A Guide to The Healthcare Software Market - ProperExpression

The healthcare software as a service (SaaS) market is expected to hit over $50 billion by 2028.₁ 

As healthcare delivery continues to be impacted by and improved upon by transformative technology, it’s no surprise that the healthcare software market is one of the most rapidly growing industries in the world. 

With a market that contains cloud-based electronic health records (EHR), compliance automation software, home healthcare software, medical billing software, patient management systems, and many other types of solutions big, it can be challenging for healthcare software companies to carve out a space for themselves without getting swallowed by the competition. 

Read on for the basics of the market, including size, trends, and key players, so you’re equipped with the knowledge you need for your marketing efforts to stand out and drive consistent revenue with your product. 

The Healthcare Software Market Size: Where It’s Been & Where It’s Going 

The healthcare SaaS market was valued at over $30 billion in 2021 and is poised to grow at over 18.5% compound annual growth rate (CAGR) from 2022 to 2030.₂ In other words, the market is proliferating and has no plans to stop anytime soon. 

But why does understanding the market size of healthcare software even matter? New healthcare start-ups or existing organizations that need to revisit their positioning and increase brand awareness can use this information to break into the market and stay there through: 

• Market insights: Understanding the size of the healthcare software market provides valuable insights into the industry's overall demand and growth potential. It helps new and existing healthcare SaaS companies make informed decisions and formulate effective strategies on how to position their product. 
  
  
• Resource allocation: Healthcare SaaS companies with a grasp on the market size are better equipped to allocate resources effectively. This information allows them to optimize their budget and determine the investment required for developing, marketing, and selling their software to healthcare organizations.  
  
  
• Investment decisions: Investors rely on market size data to evaluate the attractiveness of the healthcare software sector. Knowing the market size helps healthcare SaaS companies communicate to investors the potential return on investment and the benefit of funding their startup or existing company. 
  
  
• Market forecasting: Market size data is crucial for forecasting future trends and predicting the growth trajectory of the healthcare software industry. It assists SaaS companies and stakeholders in making long-term strategic decisions, assessing market risks, and adapting to changing market dynamics to enable more conversions. 

Key Players in the Healthcare Software Market 

Another essential thing to note for healthcare software organizations is who the key players are in the industry. These are the larger companies that data collection and survey agencies use to make their growth predictions.  

Knowing these names and conducting research on their value proposition, target audience, and marketing methodology can help healthcare SaaS companies inform their own marketing and sales decisions and clarify their branding and messaging. The key players are the following:₃ 

• Agfa Healthcare 
• Allscripts Healthcare 
• Athenahealth 
• Carestream Health 
• Cerner Corporation 
• CureMD Healthcare 
• E-MDS, Inc. 
• eClinicalWorks 
• Epic Systems 
• First Databank 
• GE Healthcare 
• Henry Schein 
• Hewlett-Packard Enterprise 
• IBM 
• McKesson Corporation 
• Philips Healthcare 
• Siemens Healthcare

Predicted Trends for the Healthcare Software Market 

The healthcare software market is dynamic and subject to constant change. Keeping abreast of the latest developments and market research will provide more accurate and detailed insights into the specific trends shaping the healthcare software market. Here are a few predicted trends in the coming years for the healthcare software market: 

Adoption of Cloud-Based Software:  

The need for scalability, cost-efficiency, and enhanced accessibility of data and applications has led to a notable trend in adopting cloud-based software. These solutions offer providers and organizations the flexibility to store and access patient information securely, collaborate in real-time, and streamline administrative processes, ultimately leading to improved patient care and operational efficiency within the industry. 

Implementation of Compliance Software:  

With the ever-evolving compliance regulatory landscape and the increasing importance of data security and privacy, healthcare organizations are seeking robust compliance tools to ensure adherence to industry regulations such as HIPAA and GDPR.  

These compliance software solutions help automate compliance processes, track data breaches, conduct audits, and implement measures to safeguard sensitive patient information, making them a crucial component for healthcare providers in maintaining legal and ethical standards. 

Telehealth and Remote Patient Monitoring Advancements: 

The COVID-19 pandemic accelerated the adoption of telehealth and remote patient monitoring solutions, and they’re still going strong. These technologies enable virtual consultations, remote monitoring of patient's vital signs, and the exchange of medical data. The trend toward digital healthcare delivery will likely continue, driven by the convenience it offers patients and the potential for cost savings. 

The Growth of Artificial Intelligence (AI) and Machine Learning (ML):  

AI and ML are poised to play a significant role in healthcare software. These technologies can assist in medical imaging analysis, predictive analytics, personalized medicine, drug discovery, and more. AI-powered chatbots and virtual assistants are also used to enhance patient engagement and support healthcare providers with administrative tasks. 

Electronic Health Records (EHR) Enhancements:  

EHR systems will continue to evolve to improve interoperability, usability, and data exchange capabilities. The focus will be on developing standardized formats, seamless integration with other healthcare software solutions, and advanced analytics capabilities to derive meaningful insights from patient data. 

Integration of the Internet of Things (IoT):  

IoT devices like connected medical devices and sensors will continue to be integrated into healthcare software ecosystems. IoT enables real-time monitoring, data collection, and automated workflows, enhancing efficiency and enabling proactive healthcare interventions. 

Introduction of Blockchain in Healthcare:  

Blockchain technology shows promise in healthcare for secure and transparent data exchange, interoperability, and maintaining the integrity of medical records. It can help address challenges related to data privacy, consent management, and secure sharing of health information among stakeholders. 

A Focus on Patient Portals and Health Management Apps:  

Healthcare software will focus on empowering patients to actively manage their health. Mobile apps and digital platforms will give patients access to their health records, appointment scheduling, medication reminders, and personalized health recommendations. These tools aim to increase patient engagement and improve health outcomes. 

Healthcare Software Market: How to Break In 

Now that you know the numbers, key players, and expected trends of the healthcare software market, how do you make your mark as a start-up or growing organization? Establishing your brand in the market can be a challenging endeavor, given its rapid size and growth, but our experts recommend following these ten steps to increase your chance of success: 

1. Research and identify opportunities: Conduct thorough research to identify specific areas within the healthcare software market where there is a need for innovative solutions or where you can offer a unique value proposition. Look for gaps or inefficiencies in current systems and processes you can address with your software. 
   
   
2. Define your value proposition: Clearly define the unique value that your software solution brings to the market. Identify the specific problems it solves, its benefits, and how it differentiates itself from existing solutions. This will help you position your product effectively and stand out from the competition. 
   
   
3. Understand the regulatory landscape: Familiarize yourself with the regulatory requirements and compliance standards that apply to healthcare software. Ensure your product adheres to all necessary regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), for data security and privacy. Compliance is crucial for gaining trust and acceptance from healthcare providers and is critical to staying in the market. 
   
   
4. Build a strong network: Establish connections within the healthcare industry, including providers, technology experts, and potential customers. Attend conferences and industry events, and join relevant professional associations to network and learn from industry leaders. Building relationships and partnerships can open doors to opportunities and provide valuable insights. 
   
   
5. Develop a Minimum Viable Product (MVP): Start by developing a minimum viable product that addresses the core needs of your target market. Focus on functionality, usability, and reliability. Gather feedback from early adopters and iterate based on their input. This iterative approach will help refine your product and ensure it meets market requirements.  
   
   
6. Collaborate with healthcare providers: Engage with healthcare providers to better understand their challenges and needs. Collaborate with them during development to ensure your software aligns with their workflows and adds value to their operations. Their input and endorsement can significantly increase the chances of adoption and market penetration. 
   
   
7. Pilot testing and validation: Conduct pilot testing of your software solution with select healthcare organizations. Gather feedback, measure outcomes, and refine your product based on the results. Successful pilot programs and positive outcomes can provide evidence of the effectiveness of your software and serve as references for future customers. 
   
   
8. Marketing and sales strategy: Develop a comprehensive marketing and sales strategy to create awareness about your software solution. Leverage digital marketing channels, industry publications, thought leadership content, and targeted advertising to reach your target audience. Build a strong sales team that understands the healthcare industry and can effectively communicate the value of your product.  
   
   
9. Ensure strong customer support: Provide excellent customer support to your clients. Offer training, implementation assistance, and ongoing technical support to ensure a smooth transition and optimal software utilization. Positive customer experiences and testimonials can help you build a strong reputation and drive word-of-mouth referrals. 
   
   
10. Stay agile and evolve: The healthcare software market is constantly changing. Stay informed about emerging technologies, industry trends, and evolving customer needs. Continuously iterate and enhance your software solution to stay competitive and meet the market's changing demands. 

Healthcare Software Marketing: The Conclusion 

Breaking into the healthcare software market requires a combination of a strong product, industry knowledge, strategic partnerships, effective marketing, and a customer-centric approach. By following these steps and remaining agile, you can increase your chances of success in this dynamic and lucrative market that is constantly accelerating. 

The ProperExpression team has years of experience helping healthcare software clients find a place in the market with a tailored sales and marketing strategy. Book a free, personalized consultation today to discover how your healthcare software can start making waves in the industry.