Healthcare API Market

Global Healthcare API Market Size (2023 to 2028)

As per our research report, the size of the global healthcare API market is estimated to be worth USD 318.61 million by 2028 from USD 238.65 million in 2023, growing at a CAGR of 5.95% between 2023 to 2028.

In reality, a healthcare API Marketplace primarily connects consumers of healthcare data with their providers, or in other words, medical practitioners with their patients. As a result of the forced shutdowns in case of emergencies, manpower becomes scarce. This has forced the development of healthcare Application Programming Interfaces (API) to help hospitals and other industries with their healthcare operations. 

MARKET DRIVERS:

Increasing acceptance of Application Programming Interfaces (API) integrated Electronic Health Records (EHRs) that give simplicity and ease of access to healthcare data is one of the major factors promoting the growth rate of the global healthcare API market.

Furthermore, improved treatment outcomes have raised patient satisfaction, and improvements in care quality are driving market growth. The growing need for healthcare integration also drives demand. Some of the primary causes driving the adoption of healthcare APIs are the integration of new processes between providers and payers, apps that can access data from EHRs, wearables, and associated services, and seamless transition of care. Growth is also expected to be fuelled by more investment and expanding initiatives by industry participants to build a fully standardized API. In addition, the providers offer various patient engagement platforms with integrated API to provide better treatment alternatives and counseling based on their previous medical records.

In the past, there has been a growing focus on patient-centric healthcare delivery via APIs, and the emergence of numerous services, such as inaccessible patient check-ups and wearable medical devices, has increased demand and popularity for the global healthcare API market. The healthcare API market is expected to be favored by increased patient happiness, improved results, and improvements in care quality. In addition, the consistent rise in multiple government programs to migrate from traditional procedures to technically advanced healthcare systems and IT-enabled systems and services is expected to open up several opportunities and expand the market.

The growing encouragement from various platforms for the use of APIs supports the growth of the market. For example, the 21st Century Cures Act was made to help develop medical products and development also encourages the use of APIs in healthcare systems. API has made medical procedures like surgeries and diagnostics, faster than before, due to high data availability and fewer errors in recording systems. The growing popularity of remote patient monitoring and care systems also supports the growth of the healthcare API for maintaining better patient health history records. In the near future, healthcare APIs are expected to reach such expertise that they are used to transfer genomic and lab data for clinical research and development purposes. 

MARKET RESTRAINTS:

However, concerns about the safety and security of patient health information and unawareness among people may impede the expansion of the global healthcare API market. Furthermore, the market's development is further expected to be hampered by the loss and manipulation of sensitive patient information/data and challenges related to confidentiality breaches. Additionally, despite being extremely beneficial and advanced, APIs are not a standard service and need to be customized each time according to the purchasers' requirements. This also means that different APPIs are used for different connections in the same service and managing all the different APIs together can be a little tedious for the worker. Furthermore, testing and ensuring the proper downstream processing for an API can also be a long and tiring process. Therefore, this lack of standardization and API testing is holding the market back from having more growth.

Impact of COVID-19 on the global healthcare API market:

COVID-19 is a global public health issue that has impacted virtually every industry, and its long-term consequences are projected to impact market growth over the forecast period. The pandemic of COVID-19 has resulted in social isolation and lockdowns. As a result of the forced shutdowns, there is a manpower deficit. This has forced the establishment of a healthcare application programming interface to help hospitals and other businesses with their healthcare operations. In addition, the growing demand for telemedicine and digital health solutions as a result of COVID-19 is driving up the demand for integrated healthcare APIs, which is projected to drive the market during the forecast period. The growing influx of patients in healthcare settings during the pandemic and the panic among the populations created by the lack of resources led to the need for a rapid transfer of information in different healthcare locations and the management of bulk data from the patients. Therefore, the rising need for communication and management and the growing use of remote patient care settings and at-home services led to a profit for the healthcare API market.

REPORT COVERAGE:

This research report on the global healthcare API market has been segmented and sub-segmented based on services, deployment model, end-user, and region.

Healthcare API Market – By Services:

• EHR Access
• Appointments
• Remote Patient Monitoring
• Payment
• Wearable Medical Device

In 2022, EHR access led the global healthcare API market. APIs can readily connect the EHR to other systems, allowing for accessible data sharing with third parties. Furthermore, EHR companies are constantly developing APIs in their platforms to deliver value-based patient care, which is driving adoption even further. Additionally, EHR is now widely accepted and used in various healthcare centers and locations leading to more growth for the segment.

Over the forecast period, the remote patient monitoring segment is expected to develop at the fastest rate. During the COVID-19 pandemic, doctors and caregivers must treat patients remotely to reduce the risk of contamination; therefore, connected health and remote patient monitoring receive a lot of attention. The providers offer various patient interaction platforms with integrated API for better treatment alternatives and guidance based on their previous medical records. The growing need for continuous monitoring of patients due to a rise in chronic conditions supports the growth of the market. 

Healthcare API Market – By Deployment Mode:

• Cloud-based
• On-Premise

In 2022, the cloud-based API had the largest share of the global healthcare API market. The development can be ascribed to the availability of free storage space to save and organize patient and hospital healthcare data conveniently accessible by healthcare experts and caregivers during emergencies.

The on-premise segment is also expected to have significant growth during the forecast period due to the advantages of on-premise systems like easy installation of software, and more data privacy with less risk of breach. Additionally, the data stored on-premise services can be re-processed in the future leading to more convenience. Therefore, such advantages support the growth of the market.

Healthcare API Market – By End-user:

• Healthcare Payers
• Providers
• Patients
• Vendors

In 2022, the provider's segment generated the most revenue, accounting for almost 55.0 percent of total revenue. Hospitals, clinics, and other organizations make the healthcare providers segment. The adoption of healthcare API in hospitals has aided the segment's expansion. Medical records, patient information, healthcare data, and patient history are all stored in API and may be accessed quickly in an emergency.

The healthcare payers segment is also expected to grow due to the ease of appointments and payments with APIs. It is more convenient for the patients to access the bills and insurance information from hospitals along with treatment procedures with the help of APIs and they also help keep a check on the patient's condition supporting the growth of the segment. 

Healthcare API Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• The Middle East and Africa

Geographically, North America dominated the global healthcare API market. This expansion is due to several factors, including favorable rules for implementing healthcare application programming interfaces and high levels of digital literacy. In addition, the availability of developed healthcare infrastructure with integrated EHR of patients is expected to support the North American healthcare API market. An increase in adopters in the United States, such as large HCOs, is likely to fuel regional demand.

The immense opportunities and prospects in-store and the untapped potential in countries like India, Brazil, Japan, and China have expanded significantly due to this. In the global market for healthcare APIs, Asia Pacific is expected to be the fastest-growing region. The global healthcare API market is expected to grow, particularly in this area, due to the increased demand and popularity of API electronic health services and wearable medical equipment.

Because of its established healthcare infrastructure and the emergence of the Internet of Things (IoT) and related technologies, Europe is predicted to grow quickly during the forecast period. In addition, the rule is more severe than HIPAA in the United States, and it covers personal data export outside of European countries, which is expected to boost the use of healthcare APIs.

KEY MARKET PARTICIPANTS:

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. are some of the key companies operating in the global healthcare API market profiled in this report.

RECENT MARKET DEVELOPMENTS:

• Google launched the cloud healthcare API v1 in April 2020 to ensure patient privacy while also making it interoperable for COVID-19 research.
• Redox raised roughly USD 33 million in investment in April 2019 to develop a cloud-based API.
• In August 2020, Cerner teamed up with Amazon, a multibillion-dollar technology company. The goal of the collaboration was to make it easier for medical professionals to get patient-generated health data using wearable technology.
• MuleSoft released a new healthcare accelerator in June 2020, complete with prebuilt APIs and common EHR systems such as Cerner and Epic.
• An insurance verification platform between telehealth companies and virtual medical clinics by the name "Opkit" has been launched with a $1M investment in the project in 2023.