The global Healthcare Software As A Service market size was estimated at USD 29.18 billion in 2021 and is expected to surpass around USD 79.56 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 11.79% during the forecast period 2022 to 2030.
Key Takeaways:
- By application, the patient portal segment accounted 17.4% revenue share in 2021.
- By end user, the provider segment held 71% revenue share in 2021.
- By deployment model, the hybrid segment hit 50.5% revenue share in 2021.
- North America region has garnered revenue share of around 47.8% in 2021.
- Asia Pacific is expected to grow at a highest CAGR over the forecast period.
The healthcare software as a service market consists of sales of healthcare software as a service by entities (organizations, sole traders, and partnerships) that refers to a service model in cloud computing where one or more vendors provide cloud-based remote software products to the healthcare industry. The SaaS application in healthcare can access multiple features to keep patient data secure. The application also compliances with other benefits such as back-ups, real-time updates, accessibility, and scalability. It allows healthcare firms to reduce unnecessary overhead costs.
The main application of healthcare software as a service includes patient portal, telemedicine, mobile communication, eprescribing, HER systems, ERP systems, ERP & HR portal, and medical billing. The patient portal software or solutions provide secure access to medical records and services for the user by facilitating tasks such as scheduling appointments, requesting prescription refills, and making online bill payments. These software’s and solutions are deployed through public, private, and hybrid cloud models, and they are used by payers and providers in both large enterprises, and small-and medium enterprises.
The healthcare software as a service market research report is one of a series of new reports from The Business Research Company that provides healthcare software as a service market statistics, including healthcare software as a service industry global market size, regional shares, competitors with a healthcare software as a service market share, detailed healthcare software as a service market segments, market trends and opportunities, and any further data you may need to thrive in the healthcare software as a service industry. This healthcare software as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The growing adoption of cloud computing is expected to propel the growth of the healthcare software as a service market. Healthcare organizations are adopting cloud computing as the current crisis has reinforced its benefits and put to rest fears related to privacy, security, and implementation. Healthcare organizations can achieve increased data security, assured system scalability, and enhanced flexibility to manage billings and streamline claims for significant cost savings with cloud computing. For instance, in February 2022, according to a survey conducted by a UK-based consulting firm, Ernst & Young Global Limited, and an Indian non-governmental trade association, The National Association of Software and Service Companies (NASSCOM), four in every five enterprises are set to increase their cloud budgets over the next 12 months. As per the survey, 67% of the large enterprises accelerated cloud adoption, 39% of medium-sized companies, and 38% of small companies embarked on their cloud journey. IT companies lead cloud adoption followed by the healthcare sector and BFSI sector. Therefore, growing adoption of cloud computing is driving the growth of healthcare software as a service market.
Technological advancement is a key trend that is gaining popularity in the healthcare software as a service market. Major companies operating in the healthcare SaaS market are focused on providing technologically-advanced solutions to strengthen their market position. These companies are implementing next-generation SaaS technologies into their services, such as Artificial Intelligence (AI), Vertical SaaS, Pay-Per-Use Model, IoT, Integration in existing systems, and others. For instance, in March 2022, Snowflake Inc., a US-based cloud computing and data warehousing company launched a cloud-based data-sharing platform to bring together core SaaS data analytics, warehousing, and business intelligence offerings with consulting services on demand for the healthcare industry.
Report Scope of the Healthcare Software As A Service Market
Application Insights
The patient portal segment held the highest revenue share of 17.4% in 2020. The rising adoption of patient portal software and the availability of a large number of patient portals and software are contributing to the high revenue share of the segment. Moreover, increasing demand for digital tools such as a portal for patient engagement is expected to drive the adoption of patient portals. For instance, according to an article published by DocASAP, 54% of the patients prefer digital tools over the phone for appointments reminders and communication.
The telemedicine segment is expected to register the fastest growth over the forecast period. High adoption of telemedicine during the COVID-19 pandemic and increasing preference for these services are the key contributing factors driving the growth of the segment. Factors such as the increasing investments and funding in the telemedicine industry and the increasing acceptance of telemedicine by health insurance companies are estimated to drive the growth. For instance, in October 2021, Alloy, a telehealth company addressing women’s needs raised USD 3.9 million.
End-user Insights
The provider segment held the largest revenue share of over 71% in 2021 and is estimated to be the fastest-growing segment during the forecast period, owing to the high adoption rate of cloud computing and software as a service technology, by hospitals. For instance, according to a survey conducted by HIMSS, one of every two hospitals in Germany use cloud solutions for clinical records and administration.
Many hospitals are installing and updating digital technologies to cater to challenges such as shortage of skilled workforce and limited resources, thereby driving the growth. For instance, St. Thomas Elgin General Hospital from Canada implemented SaaS technology for medical imaging referral management, in November 2021.
The payer segment is estimated to witness lucrative growth during the forecast period. Health insurance companies have started adopting SaaS technology for various applications such as medical billing, ERP, and other portal systems. It is attributed to its benefits, such as reduction in deployment time, reduced costs, scalability, and ease of upgrades. Increasing digitalization in the insurance industry is supporting the growth of the segment.
Deployment Model Insights
In 2021, the hybrid segment held the highest revenue share of 50.5% in the global healthcare software as a service market. It is attributed to the high adoption of hybrid SaaS by all industries, including healthcare as it offers a combination of public and private cloud. The hybrid deployment model offers benefits, including flexibility to support a remote workforce, better security and data control at reduced costs, improved scalability, enhanced innovation, improved security, and easy risk management.
The public deployment model is estimated to witness lucrative growth during the forecast period. According to a study conducted by HIMMS in Germany, the majority of the hospitals in Germany use the public cloud. Public SaaS offers significant cost savings as they are managed by third-party vendors. Moreover, it is easy to maintain and upgrade. However, the public cloud may have speed, accessibility, and security issues cloud is shared.
Regional Insights
In 2021, North America accounted for the highest revenue share of 47.8%. The high market presence of major players such as IBM, Google, SAP, and Microsoft in the U.S. and Canada is a major contributor to the high revenue share. Moreover, high awareness about cloud technologies and rapid adoption of different cloud technologies including SaaS is further driving the growth.
There is high demand for quality care and high regulatory pressure to reduce care costs. This is driving the demand for various digital healthcare technologies thereby driving the market growth. For instance, in August 2021, the Health Resources and Services Administration (HRSA) invested USD 19 million for telehealth expansion.
Asia Pacific is anticipated to witness the fastest CAGR during the forecast period, attributed to various initiatives undertaken by key stakeholders. For instance, in November 2021, Augnito.ai, an artificial intelligence-based voice solution provider, introduced The Big Diwali SaaS Fest to offer and promote digitalization for clinical documentation among doctors in India.
Factors, such as the rise in adoption of mobile and telehealth and growing digitalization are supporting the growth. According to an article published by the Ministers Department of Health in April 2020, 4.3 million health services were delivered by telehealth by the Australian Government. The government also announced its plans to further expand telehealth facilities in the near future.
Some of the prominent players in the Healthcare Software As A Service Market include:
- Jag Products LLC (US)
- Oracle (U.S)
- Cognizant (U.S)
- INFOR (U.S)
- Epic Systems Corporation (U.S)
- Elinext (U.S)
- Meta (U.S)
- CPSI (U.S)
- SAP (Germany)
- Medical Informatin Techology Inc. (U.S)
- eClinicalWorks (U.S)
- athenahealth (U.S)
- Koninklijke Philip N.V (Netherlands)
- Change Healthcare (U.S)
- Cerner Corporation (U.S)
- Optum Inc. (U.S)
- Allscripts Healthcare LLC (U.S)
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Healthcare Software As A Service market
By Product
- Ententerprise Content Management
- Business Intelligence
- Customer Relationship Management (CRM)
- Revenue Cycle Management (RCM)
By Delivery Mode
By Applications
- Healthcare Providers
- Healthcare Players
- Telemedicine
- Medical Billing
- Patient Portal
- Mobile communication
- e Prescribing
- EHR Systems
- ERP & HR portal
- Others
By Deployment
By End User
By Geography
North America
Europe
- Germany
- France
- United Kingdom
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Southeast Asia
- Rest of Asia Pacific
Latin America
- Brazil
- Rest of Latin America
Middle East & Africa (MEA)
- GCC
- North Africa
- South Africa
- Rest of Middle East & Africa
Key Points Covered in Healthcare Software As A Service Market Study:
- Growth of Healthcare Software As A Service in 2022
- Market Estimates and Forecasts (2017-2030)
- Brand Share and Market Share Analysis
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Recommendation on Key Winning Strategies
- COVID-19 Impact on Demand for Healthcare Software As A Service and How to Navigate
- Key Product Innovations and Regulatory Climate
- Healthcare Software As A Service Consumption Analysis
- Healthcare Software As A Service Production Analysis
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