The global healthcare CRM market size was valued at USD 15.4 Billion in 2022 and is likely to reach USD 37.87 Billion by 2031, expanding at a CAGR of 8.5 % during the forecast period, 2023–2031. The increasing demand for interactive patient care services from healthcare organizations is anticipated to drive the market.
The growth of the healthcare CRM market is attributed to the increasing requirement for automated solutions in the healthcare industry. Healthcare organizations manage a huge patient flow which requires a digital solution to manage patient appointment scheduling, cancellations, and patient interactions. This has significantly fueled the demand for market growth as cloud-based CRM software solutions store the data for as long as the organization requires.
Customer relationship management (CRM) software in healthcare, is a software solution that helps medical facilities manage administrative duties. The software also improves staff productivity by automating their routine mundane tasks. It consists of unique modules dedicated to managing individual hospital domains such as billing, payments, pharmacy, inventory, doctors, and marketing. It also offers multiple customizable features in the modules.
The software helps healthcare providers improve patient communication by staying in touch with the patients through software applications (apps). These apps have an easy interface and are compatible with smartphones, tablets, and other gadgets. They serve as the most accessible tool for patients to manage their appointments, payments, prescription renewals, medication alerts, and insurance.
Currently, AI solutions are being developed that deliver a more personalized and conversational patient experience that sounds less robotic and more human to the patients. Such software is integrated with CRM and offers customizations.
- For instance, In 2022, Invoca announced the launch of an AI-powered intelligent conversational solution that enables empathetic patient conversations, thereby improving patient acquisition.
During the COVID-19 pandemic, the market had a sudden upsurge in demand for CRM software installations. Governments around the world, set up multiple new COVID care facilities, and quarantines. Efforts were taken to bring the COVID setup to every last available infrastructure other than the hospital premises to accommodate the majority of COVID victims.
Moreover, the market crossed a new profit margin as mobile health (mHealth) technology, started gaining popularity during the pandemic. Healthcare apps downloaded on mobile phones make doctor’s consultations handy.
Remotely located medical practitioners and pharmacies provide virtual consultations, and prescriptions which helped them maintain continuity in their practice with reduced exposure to the virus. The pharmacies provide home delivery for prescription-based medicines. The pandemic, thus proved to be a major business opportunity for the market.
Healthcare CRM Market Dynamics
Major Drivers
Increasing demand for out-patient management software in complex healthcare ecosystems drives the market. Out-patient departments (OPDs) of multispecialty hospitals, private clinics, and rehabilitation centers require healthcare CRM software to provide virtual patient care services to their patients.
The CRM software effectively manages patients with special needs. The software includes special aid modules such as telemedicine, remote patient monitoring, and virtual consultations. It enables real-time monitoring of patients with the help of doctor-patient portals, where the patient portals are updated with live patient vital readings.
These readings are updated by medical wearables used by patients. Improved patient observations help doctors identify any post-operation deterioration in the patient. Furthermore, medication tracking, emergency handling, and other advantages of the healthcare CRM drive the market.
The rising demand for efficient in-house administrative solutions for healthcare providers fuels market growth. CRM helps healthcare organizations manage multiple in-hospital operations such as effective workforce management, inventory management, hospitals pharmacy, general outpatient departments (OPD), and inpatient departments (IPD) management.
Other important operations such as patient appointment scheduling, payments, and insurance management are efficiently handled by the software. Rising concerns related to patient data security drive the market. The healthcare CRM software is required to be authenticated by General Data Protection Regulation (GDPR), and the Health Insurance Portability and Affordability Act (HIPAA) compliances.
Existing Restraints
The high price of software installation restrains market growth. The newly emerging healthcare organizations are looking for affordable software solutions as they need to manage their expenses with limited funds, initially. Moreover, the chances of CRMs having hidden costs for after-sales services, training, and hardware upgradation, hamper the market growth.
Emerging Opportunities
The rising demand for automation in the healthcare sector is a major market opportunity. The incorporation of artificial intelligence (AI) with CRM software helps seamlessly automate the general workflow and patient management for healthcare providers.
The AI enables effective patient management by managing patient inquiries on hospital websites. Intelligent virtual assistants (IVA) chatbots and Interactive Voice Response (IVR) are widely used by hospitals to regulate their workflow for telephonic and online customer handling.
Furthermore, the incorporation of advanced machine-learning algorithms into healthcare virtual assistants elevates the efficiency of in-hospital operations. The hospital staff received help in automating the workflow, thereby improving productivity.
Scope of Healthcare CRM Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Healthcare CRM Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Component (Software and Services), Deployment (On-premise, and Cloud-based), Functionality (Customer Service, Sales, and Marketing), and End-use (Hospitals, Clinics, and Laboratories).
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Accenture; ALVARIA; IBM; Oracle; Creatio; hc1; Microsoft; Salesforce; Inc.; SAP; SugarCRM Inc.; Talisma; Veeva Systems; Verint Systems Inc.; and Zoho Corporation Pvt. Ltd.
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Healthcare CRM Market Segment Insights
Component Segment Analysis
Based on component, the healthcare CRM market is bifurcated into software and services. The services segment held a key market share in 2022 owing to the increasing number of healthcare providers opting for software integrations with healthcare CRMs. The key players in the market offer CRM services to their new users.
Well-establish healthcare organizations have complex workflows. Large healthcare ecosystems use different software for their workflow management. The integration of CRM software helps them transfer a huge amount of patient data and electronic health records (EHRs) to migrate securely to a new software system.
Moreover, the key companies in the market provide CRM services such as customizations, integration, data migration, software training, software configuration, and other value-added services to new users which contributes to the segment’s growth.
The software segment is expected to expand at a significant growth rate during the projection period, due to the increasing technological advancements in the software systems. Old and new users of healthcare software receive advanced features through the software update.
The software provides the features such as appointment scheduling, patient handling, marketing, sales, inventory, customer service, and other important modules to execute effective business administration. Moreover, the integration of CRM with AI helps in seamless business process automation, which is expected to boost segment growth in the coming years.
Deployment Segment Analysis
On the basis of deployment, the market is segregated into on-premise and cloud-based. The cloud-based segment held a considerable market share owing to the versatile user interface that the software provides. The cloud-based software enables authorized healthcare personnel to remote access through multiple devices.
The user is verified before getting an access grant which ensures the secure software operation as far as patient data protection is concerned. According to a recent survey, around 83% of healthcare institutions have already adopted cloud systems for the seamless operation of cloud-based software and the adoption rate is expected to grow in the coming years. This can open up new opportunities for the market players for their business expansion.
The on-premise segment is projected to register a significant CAGR during the forecast period owing to the increasing number of private healthcare practitioners across the globe. On-premise mode of deployment helps medical professionals to streamline their daily rundown. It helps in effective practice management and improves productivity. Moreover, the user-centric interface and the offline functioning of the software are expected to drive the segment.
Functionality Segment Analysis
In terms of functionality, the healthcare CRM market is segmented into customer service, sales, and marketing. The customer service segment held a major market share in 2022 due to the increasing business expansion of healthcare organizations, private hospitals, and government reeled hospital facilities.
The main operational body of such organizations prefers to provide 24*7 customer support for patients. The customer service department helps patients solve their queries regarding billings, making payments, managing payment dues, and escalating the issues to the concerned hospital departments.
Furthermore, patients are provided with solutions via live chat from a hospital website, and 24*7 telephonic support. All the functions of a customer support team are available as different accessible modules on hospital CRM. The customer support team, sales team, workforce management software, and other software such as calling, emailing, and web-chat software are all integrated within the CRM.
Team members are assigned authorized access to their unique modules which are customized by their organization’s authorities. The patient data is safe and secure with the team against the data protection act. The versatility of the CRM boosted segment growth.
The marketing segment is expected to register a robust growth rate during the forecast period owing to the effective execution of the marketing activities through the CRM. Currently, businesses rely on digital marketing in order to achieve their brand awareness, among the targeted audience from a targeted region.
Healthcare providers use digital marketing to reach the maximum number of customers residing locally, promote their services and drive the maximum number of patients. CRM enables all the marketing activities, such as running marketing campaigns, email marketing campaigns, running ads, updating marketing impressions, and others.
End-use Segment Analysis
On the basis of end-use, the market is divided into hospitals, clinics, and laboratories. The hospital segment dominated the market in the base year, owing to the rising number of private hospitals around the world. The patient care offered at private & multi-specialty hospitals has a holistic approach.
CRM helps such hospitals streamline a huge workflow for different healthcare domains such as specialty wards, general outpatient departments (OPD), surgery, inventory, pharmacy, intensive care units (ICU), payments & billing general wards, and others.
Moreover, CRM software lets doctors and healthcare authorities keep track of their patient’s histories, allows doctors to virtually connect with their patients, keeps track of home hospitalized patients by updating their vital information, and promotes remote patient monitoring, which drove the market.
The laboratories segment is projected to augment at a significant CAGR during the projection period owing to the increasing prevalence of chronic diseases, driving the need for regular health check-ups. The increasing health-related concerns are leading to rising awareness toward taking preventive measures to get timely treatment.
Moreover, the laboratories powered by healthcare CRM software achieve highly efficient workflow due to improved synchronization in internal laboratory operations, improved patient satisfaction, enhanced customer service, and effective patient communications. The significant growth in diagnostic laboratories using CRM software is expected to drive the segment in the coming years.
Regional Analysis
In terms of region, the global healthcare CRM market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major market share in 2022 owing to the increasing number of healthcare facilities in the region. In the region, countries like Canada and the U.S. have robust healthcare infrastructure.
Governments of these respective countries are increasing spending on healthcare expenditure which can create new opportunities for the market players. In the US, during 2022-2031 average growth in NHE (5.4 %) is projected to outpace that of average GDP growth (4.6 %) resulting in an increase in the health spending share of GDP from 18.3 % in 2021 to 19.6 % in 2031.
Moreover, a majority of the key players in the market reside in the region, due to the rising adoption of healthcare CRM software. The presence of global healthcare regulatory bodies such as the U.S. Food & Drug Administration (FDA) and the Centers for Disease Control & Prevention (CDC) implements strict regulations for healthcare software developers regarding patient data protection.
The key players in the region observed a surge in demand for a variety of healthcare solutions, such as practice management software, electronic health records (EHR), medical diagnostics software, telemedicine, medical billing, and others which contributed to the market growth in the region.
Asia Pacific is expected to dominate the market during the projection period due to the rising government expenditure for improving healthcare facilities in the region. Urbanization and technological advancements have led to increasing awareness among the population regarding telemedicine.
Telemedicine helps doctors as well as patients to manage their appointments, and the exposure to infections. The patients use the CRM software application, to manage their bills, payment dues, medical insurance, and auto-renewal of their prescriptions.
Virtual appointments with doctors help patients get medical advice in emergencies while saving their treatment time. Skipping the long hospital queues for a primary medical consultation is expected to drive the market in the region.
Segments
The global healthcare CRM market has been segmented on the basis of
Component
Deployment
Functionality
- Customer Service
- Sales
- Marketing
End-use
- Hospitals
- Clinics
- Laboratories
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Accenture
- ALVARIA
- IBM
- Oracle
- Creatio
- hc1
- Microsoft
- Salesforce, Inc.
- SAP
- SugarCRM Inc.
- Talisma
- Veeva Systems
- Verint Systems Inc.
- Zoho Corporation Pvt. Ltd.
Competitive Landscape
Key players competing in the healthcare CRM market are Accenture; ALVARIA; IBM; Oracle; Creatio; hc1; Microsoft; Salesforce; Inc.; SAP; SugarCRM Inc.; Talisma; Veeva Systems; Verint Systems Inc.; and Zoho Corporation Pvt. Ltd.
The companies opt for various business strategies such as running marketing campaigns, brand mergers, acquisitions, and software services and integrating advanced algorithms to improve accuracy, business expansions, and partnerships to attain a high ground in the market among other players. For instance,
- On May 31, 2023, Creatio partnered with Realvalue Consulting to empower more businesses with advanced digital solutions to automate more complex workflows and manage bigger healthcare ecosystems.
- On March 15, 2022, Adobe announced the general availability of the ‘Adobe Experience for Cloud for Healthcare’ system. The system ensures seamless patient communication and management for healthcare enterprises. Healthcare providers aim to provide their patients with an enhanced personalized digital experience, which is attainable with the help of advanced features of this software system.
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