Healthcare Software As A Service Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 27.48 Billion |
| Market Size (2029) | USD 60.93 Billion |
| CAGR (2024 - 2029) | 17.26 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Healthcare Software As A Service Market Analysis
The Healthcare Software As A Service Market size is estimated at USD 27.48 billion in 2024, and is expected to reach USD 60.93 billion by 2029, at a CAGR of 17.26% during the forecast period (2024-2029).
Key drivers of the studied market include the healthcare sector's increasing digitalization, the cost-effectiveness of software as a service (SaaS), technological advancements in healthcare software services, the rising adoption of telehealth and patient portals, and heightened strategic activities by major market players.
The healthcare sector's digitalization boosts the use of electronic health records, telehealth, data management, analytics, and patient engagement tools. This surge in digital tools amplifies the demand for healthcare SaaS, propelling the studied market. For example, in May 2024, RFX Solutions, known for its SaaS compliance software aimed at streamlining healthcare facility compliance, secured USD 9 million in a series A funding round from Arthur Ventures. This capital infusion is poised to fast-track RFX Solutions’ software development, refine its product roadmap, and strengthen its sales efforts. Such investments not only bolster the digitalization of the healthcare sector but also amplify the demand for cloud-based healthcare software services, driving the studied market.
Additionally, technological advancements in healthcare SaaS are set to boost their adoption by healthcare organizations, enhancing operational efficiency and patient outcomes. For instance, in January 2024, Rectangle Health, specializing in patient engagement and compliance solutions, unveiled its new Practice Management Bridge. This innovative platform integrates patient engagement, revenue acceleration, and compliance management, automating interactions and significantly boosting practice profitability.
Furthermore, strategic moves like launching new healthcare SaaS solutions enhance their accessibility, propelling the studied market. For instance, in June 2024, Keragon Inc, a healthcare automation software firm, introduced 'Keragon', a no-code workflow automation platform tailored for the U.S. healthcare sector. This platform seamlessly connects popular tools like EHRs, healthcare CRMs, AI medical scribes, and billing software, enhancing the accessibility of healthcare SaaS.
In conclusion, the digitalization of healthcare, technological strides, and strategic maneuvers by key players are set to propel the studied market. However, concerns over data safety and a stringent regulatory landscape may hinder the market growth over the forecast period.
Healthcare Software As A Service Market Trends
Telemedicine Segment is Expected to Hold Significant Market Share Over the Forecast Period.
Telemedicine leverages SaaS platforms to provide remote healthcare services, eliminating the need for intricate on-premises setups. This shift not only boosts telemedicine's accessibility but also its scalability. Moreover, these healthcare SaaS platforms seamlessly integrate electronic health records, enabling providers to access patient histories and notes during consultations. Given the rising adoption of telehealth services and proactive moves by major market players, the segment is poised for growth in the coming years.
As telemedicine gains traction, the demand for healthcare SaaS solutions surges, propelling the market's growth. For example, a 2023 report from the Canadian Institute for Health Information highlighted that in March 2022, nearly 50% of Canadians were offered virtual hospital visits alongside traditional ones. Furthermore, about 84% of Canadian primary care physicians expressed greater satisfaction with virtual care compared to 68% of their international counterparts. Such statistics underscore the global shift towards telehealth consultations, fueling the demand for telemedicine SaaS platforms and, in turn, the market's expansion.
Additionally, strategic moves like software launches are set to enhance the accessibility and affordability of healthcare SaaS in telemedicine, further propelling the market. For instance, in August 2024, VSee Health, Inc. - a SaaS platform empowering clinicians to craft telehealth workflows sans programming - unveiled its 'Aimee' telehealth service in Wichita, Kansas, collaborating with Stand Together. Aimee offers virtual healthcare, lab services, and prescription access, irrespective of a patient's insurance status, and works in tandem with local community centers. Such initiatives from industry leaders are anticipated to bolster segment revenues in the coming years.
In conclusion, the global surge in telemedicine adoption, coupled with strategic activities from key market players, is set to amplify the demand for Healthcare SaaS in telemedicine, driving the market's growth trajectory.
North America is Expected to Hold the Significant Market Share Over the Forecast Period
The healthcare software as a service market in North America is driven by factors such as the rising prevalence of chronic diseases, advanced healthcare infrastructure, growing adoption of electronic health records and patient portals, and rising strategic activities by key players in the region.
The increasing adoption of electronic health records and patient portals drives the demand for SaaS EHR solutions for secure, cloud-based storage. This allows providers to access patient records remotely, facilitating better care coordination and communication. Hence, the rising adoption of electronic health records and patient portals is expected to drive the studied market over the forecast period.
For example, in July 2024, Beebe Healthcare, a prominent healthcare system in Sussex County, Delaware, forged a strategic alliance with Epic, a top-tier healthcare software firm, to roll out its enterprise electronic health record (EHR) system. This collaboration seeks to enhance the integrated care experience for patients in Sussex County, United States. In another instance, April 2024 saw Munich Re Life US and Clareto unveil their innovative digital tool, the Automated EHR Summarizer. This tool adeptly condenses electronic health record (EHR) data into two user-friendly formats: a human-readable HTML report and structured digital data suitable for rules, models, and analytics. Such advancements underscore the growing reliance on healthcare SaaS in the region.
Moreover, strategic endeavors, particularly investments aimed at pioneering technologies in the healthcare SaaS domain, are set to broaden technology accessibility and invigorate the market in the coming years. In March 2024, Foundation Health, a U.S.-based healthcare tech firm, secured USD 3 million in seed funding from Y Combinator. The company asserts that this capital infusion will amplify its suite of SaaS offerings within the healthcare landscape. In a parallel move, HealthArc, a virtual healthcare entity, clinched USD 5 million in growth funding from ScOp Venture Capital, marking a significant leap in its ambition to enhance care management platforms. Such financial backing not only accelerates the evolution of healthcare SaaS platforms but also fortifies the market's growth trajectory.
Given these dynamics, the North American market is poised for continued growth, driven by the escalating adoption of electronic health records, patient portals, and strategic maneuvers by industry leaders.
Healthcare Software As A Service Industry Overview
The healthcare software as a service market is semi-consolidated due to the presence of global and regional players in the field. The major players in the market are adopting various strategic activities such as mergers, collaborations, and raising funds for new solutions development. Some of the key players in the market are Pager, Inc., CorroHealth, CareCloud, Inc.,Veradigm LLC, and Flatiron Health among other players.
Healthcare Software As A Service Market Leaders
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Pager, Inc.
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CorroHealth
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CareCloud, Inc.
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Veradigm LLC
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Flatiron Health
*Disclaimer: Major Players sorted in no particular order
Healthcare Software As A Service Market News
- May 2024: Clover Health Investments, Corp., a physician enablement technology company, reported the launch of the clinical decision support tool, Clover Assistant, which is now generally available for external payors and providers under the brand name Counterpart Assistant. This strategic move with Counterpart Health, a subsidiary of Clover Health, aims to extend the benefits of data-driven proven technology and personalized care to a wider audience, enabling enhanced patient outcomes and reduced healthcare costs across the United States.
- February 2024: Healthcare Triangle Inc., a company whose objective is to meet technology, data, care delivery, and business operation needs, reported the launch of a new software-as-a-service (SaaS) solution that is intended to move the needle on both the integration of artificial intelligence (AI) and digital transformation in the healthcare and pharmaceutical spaces.
Healthcare Software As A Service Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and market definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Digitalization of Healthcare
4.2.2 Rising Technological Advancements
4.3 Market Restraints
4.3.1 Data Safety Concerns Coupled with Stringent Regulatory Framework
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Application
5.1.1 Patient Portal
5.1.2 Telemedicine
5.1.3 Mobile Communication
5.1.4 ePrescribing
5.1.5 EHR Systems
5.1.6 Medical Billing
5.1.7 Other (Clinical Decision Support and Healthcare Analytics)
5.2 By Deployment Model
5.2.1 Private Cloud
5.2.2 Public Cloud
5.2.3 Hybird Cloud
5.3 By End-User
5.3.1 Healthcare Providers
5.3.2 Healthcare Payers
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 South Korea
5.4.3.6 Rest of Asia-Pacific
5.4.4 Middle East and Africa
5.4.4.1 GCC
5.4.4.2 South Africa
5.4.4.3 Rest of Middle East and Africa
5.4.5 South America
5.4.5.1 Brazil
5.4.5.2 Argentina
5.4.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Pager, Inc.
6.1.2 CorroHealth
6.1.3 CareCloud, Inc.
6.1.4 eClinicalWorks
6.1.5 Oracle
6.1.6 CISCO
6.1.7 Flatiron Health
6.1.8 IBM Corporation
6.1.9 ServiceNow
6.1.10 Athenahealth, Inc.
6.1.11 Veradigm LLC
6.1.12 Optum Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Healthcare Software As A Service Industry Segmentation
As per the scope of the report, healthcare software as a service refers to cloud-based software applications designed for the healthcare industry. These medical SaaS solutions help healthcare organizations manage and streamline various aspects of their operations, such as patient management, clinical documentation, revenue cycle management, and more. The healthcare software as a service market is segmented into application, deployment model, end-user, and geography. By application, the market is segmented into patient portal, telemedicine, mobile communication, ePrescribing, EHR systems, medical billing, and by others, the market is segmented into clinical decision support and healthcare analytics. By deployment model, the market is segmented into private cloud, public cloud, and hybrid cloud. By end-users, the market is segmented into healthcare providers and healthcare payers. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the 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 values (in USD) for the above segments.
| By Application | |
| Patient Portal | |
| Telemedicine | |
| Mobile Communication | |
| ePrescribing | |
| EHR Systems | |
| Medical Billing | |
| Other (Clinical Decision Support and Healthcare Analytics) |
| By Deployment Model | |
| Private Cloud | |
| Public Cloud | |
| Hybird Cloud |
| By End-User | |
| Healthcare Providers | |
| Healthcare Payers |
| Geography | ||||||||
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Healthcare Software As A Service Market Research FAQs
How big is the Healthcare Software As A Service Market?
The Healthcare Software As A Service Market size is expected to reach USD 27.48 billion in 2024 and grow at a CAGR of 17.26% to reach USD 60.93 billion by 2029.
What is the current Healthcare Software As A Service Market size?
In 2024, the Healthcare Software As A Service Market size is expected to reach USD 27.48 billion.
Who are the key players in Healthcare Software As A Service Market?
Pager, Inc., CorroHealth, CareCloud, Inc., Veradigm LLC and Flatiron Health are the major companies operating in the Healthcare Software As A Service Market.
Which is the fastest growing region in Healthcare Software As A Service Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Healthcare Software As A Service Market?
In 2024, the North America accounts for the largest market share in Healthcare Software As A Service Market.
What years does this Healthcare Software As A Service Market cover, and what was the market size in 2023?
In 2023, the Healthcare Software As A Service Market size was estimated at USD 22.74 billion. The report covers the Healthcare Software As A Service Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Healthcare Software As A Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Healthcare Software As A Service Industry Report
Statistics for the 2024 Healthcare Software As A Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Healthcare Software As A Service analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
