Healthcare ERP Market Size (2024 - 2029)

Healthcare ERP Market Analysis

The healthcare ERP market size is expected to grow from USD 7.16 billion in 2023 to USD 9.90 billion by 2028, registering a CAGR of 6.44% during the forecast period.

The most significant impact of COVID-19 was on the hospital supply chain, where there were enormous demands for masks, antivirals, and antibiotics as the medical staff labored to protect themselves from the virus. The production facilities struggled to meet the market demand as it rose. The factories and manufacturing units came to a stop as more and more manufacturing employees became infected with the virus. However, as per the report published by Deskera in September 2022, as COVID-19 subsided, hospital administrators turned their attention to modern technology and tools that enable them to be better prepared for the future. The top priorities for the healthcare industry include handling crucial business processes like billing and inventory, which is possible using ERP, and hence, the market is expected to have significant growth over the coming years.

The healthcare ERP market is expected to grow due to the growing adoption of ERP in healthcare, increasing demand for cost-effective healthcare solutions, and increasing demand for remote patient care. Through cloud ERP, healthcare practitioners can remotely access information, enabling them to give patients medical advice based on up-to-date patient records in the absence of their doctors.

In addition, the optimum use of the limited funds available to promote health and provide healthcare is a key goal of health systems. Hospitals and medical practices have been implementing new technological solutions to reduce expenses and enhance patient care for decades. For instance, in March 2022, Odoo stated that the ERP system can boost a hospital's productivity and encourage automation to reduce costs. In addition, by implementing ERP software to support improved supply chain management, most hospitals may significantly reduce their supply chain costs. Thus, the increasing demand for cost-effective healthcare solutions is expected to increase the growth of the healthcare ERP market over the study period.

Furthermore, the expansion of delivering the ERP platforms to various medical centers is expected to significantly impact market growth. For instance, in October 2021, Infor and system integrator Apex Systems delivered an ERP platform to Amsterdam UMC, consisting of the Academic Medical Center and the VU Medical Center. Infor CloudSuite Healthcare is an industry-specific cloud solution specifically designed for healthcare organizations' operational processes and integration needs. The solution can be used for the hospital's financial administration, procurement, and logistics. Hence, the expansion of ERP services for various medical centers is expected to have increased demand, which will likely propel the market to grow over the study period.

However, the high cost of ERP software and complex data conversion is expected to hinder market growth over the forecast period.

Healthcare ERP Industry Segmentation

As per the report's scope, Enterprise resource planning (ERP) refers to the type of software companies and organizations use to manage business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. Healthcare ERP systems help hospitals and medical professionals streamline their business processes and run their businesses more efficiently. The Healthcare ERP Market is Segmented by Type (Cloud ERP, On-premise ERP, and Hybrid ERP), Offering (Software and Services), Applications (Fiscal Management, Supply Chain Management, Human Capital Management, Inventory, and Material Management, and Other Applications), End User (Hospitals, Clinics, Private Healthcare Institutions, and Other End Users) and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD) for the above segments.