CAGR: 8%Current Market Size: USD 7 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
The global medical practice management software market is expected to grow from USD 7 billion in 2021 to USD 12 billion by 2029, at a CAGR of 8% during the Projection period 2022-2029. The growth of this market is mainly driven by the growing need to achieve operational efficiency, improved documentation with fewer errors, and financial viability for physicians' practices.
Medical practice management software can be used to enter and track patients, schedule and track patient appointments, send insurance claims and patient statements as part of the collection process, process payments from patients, third parties, and insurance companies, and generate reports for the administrative and clinical staff of the practice. Utilizing a PMS often involves keeping enormous data sets current, including lists of diagnoses and treatments, insurance company lists, referring doctors and providers, and lists of providers. Practice management system market growth is being fueled by the need to increase the effectiveness of present medical practices and institutions, long-term savings in time and resources, and a high return on investment. The issue of electronic data is increasingly gaining popularity in the healthcare IT industry. Due to record-keeping, regulatory requirements, compliance, and patient care, the healthcare industry has produced a lot of data since its inception. Effectively integrating big data in healthcare might potentially result in large annual cost savings for everyone, according to a number of experts and professionals. The market is expected to grow as a consequence of partnerships, acquisitions, and partnership agreements amongst important organizations to provide cloud-based solutions to their customers. Systems for managing medical practices are growing in popularity as they make it easier to comply with regulatory requirements, ensure that important regulatory data elements are filled out by doctors simply by receiving alert notifications and cut down on the time and resources needed for manual data entry. Additionally, these systems provide better and more precise insurance information and billing processes, as well as notifications for receiving advance beneficiary notice, which lowers the likelihood that a claim would be denied.
Sample Request: - Global Medical Practice Management Software Market
Market Dynamics:
Drivers:
Medical practice management software is growing in popularity because they make it easier to comply with crucial regulatory requirements, ensures that doctors complete crucial regulatory data elements by receiving alert notifications, and cut down on the time and resources needed for manual data entry. Additionally, these systems provide better and more precise insurance information and billing processes, as well as notifications for receiving advance beneficiary notice, which lowers the likelihood that a claim would be denied. Thus, employing medical practice management software ultimately results in time and resource savings, driving the market forward.
Restraints:
Medical practice management software growth is expected to be constrained by a shortage of qualified professionals, a significant time commitment, interoperability issues, and high maintenance costs throughout the Projection period. Data confidentiality and a lack of on-site IT support services will be the two biggest obstacles to the market's expansion.
Opportunities:
Cloud-based medical practice administration is particularly advantageous for small to medium-sized clinics because there are no significant infrastructure costs and the software expense is proportionate to a modest subscription rate. The software's cloud-based distribution technique considerably improves its scalability (pay-as-you-go storage utilization). Clinical data no longer exists in departmental silos, and storage resources are streamlined and consolidated to reduce costs and enhance productivity. Off-site servers and storage are used by the company. All resources for off-premises system support are offered by the cloud vendor. The cloud infrastructure also offers real disaster recovery and business continuity solutions to support the caliber of patient care. As a result, it is anticipated that demand for cloud-based services would remain high.
Challenges:
Data confidentiality and the lack of on-site IT support services may hinder the market's expansion. The use of cloud and wireless technology is spreading rapidly. Additionally, companies are focusing on the creation of patient-centric goods.
Segmentation Analysis:
The global medical practice management software market has been segmented based on delivery mode, end user, and region.
By Delivery Mode
The delivery mode segment is On-Premises, Web-Based, and Cloud-Based. The cloud-based segment led the largest share of the medical practice management software market with a market share of around 2.73% in 2021. Demand will increase over the Projection period as a result of cloud-based software's ability to make data accessible across several platforms and enable users to access data from various locations. This technology is flourishing as a result of the rapidly shifting healthcare IT ecosystem. This distribution method is very dependable and processes data quickly.
By End User
The end user segment includes Physician, Pharmacist, Diagnostic Labs and Others. The others segment led the medical practice management software market with a market share of around 2.45% in 2021. The other sector is anticipated to grow at the fastest rate throughout the Projection period as a result of factors including increased spending by hospitals, healthcare facilities, and clinics for the digitization of workflow and to centralize operations. Practice management programs with integrated billing, patient portals, and clinical information systems facilitate this standardization. Additionally, it is anticipated that more of these facilities will generate more revenue.
Global Medical practice management software market- Sales Analysis.
The sale of medical practice management software delivery mode and end-user expanded at a CAGR of 5.3% from 2015 to 2021.
The day-to-day operations of medical practice, including veterinarians, are managed by medical practice management software (PMS), a type of healthcare software. Such software typically allows users to enter patient details, schedule appointments, track insurance payors, handle billing tasks, and produce reports. When using a computer with an internet connection, cloud-based software systems make it easier to store data on external servers and make it accessible online. Cloud-based delivery helps healthcare professionals automate routine medical tasks in medical practice administration.
The market is expected to grow as a consequence of partnerships, acquisitions, and partnership agreements amongst important organizations to provide cloud-based solutions to their customers. Medical practice management software is growing in popularity as they make it easier to comply with regulatory requirements, ensures that important regulatory data elements are filled out by doctors simply by receiving alert notifications, and cut down on the time and resources needed for manual data entry. Additionally, these systems provide better and more precise insurance information and billing processes, as well as notifications for receiving advance beneficiary notice, which lowers the likelihood that a claim would be denied.
Medical practice management software growth is expected to be constrained by a shortage of qualified professionals, a significant time commitment, interoperability issues, and high maintenance costs throughout the Projection period.
Thus, owing to the aforementioned factors, the global medical practice management software market is expected to grow at a CAGR of 8% during the Projection period from 2022 to 2029.
By Regional Analysis:
The regions analyzed for the medical practice management software market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the medical practice management software market and held a 39% share of the market revenue in 2021.
Global Medical Practice Management Software Market- Country Analysis:
Germany's medical practice management software market size was valued at USD 0.10 billion in 2021 and is expected to reach USD 0.15 billion by 2029, at a CAGR of 5.8% from 2022 to 2029.
The need for medical practice management systems in Germany is being fueled by mounting pressure to lower healthcare costs as well as shifting dynamics in hospital and healthcare settings. The implementation of high-quality, cost-effective care is a factor that is increasingly in the spotlight, and it is anticipated to have an impact on the market's growth. The changing dynamics of business models are causing a paradigm change in healthcare institutions in the Germany.
China’s medical practice management software market size was valued at USD 0.16 billion in 2021 and is expected to reach USD 0.27 billion by 2029, at a CAGR of 7% from 2022 to 2029. Key market growth drivers include increasing pressure to reduce healthcare spending, the need for treatments that are affordable, historically rare medical emergencies like COVID-19, and the digitization of medical information.
India's medical practice management software market size was valued at USD 0.15 billion in 2021 and is expected to reach USD 0.24 billion by 2029, at a CAGR of 6.5% from 2022 to 2029. The market for medical practice management software in India is anticipated to grow as a result of the prevalence of cutting-edge software, the increasing demand for better healthcare facilities and an integrated healthcare system, and the prevalence of funds from healthcare IT players for technological advancement. On the other hand, there are numerous opportunities for the medical practice management software market to grow in India due to the increasing acceptance of IT-enabled healthcare solutions and the growing demand for patient-centered treatment.
Key Industry Players Analysis:
To increase their market position in the global medical practice management software business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
8% |
Market Size |
7 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Delivery Mode, By End User, And By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
AthenaHealth (U.S), Aprima Medical Software (U.S), CareCloud Inc. (U.S), eClinicalWorks (U.S), TotalMD (U.S), Epic Systems Corporation (U.S), NXGN Management, LLC. (U.S), ECLIPSE Foundation (Canada), NexTech Systems LLC (U.S), Cerner Corporation (U.S), AdvancedMD Inc. (U.S), CollaborateMD Inc. (U.S), Henry Schein Inc. (U.S), Allscripts Healthcare LLC (U.S), Greenway Health LLC (U.S) among others. |
By Delivery Mode |
|
By End Use |
|
Regional scope |
|
Scope of the Report
Global Medical Practice Management Software Market By Delivery Mode:
Global Medical Practice Management Software Market By End User:
Global Medical Practice Management Software Market By Region:
Global medical practice management software market is expected to reach USD 7 billion by 2029, at a CAGR of 8% from 2022 to 2029.
The medical practice management software market is projected to have a CAGR of 8%.
On the basis of delivery mode, the medical practice management software market is segmented into On-Premises, Web-Based, and Cloud-Based.
Increasing need to reduce healthcare expenses as well as the shifting dynamics of hospital/healthcare environments are driving the need practicetise management systems. Additionally, it is anticipated that the adoption of high-quality, cost-effective care will help the market thrive.
Based on end user, the global medical practice management software market has been segmented into Physician, Pharmacist, Diagnostic Labs, and Others.
Leading market players active in the global medical practice management software market are AthenaHealth (U.S), Aprima Medical Software (U.S), CareCloud Inc. (U.S), eClinicalWorks (U.S), TotalMD (U.S), Epic Systems Corporation (U.S), NXGN Management, LLC. (U.S), ECLIPSE Foundation (Canada), NexTech Systems LLC (U.S), Cerner Corporation (U.S), AdvancedMD Inc. (U.S), CollaborateMD Inc. (U.S), Henry Schein Inc. (U.S), Allscripts Healthcare LLC (U.S), Greenway Health LLC (U.S) among others.
Political Factors- The factors that affect the long-term profitability of the medical practice management software industry in a particular country or market are significantly influenced by political issues. These policies have an effect on the economy, consumer purchasing habits, and international trade laws. The internet and WiFi are becoming commonplace. Customers of the government frequently view the internet as a basic human right. It is necessary for training in many different vocations. The necessity to reduce healthcare expenses and the capacity to provide enough remuneration for healthcare professionals are two factors driving the increased adoption of these management systems. Additionally, encouraging government programs along with a growing use of IT in the healthcare industry are anticipated to fuel market expansion. For instance, the Federal IT Strategic Plan 2020–2025, which focuses on improving the access, exchange, and utilization of electronic health information, was suggested by the federal government in May 2020.
Economical Factors- It is anticipated that new technological advancements will have a significant impact on the healthcare industry. These new technologies, which range from robotics to 5G capabilities, artificial intelligence, and more, will start to change how work is done in the healthcare sector and increase the effectiveness with which doctors can deliver care. Data accessibility and the tools for storing and processing it are markers of the technology era. The synthesis and analysis of data have been improved by the internet, intranet systems, search capabilities, and the capacity for healthcare professionals to quickly communicate information. Within healthcare organizations, communication has become much easier thanks to technological advancements. Medical personnel can now interact and distribute knowledge in the field by using media like video, online discussion forums, and real-time meeting capabilities. All essential departments and healthcare professionals have access to internal electronic medical records. This enhances patient rehabilitation, treatment, and case management.
Social Factor- It is crucial that measures be taken to stop the growth of greater inequalities as new health technologies transform the healthcare industry, especially with regard to people who lack the resources to access and fully utilize the technologies. Medical practice management software market growth is anticipated to be aided by the prevalence of cutting-edge software, the rising demand for better healthcare facilities and an integrated healthcare system, and the availability of money from healthcare IT players for technological advancement. On the other hand, there are various opportunities for the medical practice management software market to grow as a result of the increasing acceptance of IT-enabled healthcare solutions and the growing demand for patient-centered care.
Technological Factors- Healthcare is just one of several sectors that technology is rapidly impacting. Technology is having a huge global impact on medical practice management software in a lot of different ways. Supply chain disruption brought on by technology, access to mobile devices empowering people, rate of technology-driven change, population access to technology, innovation in product offerings, access to more information, innovation in customer services, etc. is a few examples of technological factors. The most recent technological advances are being used by market players. This can give us a good idea of what they are considering and where the Medical Equipment & Supplies business model is headed in the future. When using a computer with an internet connection, cloud-based software systems make it easier to store data on external servers and make it accessible online. Cloud-based delivery helps healthcare professionals automate routine medical tasks in medical practice administration. The key factor driving their increasing popularity is probably the fact that cloud-based systems are less expensive to deploy than on-premises systems and that this software eliminates the need for internal maintenance.
Environmental Factors- Weather, climate, and climate change are examples of environmental elements that may negatively affect particular economic sectors. Ecological and environmental elements are also considered to be environmental factors. Technology has always been more advanced in the digital business support system sector than in many others. Delivering information in various formats, including written, oral, and visual, it provides a worthwhile alternative to moving things and/or people. However, there are also additional risks associated with highly enhanced goods and services. According to ETNO (2021), the worldwide carbon dioxide (CO2) emissions in 2020 were contributed by the medtech sector at a rate of 2.6%. Companies must therefore increase the sustainability of their products and services.
Legal Factors- The legal aspects of discrimination, consumers, antitrust, employment, and health and safety legislation are among them. These factors could affect a business’s operations, costs, and product demand. Companies that manufacture digital business support systems are subject to very tight legislative requirements. Systems for managing medical practices are growing in popularity because they make it easier to comply with crucial regulatory requirements, ensure that doctors complete crucial regulatory data elements by receiving alert notifications, and cut down on the time and resources needed for manual data entry. Additionally, these systems provide better and more precise insurance information and billing processes, as well as notifications for receiving advance beneficiary notice, which lowers the likelihood that a claim would be denied. Thus, employing medical practice management software ultimately results in time and resource savings, driving the market forward.
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