The healthcare CRM market is estimated to reach USD 17.4 billion by 2023 from USD 8.8 billion in 2018, at a CAGR of 14.6% during the forecast period.
Market growth can largely be attributed to the benefits of CRM solutions, such as the easy arrangement of customer data & interactions and the simplification of business processes such as customer service and support, marketing, sales, and digital marketing. On the other hand, concerns regarding patient data security and the high cost and complexity of the CRM implementation process may limit market growth to a certain extent during the forecast period.
Web/cloud-based model is expected to account for the largest market share in 2018
On the basis of deployment model, the healthcare CRM market is segmented into on-premise model and web/cloud-based model. In 2018, the web/cloud-based model segment is expected to account for a larger market share. This segment is also estimated to register a higher CAGR during the forecast period. Advantages such as low maintenance cost, robust security features, and improved accessibility and recoverability of data are driving the growth of the web/cloud-based model segment.
In 2018, customer service and support is expected to hold the largest market share in 2018
On the basis of functionality, the healthcare CRM market is segmented into customer service and support, marketing, sales, digital marketing, and other functionalities. In 2018, the customer service and support segment is expected to account for the largest market share. The growing focus on patient engagement, rising pressure on healthcare organizations to reduce costs, and the importance of ensuring customer satisfaction are major factors responsible for the large share of this segment. The other functionalities segment is expected to register the highest CAGR during the forecast period.
North America is expected to account for the largest market share during the forecast period
Based on region, the healthcare CRM market is segmented into North America, Europe, Asia, and the Rest of the World (RoW). North America, segmented into the US and Canada, is estimated to hold the largest share of this market in 2018. However, the Asian market is expected to register the highest growth in the market during the forecast period. Market growth is mainly due to rising patient awareness, improvement of healthcare systems, growing medical tourism in Asian countries, and favorable government initiatives, among other factors.
The key players in the healthcare CRM market are Salesforce.com, Inc. (US), SAP SE (Germany), Oracle (US), Microsoft (US), IBM (US), Influence Health (US), SugarCRM (US), Accenture (Ireland), Healthgrades (US), and Infor, Inc. (US).
Salesforce (US) was the leading player in the healthcare CRM market, with a share of 22% in 2017. More than 100,000 companies have chosen Salesforce as their CRM solutions provider to streamline their business. The company has a strong cloud footprint with its SaaS offerings. Salesforce's strength lies in its ability to deliver innovation and engage its customers effectively. The company sells its products via direct and indirect sales distribution channels. Salesforce's growth strategy lies in cross-selling and upselling, extending existing services, expanding partner ecosystems, expanding its business into different regions, and entering into new markets.
SAP SE (Germany) was the second-largest player in the healthcare CRM market, with a share of 10% in 2017. Its robust product portfolio aids SAP in sustaining its leading position in the market. It helps to create valuable interaction with customers by offering solutions for commerce, revenue, sales, and services. SAP utilizes technologies, such as internet of things, artificial intelligence, and machine learning, to bring in innovation in various fields. The company has incorporated disrupting technologies like AI and machine learning to its cloud-based solution called SAP CRM. To incorporate these disruptive technologies into its software solutions, the company relaunched SAP Leonardo, its integration platform. In order to capitalize on the growth opportunities in the healthcare CRM market, the company emphasizes on adopting organic as well as inorganic growth strategies.
In 2018, Salesforce launched Salesforce Integration Cloud.
In 2018, IBM partnered with Salesforce. This partnership aimed to bring together Cloud and Watson services from IBM with Salesforce Quip and Salesforce Service cloud Einstein to allow organizations to connect with their customers more effectively.
In 2018, SAP acquired Caliduscloud (US) to strengthen its cloud-based customer relationship management solution.
Key Questions addressed by the report
Where will all these developments take the industry in the mid to long run?
Which are the key players in the market and how intense is the competition?
Which are the recent contracts and agreements key players have signed?
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Healthcare CRM: Market Overview 4.2 Healthcare CRM Market, By Component (2018-2023) 4.3 Healthcare CRM Market, By Delivery Model, 2018 vs. 2023 (USD Billion) 4.4 Healthcare CRM Market, By Functionality 4.5 Healthcare CRM Market, By End User, 2018 vs. 2023 (USD Billion) 4.6 Healthcare CRM Market: Geographic Growth Opportunities
5 Market Overview 5.1.1 Drivers 22.214.171.124 Benefits of CRM Software 126.96.36.199 Growing Focus on Patient Engagement 5.1.2 Restraints 188.8.131.52 Concerns Regarding Data Security 184.108.40.206 High Cost and Complexity of CRM Implementation 5.1.3 Opportunities 220.127.116.11 Ai-Powered CRM 18.104.22.168 Predictive Analytics in CRM 5.1.4 Challenges 22.214.171.124 Integration Challenges
6 Healthcare CRM Market, By Component 6.1 Introduction 6.2 Services 6.2.1 Services to Account for the Larger Share of the Healthcare CRM Market in 2018 6.3 Software 6.3.1 Ongoing Research & Launch of Advanced CRM Solutions Powered With Analytics and Artificial Intelligence to Drive Market Growth
7 Healthcare CRM Market, By Deployment Model 7.1 Introduction 7.2 On-Premise Model 7.2.1 Greater Control Over Data and Cost Benefits Offered By On-Premise Solutions to Drive the Growth of This Segment 7.3 Web/Cloud-Based Model 7.3.1 Public Cloud 126.96.36.199 Affordability, Scalability and Flexibility of This Model to Enhance the Growth of This Segment 7.3.2 Private Cloud 188.8.131.52 Growing Concerns Over Data Security Likely to Boost the Growth of This Segment 7.3.3 Hybrid Cloud 184.108.40.206 Greater Control, Reduced Risk and Cost-Efficiency to Drive the Growth of This Segment
8 Healthcare CRM Market, By Functionality 8.1 Introduction 8.2 Customer Service and Support 8.2.1 Growing Pressure to Ensure Patient Engagement and Retention Will Contribute to Market Growth in This Segment 8.3 Marketing 8.3.1 Benefits of Technology-Enabled Marketing to Enhance the Adoption of This Functionality 8.4 Sales 8.4.1 Opportunity Management Systems Will Ensure Streamlining of Sales Processes 8.5 Digital Marketing 8.5.1 Digital Marketing Will Provide Data-Backed Insights to Form Future Engagement Strategies 8.6 Other Functionalities 8.6.1 Ai-Powered CRM Will Have the Potential to Predict Customer Needs
9 Healthcare CRM Market, By End User 9.1 Introduction 9.2 Healthcare Providers 9.2.1 Hospitals 220.127.116.11 Growing Patient Burden and Increasing Focus on Patient Engagement to Drive the Growth of This Segment 9.2.2 Ambulatory Surgery Centers(Ascs) and Clinics 18.104.22.168 Rising Need to Improve Care Delivery and Streamline Business Functions to Drive the Market for This Segment 9.2.3 Diagnostic Centers 22.214.171.124 The Growing Burden of Patients Owing to the Increasing Awareness of Patients for Early Diagnosis is A Major Factor Driving the Growth of This 68 9.3 Life Sciences Industry 9.3.1 CRM Solutions Will Be Mainly Used to Streamline Css, Sales, and Marketing Processes 9.4 Healthcare Payers 9.4.1 Growing Need for Efficient Customer Management to Drive Demand for CRM Solutions in the Healthcare Payers Segment
10 Healthcare CRM Market, By Region 10.1 Introduction 10.2 North America 10.2.1 US 10.2.1.1 The Shift Toward Value-Based Care Will Boost the Adoption of Healthcare CRM in the US 10.2.2 Canada 10.2.2.1 Growing Focus on Improving the Quality of Healthcare in the Country Will Support Market Growth 10.3 Europe 10.3.1 Government Initiatives for Ehealth Technologies to Drive the Growth of This Segment 10.4 Asia 10.4.1 Rising Patient Awareness, Improving Healthcare Systems and Growing Medical Tourism to Boost the Growth of This Segment 10.5 Rest of the World