API Management in Healthcare Market by Services (Remote Patient Monitoring, Appointments, Electronic Health Record (EHR) Access, Wearable Medical Device, and Payment), by deployment model (Cloud-based and On-Premise), and by End-User (Healthcare Providers, Healthcare Payers, Vendors, and Patients) - Global Opportunity Analysis and Industry Forecast 2023-2030

Market Definition: 

The global API Management in Healthcare Market size was valued at USD 228.64 million in 2021 and is predicted to reach USD 344.37 million by 2030 with a CAGR of 5.2% from 2023-2030. Application Programming Interface (API) management in healthcare refers to the structured process of designing, deploying, monitoring, and optimizing the interfaces that allow different software applications and systems within the healthcare ecosystem to communicate and exchange data seamlessly.

APIs serve as intermediaries that enable the integration and interaction between diverse healthcare applications, services, and platforms. Effective API management involves creating standardized protocols, security measures, and documentation to ensure secure and efficient data exchange while maintaining compliance with industry regulations and privacy standards. By facilitating interoperability and data sharing, API management in healthcare enhances collaboration, streamlines workflows, and supports the development of innovative healthcare solutions and services.  

Market Dynamics and Trends

The rising volume of patient data globally has led to increasing demand for integrating APIs with electronic health records (EHRs) in healthcare. API management solutions offer a simplified and easily accessible way to manage large healthcare data, which is driving the growth of the market. Approximately 30% of the world's data volume is being generated by the healthcare industry, and by 2025, the compound annual growth rate of data for healthcare is projected to reach 36%.    

Also, the growing healthcare industry along with the rising demand for patient-centered healthcare API solutions is significantly accelerating the market growth. Patient-centered healthcare APIs allow patients to have greater control and access to their own health data, while also enabling healthcare providers to collaborate effectively & make informed decisions. This leads to better healthcare outcomes and increased patient satisfaction, which is contributing to the growth of the market.

Moreover, The API management in healthcare market is growing due to factors such as the increasing demand for telehealth and mHealth solutions along with the adoption of cloud technology in the healthcare sector. These factors are contributing to a greater demand for secure and efficient data sharing and service integration in healthcare, which is being facilitated by the use of APIs, further propelling the growth of the market. 

However, privacy concerns and the risk of loss or manipulation of patient data are the factors that restrain the growth of the market. These concerns relate to the sensitive health information which could be accessed or lost or manipulated without proper authorization or security measures if APIs are not managed properly. 

On the contrary, the integration of blockchain technology in API management in healthcare is expected to create ample growth opportunities for the market in the future. Blockchain's secure and transparent nature could enhance data privacy and interoperability in healthcare APIs. Patient records, transactions, and data sharing can become more secure, traceable, and efficient. 

Market Segmentations and Scope of the Study

The API management in healthcare market share is segmented on the basis of services, deployment model, end user, and geography. On the basis of services, the market is categorized into remote patient monitoring, appointments, electronic health record (EHR) access, wearable medical device, and payment.

On the basis of deployment model, the market is classified into cloud-based and on-premise. On the basis of end user, the market is divided into healthcare providers, healthcare payers, vendors, and patients. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the global API management in healthcare market and is expected to remain dominant in the market throughout the forecast period. This is attributed to the rising government initiatives to implement digital healthcare in this region. For instance, in September 2020, the U.S. Food and Drug Administration launched the Digital Health Center of Excellence. This provided advancement of digital health technology including mobile health devices, health applications, wearables medical devices, and technologies that are used to study medical products in the US.  

Also, major key players of the industry such as Apple Inc., Microsoft, Change Healthcare, and General Electric Company are launching new products that boost the market growth in this region. For instance, in March 2022, Microsoft announced advancements in cloud technologies with new advancements solutions and capabilities across data, AI, and clinician experiences with the general availability of Azure Health Data Services. This facilitates Azure healthcare APIs to securely bring health data to the cloud.

On the other hand, Asia-Pacific is expected to show a steady rise in the API Management in healthcare market due to the various initiatives taken by the governments among various nations such as Singapore, Malaysia, and India to promote digital healthcare facilities in this region. For instance, in September 2021, the Government of India launched the Pradhan Mantri Digital Health Mission. It is aimed at digitalizing healthcare practices across the country and developing a national digital health ecosystem that enabled patients to store, access, and consent to share health records. 

Moreover, the growing deployment and investment in 5G cellular technologies in countries such as China and South Korea is further fueling the growth of the API management in the healthcare market in this region. 5G cellular technologies offer higher bandwidth and lower latency compared to previous generations of cellular networks, enabling the rapid and reliable transmission of large amounts of healthcare data. For instance, in August 2022, China announced an investment of approximately USD 59.4 billion for the development of 5G infrastructure in this region. This investment is expected to accelerate the implementation of 5G wireless technology, which enhances information processing and enables progress in industrial sectors, including healthcare.

Competitive Landscape

Various key players operating in the API management in healthcare industry includes Practo Technologies Pvt. Ltd., Apple Inc., Change Healthcare, General Electric Company, Athenahealth, Cerner Corporation, Microsoft Corporation, Epic Systems Corporation, Lyniate, and Allscripts Healthcare Solutions Inc. These market players are adopting various strategies such as new product launches and business expansion across various regions to maintain their dominance in the API management in healthcare market.

For instance, in May 2023, GE Healthcare announced the expansion of its active pharmaceutical ingredient (API) manufacturing facility in Lindesnes, Norway. This expansion showcases the growing importance of API management in the healthcare sector. By expanding its API facility, GE Healthcare aims to strengthen its API production capabilities, catering to the increasing demand for pharmaceutical ingredients and contributing to the growth of API management in the healthcare market.

Also, in September 2021, Lyniate launched Lyniate Rapid, an API gateway specifically designed for the healthcare industry. Lyniate Rapid is intended to assist healthcare teams in developing and securing APIs. Also, in June 2021, Change Healthcare announced the expansion of self-service resources that offers developers to use APIs at scale to bring new healthcare innovations to market. The Change Healthcare’s Eligibility and Claims APIs is used to verify new applicants and deliver claims to all the payers.

Key Benefits

• The report provides quantitative analysis and estimations of the API management in healthcare market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the API management in healthcare industry including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the API management in healthcare market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porter's Five Forces model is elaborated in the study. 

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Api Managemet in Healthcare Market Key Segments

By Services

• Remote Patient Monitoring

• Appointments

• Electronic Health Record (EHR) Access

• Wearable Medical Device

• Payment

By Deployment Model

• Cloud-based 

• On-Premise

By End User

• Healthcare Providers

• Healthcare Payers

• Vendors

• Patients

By Region

• North America    

  • US

  • Canada

  • Mexico

• Europe    

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW    

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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