As the rate at which healthcare providers adopt EHRs increases, the overall medical technology industry will continue to grow rapidly, according to a new report.

Millennium Research Group projects that the EHR software market will grow at an annual rate of 12 percent over the next four years, hitting a peak of $8.3 billion in 2016, according to Health Data Management. The numbers underscore strong interest in the benefits of the technology.

The research firm told the news source that the government's meaningful use incentive program is the main driving force behind the growth in the market.

Some groups have predicted that when the incentive money begins to dry up in a couple years, the EHR market will slow down. However, the new report suggests that the threat of penalties for non-compliance will be just as strong a motivator as incentives.

Starting in 2015, physicians who do not use EHR systems will face a payment reduction of 1 percent. This could escalate to as much as 5 percent in subsequent years if they do not use the technology.