Medical Coding Market Size

Medical Coding Market size was valued at USD 38.71 billion in 2024 and is likely to reach USD 127.46 billion by the end of 2037, registering around 9.6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of medical coding is assessed at USD 41.68 billion. The reason behind the growth is due to the growing healthcare spending across the globe. Healthcare spending is steadily growing faster than GDP as a result of general inflation, rising prices for prescription drugs, higher wages for healthcare providers, an aging population, lifestyle, and several other factors.

According to estimates, global health spending is estimated to increase by more than 35% between 2018 and 2022, reaching around USD 10 trillion.

The growing technological advancements are believed to fuel the market growth. AI-based medical coding systems enable real-time medical coding that leverages machine learning to automate the medical coding process, which aids in improving medical billing and coding accuracy, reduces the risk of medical coding errors, and can assist human programmers with real-time medical coding by providing recommendations that can significantly improve accuracy, and productivity.