Analysis by Deployment (Cloud-based, and On-premise); by Application (Inventory & Material Management, Supply Chain & Logistics Management, Patient Relationship Management, Finance & Billing, and Others); and by End Users (Hospitals, Clinics, Long & Short Term Facilities, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global healthcare ERP market is estimated to garner a revenue of ~ USD 12432.5 Million by the end of 2033 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~ USD 6,500 Million in the year 2022. The primary factor for the market growth is attributed to the rising cases of cardiovascular diseases such as heart attack, strokes and others along with the increment in deaths owing to them. As per the World Health Organization, cardiovascular diseases are considered to be the leading cause of deaths globally, taking almost 17.9 million lives in 2019, which is equivalent to 63% of the total deaths that occurred.
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The world is projected to see a huge pool of patients in the upcoming years. As a result, the pressure on the healthcare system is rising, which increases the demand for a smooth process of supply chain and logistics, as well as patient care and treatment. Thus, the increase in the number of deaths due to non-communicable diseases is anticipated to increase the adoption rate of healthcare ERP in hospitals, ambulances, and clinics. As per a report published by the World Health Organization in 2021, it is stated that non-communicable diseases kill almost 41 million people each year, an equivalent of 71% of global deaths.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 6,500 Million |
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Forecast Year Market Size (2033) |
~ USD 12432.5 Million |
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Regional Scope |
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Growth Drivers
Growing Prevalence of Unhealthy Lifestyle Diseases - Several diseases such as diabetes, hypertension, obesity and high blood pressure are occurring among the population owing to the shift towards an unhealthy lifestyle, which is further expected to bring lucrative opportunities in the healthcare ERP market in the assessment period. Diabetes prevalence was estimated to be nearly 10%, or 460 million people, in 2019 and is expected to rise steadily in the future, reaching 11%, or 700 million people, by 2030.
Prevalence of Heart Diseases – There is an alarming rise in the number of heart disease patients across the world. This has brought the need for the deployment of healthcare ERP systems across the healthcare sector. The majority of cardiovascular diseases are accounted for by heart attacks and strokes. Around 85% of the cardiovascular disease deaths were due to heart attacks and strokes in 2019.
Increase in Patient Visits — According to recent reports, approximately 770 million outpatient visits were reported in hospitals in the United States in 2020.
Boom in the Healthcare Sector - The revenue generated by the global healthcare sector in 2022 stood at USD 60 billion.
Escalation in Health Expenditure – The World Bank released the health expenditure of the world in the year 2019, which accounted for 9.83% of the total GDP. This is a rise from 2017, when global health expenditure was 9.77% of total GDP.
Challenges
The global healthcare ERP market is segmented and analyzed for demand and supply by end users into hospitals, clinics, long & short-term facilities, and others. Out of these, the hospitals segment is expected to garner the highest market share by 2033, owing to the rising number of hospitals across the world, owing to high number of patient visits and rising diseases. As per the Organization for Economic Co-operation and Development, the number of hospitals in the United States rose from 5,564 in 2015 to 6,090 in 2019.
On the other hand, in the deployment segment, as of 2022 the on premise segment holds the major market share with 71%. The rising popularity of on premise owing to its easy accessibility and other associated benefits is expected to significantly drive the demand for on premise based healthcare ERP systems across the globe.
The healthcare ERP market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, with a market share of 36% in 2022. The market in the region is primarily driven by the high cost of healthcare made by the population owing to high disposable income and presence of high number of healthcare facilities. The Centers for Medicare & Medicaid Services stated that the national health expenditure increased by 9.7% in 2020 to USD 4.1 trillion, or USD 12,530 per person. This accounted for 19.7% of Gross Domestic Product (GDP). Further, the burden of chronic diseases and the deaths caused by them is another factor driving the expansion of healthcare ERP market size. The recent study of 2022 stated that 6 in 10 adults in the U.S. have a chronic disease, and chronic disease is the leading driver of the nation’s USD 4.1 trillion.
Our in-depth analysis of the global healthcare ERP market includes the following segments:
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By Deployment |
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By Application |
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By End-User |
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McKesson Corporation
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The rising cases of chronic diseases along with high expenditure on the healthcare is expected to bring lucrative
Ans: The market is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 – 2033.
Ans: The lack awareness about ERP healthcare coupled with low adoption rate in developing countries and stringent rules by government are expected to hamper the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are McKesson Corporation, Infor, Odoo SA, SAP SE, Oracle, Epicor Software Corporation, QAD Inc., Aptean Group, The Sage Group plc, Microsoft, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by deployment, application, end user and by region.
Ans: The on premise segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities with a market share of 71%.
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