What Transformation Has the Healthcare Software As A Service Market Undergone?
The healthcare software as a service market has seen considerable growth due to a variety of factors.
• The market size for software as a service in healthcare has seen quick expansion in the past few years. The market, which stood at $23.95 billion in 2024, is expected to rise to $27.66 billion in 2025, with a compound annual growth rate (CAGR) of 15.5%.
The factors driving growth during this historical period include cost-effectiveness and optimum resource utility, emphasis on care centered around the patient, the ability to scale according to healthcare demands, solutions based on value-oriented care, and measures ensuring data security and privacy.
How Will The Healthcare Software As A Service Market Size Evolve In The Foreseeable Future?
The healthcare software as a service market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for an exponential surge in the size of the healthcare software as a service market within the next few years. By 2029, predictions ascertain it will escalate to $60.04 billion, with a compound annual growth rate (CAGR) of 21.4%.
Factors responsible for the projected increase amidst the forecast period encompass personalized medicine programs, ongoing compliance management, improved interoperability standards, virtual clinical examinations and research, refined user interface and experience, along with a concentration on mental health assistance. The forecast period also foresees telehealth and remote patient supervision, interoperability and amalgamation, data protection and confidentiality compliance, real-time analysis and data submission, nimble creation and perpetual updates, and remote contact and teamwork as the leading trends.
Which Drivers Are Accelerating Growth In The Healthcare Software As A Service Market?
The surge in cloud computing acceptance is projected to catalyze the expansion of the healthcare software as a service market. The current crisis has underscored the advantages of cloud computing and allayed concerns about privacy, security, and implementation, prompting healthcare entities to adopt it. Healthcare institutions can achieve elevated data security, guaranteed system scalability, and improved flexibility in handling billing and streamlining claims, thus significantly reducing costs. For example, a February 2022 survey by UK-based consulting firm Ernest & Young Global Limited and Indian trade association NASSCOM revealed that four out of every five businesses plan to expand their cloud budgets in the coming year. The survey also noted that 67% of large enterprises expedited cloud adoption, with 39% of medium businesses and 38% of small businesses also starting their journey towards cloud computing. IT companies are at the forefront of this trend, followed by the healthcare and BFSI sectors. As a result, the increased acceptance of cloud computing is propelling the growth of the healthcare software as a service market.
What Are The Core Segments Of The Global Healthcare Software As A Service Market?
The healthcare software as a service market covered in this report is segmented –
1) By Application: Patient Portal, Telemedicine, Mobile Communication, ePrescribing, EHR Systems, ERP And HR Portal, Medical Billing
2) By Deployment Model: Private, Hybrid, Public
3) By Organization Size: Large Enterprise, Small And Medium Enterprises
4) By End-User: Provider, Payer
Subsegments:
1) By Patient Portal: Appointment Scheduling, Access To Medical Records, Communication With Healthcare Providers
2) By Telemedicine: Virtual Consultations, Remote Patient Monitoring, Telehealth Platforms
3) By Mobile Communication: Secure Messaging, Mobile Health Applications
4) By EPrescribing: Prescription Management, Drug Interaction checks
5) By EHR Systems: Cloud-Based Electronic Health Records, Interoperability Features
6) By ERP & HR Portal: Human Resources Management, Financial Management Systems
7) By Medical Billing: Revenue Cycle Management, Claims Processing
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Which Emerging Trends Are Reshaping The Healthcare Software As A Service Market Size?
Embracing technological innovations is an emerging trend in the healthcare software as a service (SaaS) market. Leading companies in this sector are enhancing technologically-advanced solutions to solidify their market presence. These firms are integrating cutting-edge SaaS technologies into their services, such as Artificial Intelligence (AI), Vertical SaaS, Pay-Per-Use Model, IoT, Integration in existing systems among others. For example, in March 2022, Snowflake Inc., a company specializing in cloud computing and data warehousing based in the US, unveiled a cloud-based data-sharing platform. This platform merges core SaaS data analytics, warehousing, and business intelligence services with on-demand consulting services for the healthcare sector.
Who Are the Key Players in the Healthcare Software As A Service Market?
Major companies operating in the healthcare software as a service market include:
• Microsoft Corporation
• Salesforce Inc.
• SAP SE
• Oracle Corporation
• Google LLC
• Cisco Systems Inc.
• International Business Machines Corporation
• ServiceNow Inc.
• Workday Inc.
• Zocdoc Inc.
• Thrive Global Holdings Inc.
• Talkspace Inc.
• Pager Technologies Inc.
• AiCure Technologies Inc.
• Noom Inc.
• Optum Inc.
• Kareo Inc.
• Madaket Health Inc.
• SimplyVital Health Inc.
• Tailoredcare India Private Limited
• Health Data Vision Inc.
• Veeva Systems Inc.
• Cerner Corporation
• Athenahealth Inc.
• Allscripts Healthcare Solutions Inc.
• NextGen Healthcare Inc.
• eClinicalWorks LLC
• Greenway Health LLC
• AdvancedMD Inc.
• drchrono Inc.
• CareCloud Corporation
What are the Regional Insights into the Healthcare Software As A Service Market?
North America was the largest region in the healthcare software as a service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the healthcare software as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
