Physical Therapy Software Market Grows with Rising Adoption of Telehealth Solutions

The global physical therapy software market is projected to reach USD 2.52 billion by 2030, expanding at a CAGR of 11.0% over the forecast period, according to a new report by Grand View Research, Inc. This growth is primarily driven by advancements in health IT technologies, increased investment in the healthcare sector, and the integration of practice management with other health IT solutions. Additionally, the benefits offered by physical therapy software—such as reduced paperwork, minimized billing errors, and operational efficiency—are further contributing to market expansion.

As physical therapists transition into more diverse and autonomous practice environments, the demand for effective and efficient clinical decision-making has increased. Accurate clinical judgments rely on having the right information available at the right time and in the appropriate format. Physical therapy software is designed to meet this need, thereby fueling market growth.

The COVID-19 pandemic significantly impacted service delivery across industries, including healthcare. According to an American Physical Therapy Association (APTA) report from August 2020, nearly half of clinic owners had to temporarily close their doors during the early months of the pandemic. Many reported revenue declines, while physical therapists and their assistants faced reduced hours and earnings. The industry quickly adapted to telehealth as a new mode of delivering services.

In this context, standardizing functions and managing data effectively became even more critical for delivering quality care. As a result, healthcare organizations began investing in software solutions to streamline repetitive tasks, manage follow-ups, and maintain compliance with healthcare regulations—further accelerating market growth.

Technology continues to evolve to support patient care—from computers that track medical records more efficiently to handheld devices that promote healing at the cellular level. The physical therapy field is no exception. In February 2021, Alliance Physical Therapy Partners launched Agile EMR, an outpatient therapy EMR software. This platform integrates key functions such as compliance, documentation, billing, and care coordination into a single comprehensive solution.

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Physical Therapy Software Market Report Highlights

• Mobile & Tablet Devices: These were the top revenue-generating segment in 2023, as mobile and tablet use continues to outpace desktops and laptops, especially within hospitals and clinics.

• Cloud-Based Solutions: This segment is expected to hold the largest market share, driven by increasing adoption and the growing popularity of cloud-based healthcare services.

• End-Use (Hospitals): Hospitals remained the largest end-use segment throughout the forecast period due to their central role in providing a wide range of healthcare services.

• Regional Insights (North America): North America led the market in revenue share in 2023, thanks to high awareness and well-established healthcare infrastructure, particularly in the U.S.

• Competitive Landscape: The market is highly competitive, with major players focusing on innovation, new product launches, distribution agreements, and strategic expansions to strengthen their market presence.

• Key Acquisition: In January 2022, WebPT acquired Clinicient and its subsidiary Keet, expanding its scale and industry expertise—maintaining strong competitive dynamics in the market.

Key Players in the Physical Therapy Software Market

• Practice Fusion, Inc.

• WebPT

• Systems 4PT

• Axxess

• DrChrono Inc. (EverHealth Solutions Inc.)

• Power Diary Pty Ltd.

• BioEx Systems, Inc.

• Meditab

• OptimisCorp

• MICA Information Systems, Inc.

• Oracle

• Kareo, Inc.

• NXGN Management, LLC

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