Japan AI in Medical Coding Market Size, Share, and COVID-19 Impact Analysis, By Mode (Outsourced and In-House), By Application (Automated Coding, Fraud and Error Detection, and Data Analysis), By End-Use (Healthcare Providers & Diagnostic Centers, Insurance Companies, and Medical Coding Companies), and Japan AI in Medical Coding Market Insights, Industry Trend, Forecasts to 2035

Japan AI in Medical Coding Market Insights Forecasts to 2035

• The Japan AI in Medical Coding Market Size Was Estimated at USD 157.3 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 15.13% from 2025 to 2035
• The Japan AI in Medical Coding Market Size is Expected to Reach USD 740.7 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, the Japan AI In Medical Coding Market Size is Anticipated to Reach USD 740.7 Million by 2035, Growing at a CAGR of 15.13% from 2025 to 2035. The Japan AI in medical coding market is growing due to a population that is aging and pushing healthcare requirements, government programs through "Society 5.0," more AI technologies with even greater accuracy, and more complications in rules for billing necessitating efficient, error-avoiding coding solutions.

Market Overview

The Japan AI in medical coding market refers to artificial intelligence technology, including machine learning and natural language processing, to simplify and improve the efficiency and accuracy of medical coding. The systems automate billing, ensure regulatory compliance, and increase management of healthcare data. An ageing population is quickly increasing the volume of medical procedures, and therefore, adequate coding systems are needed. Greater adoption of electronic health records (EHRs) and digital health tools also supports AI deployment. More stringent healthcare regulations and the requirement to do correct billing and reimbursements also drive AI adoption. A strong technology infrastructure in Japan and an IT and healthcare professional workforce are a good foundation for the adoption of AI solutions. Hospitals, clinics, and insurance companies have available major markets for growth, as well as potential collaborations overseas to build on capabilities. Government initiatives like the "Society 5.0" plan promote AI adoption, while regulation simplifies frameworks, together spurring significant growth in Japan's AI medical coding market.

Report Coverage

This research report categorizes the market for the Japan AI in medical coding market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan AI in medical coding market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan AI in medical coding market.

Driving Factors

The medical coding market in Japan is fueled by a graying population, increasing need for efficient healthcare and accurate coding. "Society 5.0" government initiatives promote AI implementation, and increased AI algorithms enhance system efficiency. The complexity in medical billing and coding also drives demand for AI solutions to maximize accuracy and minimize errors. These factors collectively are spurring the market's healthy growth in Japan.

Restraining Factors

The AI medical coding market in Japan is constrained by several factors, including high costs, complex regulatory requirements, data privacy concerns, cultural resistance, a shortage of skilled professionals, and the lack of standardized coding systems, all of which impede widespread adoption and effective implementation of AI technology.

Market Segmentation

The Japan AI in medical coding market share is classified into mode, application, and end-use.

• The outsourced segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan AI in medical coding market is segmented by mode into outsourced and in-house. Among these, the outsourced segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This provides proper billing and regulatory compliance. Outsourcing also enables scalability, which aids healthcare providers in adjusting operations according to demand, especially during times of high patient volume.

• The automated coding segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan AI in medical coding market is segmented by application into automated coding, fraud and error detection, and data analysis. Among these, the automated coding segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to the reduction in the time taken for medical records processing and is essential for medical practitioners handling large numbers of patients. Automated coding eliminates errors due to fatigue or omission, with uniform rule application and high accuracy levels.

• The healthcare providers & diagnostic centers segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan AI in medical coding market is segmented by end-use into healthcare providers & diagnostic centers, insurance companies, and medical coding companies. Among these, the healthcare providers & diagnostic centers segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is attributed to the facilities running high volumes of patient visits, treatments, and tests on a daily basis, generating immense medical records that require appropriate coding. The perpetual introduction of new patient details means that AI tools are required for efficient processing, hence driving the demand in such facilities.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan AI in medical coding market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Fujifilm
• Olymus Corporation
• Toshiba
• NEC Corporation
• Sysmex
• AI Medical Service Inc.
• Siemens Healthineers
• Nissay Information Technology Co., Ltd.
• Philips Healthcare
• IBM Watson Health
• Hitachi
• Others

Recent Developments:

• In August 2021, Fujifilm Corporation announced the Japan-wide launch of its AI-powered chest X-ray analysis tool, CXR-AID. The software detects abnormalities like nodules, consolidation, and pneumothorax, displaying findings as heatmaps with scores. It aids doctors in reducing missed diagnoses and improving accuracy in identifying chest diseases from X-ray images.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan AI in medical coding market based on the below-mentioned segments:

Japan AI in Medical Coding Market, By Mode

• Outsourced
• In-House

Japan AI in Medical Coding Market, By Application

• Automated Coding
• Fraud and Error Detection
• Data Analysis

Japan AI in Medical Coding Market, By End-Use

• Healthcare Providers & Diagnostic Centers
• Insurance Companies
• Medical Coding Companies