healthcare software as a service market report size, share, growth drivers, trends, opportunities & forecast 2025–2030
Description
Healthcare Software as a Service Market Overview
The Healthcare Software as a Service Market is valued at USD 27 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital health solutions, the need for efficient healthcare management systems, and the rising demand for telehealth services. The market is also supported by advancements in cloud computing technologies, which facilitate the deployment of scalable and cost-effective healthcare solutions .
Key players in this market are predominantly located in North America and Europe, with the United States being a major contributor due to its advanced healthcare infrastructure and high investment in health IT. Countries like Germany and the UK also play significant roles, driven by government initiatives to digitize healthcare and improve patient outcomes through technology .
The 21st Century Cures Act, issued by the U.S. Congress in 2016 and enforced through subsequent rules by the Office of the National Coordinator for Health Information Technology (ONC), mandates the interoperability of electronic health records (EHRs) to enhance data sharing among healthcare providers. This regulation requires healthcare organizations to ensure secure, standardized access and exchange of patient data, improving care coordination and reducing administrative burdens .
Healthcare Software as a Service Market Segmentation
By Type:
The market is segmented into various types of healthcare software solutions, each catering to specific needs within the healthcare ecosystem. The subsegments include Electronic Health Record (EHR) Systems, Remote Medical Services (Telemedicine), Patient Appointment and Management Systems, Medical Imaging Systems, Clinical Decision Support Systems, Health Management Software, Medical Research and Data Management, Medical Equipment Monitoring, Pharmacy and Prescription Systems, Medical Insurance and Claims Processing, and Others. Among these, Electronic Health Record (EHR) Systems remain the largest segment due to their critical role in digitizing patient records and improving healthcare delivery efficiency .
By End-User:
The end-user segmentation includes Hospitals and Clinics, Telemedicine Providers, Home Healthcare Providers, Long-term Care Facilities, Diagnostic Laboratories, Pharmacies, Medical Insurance Companies (Payers), Pharmaceutical Distributors, and Others. Hospitals and Clinics are the leading end-users, driven by the increasing need for integrated healthcare solutions that enhance patient care and streamline operations. The growing trend of telemedicine has also significantly contributed to the expansion of this segment .
Healthcare Software as a Service Market Competitive Landscape
The Healthcare Software as a Service Market is characterized by a dynamic mix of regional and international players. Leading participants such as Epic Systems Corporation, Cerner Corporation (Oracle Health), Allscripts Healthcare Solutions, Inc. (now Veradigm Inc.), McKesson Corporation, athenahealth, Inc., MEDITECH, NextGen Healthcare, Inc., eClinicalWorks, GE HealthCare Technologies Inc., Philips Healthcare, IBM Watson Health (now Merative), Oracle Health Sciences, Salesforce Health Cloud, Siemens Healthineers, Infor Healthcare, SAP SE, Microsoft Corporation, Henry Schein One contribute to innovation, geographic expansion, and service delivery in this space.
Epic Systems Corporation
1979
Verona, Wisconsin, USA
Cerner Corporation
1979
North Kansas City, Missouri, USA
Allscripts Healthcare Solutions, Inc.
1986
Chicago, Illinois, USA
McKesson Corporation
1833
Irving, Texas, USA
athenahealth, Inc.
1997
Watertown, Massachusetts, USA
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Customer Acquisition Cost (CAC)
Customer Lifetime Value (CLV)
Monthly Recurring Revenue (MRR)
Churn Rate
Average Revenue Per User (ARPU)
Healthcare Software as a Service Market Industry Analysis
Growth Drivers
Increasing Demand for Telehealth Solutions:
The telehealth market is projected to reach $459.8 billion in future, driven by a surge in remote consultations. In future, the U.S. is expected to see over 1 billion telehealth visits, reflecting a 38% increase from the previous period. This growth is fueled by the need for accessible healthcare, especially in rural areas, where 20% of the population lacks adequate access to medical facilities, thus propelling the demand for SaaS solutions in healthcare.
Rising Need for Data Management and Analytics:
The global healthcare data analytics market is anticipated to reach $70 billion in future, with a compound annual growth rate (CAGR) of 28%. This growth is driven by the increasing volume of healthcare data, which is expected to reach 2,314 exabytes in future. Healthcare organizations are investing in SaaS solutions to enhance data management capabilities, improve patient outcomes, and streamline operations, thereby addressing the critical need for effective data utilization.
Adoption of Cloud Computing in Healthcare:
The healthcare cloud computing market is projected to grow to $64.7 billion in future, reflecting a significant shift towards cloud-based solutions. In future, 83% of healthcare organizations reported using cloud services, up from 70% in the previous period. This trend is driven by the need for scalable, cost-effective solutions that enhance collaboration and data sharing among healthcare providers, ultimately improving patient care and operational efficiency.
Market Challenges
Data Security and Privacy Concerns:
With healthcare data
eaches increasing by 25% in the previous period, the industry faces significant challenges regarding data security. The average cost of a healthcare data
each is approximately $4.45 million, which can severely impact organizations financially and reputationally. As healthcare SaaS solutions handle sensitive patient information, ensuring robust security measures is critical to maintaining trust and compliance with regulations like HIPAA.
High Implementation Costs:
The initial costs associated with implementing healthcare SaaS solutions can be substantial, often exceeding $1 million for larger organizations. This financial barrier can deter smaller healthcare providers from adopting new technologies. Additionally, ongoing maintenance and training costs can add up, making it essential for organizations to carefully evaluate their budgets and potential return on investment before proceeding with implementation.
Healthcare Software as a Service Market Future Outlook
The future of the healthcare SaaS market appears promising, driven by technological advancements and evolving patient expectations. As healthcare providers increasingly prioritize value-based care, the integration of AI and machine learning will enhance decision-making and operational efficiency. Furthermore, the rise of mobile health applications will empower patients to manage their health proactively, fostering a more engaged patient population. These trends indicate a transformative shift in healthcare delivery, emphasizing the importance of innovative software solutions.
Market Opportunities
Expansion of AI and Machine Learning in Healthcare:
The AI healthcare market is projected to reach $45.2 billion in future, driven by advancements in predictive analytics and personalized medicine. This growth presents opportunities for SaaS providers to develop innovative solutions that enhance diagnostic accuracy and treatment efficacy, ultimately improving patient outcomes and operational efficiencies.
Growth of Mobile Health Applications:
The mobile health app market is expected to reach $236 billion in future, reflecting a growing trend towards patient-centric care. This expansion offers SaaS companies the chance to create integrated platforms that facilitate remote monitoring and patient engagement, thereby enhancing the overall healthcare experience and improving health outcomes.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Healthcare Software as a Service Market is valued at USD 27 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital health solutions, the need for efficient healthcare management systems, and the rising demand for telehealth services. The market is also supported by advancements in cloud computing technologies, which facilitate the deployment of scalable and cost-effective healthcare solutions .
Key players in this market are predominantly located in North America and Europe, with the United States being a major contributor due to its advanced healthcare infrastructure and high investment in health IT. Countries like Germany and the UK also play significant roles, driven by government initiatives to digitize healthcare and improve patient outcomes through technology .
The 21st Century Cures Act, issued by the U.S. Congress in 2016 and enforced through subsequent rules by the Office of the National Coordinator for Health Information Technology (ONC), mandates the interoperability of electronic health records (EHRs) to enhance data sharing among healthcare providers. This regulation requires healthcare organizations to ensure secure, standardized access and exchange of patient data, improving care coordination and reducing administrative burdens .
Healthcare Software as a Service Market Segmentation
By Type:
The market is segmented into various types of healthcare software solutions, each catering to specific needs within the healthcare ecosystem. The subsegments include Electronic Health Record (EHR) Systems, Remote Medical Services (Telemedicine), Patient Appointment and Management Systems, Medical Imaging Systems, Clinical Decision Support Systems, Health Management Software, Medical Research and Data Management, Medical Equipment Monitoring, Pharmacy and Prescription Systems, Medical Insurance and Claims Processing, and Others. Among these, Electronic Health Record (EHR) Systems remain the largest segment due to their critical role in digitizing patient records and improving healthcare delivery efficiency .
By End-User:
The end-user segmentation includes Hospitals and Clinics, Telemedicine Providers, Home Healthcare Providers, Long-term Care Facilities, Diagnostic Laboratories, Pharmacies, Medical Insurance Companies (Payers), Pharmaceutical Distributors, and Others. Hospitals and Clinics are the leading end-users, driven by the increasing need for integrated healthcare solutions that enhance patient care and streamline operations. The growing trend of telemedicine has also significantly contributed to the expansion of this segment .
Healthcare Software as a Service Market Competitive Landscape
The Healthcare Software as a Service Market is characterized by a dynamic mix of regional and international players. Leading participants such as Epic Systems Corporation, Cerner Corporation (Oracle Health), Allscripts Healthcare Solutions, Inc. (now Veradigm Inc.), McKesson Corporation, athenahealth, Inc., MEDITECH, NextGen Healthcare, Inc., eClinicalWorks, GE HealthCare Technologies Inc., Philips Healthcare, IBM Watson Health (now Merative), Oracle Health Sciences, Salesforce Health Cloud, Siemens Healthineers, Infor Healthcare, SAP SE, Microsoft Corporation, Henry Schein One contribute to innovation, geographic expansion, and service delivery in this space.
Epic Systems Corporation
1979
Verona, Wisconsin, USA
Cerner Corporation
1979
North Kansas City, Missouri, USA
Allscripts Healthcare Solutions, Inc.
1986
Chicago, Illinois, USA
McKesson Corporation
1833
Irving, Texas, USA
athenahealth, Inc.
1997
Watertown, Massachusetts, USA
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Customer Acquisition Cost (CAC)
Customer Lifetime Value (CLV)
Monthly Recurring Revenue (MRR)
Churn Rate
Average Revenue Per User (ARPU)
Healthcare Software as a Service Market Industry Analysis
Growth Drivers
Increasing Demand for Telehealth Solutions:
The telehealth market is projected to reach $459.8 billion in future, driven by a surge in remote consultations. In future, the U.S. is expected to see over 1 billion telehealth visits, reflecting a 38% increase from the previous period. This growth is fueled by the need for accessible healthcare, especially in rural areas, where 20% of the population lacks adequate access to medical facilities, thus propelling the demand for SaaS solutions in healthcare.
Rising Need for Data Management and Analytics:
The global healthcare data analytics market is anticipated to reach $70 billion in future, with a compound annual growth rate (CAGR) of 28%. This growth is driven by the increasing volume of healthcare data, which is expected to reach 2,314 exabytes in future. Healthcare organizations are investing in SaaS solutions to enhance data management capabilities, improve patient outcomes, and streamline operations, thereby addressing the critical need for effective data utilization.
Adoption of Cloud Computing in Healthcare:
The healthcare cloud computing market is projected to grow to $64.7 billion in future, reflecting a significant shift towards cloud-based solutions. In future, 83% of healthcare organizations reported using cloud services, up from 70% in the previous period. This trend is driven by the need for scalable, cost-effective solutions that enhance collaboration and data sharing among healthcare providers, ultimately improving patient care and operational efficiency.
Market Challenges
Data Security and Privacy Concerns:
With healthcare data
eaches increasing by 25% in the previous period, the industry faces significant challenges regarding data security. The average cost of a healthcare data
each is approximately $4.45 million, which can severely impact organizations financially and reputationally. As healthcare SaaS solutions handle sensitive patient information, ensuring robust security measures is critical to maintaining trust and compliance with regulations like HIPAA.
High Implementation Costs:
The initial costs associated with implementing healthcare SaaS solutions can be substantial, often exceeding $1 million for larger organizations. This financial barrier can deter smaller healthcare providers from adopting new technologies. Additionally, ongoing maintenance and training costs can add up, making it essential for organizations to carefully evaluate their budgets and potential return on investment before proceeding with implementation.
Healthcare Software as a Service Market Future Outlook
The future of the healthcare SaaS market appears promising, driven by technological advancements and evolving patient expectations. As healthcare providers increasingly prioritize value-based care, the integration of AI and machine learning will enhance decision-making and operational efficiency. Furthermore, the rise of mobile health applications will empower patients to manage their health proactively, fostering a more engaged patient population. These trends indicate a transformative shift in healthcare delivery, emphasizing the importance of innovative software solutions.
Market Opportunities
Expansion of AI and Machine Learning in Healthcare:
The AI healthcare market is projected to reach $45.2 billion in future, driven by advancements in predictive analytics and personalized medicine. This growth presents opportunities for SaaS providers to develop innovative solutions that enhance diagnostic accuracy and treatment efficacy, ultimately improving patient outcomes and operational efficiencies.
Growth of Mobile Health Applications:
The mobile health app market is expected to reach $236 billion in future, reflecting a growing trend towards patient-centric care. This expansion offers SaaS companies the chance to create integrated platforms that facilitate remote monitoring and patient engagement, thereby enhancing the overall healthcare experience and improving health outcomes.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
86 Pages
- 1. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1 Increasing Demand for Telehealth Solutions
- 3.1.2 Rising Need for Data Management and Analytics
- 3.1.3 Growing Focus on Patient Engagement
- 3.1.4 Adoption of Cloud Computing in Healthcare
- 3.2. Restraints
- 3.2.1 Data Security and Privacy Concerns
- 3.2.2 High Implementation Costs
- 3.2.3 Resistance to Change from Traditional Systems
- 3.2.4 Regulatory Compliance Issues
- 3.3. Opportunities
- 3.3.1 Expansion of AI and Machine Learning in Healthcare
- 3.3.2 Increasing Investment in Healthcare IT
- 3.3.3 Growth of Mobile Health Applications
- 3.3.4 Partnerships with Healthcare Providers
- 3.4. Trends
- 3.4.1 Shift Towards Value-Based Care
- 3.4.2 Integration of Wearable Technology
- 3.4.3 Rise of Personalized Medicine
- 3.4.4 Emphasis on Interoperability
- 3.5. Government Regulation
- 3.5.1 HIPAA Compliance
- 3.5.2 FDA Regulations on Software as a Medical Device
- 3.5.3 CMS Guidelines for Telehealth Services
- 3.5.4 Data Protection Regulations
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1 Electronic Health Record (EHR) Systems
- 4.1.2 Remote Medical Services (Telemedicine)
- 4.1.3 Patient Appointment and Management Systems
- 4.1.4 Medical Imaging Systems
- 4.1.5 Others
- 4.2. By End-User (in Value %)
- 4.2.1 Hospitals and Clinics
- 4.2.2 Telemedicine Providers
- 4.2.3 Home Healthcare Providers
- 4.2.4 Long-term Care Facilities
- 4.2.5 Others
- 4.3. By Application (in Value %)
- 4.3.1 Patient Portal
- 4.3.2 Telemedicine
- 4.3.3 Mobile Communication
- 4.3.4 ePrescribing
- 4.5. By Deployment Model (in Value %)
- 4.5.1 Public Cloud
- 4.5.2 Private Cloud
- 4.5.3 Hybrid Cloud
- 4.6. By Pricing Model (in Value %)
- 4.6.1 Subscription-Based
- 4.6.2 Pay-Per-Use
- 4.6.3 Licensing
- 4.7. By Region (in Value %)
- 4.7.1 North America
- 4.7.2 Europe
- 4.7.3 Asia-Pacific
- 4.7.4 Latin America
- 4.7.5 Middle East & Africa
- 5. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1 Epic Systems Corporation
- 5.1.2 Cerner Corporation (Oracle Health)
- 5.1.3 Allscripts Healthcare Solutions, Inc.
- 5.1.4 McKesson Corporation
- 5.1.5 athenahealth, Inc.
- 5.2. Cross Comparison Parameters
- 5.2.1 Revenue
- 5.2.2 Market Share
- 5.2.3 Customer Acquisition Cost (CAC)
- 5.2.4 Average Revenue Per User (ARPU)
- 5.2.5 Compliance Certifications
- 6. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. healthcare software as a service size, share, growth drivers, trends, opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Application (in Value %)
- 8.4. By Deployment Model (in Value %)
- 8.5. By Pricing Model (in Value %)
- 8.6. By Region (in Value %)
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