Market Trends of Healthcare Compliance Software Industry
Cloud-Based Segment Holds Significant Share in the Market During the Forecast Period
The cloud-based segment is expected to witness significant growth in the healthcare compliance software market over the forecast period. The key factor contributing to the growth of the segment is cost-effectiveness or subscription-based pricing model, and increased security and scalability. Besides, favorable government support is also contributing to market growth. For instance, the US Health Insurance Portability and Accountability Act (HIPAA), the European General Data Protection Regulation (GDPR), and the industry-standard CSF HITRUST Alliance all promote and regulate the protection of customers' personal information in online services. SaaS solutions and public cloud software are increasingly used to build HIPAA security programs and manage infrastructure without relying on on-premises data center experts and servers owing to their rapid deployment, scalability of workloads, applications, and affordable pricing. Thus, the adoption of cloud-based software by hospitals, and healthcare organizations would strengthen segment growth.
Additionally, the launch of new products in the segment will further drive market growth. For instance, in January 2023, CenTrak announced the launch of WorkflowRT, a scalable, cloud-based platform that automates workflow and communications to reduce the load of manual paperwork essential throughout each stage of clinical care. It allows organizations to track key patient flow indicators through the platform's integrated reporting in order to identify abnormalities or bottlenecks. Healthcare institutions have shown a decrease in patient wait times, an increase in care time with patients, and higher levels of satisfaction among patients and staff by leveraging historical measurements to support process improvements. Thus, the factors mentioned above are expected to propel the segment's growth over the forecast period.
North America Holds the Largest Market Share of the Healthcare Compliance Software Market
North America is expected to dominate the healthcare compliance software market over the forecast period. Among the other countries in the region, the United States is leading the market due to the rising incidents of cyber-attacks and data breaches, growing adoption of cloud-based solutions, increasing adoption of technology-driven solutions, and digitalization.
The increasing incidents of data breaches and cyber-attacks are contributing to market growth. For instance, as per the Office for Civil Rights (OCR) of the United States government reports, healthcare organizations reported 145 data breaches in the first quarter of 2023. However, in 2022, there were 707 reported incidents of data breaches, resulting in the theft of 51.9 million records. The most prevalent forms of healthcare data breaches in 2022 were hacking and IT incidents (555), unauthorized access or disclosure (113), physical theft (35), and improper record disposal (4). In addition, over the previous five years, the OCR imposed USD 65,658,440 in HIPAA fines. This includes USD 2,170,140 in 2022, with the largest penalty issued to Oklahoma State University's Center for Health Services, which had to pay USD 875,000 after criminal hackers penetrated its server. Such cases of cyber-attacks & data breaches are likely to drive the demand for healthcare compliance software which in turn is expected to boost the market growth.
Furthermore, the growing adoption of digital transformation in healthcare and cloud-based solutions also contributes to market growth. For instance, a 2023 article reported a study published by Duplo Cloud, the pioneer in the field of DevOps automation and compliance which conducted a survey among IT professionals to understand the adoption of cloud computing software in the healthcare industry. It reported that hospitals and Medicare/Medicaid organizations had the highest adoption rates of cloud infrastructure, at 91% and 90%, respectively, among the many types of healthcare organizations. The lowest levels of adoption were observed in dental offices (23%), and doctor's offices (37%). Thus, the high adoption rate by healthcare firms is likely to drive the healthcare compliance software market in the region over the forecast period.
Additionally, the presence of several key players and their focus on various strategies such as mergers & acquisitions, partnerships, product launches, and collaboration are also contributing to the market growth in the region. For instance, Panacea Healthcare Solutions acquired US-based healthcare software firm Holliday & Associates in August 2022. With this acquisition, the company can reach 600+ hospitals, medical practices, accountable care organizations, and health systems as clients. Also, the clients of the acquirer benefit from this acquisition as they have access to an extensive range of software solutions from a single provider. Thus, such acquisitions would strengthen the demand for software services which, in turn, is anticipated to boost the healthcare compliance software market.
Therefore, due to the factors mentioned above, the healthcare compliance software market is expected to grow in the region over the forecast period.
