Market Challenges And Opportunities

Global Healthcare ERP Market Drivers:

Rise in adoption of ERP solutions to drive market growth

One of the key factors expected to augment the growth of the global healthcare ERP market during the forecast period is the adoption of ERP solutions in the global healthcare industry. For instance, the adoption of ERP (enterprise resource planning) in the global healthcare sector can be attributed to various advantages, such as increase in caregiving efficiency and better utilization of resources, offered by ERP software. In November 2022, Google Cloud announced the launch of three new Healthcare Data Engine (HDE) accelerators to help healthcare organizations address common use cases around health equity, patient flow, and value-based care.

Rise in patient pool to underpin market growth

Another factor which is driving growth of the global healthcare ERP market is the rise in patient pool and growing geriatric population around the world. For instance, with the rise in patient pool and growing geriatric population (more susceptible to chronic disease which in turn lead to long-term hospitalization), the burden of healthcare organizations is also increasing. The healthcare ERP system helps healthcare providers offer quality patient care while keeping the operating costs low. Moreover, the ERP system can help a hospital enhance efficiency and drive automation to save on costs. This in turn is driving the growth of the market.

Global Healthcare ERP Market Opportunities:

Rising adoption of novel technologically advanced solutions is expected to offer significant growth opportunities for players in the healthcare ERP market. For instance, rise in usage of ERP systems among healthcare organizations is triggering the demand for these systems to the lower operational cost and improve patient outcomes. In October 2022, Deloitte launched its Oracle MyCloud ERP that can help fast growth and private clients accelerate business transformation. The offering helps organizations to get up and running quickly on the platform while eliminating the barriers of talent constraints and high upfront costs, which are often associated with ERP implementations.

Need for efficient supply chain management is expected to offer significant growth opportunities for players in the global healthcare ERP market. Enterprise resource planning (ERP) systems have helped healthcare organizations monitor and control costs, productivity, supplies, and inventory. The way to overcome supply chain challenges lies in the ERP implementation. For instance, the outbreak of COVID-19 disrupted supply chain and demand cycles, But the ERP implementation at Bayhealth (Bayhealth Medical Center, US) has led to the supply chain management efficiencies even in the face of global supply chain disruptions.

Global Healthcare ERP Market Restraints:

High cost of the system and implementation to hinder market growth

One of the key factors expected to hamper the growth of the global healthcare ERP market is the high cost of the system and implementation. For instance, ERP is an expensive technology, and its expense depends on the scope of implementation, department complexity, and ERP vendors. ERP software, security software, computer hardware, and network equipment, among other are essential for the implementation of ERP systems, which in turn increase the cost of implementation. Add-ons and customization are also expensive. Moreover, the cost of change for already installed ERP is also very high. This in turn is restraining the market growth.

Stringent rules and regulations to hamper market growth

Another factor which is hampering the growth of the global healthcare ERP market is the stringent rules and regulations. For instance, European Union (EU) has several regulations that companies must comply with when using ERP systems. The General Data Protection Regulation (GDPR) sets strict rules for the handling and processing of personal data. Furthermore, companies must comply with national regulations when implementing the ERP system. These rules may differ from country to country. Thus, it's important to understand the rules and regulations.