Healthcare SaaS market poised to reach $51 billion by 2028
The Asia Pacific market is expected to grow at the fastest CAGR during the forecast period
The worldwide healthcare software as a service market is set to reach $51.7 billion by 2028, according to a new report from Grand View Research.
A compound annual growth rate (CAGR) of 19.5% is projected for the market between 2021 and 2028, credited to the growing adoption of cloud computing in the healthcare industry.
A case in point is software as a service (SaaS), the largest service segment in the cloud space. SaaS is fast becoming an important component of electronic health record (EHR) systems, clinical information systems, and remote patient monitoring systems.
In the healthcare industry, SaaS offers benefits such as increased flexibility, improvement of return on investment, competitive advantage, and lowering software deployment costs.
Furthermore, the COVID-19 pandemic has led to increased adoption of SaaS-based telemedicine, mobile health applications, and CRM/ERP systems.
As an example, CloudHospital began offering SaaS services in November 2021 to help clinics and hospitals meet increasing demand. In addition to managing traffic, communication, and patient booking, the firm intends to increase hospital visibility and accessibility through the service.
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“The adoption of telemedicine and other digital technologies gain rapid traction during the COVID-19 pandemic, owing to the increasing burden on the healthcare workforce and shortage of healthcare resources. An increasing pressure to reduce healthcare costs and increase the quality of care is estimated to drive the market growth,” explained Grand View Research.
Rapid technological advances and new initiatives from key players have also contributed to the market growth. Microsoft, Salesforce, Adobe lead the healthcare software as a service market.
Additionally, North America held the largest revenue share of over 47.0% in 2020. The CAGR for Asia Pacific is expected to be the highest during the forecast period (2016-2028).