Global Healthcare Software-as-a-service Market Overview:
As per MRFR analysis, the Healthcare Software-as-a-service Market Size was estimated at 237.05 (USD Billion) in 2022. The Healthcare Software-as-a-service Market Industry is expected to grow from 289.6 (USD Billion) in 2023 to 1,756.0 (USD Billion) by 2032. The Healthcare Software-as-a-service Market CAGR (growth rate) is expected to be around 22.17% during the forecast period (2024 - 2032).
Key Healthcare Software-as-a-service Market Trends Highlighted
Healthcare Software-as-a-service (SaaS) market continues to evolve rapidly, driven by advancements in technology, rising healthcare costs, and an increasing demand for remote and personalized healthcare services.
Key market drivers include the need to improve patient outcomes, enhance operational efficiency, and reduce healthcare costs. Opportunities lie in the adoption of cloud-based solutions, artificial intelligence (AI), and personalized medicine.
Recent trends include the rise of telemedicine, the adoption of value-based care models, and the growing focus on patient engagement and empowerment. As healthcare systems strive to improve quality, affordability, and accessibility, the Healthcare SaaS market is expected to continue its growth trajectory in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Healthcare Software-as-a-service Market Drivers
Increasing Adoption of Cloud-Based Healthcare Solutions
The healthcare industry is rapidly adopting cloud-based solutions to improve efficiency, reduce costs, and enhance patient care. Healthcare Software-as-a-service (SaaS) is a cloud-based delivery model that provides healthcare organizations with access to software applications over the Internet.
The increasing adoption of cloud-based healthcare solutions is a major driver of growth in the Healthcare Software-as-a-service Market Industry. Cloud-based SaaS solutions offer several advantages over traditional on-premises software, including lower upfront costs, increased flexibility and scalability, automated software updates, and improved data security.
As a result, healthcare organizations are increasingly adopting cloud-based SaaS solutions to manage their operations, improve patient care, and reduce costs.
Growing Demand for Remote Patient Monitoring Solutions
The growing demand for remote patient monitoring (RPM) solutions is another major driver of growth in the Healthcare Software-as-a-service Market Industry. RPM solutions allow healthcare providers to monitor patients' health data remotely, enabling them to provide timely and effective care.
RPM solutions are particularly beneficial for patients with chronic conditions, such as diabetes, heart disease, and respiratory conditions. The increasing prevalence of chronic diseases and the growing demand for personalized healthcare are driving the demand for RPM solutions.
Healthcare SaaS providers are offering a wide range of RPM solutions, including devices for monitoring vital signs, glucose levels, and activity levels.
Government Initiatives to Promote Healthcare IT Adoption
Government initiatives to promote healthcare IT adoption are also driving the growth of the Healthcare Software-as-a-service Market Industry. Governments around the world are implementing policies and programs to encourage the adoption of healthcare IT solutions.
These initiatives include financial incentives, regulatory changes, and educational programs. Government support is helping to create a more favorable environment for the adoption of healthcare SaaS solutions.
For example, the U.S. government has implemented the Meaningful Use program, which provides financial incentives to healthcare providers for adopting and using certified electronic health records (EHRs). EHRs are a key component of healthcare SaaS solutions, and the Meaningful Use program has helped to accelerate their adoption.
Healthcare Software-as-a-service Market Segment Insights:
Healthcare Software-as-a-service Market Deployment Model Insights
The Healthcare Software-as-a-service Market is segmented by deployment model into cloud-based and on-premises. The cloud-based segment held a larger market share in 2023 and is projected to continue its dominance throughout the forecast period.
The growth of the cloud-based segment can be attributed to the increasing adoption of cloud computing in the healthcare industry. Cloud-based Healthcare Software-as-a-service (SaaS) offers several benefits over on-premises solutions, including lower upfront costs, increased flexibility, and scalability.
Additionally, cloud-based SaaS solutions are typically more secure than on-premises solutions, as they are managed by specialized providers with robust security measures in place.
The on-premises segment is expected to decline in market share over the forecast period, but it will still account for a significant portion of the Healthcare Software-as-a-service Market revenue. On-premises solutions offer some advantages over cloud-based solutions, such as greater control over data and security.
However, the high upfront costs and lack of flexibility associated with on-premises solutions are expected to limit its growth.
Overall, the Healthcare Software-as-a-service Market is expected to experience strong growth over the forecast period, driven by the increasing adoption of cloud computing in the healthcare industry. The cloud-based segment is expected to continue to dominate the market, while the on-premises segment is expected to decline in market share.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Healthcare Software-as-a-service Market Application Insights
The Healthcare Software-as-a-service Market is segmented by Application into Electronic Health Records (EHRs), Practice Management, Revenue Cycle Management, Patient Engagement, and Telemedicine.
Among these, the Electronic Health Records (EHRs) segment held the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of EHRs by healthcare providers to improve patient care and streamline their operations.
The Practice Management segment is also expected to witness significant growth, owing to the rising demand for software solutions that can help healthcare providers manage their practices more efficiently.
The Revenue Cycle Management segment is expected to grow steadily, driven by the increasing need for healthcare providers to optimize their revenue cycle processes. The Patient Engagement segment is expected to grow at a rapid pace as healthcare providers focus on improving patient engagement and satisfaction.
The Telemedicine segment is also expected to witness significant growth, due to the increasing adoption of telemedicine solutions by healthcare providers to provide remote care to patients.
Healthcare Software-as-a-service Market End-user Insights
The Healthcare Software-as-a-service Market is segmented into various end-users, including hospitals, clinics, ambulatory surgery centers, long-term care facilities, and physician practices.
Among these end-users, hospitals hold a significant market share due to their extensive adoption of healthcare software solutions to streamline patient care, improve operational efficiency, and enhance overall healthcare delivery.
The increasing demand for integrated healthcare systems and the need for efficient patient management drive the growth of the Healthcare Software-as-a-service market in hospitals.
Clinics, ambulatory surgery centers, and long-term care facilities also contribute to the market growth as they seek to improve patient outcomes, reduce costs, and enhance patient satisfaction. The rising number of outpatient procedures and the growing focus on value-based healthcare drive the adoption of healthcare software solutions in these settings.
Physician practices represent another key end-user segment, as healthcare software helps them manage patient appointments, electronic health records, and billing processes. The increasing adoption of telemedicine and remote patient monitoring further fuels the demand for healthcare software solutions among physician practices.
Healthcare Software-as-a-service Market Functionality Insights
The Healthcare Software-as-a-service Market is segmented by Functionality into Scheduling, Billing, Medical Records Management, Patient Communication, and Decision Support. The Scheduling segment is expected to grow at the highest CAGR during the forecast period.
This growth is attributed to the increasing need for efficient patient scheduling and management solutions. The Billing segment is also expected to witness significant growth due to the rising demand for automated billing systems. The Medical Records Management segment accounts for a significant share of the Healthcare Software-as-a-service Market.
This is due to the increasing adoption of electronic health records (EHRs) and the need for efficient management of patient medical records. The Patient Communication segment is also expected to grow at a steady pace due to the increasing adoption of patient portals and other communication tools.
The Decision Support segment is expected to witness significant growth due to the rising demand for data analytics and decision-support tools in healthcare.
Healthcare Software-as-a-service Market Regional Insights
The Healthcare Software-as-a-service Market is segmented into North America, Europe, APAC, South America, and MEA. In 2023, North America held the largest market share of 38.5%, followed by Europe with 26.2%.
APAC is expected to witness the highest growth rate during the forecast period, with a CAGR of 24.2%. The growth in APAC can be attributed to the increasing adoption of cloud-based healthcare solutions and the rising healthcare expenditure in the region. The MEA region is also expected to witness a significant growth rate, with a CAGR of 22.5%.
The growth of the market can be attributed to the increasing adoption of cloud-based healthcare solutions, the rising healthcare expenditure, and the growing demand for personalized healthcare services.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Healthcare Software-as-a-service Market Key Players and Competitive Insights:
Major players in the Healthcare Software-as-a-service Market industry are constantly striving to stay ahead of the competition by developing innovative solutions and acquiring smaller companies to expand their market presence. Leading Healthcare Software-as-a-service Market players are focusing on strategic partnerships and collaborations to strengthen their market position.
They are also actively investing in research and development to enhance their product offerings and stay ahead of the curve in a rapidly evolving market. This has led to increased competition and consolidation, with larger players acquiring smaller companies to gain access to new technologies and capabilities.
The Healthcare Software-as-a-service Market landscape is expected to remain competitive in the coming years, with key players continuing to invest in innovation and expansion strategies.
Cerner Corporation is a leading provider of Healthcare Software-as-a-service Market solutions. The company offers a range of products and services, including electronic health records (EHRs), revenue cycle management (RCM), population health management (PHM), and care coordination solutions.
Cerner has a strong presence in the United States and is expanding its operations internationally. The company is known for its innovative solutions and its focus on customer satisfaction.
Epic Systems Corporation is another major player in the Healthcare Software-as-a-service Market industry. The company provides a comprehensive suite of healthcare IT solutions, including EHRs, RCM, PHM, and patient engagement solutions.
Epic has a strong presence in the United States and is expanding its operations internationally. The company is known for its user-friendly software and its commitment to data privacy and security.
Key Companies in the Healthcare Software-as-a-service Market Include:
- Athenahealth
- Allscripts
- Epic Systems
- Salesforce Health Cloud
- SAP SE
- Oracle Health
- Philips Healthcare
- GE Healthcare
- Henry Schein One
- Cerner
- Siemens Healthineers
- eClinicalWorks
- McKesson
- NextGen Healthcare
Healthcare Software-as-a-service Market Industry Developments
The increasing adoption of cloud-based solutions, growing healthcare IT spending, and rising prevalence of chronic diseases are driving market growth.
Recent news developments in the market include the acquisition of healthcare SaaS provider MEDHOST by private equity firm Warburg Pincus and the launch of new AI-powered SaaS solutions by vendors such as Cerner Corporation and Epic Systems Corporation.
The market is witnessing strategic partnerships and collaborations among key players to expand their product portfolios and strengthen their market presence.
Healthcare Software-as-a-service Market Segmentation Insights
Healthcare Software-as-a-service Market Deployment Model Outlook
Healthcare Software-as-a-service Market Application Outlook
- Electronic Health Records (EHRs)
- Practice Management
- Revenue Cycle Management
- Patient Engagement
- Telemedicine
Healthcare Software-as-a-service Market End-user Outlook
- Hospitals
- Clinics
- Ambulatory Surgery Centers
- Long-term Care Facilities
- Physician Practices
Healthcare Software-as-a-service Market Functionality Outlook
- Scheduling
- Billing
- Medical Records Management
- Patient Communication
- Decision Support
Healthcare Software-as-a-service Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
237.05(USD Billion) |
| Market Size 2023 |
289.6(USD Billion) |
| Market Size 2032 |
1756.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
22.17% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Athenahealth, Allscripts, Epic Systems, Salesforce Health Cloud, SAP SE, Oracle Health, Philips Healthcare, GE Healthcare, Henry Schein One, Cerner, Siemens Healthineers, eClinicalWorks, McKesson, NextGen Healthcare |
| Segments Covered |
Deployment Model, Application, End-user, Functionality, Regional |
| Key Market Opportunities |
Cloud-based delivery models AI integration Big data analytics Remote patient monitoring Telemedicine |
| Key Market Dynamics |
Increasing cloud adoption, technological advancements, regulatory compliance, aging population, and growing demand for personalized healthcare |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Healthcare Software-as-a-service Market reached USD 289.6 billion in 2023.
The Healthcare Software-as-a-service Market is projected to grow at a CAGR of 22.17% from 2024 to 2032.
North America is expected to hold the largest share of the Healthcare Software-as-a-service Market in 2032.
The Electronic Health Records (EHR) segment is expected to hold the largest share of the Healthcare Software-as-a-service Market in 2032.
Some of the key competitors in the Healthcare Software-as-a-service Market include Cerner Corporation, Epic Systems Corporation, Allscripts Healthcare Solutions, Inc., and McKesson Corporation.
Some of the key trends driving the growth of the Healthcare Software-as-a-service Market include the increasing adoption of cloud-based solutions, the rising demand for data analytics, and the growing need for personalized healthcare.
Some of the challenges facing the Healthcare Software-as-a-service Market include concerns over data security, the lack of interoperability between different systems, and the high cost of implementation.
The Healthcare Software-as-a-service Market is expected to reach USD 1756.0 billion by 2032.
Asia Pacific is expected to experience the highest growth in the Healthcare Software-as-a-service Market from 2024 to 2032.
Some of the key opportunities in the Healthcare Software-as-a-service Market include the growing demand for mobile health solutions, the increasing use of artificial intelligence (AI), and the expanding market for telemedicine.
