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Table Of Content
July 2025
The global health information exchange (HIE) market size is calculated at USD 2.27 billion in 2025 and is forecasted to reach around USD 5.25 billion by 2034, accelerating at a CAGR of 9.75% from 2025 to 2034. The North America market size surpassed USD 950 million in 2024 and is expanding at a CAGR of 9.89% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global health information exchange (HIE) market size accounted for USD 2.07 billion in 2024 and is predicted to increase from USD 2.27 billion in 2025 to approximately USD 5.25 billion by 2034, expanding at a CAGR of 9.75% from 2025 to 2034. The market is witnessing robust growth, driven by increasing demand for seamless data interoperability, digital healthcare adoption, and initiatives to enhance patient care efficiency.
Health information exchange (HIE) is the secure electronic sharing of patient health information among different healthcare providers and organizations. HIE improves care coordination, reduces errors, and decreases redundancies in clinical workflows. The market is growing due to the widespread adoption of electronic health records (EHRs), government regulations requiring and promoting interoperability, and an overall movement toward value-based care.
Technologies such as cloud-based data storage, AI-based analytics, and blockchain technology are making data secure, providing real-time access to patient data, and allowing clinical providers to make informed decisions based on their patients' complete history and other data sources. Ultimately, HIE is an important catalyst for an efficient, unified, and patient-centered healthcare delivery system.
Artificial Intelligence (AI) is disrupting Health Information Exchange (HIE) systems and creating serious revelations around interoperability, standardization of data, and real-time decision support within HIEs. In July 2025, the Centers for Medicare & Medicaid Services (CMS) broadened its interoperability initiative to support the sharing of health information by leveraging partnerships with Amazon, Anthropic, Apple, Google, and OpenAI. (Source: https://www.aha.org)
These initiatives are evidence of a trend to utilize AI-enabled solutions in HIEs, which can help reduce administrative burden while empowering clinicians with actionable insights. As healthcare systems increasingly rely on digitally-enabled ecosystems, the use of AI in health information exchange platforms is fundamental for creating efficiencies in patient-centered care and delivering a more efficient healthcare system.
| Report Coverage | Details |
| Market Size by 2034 | USD 5.25 Billion |
| Market Size in 2025 | USD 2.27 Billion |
| Market Size in 2024 | USD 2.07 Billion |
| Market Growth Rate from 2025 to 2034 | CAGR of 9.75% |
| Dominating Region | North America |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Deployment Model, Type of Exchange, Component, End-user, Exchange Model, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Is Government-Mandated Interoperability the Key Driver of HIE Adoption?
The government policy and regulation have been the dominant drivers of Health Information Exchange (HIE) adoption. The federal government invested over USD 2.4 billion in state systems to improve electronic health information exchange infrastructure with the HITECH Act. (Source: https://www.gao.gov)
More recently, the Office of the National Coordinator for Health IT (ONC) adopted information-blocking rules and certification criteria under the 21st Century Cures Act to promote interoperability, expand public health data exchange, and support real-time access to electronic health information to a wider range of constituents. The government initiatives created a common set of standards, allowing providers to share patient data more securely and efficiently, which has driven increased HIE to all parts of the healthcare continuum.
What is Holding the Health Information Exchange Revolution Back?
The health information exchange (HIE) market continues to face multiple obstacles in its implementation, with one of the biggest obstacles being data privacy and security issues. The recent data breaches of healthcare data are amply illustrated by the sad statistic that over 276 million patient records were exposed in 2024, averaging more than 758,000 patient records per day.(Source: https://cyberpress.org)
These actions cast doubt on the safety of sensitive health data, which leads many facilities, hospitals, and clinics to view HIE with hesitation. The challenge is especially daunting for smaller healthcare providers, as the cost and burden of compliance and cybersecurity are often too high, and this increases the hurdles associated with HIE. These breaches slow the progress of digital health transformation and affect patient trust.
What’s Driving New Opportunities in the Health Information Exchange (HIE) Market?
One key opportunity driver in the health information exchange (HIE) market is the growing embrace of standards-based interoperability most notably, in new ways using standard protocols like FHIR APIs. According to the 2025 Interoperability Roadmap report, 78% of countries surveyed have laws governing electronic health data exchange, while 73% of those laws either require or recommend using FHIR as part of those laws or guidelines (up from 65% the year before). (Source: https://fire.ly)
Along with regulations like TEFCA (Trusted Exchange Framework and Common Agreement) in the U.S., which support nationwide health data sharing by connecting health information networks (HINs) across the country. Not only does this increasing demand signal a level of importance for HIE in supporting real-time data movement to drive clinical decision making, but it positions HIE as a foundational foray into the business of personalized medicine, value-based care, and digital health transformation. (Source: https://www.healthit.gov)
Which Deployment Model Dominates the Health Information Exchange (HIE) Market in 2024?
In the health information exchange (HIE) market, the cloud-based segment dominated in 2024, as healthcare organizations tend to prefer options that allow for limitless scalability, remote access, and cost-efficiency. Cloud platforms are great data storage, data integration, and data sharing solutions across providers and payers without hosting the entire infrastructure directly. Cloud makes it simple to manage large amounts of patient data while creating logical linkages and is compatible with core standards of interoperability.
The on-premise segment is the fastest-growing model in the forecasted period. This is a result of many institutions being focused on high security, high control, and regulatory compliance. Many of the large hospitals and government healthcare organizations prefer their patient information systems to remain on-premises simply to keep direct authority over sensitive patient data. With increasing concerns of data privacy and customization needs, we will see an incremental increase incrementally on-premise for a narrow segment of healthcare.
Why does the Query-based Exchange Dominate the Health Information Exchange (HIE) Market?
The query-based exchange segment is the most dominant component in the health information exchange (HIE) market. Queryâ€based exchange enables healthcare providers to actively search and retrieve patient information from multiple sources in real time. As a result, queryâ€based exchange facilitates care coordination, supports clinical decisionâ€making, and limits duplicate tests/procedures. It is the most successful exchange type because of its potential to improve patient safety while accessing data across healthcare systems.
The directed exchange segment is the fastestâ€growing exchange type. As the directed exchange slowly takes hold, HIE networks are gaining traction through secure transfer of patient information from known and relied on healthcare actors. Directed exchange is often utilized for referrals, discharge summaries, and care transitions. As healthcare becomes more reliant on secure communication, including privacy and compliance with healthcare data standards, directed exchange appears to be emerging across HIE networks.
Which is the Most Dominant Component in the Health Information Exchange (HIE) Market?
The software segment was the largest in the health information exchange (HIE) market in 2024. since software is the cornerstone of data integration, interoperability, and secure sharing across healthcare systems. Robustly developed HIE software solutions facilitate electronic health records (EHRs), analytics, and adherence to data standards, which enables providers to reduce workflow friction. The steady increase in the scale of digital health technology and, subsequently, the need to exchange patient data in real-time is sustaining strong software demand.
The managed services sub-segment of the services segment is anticipated to have the fastest growth. A trend is developing in which many healthcare organizations are contracting HIE management annually to a specialized service provider to alleviate operational load and implementation failure. Managed services impose expertise to provide management of the integrations of applications, data security protocols, and ensure routine maintenance is enacted and in working condition to offload the responsibility from the provider, allowing focus to be set on patient-centric practices.
Which End User Segment Dominated the Health Information Exchange (HIE) Market in 2024?
The healthcare providers segment accounted for a large portion of the health information exchange (HIE) market in 2024, as hospitals, clinics, and other diagnostic centers rely heavily on data exchange in order to provide care to their patients effectively. Providers benefit from improved clinical decision-making, reduced duplicative tests, and improved communication and coordination amongst departments. There is also the push for value-based care, along with the digitalization of a patient's record, which is driving a lot of adoption from healthcare providers.
The healthcare payers segment is becoming the fastest-growing end-user of HIE solutions. Insurance companies and government payers have adopted HIE in order to access accurate patient data, reduce costs in claims processing, and decrease fraud. The combination of real-time health information will allow payers to improve their own population health analytics, develop value-based reimbursement models, and increase preventive care efforts, making this segment quickly grow.
Why Exchange Model Dominated the Health Information Exchange (HIE) Market in 2024?
The centralized model segment is the dominant model in the health information exchange (HIE) market, because it is the easiest way to store patient health data in a single repository, with authorized participants accessing patient health care records. The centralized model provides much simpler management, improved interoperability, and faster access to patient records. The structured framework of the centralized model has made it the most taken-up model by healthcare organizations, where efficiency, coordination of care, and the transfer of patient data between organizations are most important.
The hybrid model segment is the fastest-growing exchange model, combining both centralized and decentralized models. Flexible hybrid models offer a combination of centralized data with distributed access based on the organizational elements of its members. As healthcare systems have placed a high value on interoperability as well as security, the hybrid model is building momentum through its ability to provide effective, customizable, and secure data sharing solutions for robust access in diverse healthcare systems.
The U.S. health information exchange (HIE) market size was evaluated at USD 666.54 million in 2024 and is projected to be worth around USD 1,721.08 million by 2034, growing at a CAGR of 9.95% from 2025 to 2034.
Why is North America the most Dominant Region in the Health Information Exchange (HIE) Market in 2024?
North America remains in the lead of the health information exchange landscape because of its innovative healthcare digitalization, strong reimbursement models, and active participation by both private and public stakeholders. Health systems increasingly adopted HIE platforms to enhance population health analytics, care coordination, and clinical decision making. Concerning chronic diseases and the transition to value-based care, the demand for real-time exchange capability across providers, payers, and patients continues to grow. Investments in AI-driven predictive analytics and cloud-based HIE solutions are making it easier for organizations to take the next step from summary data sharing to predictive/goal-oriented exchange.
In terms of the HIE environment, the U.S. leads the pack with the scale of its electronic health record (EHR) integration and its regulatory environment that drives innovation as it relates to interoperability. While there is an increased need for patient authorship, backed by federal rules on information blocking, there continues to be some uncertainty that will fuel the adoption of APIs and FHIR-based interfaces by providers. When all of these adoption factors are taken into consideration, along with the sheer scale of U.S. healthcare spending, the U.S. is the focal point of HIE innovation and is setting the pace for the expected benchmarks of data liquidity and patient-centered exchange models.
Why is Asia Pacific Projected to be the Fastest-Growing Region during the Forecast Period?
The health information exchange (HIE) market in the Asia Pacific has experienced accelerated growth driven by increasing healthcare digitalisation, expanding government initiatives, and the growing usage of telemedicine and mobile health solutions. Investments in cloud-based infrastructure, AI in analytics, and standards-based data exchange are transitioning silos of fragmented pilot projects into scalable regional networks. The emphasis on secure patient data sharing and public health surveillance is motivating collaboration across institutions and enhancing HIE maturity in a rapidly maturing Asia Pacific market.
India is leading the way in the region's HIE evolution primarily through the Ayushman Bharat Digital Mission (ABDM), which has established a massive digital health ecosystem that assigns unique health IDs (ABHA) to millions of citizens. Digital-first telehealth programs and the emergence of cloud-based hospital information systems are further driving national demand for interoperable HIE solutions. Leveraging innovations in HIE makes India a real-world test-bed for large and complex HIE deployments, with real and measurable improvements in care coordination and health data accessibility.
By Deployment Model
By Type of Exchange
By Component
By End-user
By Exchange Model
By Region
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