Market Trends of Healthcare ERP Industry
Cloud ERP Type is Expected to Have Largest Share in the Market Over the Forecast Period
Cloud ERP is an enterprise resource planning system that runs on a vendor's cloud platform, allowing organizations to access it online. Because of the lower initial costs, better flexibility, and simpler scalability of cloud-based ERP systems, healthcare providers are likely to adopt them at a growing rate during the forecast period, leading to significant growth for the cloud ERP segment. Similarly, a telehealth platform with an enterprise resource planning system can benefit home health providers, which is possible through cloud-based ERP systems.
In addition, the segment is expected to grow significantly over the study period owing to increasing demand for remote patient care and the advantages of cloud-based ERP systems over other solutions. For instance, as per the report published by Quocent in February 2022, the benefits of cloud-based ERP systems include increased ERP performance, procurement management, decreased operating costs, increased security, and enhanced access to information. These benefits of the cloud ERP increase the adoption in healthcare facilities, which is expected to have significant growth in the segment.
Furthermore, the new strategies by the market players help to continue the cloud-based ERP services over the coming years, which is expected to boost the market to grow over the forecast period. For instance, in July 2022, the Global Healthcare Exchange (GHX) stated that it helped advance healthcare digital transformation by fueling cloud ERP adoption. GHX successfully facilitated over 80 cloud ERP migrations and has been selected to manage more than 50 additional cloud migrations in the next two years. Hence, these continued services of cloud ERP are expected to boost segment growth over the forecast period.
North America is Expected to Have Significant Growth in the Market Over the Forecast Period
North America is expected to account for the largest share of the healthcare ERP market due to the high adoption of healthcare IT and government initiatives promoting the adoption of ERP in healthcare facilities along with increasing remote patient care in the region. In addition, several key players in the market are constantly launching new software by partnering with other companies to extend their reach to end users, which is expected to propel the market growth in the region. As per various studies, it appears that enterprise resource planning (ERP) will be the next use of artificial intelligence (AI) that American hospitals will adopt, as electronic medical records (EMRs) have largely become the standard in the United States.
In addition, the market players are entering strategic partnerships and agreements for software platforms that help in improving patient outcomes. For instance, in March 2023, Infor, the industry cloud company, and HARMAN International entered a strategic partnership that will allow healthcare and life sciences organizations to modernize their data platforms, strategies, and roadmaps through customer-centric services and solutions. HARMAN, through its Digital Transformation Solutions (DTS) business unit, and Infor, will deliver a jointly developed integrated healthcare platform, built on the cloud, that will help industry clients seamlessly transform data, analytics, intelligence, and governance functions in a secure, cost-effective, and privacy-preserving manner.
Thus, all the above-mentioned factors like the high adoption of healthcare IT along with new strategies by the key market players in the region increase the usage of ERP in healthcare settings which is expected to boost the market growth over the forecast period.
