Medical coding market seen reaching $68.5B by 2035

Market Research Future projects the global medical coding market will grow from $28.71 billion in 2026 to $68.54 billion by 2035, driven by ICD-11 transition mandates, CMS compliance rules and a shift to cloud-based AI coding tools. The forecast points to sustained demand across hospitals, insurers and outsourced coding services as healthcare reimbursement gets more complex. Why it matters: - Medical coding is becoming a core compliance function for health systems, not just a back-office workflow. - The market’s growth reflects mandatory coding updates, reimbursement pressure and automation adoption across healthcare. - Hospitals, payers and outsourced service providers are all facing higher demand for accurate, faster code assignment. What happened: - Market Research Future projected the global medical coding market will rise from USD 28.71 billion in 2026 to USD 68.54 billion by 2035. - The forecast implies a 10.14% CAGR for 2026-2035. - The report estimated the market at USD 26.07 billion in 2025. - The release tied growth to ICD-11 transition mandates and CMS compliance requirements. - Request a free sample . The details: - WHO’s phased ICD-11 rollout became effective for member-state reporting in January 2022 and introduces about 55,000 diagnostic entities. - CMS expanded bundled payment coverage and released the ICD-10-CM FY2026 update in March 2025, adding 395 new diagnosis codes. - The new codes include expanded coverage for social determinants of health and Long COVID sequelae. - CMS processed more than 1.3 billion claims in fiscal year 2024, each requiring validated healthcare billing codes. - The U.S. Department of Health & Human Services distributed more than USD 1.2 billion in health-IT modernization grants between 2023 and 2025. - Web and cloud platforms captured more than 74% of new medical coding deployments in 2024, according to KLAS Research. - More than 62% of certified coders now work remotely at least part-time. - Outsourced coding services held USD 15.55 billion in 2025, or about 63.4% of market demand. - Hospitals were the largest end-user segment in 2025 at about 42.5% share. - Insurance payers were the fastest-growing end-user segment, at 11.5% CAGR for 2026-2035. - The ICD classification system remained the dominant segment in 2025 with about 71% revenue share. - HCPCS was the fastest-growing classification segment, at 10.7% CAGR for 2026-2035. - CPT coding reached USD 4.82 billion in 2025. - In-house coding solutions were the fastest-growing component segment, at 9.2% CAGR for 2026-2035. - Read the detailed report . Between the lines: - The report shows a market being pushed by regulation first and technology second. - Cloud delivery and AI-assisted coding are gaining share because they reduce update delays and help address coder shortages. - More than 60% of health information departments report being consistently understaffed, which supports outsourcing and automation demand. - The report also signals that value-based care and risk-adjustment coding are becoming more financially important for payers. - The forecast suggests routine coding work is likely to keep shifting into software, while complex cases remain human-intensive. What’s next: - The report expects global ICD-11 alignment paths to continue through 2025-2028. - U.S. billing implementation preparation is expected to move toward the late 2020s. - Generative AI and autonomous revenue cycle tools are expected to reshape routine coding by 2030. - The market is likely to split between scalable AI automation for routine encounters and premium human-expert services for complex cases. - Ongoing platform consolidation should favor vendors that can connect EHR systems to claims submission and payment workflows. The bottom line: - Medical coding is shifting from a support function into a regulated, software-driven revenue infrastructure layer for healthcare.