Market Size of Healthcare ERP Industry
![Healthcare ERP Market Summary](https://s3.mordorintelligence.com/healthcare-erp-market/1696425652094_healthcare-erp-market_Market_Summary.webp)
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 6.44 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
By Type | |
Cloud ERP | |
On-premise ERP | |
Hybrid ERP |
By Offering | |
Software | |
Services |
By Applications | |
Fiscal Management | |
Supply Chain Management | |
Human Capital Management | |
Inventory and Material Management | |
Other Applications |
By End User | |
Hospitals | |
Clinics | |
Private Healthcare Institutions | |
Other End Users |
Geography | ||||||||
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Healthcare ERP Market Size Summary
The healthcare ERP market is poised for significant growth, driven by the increasing adoption of ERP systems within the healthcare sector. This growth is largely attributed to the rising demand for cost-effective healthcare solutions and the need for efficient management of critical business processes such as billing and inventory. The COVID-19 pandemic highlighted the vulnerabilities in hospital supply chains, prompting healthcare administrators to invest in modern technologies like ERP systems to enhance preparedness for future challenges. The shift towards cloud-based ERP solutions is particularly notable, as these systems offer lower initial costs, greater flexibility, and easier scalability, making them attractive to healthcare providers. The expansion of ERP platforms across various medical centers further supports market growth, as seen in partnerships and implementations by key players in the industry.
North America is expected to dominate the healthcare ERP market, fueled by high adoption rates of healthcare IT and supportive government initiatives. The region's focus on remote patient care and strategic partnerships among market players are also contributing to this growth. Companies like Infor and HARMAN International are actively engaging in collaborations to modernize healthcare data platforms, which is expected to enhance patient outcomes and drive ERP adoption. The competitive landscape of the market is characterized by strategic activities such as partnerships, product development, and mergers, with major players like Veradigm LLC, Azalea Health, and Premier, Inc. leading the charge. These dynamics, coupled with the ongoing digital transformation in healthcare, are anticipated to propel the healthcare ERP market forward over the forecast period.
Healthcare ERP Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Growing Adoption of ERP in Healthcare
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1.2.2 Increasing Demand for Cost-Effective Healthcare Solutions
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1.2.3 Increasing Demand for Remote Patient Care
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1.3 Market Restraints
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1.3.1 High Cost of ERP Software
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1.3.2 Complex Data Conversion
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers/Consumers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD)
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2.1 By Type
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2.1.1 Cloud ERP
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2.1.2 On-premise ERP
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2.1.3 Hybrid ERP
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2.2 By Offering
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2.2.1 Software
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2.2.2 Services
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2.3 By Applications
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2.3.1 Fiscal Management
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2.3.2 Supply Chain Management
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2.3.3 Human Capital Management
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2.3.4 Inventory and Material Management
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2.3.5 Other Applications
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2.4 By End User
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2.4.1 Hospitals
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2.4.2 Clinics
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2.4.3 Private Healthcare Institutions
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2.4.4 Other End Users
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2.5 Geography
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2.5.1 North America
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2.5.1.1 United States
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2.5.1.2 Canada
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2.5.1.3 Mexico
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2.5.2 Europe
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2.5.2.1 Germany
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2.5.2.2 United Kingdom
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2.5.2.3 France
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2.5.2.4 Italy
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2.5.2.5 Spain
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2.5.2.6 Rest of Europe
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2.5.3 Asia-Pacific
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2.5.3.1 China
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2.5.3.2 Japan
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2.5.3.3 India
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2.5.3.4 Australia
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2.5.3.5 South Korea
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2.5.3.6 Rest of Asia-Pacific
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2.5.4 Middle East and Africa
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2.5.4.1 GCC
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2.5.4.2 South Africa
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2.5.4.3 Rest of Middle East and Africa
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2.5.5 South America
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2.5.5.1 Brazil
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2.5.5.2 Argentina
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2.5.5.3 Rest of South America
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Healthcare ERP Market Size FAQs
What is the current Healthcare ERP Market size?
The Healthcare ERP Market is projected to register a CAGR of 6.44% during the forecast period (2024-2029)
Who are the key players in Healthcare ERP Market?
Veradigm LLC, Azalea Health, Focus Softnet Pvt Ltd, Premier, Inc and Infor are the major companies operating in the Healthcare ERP Market.