The health information exchange market was valued at US$ 1,411.56 million in 2020 and is projected to reach US$ 3,326.98 million by 2028; it is expected to grow at a CAGR of 11.4% from 2021 to 2028.

The market growth is primarily attributed to the rising government support for the adoption of EMR/EHR systems and growing emphasis on healthcare cost optimization. However, the data security and privacy concerns hamper the market growth.

The rapid growth of health information technology has led to the increase in exchange of patient medical information through electronic health records (EHRs). The systems can collect patient information as well as share the information with other healthcare professionals involved in the patient's care. The governments, healthcare authorities, and market players are actively supporting the adoption of EHR systems to streamline the process of healthcare activities. Moreover, the systems enable efficient data gathering and exchange, allowing healthcare professionals to enhance the quality of the treatment.

In 2009, the federal government of the US announced allocation of US$ 27.0 billion as an incentive program for hospitals and healthcare providers to encourage the adoption of EHR/EMR as a part of the Health Information Technology for Economic and Clinical Health (HITECH) Act. Moreover, additional fund allocations were announced to train and educate health information technology workers to implement EHRs to streamline the healthcare information exchange and record keeping activities.

In 2001, the government of Canada launched a strategic initiative to modernize its ICT infrastructure in healthcare and promote the adoption of EHRs. According to a data published on NCBI, in 2015, around 91.0% of the Canadians had their data registered on EHRs, and an estimated 91,000 physicians were using EHR systems for day-to-day work. Moreover, according to a survey conducted by Canadian Medical Association in 2017, around 85.0% of the physicians in the country were using EMR systems. Also, as per estimates published by the Canada Health Infoway in 2020, EHR data is available for around 93.8% Canadians.

In 2002, England announced a launch of the National Plan for IT, a new initiative to enhance the functionalities of existing healthcare system. Moreover, in 2012, the government passed the Health and Social Care Act to use patient's information for research purpose. Such initiatives in the UK are anticipated to drive the adoption of EHR systems in the country. In Germany, an estimated 90% of physicians in private practice are using EHR systems as of 2020. Further, according to a data published on NCBI in 2020, the EHR adoption rate in New Zealand has reached around 97%. Also, the government of India has launched the Transforming India Mission to generate digital health records of all the Indian citizens by 2022. Such government initiatives are expected to drive the adoption of EHR systems, which will eventually propel the growth of the health information exchange market by 2028.

The health information exchange market is witnessing substantial growth amid the COVID-19 pandemic. A few factors such as higher emphasis on the utilization of healthcare IT infrastructure for data transfer, ease of use, and cost optimization are propelling the adoption of health information exchange during the pandemic. For instance, during the pandemic, in March 2020, HealtHIE Nevada (US), increased its patient data exchange by 36% since the beginning of the COVID-19 pandemic. Due to the growing patient volumes, the demand for EMR and EHR platforms to manage complex patient data has increased, which ultimately accelerated the market growth during the pandemic.

Based on set up, the health information exchange market is bifurcated into private and public. In 2020, the private segment held a substantial market share. Also, the same segment is estimated to register a higher CAGR during the forecast period.

By type, the health information exchange market is segmented into query based, direct, and consumer medicated. In 2020, the direct mediated segment held a substantial market share. Moreover, the segment is anticipated to register the highest CAGR during the forecast period.

In terms of implementation model, the health information exchange market is segmented into centralized, decentralized, and hybrid. In 2020, the hybrid segment held a substantial market share. Moreover, the same segment is anticipated to register the highest CAGR during the forecast period.

Based on application, the health information exchange market is segmented into workflow management, internal interfacing, web portal development, and other applications. In 2020, the web portal development segment held a substantial market share. However, the internal interfacing segment is anticipated to register the highest CAGR during the forecast period.

By end user, the health information exchange market is segmented into pharmacies, healthcare payers, and healthcare providers. In 2020, the healthcare providers segment held a substantial market share. Also, the same segment is expected to register the highest CAGR during the forecast period.

Based on deployment, the health information exchange market is bifurcated into on-premise and cloud based. In 2020, the on-premise segment held a substantial market share. However, the cloud-based segment is expected to register a higher CAGR during the forecast period.

The World Health Organization (WHO), Australian Digital Health Agency, Centers for Medicare & Medicaid Services, Food and Drug Administration (FDA), National Coordinator for Health Information Technology, and National Health Information Standard Committee are among the major primary and secondary sources referred to while preparing the report on the health information exchange market.