February 23, 2024
Healthcare ERP Market

Growing Adoption of Cloud Technologies is estimated to Boost the Growth of Healthcare Erp Market

The global Healthcare ERP Market is estimated to be valued at US$ 7.44 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Healthcare ERP or enterprise resource planning is integrated software that helps healthcare organizations to manage their clinical and administrative processes such as accounting and finance, supply chain, procurement, project management etc. effectively and efficiently. It helps healthcare providers to maintain patient records electronically, streamline workflow, enhance collaboration, reduce medical errors and gives real-time visibility into operations. Healthcare ERP facilitates storage, retrieval and integration of different departments’ data in centralized database and automates clinical and business processes.

Market key trends:

One of the key trends in the healthcare ERP market is growing adoption of cloud-based ERP solutions. Cloud-based ERP allows access to information from anywhere using internet and offers advantages such as disaster recovery, flexibility, scalability and reduced IT infrastructure costs. It helps healthcare organizations to reduce operational costs and efficiently utilize resources. As healthcare sector deals with huge amounts of sensitive patient data, security is a major concern while adopting cloud ERP. However, technological advancements are helping cloud ERP vendors to address these security issues thereby increasing adoption of cloud among healthcare organizations.

Porter’s Analysis
Threat of new entrants: The healthcare ERP market has moderate threat of new entrants due to high setup costs involved with establishing an ERP software business. However, flexibility and cloud technology lower the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of numerous established software providers offering customized solutions. However, specialized needs increase customer leverage.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the standardized nature of the offerings and availability of substitutes. However, unique product differentiation increases their control.
Threat of new substitutes: Threat of new substitutes is low as healthcare ERP requires compliance and specialized skills. However, growing cloud solutions pose a potential threat.
Competitive rivalry: Intense competition exists among the numerous global and regional players due to compatibility and personalized requirements.

Key Takeaways
Global Healthcare ERP Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing need for operational efficiency and regulatory compliance. The market size for 2023 is US$ 7.44 Bn.

Regional analysis: North America dominates the global healthcare ERP market and is expected to continue its dominance over the forecast period, owing to stringent regulations and growing healthcare spending in the US. Asia Pacific is expected to exhibit the fastest growth rate during the forecast period due to increasing healthcare expenditure and growing medical tourism in China and India.

Key players operating in the healthcare ERP market are BNP Paribas, CVS Health, Aviva, Allianz, Humana, Cigna, Aetna, Wellcare Health Plans Inc., UnitedHealth Group Inc., and Nippon Life Insurance Company, among others. Key players are focusing on product innovation and mergers & acquisitions to strengthen their market position. For instance, in January 2023, Wellcare Health Plans Inc. acquired Aetna to expand its commercial healthcare services.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it