The electronic health records market reached $29.7 billion in annual revenue 2017 and will rise to $39.7 billion by 2022, according to a new annual report from Kalorama Information, a research firm.

The EHR market includes computerized physician order entry systems and services such as installation, training, servicing and consulting. Picture archiving and communication systems and hardware are not included in Kalorama’s market projections.

“We believe adoption and upgrading activities will still be stimulating growth in 2017-2022,” says Mary Ann Crandall, author of the report.

Also See: DoD rollout of Cerner EHR deemed not operationally effective or suitable

The report suggests that:

The market for EHRs will continue to grow but at a slower rate, as hospitals and physicians upgrade existing systems.

Mergers and acquisitions in the EHR market increased 15 percent in the past year, with private equity firms most active in making these deals.

Small and mid-sized EHR firms have gained some marketshare from the largest vendors. Epic in the past year made slight gains in marketshare, while McKesson exited the business by selling its outpatient EHR to eMDs, as Allscripts scooped up McKesson’s Paragon EHR. Change Healthcare got some available remaining EHR business.

Artificial intelligence is gaining more attention by providers and other stakeholders hoping to use the technology to support healthcare delivery, medication management, precision medicine, drug creation and helping patients make better health choices.

“In terms of growth, the ride is not over,” Kalorama concludes. “Expect growth this year and next and stable growth until 2022. Eventually, there will be market saturation, but this is a bit of a way off, especially in emerging markets.”

The complete report, costing $3,995, is available for purchase here.

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