market size of the US Medical Terminology Software Market in 2024?

The US Medical Terminology Software Market is projected to be valued at 134.4 million USD in 2024.

How much is the US Medical Terminology Software Market expected to grow by 2035?

The market is expected to reach a value of 578.4 million USD by 2035.

What is the expected CAGR for the US Medical Terminology Software Market from 2025 to 2035?

The anticipated compound annual growth rate (CAGR) for the market is 14.188 percent during the forecast period.

Which segment is expected to dominate the US Medical Terminology Software Market in 2035?

Healthcare Providers are anticipated to dominate the market with a valuation of 246.4 million USD by 2035.

What is the market value for Healthcare Payers in 2024?

The market value for Healthcare Payers is estimated to be 38.6 million USD in 2024.

Who are the major players in the US Medical Terminology Software Market?

Key players include Nuance Communications, Allscripts, Optum, Cerner, and Change Healthcare, among others.

What is the expected market size for Healthcare IT Vendors in 2035?

The market size for Healthcare IT Vendors is projected to reach 169.7 million USD by 2035.

How is the US Medical Terminology Software Market segmented by end user?

The market is segmented into Healthcare Providers, Healthcare Payers, and Healthcare IT Vendors.

What are some of the key growth drivers for the US Medical Terminology Software Market?

Growth drivers include the increasing need for efficient healthcare data management and advancements in technology.

What challenges could affect the growth of the US Medical Terminology Software Market?

Challenges may include data security concerns and the need for interoperability among different healthcare systems.

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions