Healthcare Software as a Service Market Key Findings by 2031
[Research Report] The healthcare software as a service market size is expected to reach US$ 1,04,032.13 million by 2031 from US$ 26,755.97 million in 2022; the market is estimated to record a CAGR of 18.50% from 2022 to 2031.
Market Insights and Analyst View:
The field of technology has grown significantly in the past few years. The healthcare sector is actively implementing new technology advancements to enhance internal processes and give patients better care. The cost of operating a healthcare facility is high. The well-being of the patients and employees of a healthcare facility is directly under the ownership and management of those organizations. They must take all reasonable steps to guarantee that their staff members have a seamless workflow and that patients receive the best care possible. Because of this, they are constantly searching for ways to increase operational efficiency without having to invest large sums of money. Thus, the SaaS model proves to be very beneficial for healthcare facilities. This, is likely to create a significant opportunity for market growth.
On-premise software has higher implementation costs and takes longer to implement. SaaS solutions, on the other hand, are pre-made solutions that can be implemented for significantly less money. Furthermore, SaaS solutions can be put into practice in a comparatively short amount of time. Second, when it comes to software as a service, the software provider is in charge of both upgrades and maintenance. For on-premise software, on the other hand, the various facets of software maintenance, including handling bugs, guaranteeing security, and overseeing upgrades, fall under the purview of the internal IT staff. In just one year, Oracle Cloud added 1,700 new features, demonstrating the potential of SaaS.
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Healthcare Software as a Service Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Healthcare Software as a Service Market: Strategic Insights
Mrinal
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Mrinal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Growth Drivers and Challenges:
The development of healthcare technology, particularly the revolution of SaaS healthcare technology, has had a significant impact on the healthcare sector. Over the past few years, it has altered many aspects of healthcare. By adding healthcare providers, the industry has significantly benefited from the contributions of professionals in the healthcare app development fields who are in charge of bringing new ideas to the table and providing solutions. Healthcare applications gained popularity during the pandemic when there was a worldwide lockdown. As a result, more people are using digital healthcare solutions. It's now simple for patients to get the best medical care and meet their medical needs. Additionally, this has made it easier for healthcare providers to provide services that have a positive influence on creating a healthy environment within the sector. The cloud technology that underpins the SaaS healthcare system makes it possible for patients to receive care less uncomfortably. Utilizing the recent wave of technological adoption to run healthcare workflows efficiently for improved business management is another advantage of SaaS healthcare. Thus, the beneficial advantages of SaaS in the healthcare sector lead to an increase in the use of healthcare SaaS and thereby drive the growth of market.
Ensuring strong security majors and regulatory compliance can be difficult for SaaS providers because healthcare organizations deal with sensitive patient data and their ongoing concerns about data breaches and unauthorized access to patient information. Furthermore, the healthcare industry is bound by stringent regulations, such as HIPAA, in the US. Complying with these regulations, particularly when utilizing cloud-based services, can be intricate and expensive, posing difficulties for healthcare organizations and providers alike. Therefore, the market expansion for healthcare software as a service is constrained by strict regulatory requirements as well as challenges pertaining to security and safety.
SaaS providers have significantly benefited from the pandemic's rapid growth in telehealth. There is still a strong demand for telehealth platforms, such as virtual care solutions, remote monitoring, and video conferencing. Furthermore, SaaS solutions for remote patient monitoring offer a significant opportunity as the population ages and the need for managing chronic diseases rises. Additionally, a growing area in healthcare is the use of genomics and data analytics to provide personalized treatment plans. There is a need for SaaS solutions that facilitate personalized medicine, from diagnosis to treatment recommendations. This consequently generates a large window of opportunity for market expansion. Furthermore, incorporating information from mobile health apps and wearable technology into Healthcare SaaS platforms allows for the provision of a comprehensive picture of patient health and the promotion of wellness. The healthcare software as a service (SaaS) market is dynamic and constantly changing, with opportunities emerging from changes in healthcare delivery, ongoing technological advancements, and a growing emphasis on improving patient outcomes and care.
Report Segmentation and Scope:
The healthcare software as a service market is divided based on type, deployment model, and end user. The healthcare software as a service market is segmented into electronic health records (EHR) software, telemedicine software, medical practice management software, clinical decision support software, radiology information system (RIS) software, laboratory information system (LIS) software, hospital management system (HMS), E-prescribing software, and others based on type. The healthcare software as a service market is segmented based on deployment model into public, private, and hybrid. Based on the end user, the healthcare software as a service market is segmented into healthcare providers and healthcare payers. Based on geography, the healthcare software as a service market is divided into North America (the US, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, and the Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific), Middle East & Africa (the UAE, Saudi Arabia, South Africa, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).
Segmental Analysis:
The healthcare software as a service market is segmented into electronic health records (EHR) software, telemedicine software, medical practice management software, clinical decision support software, radiology information system (RIS) software, laboratory information system (LIS) software, hospital management system (HMS), E-prescribing software, and others based on type. Digital virgins replace traditional paper-based medical records in the healthcare industry with SaaS EHRs. This improves patient care and administrative efficiency by enabling healthcare providers to access patient information from any location with an internet connection. The segment is growing because EHRs in healthcare SaaS are a crucial tool for modernizing healthcare, enhancing patient care, and adapting to the changing healthcare industry.
Based on the deployment model, the healthcare software as a service market is classified into public, private, and hybrid. In 2022, the hybrid segment held the largest share of the market. Public segment is expected to register the highest CAGR during 2022-2031. Healthcare organizations can evolve their technology infrastructure while meeting the specific requirements of the healthcare industry with the help of the Hybrid Healthcare SaaS model, which strikes a balance between the benefits of cloud-based solutions and the need for control complaints and integration with existing systems.
Based on the end user, the healthcare software as a service market is classified into healthcare providers and healthcare payers. In 2022, the healthcare providers segment held the largest share of the market, and it is expected to register the highest CAGR during 2022-2031. Due to its many features and benefits that improve patient care, expedite processes, and enhance the delivery of healthcare services overall, healthcare software as a service is essential to healthcare providers. This is expected to propel the segment's growth.
Regional Analysis:
Based on geography, the healthcare software as a service market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. North America is the most significant contributor to the growth of the healthcare software as a service market, and Asia Pacific is expected to be the fastest-growing market in the coming years. Increase in government initiatives to improve the healthcare infrastructure investment of key players for business expansion in developing countries is anticipated to drive the growth of market in the region. For instance, in January 2023, Healthcare providers and other participants in the nation's digital health ecosystem are being incentivized by the National Health Authority of India to create digital health records. Under the Ayushman Bharat Digital Mission (ABDM), the Digital Health Incentive Scheme expedites digital health transactions in India. In April 2021, the cloud-based electronic medical record (EMR) business from Xirapha Karte System Co., Ltd. was fully acquired by PHC Corporation. Xirapha is a leading supplier of cloud-based EMR systems in Japan that interface with the Standard Japan Medical Receipt Software. It also developed the Xirapha Karte cloud-based EMR system for clinics. PHC hopes to grow its Healthcare IT business in Japan by incorporating Xirapha's cloud-based EMR solution into its offering through this acquisition. Additionally, it will allow PHC to make a more substantial presence in the medical ICT market, where cloud-based technologies are being used more frequently.
Competitive Landscape and Key Companies:
NXGN Management, LLC, Veradigm LLC, AdvancedMD, Inc., Capterra Inc., Orchard Software Corporation, Belitsoft, ResMed, POSTDICOM, Nalashaa, and CrelioHealth Inc. are a few prominent players operating in the healthcare software as a service market. These companies focus on expanding product offerings to meet the growing consumer demand worldwide. Their global presence allows them to serve a large set of customers, subsequently allowing them to expand their market share.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
- NXGN Management, LLC
- Veradigm LLC
- AdvancedMD, Inc.
- Capterra Inc.
- Orchard Software Corporation
- Belitsoft
- ResMed
- POSTDICOM
- Nalashaa
- CrelioHealth Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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