Clinical Decision Support Systems Market: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global clinical decision support systems market growth forecasted to transform from $1.7 billion in 2023 to $2.5 billion by 2028, driven by a CAGR of 7.5%. According to The Office of the National Coordinator for Health Information Technology (ONC), as of 2021, in the US approximately 96 percent of non-federal acute care hospitals and nearly 4 in 5 office-based physicians (78%) have implemented a certified Electronic Health Record (EHR) systems. This marks significant 10-year progress since 2011 when 28% of hospitals and 34% of physicians had adopted an EHR.Additionally factors  such as rising adoption of CDSS-enabled EHRs and increasing collaborations and partnerships between stakeholders and several market players. However, requirement of high investments for the implementation of CDSS infrastructure and shortage of skilled IT professionals in the healthcare industry are expected to challenge market growth to a certain extent.

Clinical Decision Support Systems Market Trends

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Clinical Decision Support Systems Market Dynamics

Driver: Implementation of government regulations & initiatives to promote the adoption of HCIT solutions

In December 2021, CMS declared the publication of a Federal Register Notice to formalize its result to exercise enforcement discretion not to take action against certain payer-to-payer data exchange provisions of the May 2020 Interoperability and Patient Access final rule.In 2020, in Europe, EU Health Ministers signed a statement to collaborate and set up an eHealth common area that will permit for the free movement of electronic health records (EHR) across Europe. The statement also calls for eHealth to be an integral part of the Europe 2020 strategy. To push digital health forward, the UK government has pledged USD 347 million to enhance research and development (R&D) and produce novel therapies, devices, and diagnostics. The French government has proposed an investment plan (2022) of ~ USD 686 million, divided into five axes, to accelerate the national digital health strategy as part of the Health Innovation 2030 plan.Such initiatives/regulations are projected to further drive the demand and adoption of EHR, which will influence the adoption of clinical decision support systems (CDSS)  in major markets worldwide.

Restraint: Data security concerns related to cloud-based CDSS

A major concern with cloud-based CDSS is that data that is hosted by the vendor is not as safe as its on-premise counterpart. Information related to patient is considered very restricted and a high  privacy requirements to be maintained so that this data is available to authorized users only. Patient data through various countries is always under the scanner of legal frameworks, such as the data privacy requirements legislated through HIPAA (Health Insurance Portability and Accountability Act). Similarly, the European Union has the EU Data Protection Regulation in place with implications for guarding sensitive health data.

Opportunity: The growth potential of emerging markets

Several factors, such as the implementation of government initiatives supporting the adoption of HCIT solutions, rising government healthcare expenditure, and the presence of skilled IT experts in emerging markets, are expected to support the market growth for CDSS. Emerging markets across the Asia Pacific, such as India and China, are expected to provide significant growth potential for CDSS companies and stakeholders. Technological advancements are playing a key role as authorities in China are focusing on reforming the country’s healthcare management sector, which is currently facing challenges such as chaotic patient data, underfunded rural health centers, overburdened city hospitals, and a nationwide shortage of doctors.

Challenge: Requirement of high investments for the implementation of CDSS infrastructure

Most healthcare providers have inadequate infrastructure (technology, data, and other resources) to deploy complex healthcare IT solutions. Therefore, to implement CDSS successfully, providers must make further investments in infrastructural development to support IT systems. Investments are required to increase data storage and process capabilities for IT infrastructure. Moreover, the maintenance and software update of these systems may sometimes cost more than the price of the software. Support and maintenance services, which include software upgrades according to changing user requirements, represent a recurring expenditure that may amount to almost 30% of the total cost of ownership.

Clinical Decision Support Systems Market Ecosystem Map

By application, conventional CDSS segment accounted for the largest share of the global clinical decision support systems industry during forecast period

Based on application, the clinical decision support systems market is bifurcated into conventional CDSS and advanced CDSS. In 2022, the conventional CDSS segment accounted for the largest share of the market. The largest share of this segment is attributed due to widely adoption of conventional decision support systems by clinicians at the point-of-care to enhance decision-making and reduce medication errors.

By product, Integrated CDSS segment accounted for the largest share of the global Clinical decision support systems industry in 2022

Based on product, the clinical decision support systems market is bifurcated into integrated CDSS and standalone CDSS. In 2022, the integrated CDSS segment accounted for the largest share of this market. Factors such as growing pressure to cut healthcare costs, the rising geriatric population, and the increasing incidence of chronic disorders are driving the demand for these solutions. Also,healthcare providers widely use integrated CDSS to enhance the quality of care and health outcomes and decrease medication errors.

North America to witness significant growth in the clinical decision support systems industry from 2023 to 2028

Based on region, the clinical decision support systems market is segmented into-North America, Europe, Asia Pacific, and Rest of the World.In 2023, North America projected to lead market share of the market. This can be attributed to the region benefits from the presence of key players, rising significant investments in HCIT solutions, and the growing number of medication errors in the US and Canada.

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Some of the prominent players operating in the clinical decision support systems market are Wolters Kluwer N.V. (Netherlands), Oracle (US), Merative (US), Change Healthcare (US), Veradigm Inc. (US), athenahealth (US), Epic Systems Corporation (US), Elsevier B.V. (Netherlands), Zynx Health (US), Koninklijke Philips N.V. (Netherlands), Medical Information Technology, Inc. (US), NextGen Healthcare, Inc. (US), CureMD Healthcare (US), Siemens Healthineers (Germany), EBSCO Information Services (US), GE HealthCare (US), eClinicalWorks (US), The Medical Algorithms Company (UK), RAMPmedical (Germany), Hera-MI (France), CareCloud, Inc. (US), VisualDx (US), Premier, Inc. (US), First Databank, Inc. (US), and Strata Decision Technology (US).

Scope of the Clinical Decision Support Systems Industry:

The study categorizes the clinical decision support systems market to forecast revenue and analyze trends in each of the following submarkets:

By Product

• Integrated CDSS
• Standalone CDSS

By Delivery Mode

• On Premise Mode
• Cloud based Mode

By Model

• Knowledge based CDSS
• Non-Knowledge based CDSS

By Type

• Therapeutic CDSS
• Diagnostic CDSS

By Component

• Services
• Software
• Hardware

By Application

• Advanced CDSS
• Conventional CDSS

By Level of Interactivity Level

• Active CDSS
• Passive CDSS

By Setting

• In Patient
• Ambulatory care settings

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia Pacific
  • Japan
  • China
  • India
  • Rest of APAC (RoAPAC)
• RoW
  • Latin America
  • Middle East and Africa

Recent Developments of Clinical Decision Support Systems Industry

• In April 2023, Microsoft (US) and Epic Systems Corporation (US) expanded their long-standing strategic collaboration to develop and integrate generative AI into healthcare by combining the scale and power of Azure OpenAI Service with Epic’s industry-leading electronic health record (EHR) software. This co-innovation is focused on delivering a comprehensive array of generative AI- powered solutions integrated with Epic’s EHR to increase productivity, enhance patient care, and improve financial integrity of health systems globally.
• In April 2023, Elsevier B.V. (UK) announced the launch of an upgraded version of its clinical decision support solution, ClinicalKey. This enhanced platform incorporates a comprehensive drug compendium, a cutting-edge mobile application, and seamless integration into Electronic Health Records (EHR). These new features have been strategically designed to offer physicians in the United States and international markets convenient access to reliable and extensive medical content directly at the point of care, speeding up diagnosis and treatment for their patients.
• In February 2023, The province of Nova Scotia, in collaboration with Nova Scotia Health Authority (NSHA) and IWK Health (IWK) entered into a new 10-year agreement has been signed with Oracle (US) to implement an integrated electronic care record across the province for the more than one million Nova Scotians. This technology can help improve the way health professionals use and share patient information.
• In December 2022, athenahealth (US) announced that it had released enhancements to its athenaOne EHR to facilitate immediate administration of COVID-19 vaccines. The rollout includes communications, scheduling, workflow, documentation, and reporting capabilities.
• In April 2022, Change Healthcare (US) launched a new edition of InterQual 2022, the firm’s flagship clinical decision support solution for delivering the latest evidence-based appropriate care.

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