Ambulatory EHR Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Ambulatory EHR Market Trends and Growth Drivers

Need to Reduce Overall Healthcare Cost Drives Market

• Switching from traditional data record systems to ambulatory EHR lowers the cost of data storage.
• Previously, data was stored on paper and had to be handled with extreme caution.
• The University of New Mexico Hospital (UNMH) saved more than USD 0.2 million annually, which is attributed to reduced overtime and healthcare cost, by using EHR.
• Lack of coordination among healthcare professionals and patients negatively impacts the quality of healthcare and its cost, and has led to the fragmentation of healthcare information (such as diagnoses, medical history, patient demographics, billing and administrative data, and medication).
• This, in turn, drives the need for an advanced integrated healthcare system.
• The World Health Organization (WHO) defines integrated healthcare service delivery as "the organization and management of health services, so that people get the treatment they need, when they need it, in user-friendly methods that accomplish the desired results and offer value for money."

Data Privacy Issues Hamper Growth of Market

• With the increasing popularity of cloud-based services and wireless connectivity in the healthcare sector, there has been a critical increase in the use of handheld devices globally, among healthcare professionals and patients.
• This raises concerns for security of private patient information, which has become one of the key challenges faced by the ambulatory EHR vendors.
• An unauthorized access to such systems through unlawful measures (such as hacking) can provide the ability to control or destroy critical information stored in the systems.
• In addition, the threat posed by computer viruses is also growing, which can prompt deterioration in the proficiency of ambulatory EHR.
• This is why there are tough regulations to comply with, including HITECH, HIPAA, GDPR, and CCPA, which subject defaulters to heavy fines.

Cloud-Based Solutions Are Major Opportunity Areas

• Due to the development of cloud-based ambulatory EHR solutions, it is possible to keep the data safe, secure and fully accessible, regardless of time or network traffic.
• Cloud based solutions require less capital investment, demand fewer IT resources, take up less space, and update automatically, resulting in significant cost savings for clinics without requiring extra time and staff to support bulky hardware installations.
• The implementation of EHR systems is simpler as it runs on the web instead of a computer, which means there is no requirement of any software or hardware.
• Also, cloud-based solutions do not require any hardware installation or software licenses, therefore the implementation cost is considerably less.
• Cloud-based EHR solutions require HIPAA compliance through data centers with bank-level security and high-level encryption methods that render unreadable data.
• Due to several advantages offered by cloud based ambulatory EHR, the demand of cloud based ambulatory EHR is increasing.
• The increasing demand of cloud-based solution is likely to create opportunities for the players in the market to develop advanced solutions.

Ambulatory EHR Market Analysis

Delivery Mode Insights

Cloud-based solutions held the larger revenue share, of 55%, in 2024, and this category will also witness the higher CAGR over the forecast period. Some of the reasons driving the increasing adoption of cloud-based solutions include healthcare providers' and insurance companies' rising attention on global accessibility of patients' health records, since paperless healthcare recording encourages cloud storage of such records. It is a scalable, adaptable, user-friendly, and affordable option for keeping patient health records off of internal servers at a hospital or office and in the cloud. Administrators can review work processes for assessing the strengths and weaknesses using data mining capabilities, and they can sift through patient data to find trends, possible drug interactions, and health risk factors.

Also, the growth in the category is mainly attributable to the increase in the adoption rate of cloud-based solutions by small and solo practices, as this deployment mode offers easier transferability of heath records and patient history from one source to another.

These delivery modes are covered:

• Cloud-Based (Larger and Faster-Growing Category)
• On-Premises

Application Insights

E-prescribing holds the largest share in the market as the drive to improve the quality and safety of the prescribing process often centers around e-prescribing. E-prescribing allows clinicians in the ambulatory care setting to electronically send prescriptions to the pharmacy. It can be a stand-alone system or a part of an integrated electronic health record system.

Also, it improves effectiveness, lowers prescribing errors, and lowers healthcare expenditures. Medication mistakes have decreased to as little as one-seventh of their former levels, and practices that use e-prescribing are expected to save between USD 140 billion and USD 240 billion over 10 years with better patient outcomes and fewer patient visits. It increases efficacy, reduces prescribing mistakes, and lowers healthcare costs.

Moreover, prescribers can track the amount of controlled substance prescriptions for a patient and avoid over-prescribing by using E-Prescription software. The tool also makes it easier to track this information, and the institutions using it has a drug monitoring system.

Due to the various advantages of EHR implementation, such as increased efficiency of day-to-day operations of healthcare practices, e-prescribing will continue to be the largest ambulatory EHR application during the forecast period. The increasing adoption of e-prescriptions because of the various government policies is the key factor driving the growth of e-prescribing.

Decision support is likely to witness the fastest growth, of 7%, as it provides access to clinical decision support in the workflow and medication error alerts. Introduction of professional electronic decision support solutions into EHRs has also helped to connect an increasing number of professionals to more reliable resources, clinical practice guidelines, and evidence to better inform their decisions.

These applications are covered:

• Practice Management
• Patient Management
• E-Prescribing (Largest Category)
• Referral Management
• Population Health Management
• Decision Support (Fastest-Growing Category)
• Health Analytics
• Others

Practice Size

Large practices held the larger share of the global market, of 60%, in 2024, due to the availability of capital investments in EHR solutions. Large practices involve multi-specialty group practices that offer various types of medical specialty care within one organization. Due to the larger number of physicians and increased size of the patient base, large practices are usually better able to accept and manage financial risk as compared to the solo practices. Large healthcare organizations use their scale to streamline care delivery, scheduling and billing. In order to reduce difficulty, ambulatory EHR provides powerful features to help staff centralize and streamline medical billing for multiple office locations and specialties.

Small-to-medium sized practices will witness the faster growth during the forecast period. Increasing expenditure on healthcare and rising investment in the small-to-medium sized practices are some of the key factors for the growth of these practices. Ambulatory EHR helps the small enterprises to schedule more daily visits; prevent medical errors; refocus staff on the most important tasks; collect reimbursement sooner; and serve the patients better.

These practice sizes are covered:

• Large (Larger Category)
• Small-to-Medium (Faster-Growing Category)

End User Insights

Hospital owned ambulatory centers are the larger user, attributable to the adoption of ambulatory EHR in a large number of hospitals due to increasing volume of patient visits. Hospitals are acquiring ambulatory surgery centers to setting up their own outpatient surgery facility. The volume of surgeries performed in these centers has spur the need of EHR for improving their work flow.

Independent centers are expected to witness the faster growth during the forecast period, of 9%, due to the increasing number of such places globally. These centers focus on providing same day surgical care, including diagnostic and preventive procedures. With the rising government initiatives, adoption of EHR in ambulatory surgery centers and clinics has been increasing.

These end users are covered:

• Hospital-Owned Ambulatory Centers (Larger Category)
• Independent Centers (Faster-Growing Category)
• Others

Ambulatory EHR Market Geographical Outlook

North America ambulatory EHR market has been the largest market for ambulatory EHR and the region contributed over 40% to the global market in 2024. The growth of the North American market is mainly driven by increasing adoption of EHR system, government initiatives, and growing aging population.

The Office of the National Coordinator for Health Information Technology (ONC) was mandated by the Health Information Technology for Economic and Clinical Health (HITECH) Act to encourage the adoption and meaningful use of electronic health records. The adoption and increased use of health IT products is a keystone objective of the Federal Health IT strategic plan. The HITECH Act has made money available until 2021 to encourage hospitals, doctors, and other caregivers to adopt electronic health records.

The older population requires intensive care because they are susceptible to infections due to low immune levels and lengthy recovery times. Because of this, their reports are electronically preserved so that they can be kept on hand whenever necessary. The population of people aged 60 years and above was more than 80 million in 2021 in North America, which is estimated to reach more than 100 million by 2030. North America is also expected to remain the largest market in the forecast period, driven by the aforementioned factors.

Moreover, in North America, the number of the medical and surgical specialty organizations are committed toward a growth of e-prescribing movement by either launching their own initiatives, such as the American College of Cardiology’s (ACC) e-Prescribing Initiative or by participating in the multi-specialty Get Connected E-Prescribing Campaign.

APAC is expected to grow at the highest CAGR, of 10%, in the forecast period. This is due to aggressive investments by governments, non-profit entities and the private sector in EHR systems, growing aging population, and rising incidence of chronic diseases in India and China. The share of people aged 65 years and above will reach approximately 20% of the total population by 2050.

Moreover, COVID-19 has increased the global adoption of digital health technologies. Remote monitoring systems have been favored during the pandemic. The region's governments are encouraging telemedicine, which will provide attractive prospects for the patient portal industry in the coming years. The Indian government established Telemedicine Practice Guidelines in March 2020 to allow qualified medical practitioners to deliver healthcare services using telecommunication and digital technologies.

Government of India has introduced ‘The Digital India Healthcare’ initiative to introduce EHR and digitize healthcare in the country. In 2013, the Ministry of Health and Family Welfare notified EHR standards for India to make sure that patient digital data become portable and easily redeemable. To encourage the adoption of EHR, various category of standards such as Vocabulary Standards, Content Exchange Standards, and Clinical Standards and interoperability parameters have been inculcated in documented polices.

Similarly, around 96% of the healthcare practitioners have adopted EHR in China. From more than previous ten years, EHR industry has been budding across China. Since 2004, a range of alterations have been made in EHR scheme. The Health Information Standards Professional Committee has improved and finalized the EHR standards and specifications.

These regions and countries are covered:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Fastest-Growing Country Market)
  • U.K. (Largest Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China
  • Japan (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East & Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Ambulatory EHR Market Share

• The market is fragmented as EHRs are essentially software; therefore, not financially intensive to develop, although skilled coders and programmers are needed.
• Moreover, a huge range of EHR solutions exist for specific applications, which means that no one company offers everything.
• The availability of solutions deployed onsite and via the cloud further fragments the market.
• Moreover, different software is targeted at practices of different sizes, which offers opportunities to new and emerging IT vendors.
• Further, the established as well as emerging companies are diversifying and strengthening their product portfolios via the integration of AI and other advanced technologies into their software suites.

Ambulatory EHR Market News

• In January 2025, IntelligentDX launched an AI software to optimize RCM and EHR/EMR for healthcare practices.
• In November 2024, the Singaporean government announced that all private hospitals in the city–state have agreed to deed patient information into the national EMR system.
• In October 2024, Oracle Corporation introduced its new-generation EHR, which uses Oracle Cloud Infrastructure to offer data at the point of care, automate processes, and simplify the scheduling of appointments, documenting, and following up for the hospital staff. The software is also designed to streamline the sharing of information between providers and payers, support the recruitment of patients for clinical trials, enable better regulatory compliance, and enhance the financial performance of healthcare practices.
• In March 2024, Altera Digital Health introduced its Paragon Denali cloud-native EHR on Microsoft Azure.