May 21, 2024

The Global Healthcare ERP Market Is Driven By Rising Demand For Streamlined Patient Care Management

The global healthcare ERP market encompasses a wide range of web-based and cloud-based software solutions that help healthcare organizations manage clinical and non-clinical activities pertaining to patient care, supply chain management, finance, and human resource management in an integrated manner. Healthcare ERP solutions allow seamless sharing of patient medical records across different departments, reduce operational costs through workflow automation, and help facilitate data-driven clinical and administrative decision making.

The global Healthcare ERP Market is estimated to be valued at Us$ 8.58 Mn in 2024 and is expected to exhibit a CAGR Of 5.7% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Implementation of artificial intelligence in healthcare ERP: Major healthcare ERP vendors are increasingly integrating artificial intelligence and machine learning capabilities into their software solutions. AI assists in automated data capture from different sources, predictive analytics for demand forecasting and prevention of supply chain disruptions, and personalized patient engagement. AI enhances the ability of ERP systems to offer clinical decision support to providers and helps reduce medical errors.
Rising adoption of cloud-based healthcare ERP: Cloud deployment reduces upfront infrastructure costs and provides healthcare organizations with greater flexibility, scalability and easy accessibility of the ERP system from any internet-connected device. The cloud model has gained widespread acceptance due to benefits like pay-as-you-go pricing, automatic software updates, and disaster recovery capabilities. Most new installations and upgrades are opting for SaaS-based cloud ERP over on-premise versions.

Porter’s Analysis

Threat of new entrants: The healthcare ERP market is highly competitive and capital intensive in nature. Healthcare ERP solutions require complex infrastructure and skills which pose a barrier for new players.

Bargaining power of buyers: Large healthcare organizations have stronger negotiating power compared to small buyers due to their ability to demand customized solutions and lower prices from Healthcare ERP vendors.

Bargaining power of suppliers: Major Healthcare ERP vendors have strong bargaining power over buyers for standardized products and ongoing maintenance services. However, customers can choose from various solution providers.

Threat of new substitutes: Many smaller healthcare application providers offer point solutions, but an integrated Healthcare ERP remains crucial for managing diverse operations of healthcare providers.

Competitive rivalry: The global healthcare ERP market is dominated by few large players owing to presence of many smaller regional and localized players.

Key Takeaways

The  Global Healthcare ERP Market Demand is expected to witness high growth. The global healthcare ERP Market is estimated to be valued at US$ 8.58 Mn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.

North America region is expected to dominate the global Healthcare ERP market during the forecast period. Factors such as presence of major Healthcare ERP vendors and advanced healthcare infrastructure are expected to boost the regional market growth. Asia Pacific region is anticipated to witness fastest growth in the global Healthcare ERP market during the forecast period. Growing healthcare expenditure and developing healthcare infrastructure especially in countries such as China and India are expected to propel the regional market growth.

Key players:

 

Key players operating in the Healthcare ERP market are L3Harris Technologies, Inc., Elbit Systems Ltd., International Business Machine Corporation, and General Dynamics Corporation. L3Harris Technologies provide innovative IT solutions and services for modernizing mission-critical systems. IBM offers healthcare ERP solutions to help providers streamline operations and enhance patient care.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it