The U.S. healthcare ERP market size was exhibited at USD 2.95 billion in 2023 and is projected to hit around USD 5.43 billion by 2033, growing at a CAGR of 6.3% during the forecast period 2024 to 2033.
| Report Coverage | Details |
| Market Size in 2024 | USD 3.14 Billion |
| Market Size by 2033 | USD 5.43 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 6.3% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | Function, Deployment |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional Scope | U.S. |
| Key Companies Profiled | Epic Systems Corporation.; Cerner Corporation; McKesson Corporation; Oracle Corporation; Microsoft Corporation; Sage Software Solution; Pvt. Ltd.; QAD Inc.; Medical Information Technology, Inc.; SAP SE |
The ease in breaking data silos across multiple business functions, automation of daily tasks, and streamlining information across various departments have triggered the adoption of ERP solutions in every industry, including healthcare, across the U.S. The adoption of ERP in the U.S. healthcare sector can be attributed to various advantages, such as an increase in caregiving efficiency and better utilization of resources, offered by ERP software.
Switching from legacy ERP systems to cloud-based ERP systems is benefitting the U.S. healthcare sector in the form of several functionalities and personalization features. Cloud-based ERP systems can provide healthcare organizations with universal access to data at any given time and from any location, thereby enhancing the efficiency of critical business functions. Given that all the information is centralized, the approach also brings healthcare providers, patients, and insurance providers in the U.S. under a single platform. Thus, the rise of cloud deployment services in the healthcare sector is expected to drive the growth of the market over the forecast period.
The healthcare sector generates large volumes of financial data and other information. Most of the information is related to the revenue generated from patients, insurance claims, and other expenses, among others. To eliminate this silo of data, healthcare administrators have started adopting ERP systems that provide disparate software for processing and storing data. Such systems can be typically beneficial because of their ability to increase efficiency, provide real-time data and analytical solutions, and data security due to the encryption of the database. These benefits are encouraging healthcare organizations in the U.S. to opt for ERP systems.
The integration of artificial intelligence (AI) in ERP solutions is benefitting the healthcare sector significantly. Healthcare providers in the U.S. have started integrating AI into the electronic healthcare record (EHR) management system to gain actionable insights and to help in providing personalized patient care at lower costs. The growing preference for healthcare ERP solutions featuring AI capabilities is opening new opportunities for vendors offering various financial applications, business intelligence packages, and ERP systems. Integrating natural language processing (NLP) programs and machine learning (ML) along with AI in healthcare ERP systems can also help in identifying patients proactively.Algorithms used by AI can be used to determine patterns among patients' clinical records and use the information to construct improved and augmented methods for therapy and even diagnosis.
The COVID-19 pandemic had both positive and negative impacts on the growth of the U.S. healthcare ERP market. The COVID-19 pandemic severely impacted the medical supply chain in the U.S. The shortages in supply prompted by the COVID-19 pandemic have only aggravated these issues, making it increasingly difficult for clinicians to obtain the commodities that are necessary in order to provide quality treatment at a fair cost. It put enormous pressure on this sector of the country's economy. On the positive side, the pandemic highlighted the importance of data-driven decision-making in managing public health emergencies. ERP systems provide healthcare organizations with robust data analytics and reporting capabilities, enabling them to track and analyze critical metrics, monitor resource utilization, manage supply chains, and make informed decisions. The need for real-time data and analytics during the pandemic has further emphasized the value of ERP solutions.
Based on function, the U.S. healthcare ERP market has been further segmented into inventory and material management, supply chain and logistics management, patient relationship management, finance and billing, and others. The finance and billing segment accounted for the largest market share of 32.3% in 2023. ERP systems offer robust reporting and analytics capabilities in the finance and billing segment. These features enable healthcare organizations to generate comprehensive financial reports, monitor key performance indicators, and gain actionable insights. The availability of accurate and timely financial data empowers healthcare providers to make informed decisions, identify revenue trends, and optimize financial performance.
The inventory and material management segment is expected to grow at the fastest CAGR of 7.5% during the forecast period. This is owing to the timely need for medical devices to ensure effective therapy and diagnosis of the patients, storing the inventory, assuring on-time ordering of material, and minimizing wastage and storage expenses by maintaining an adequate inventory level. ERP enables automated inventory management, ensuring its accuracy, tracking supply, and refining the overall operation, which has a favorable impact on the U.S. healthcare company's overall development and efficiency.
The on-premisessegment accounted for the largest revenue share of around 74.0% in 2023. This segment offers benefits such as centralized inventory control, optimization, and the integration of financial and human resource systems, as well as the capacity to adapt and customize the software for different needs and requirements and data security. It enhances patient care, and improves supply chain, inventory management, and financial analysis.
The cloud segment is expected to register the fastest CAGR of 9.2% over the forecast period. Cloud computing is allowing enterprises to store their data on a remote server and access it using the internet. Technological advancement in cloud computing is facilitating agility, scalability, reliability, and flexibility, thereby encouraging the adoption of cloud computing in the healthcare industry. ERP solutions enable operational improvements in the overall business process and benefit in terms of profitability, productivity, and growth.
The dynamics of the healthcare system in the U.S. are changing rapidly as automation continues to proliferate in the healthcare sector. At this juncture, cloud computing is allowing vendors to cater to the needs of their clients through various delivery models, including software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). These models allow customers to pay according to usage and reduce their IT infrastructure costs. Cloud-based ERP systems can provide healthcare organizations with universal access to data at any given time and from any location, thereby enhancing the efficiency of critical business functions.
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. healthcare ERP market
Function
Deployment
Chapter 1. Methodology and Scope
1.1. Market Segmentation & Scope
1.1.1. Function
1.1.2. Deployment
1.1.3. Estimates and forecast timeline
1.2. Research Methodology
1.3. Information Procurement
1.3.1. Purchased database
1.3.2. internal database
1.3.3. Secondary sources
1.3.4. Primary research
1.3.5. Details of primary research
1.4. Information or Data Analysis
1.5. Market Formulation & Validation
1.6. Model Details
1.7. List of Secondary Sources
1.8. List of Primary Sources
1.9. Objectives
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segment Outlook
2.2.1. Function Outlook
2.2.2. Deployment Outlook
2.3. Competitive Insights
Chapter 3. U.S. Healthcare ERP Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.1.1. Parent market outlook
3.1.2. Related/ancillary market outlook
3.2. Penetration & Growth Prospect Mapping
3.3. Market Dynamics
3.3.1. Market driver analysis
3.3.2. Market restraint analysis
3.4. U.S. Healthcare ERP Market Analysis Tools
3.4.1. Industry Analysis - Porter’s
3.4.1.1. Supplier power
3.4.1.2. Buyer power
3.4.1.3. Substitution threat
3.4.1.4. Threat of new entrant
3.4.1.5. Competitive rivalry
3.4.2. PESTEL Analysis
3.4.2.1. Political landscape
3.4.2.2. Technological landscape
3.4.2.3. Economic landscape
Chapter 4. U.S. Healthcare ERP: Function Estimates & Trend Analysis
4.1. U.S. Healthcare ERP Market: Key Takeaways
4.2. U.S. Healthcare ERP Market: Movement & Market Share Analysis, 2024 & 2033
4.3. Inventory and material management
4.3.1. Inventory and material management market estimates and forecasts, 2021 to 2033
4.4. Supply chain and logistics management
4.4.1. Supply chain and logistics management market estimates and forecasts, 2021 to 2033
4.5. Patient relationship management
4.5.1. Patient relationship management market estimates and forecasts, 2021 to 2033
4.6. Finance and billing
4.6.1. Finance and billing market estimates and forecasts, 2021 to 2033
4.7. Others
4.7.1. Others market estimates and forecasts, 2021 to 2033
Chapter 5. U.S. Healthcare ERP: Deployment Estimates & Trend Analysis
5.1. U.S. Healthcare ERP Market: Key Takeaways
5.2. U.S. Healthcare ERP Market: Movement & Market Share Analysis, 2024 & 2033
5.3. On-Premises
5.3.1. On-premises market estimates and forecasts, 2021 to 2033
5.4. Cloud
5.4.1. Cloud market estimates and forecasts, 2021 to 2033
Chapter 6. Competitive Landscape
6.1. Recent Developments & Impact Analysis, By Key Market Participants
6.2. Market Participant Categorization
6.2.1. Epic Systems Corporation.
6.2.1.1. Company overview
6.2.1.2. Financial performance
6.2.1.3. Product benchmarking
6.2.1.4. Strategic initiatives
6.2.2. Cerner Corporation
6.2.2.1. Company overview
6.2.2.2. Financial performance
6.2.2.3. Product benchmarking
6.2.2.4. Strategic initiatives
6.2.3. McKesson Corporation
6.2.3.1. Company overview
6.2.3.2. Financial performance
6.2.3.3. Product benchmarking
6.2.3.4. Strategic initiatives
6.2.4. Oracle Corporation
6.2.4.1. Company overview
6.2.4.2. Financial performance
6.2.4.3. Product benchmarking
6.2.4.4. Strategic initiatives
6.2.5. Microsoft Corporation
6.2.5.1. Company overview
6.2.5.2. Financial performance
6.2.5.3. Product benchmarking
6.2.5.4. Strategic initiatives
6.2.6. Sage Software Solution Pvt. Ltd.
6.2.6.1. Company overview
6.2.6.2. Financial performance
6.2.6.3. Product benchmarking
6.2.6.4. Strategic initiatives
6.2.7. QAD Inc.
6.2.7.1. Company overview
6.2.7.2. Financial performance
6.2.7.3. Product benchmarking
6.2.7.4. Strategic initiatives
6.2.8. Media Information Technology, Inc.
6.2.8.1. Company overview
6.2.8.2. Financial performance
6.2.8.3. Product benchmarking
6.2.8.4. Strategic initiatives
6.2.9. SAP SE
6.2.9.1. Company overview
6.2.9.2. Financial performance
6.2.9.3. Product benchmarking
6.2.9.4. Strategic initiatives
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers