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U.S. Healthcare ERP Market Size to Hold USD 3.83 Billion by 2034

The U.S. healthcare ERP market is valued at USD 2.3 billion in 2025 and is expected to grow to USD 3.83 billion by 2034, expanding at a CAGR of 5.84% during the forecast period.

Ottawa, Sept. 09, 2025 (GLOBE NEWSWIRE) -- According to a study published by Towards Healthcare, a sister company of Precedence Research, the U.S. healthcare ERP market surpassed at USD 2.17 billion in 2024 and is projected to reach nearly USD 3.83 billion by 2034, expanding at a CAGR of 5.84%.

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Key Takeaways

  • By function, the finance & billing segment dominated the market in 2024.
  • By function, the inventory & material management segment is expected to be the fastest growing during the forecast period.
  • By deployment, the on-premises segment was dominant in the market in 2024.
  • By deployment, the cloud segment is expected to be the fastest growing at a notable CAGR in the coming years.
  • By end-user, the hospital segment led the market in 2024.
  • By end-user, the clinics segment is expected to grow significantly during the forecast period.

Market Overview & Potential

The U.S. Healthcare ERP market encompasses solutions and software that can enhance and manage the workflow of healthcare organizations. These solutions help in improving the operational efficiency as well as patient outcomes by providing cloud-based or on-premises platforms. They help in the management of finance, billing, inventory, supply chain, etc. These platforms promote automated billing, increase access to patient data, and also help in minimizing operational costs. Moreover, the expanding healthcare sector, growing technological advancements, healthcare investments, and telehealth trends are driving the market growth.

What are the Major Growth Drivers U.S. Healthcare ERP Market?

The growth in healthcare costs is the major factor driving the adoption of ERP systems in the U.S. These are also being used to enhance operational efficiency, as well as their compliance with regulatory standards are increasing data security and enhancing the trust of healthcare providers. Moreover, their growing advancements, increasing specialty clinics, and patient-centered care are other factors driving the market growth.

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What are the Key Drifts in the U.S. healthcare ERP Market?

The market has been expanding due to the growing healthcare complexities and digitalization, promoting remote healthcare.

  • In August 2025, new federal funding was announced for rural hospitals by Robert F. Kennedy Jr., the U.S. Health and Human Services Secretary and Greg Abbott, the Governor. Under the new legislation titled “Big Beautiful Bill”, Medicaid funding will be increased from $19 billion annually to $50 billion annually for rural hospitals by the federal government.
  • In August 2025, the technologies such as manufacturing, mining, and processing, which are essential for materials supply chains and critical minerals, will be enhanced by the total $1bn funding provided by the US Department of Energy (DoE). Moreover, President Trump's Executive Order addressing the reinforcement of U.S. industrial, energy, and security competitiveness aligns with the initiative.
  • In August 2025, a total of $30 million was secured in funding by New York-based Keychain, which is a platform that connects consumer packaged goods (CPG) companies with suppliers of packaging material and other raw materials. BoxGroup, the venture investor, and Wellington Management, the private equity (PE) firm, led this founding round, where a cumulative $68 million was secured by Keychain by including the latest funding.

What is the Significant Challenge in the U.S. healthcare ERP Market?

The market is experiencing a major limitation due to the absence of modern interfaces, poor data quality, and several software tools, leading to their complex integration. Moreover, the cost associated with the customization, expertise, upfront, training, and maintenance can also limit their use.

Regional Analysis

Why is the U.S. Significantly Growing in the Healthcare ERP Market in 2024?

The U.S. is expected to grow significantly in the healthcare ERP market during the forecast period. The U.S. consists of a well-developed healthcare system where the growth in investments is driving the adoption of ERP systems. The healthcare systems also consist of several complexities, which are increasing the use of ERP. These help in improving the workflow, which in turn, enhances the provider as well as the patients experiences. Moreover, the companies are developing new such platforms to increase their applications. Thus, this is promoting the market growth.

For instance,

  • In January 2025, $275 million was secured in a Series F funding round by Innovaccer, which is a healthcare AI company, where this funding will be utilized for scaling its developed ecosystem, expanding collaborations, and launching new AI and cloud capabilities. Moreover, care management, utilization management, and clinical decision support will also be enhanced by introducing several copilots and agents by Innovaccer.
  • In July 2025, plans to invest around $500 million for developing a state-of-the-art and premium tertiary hospital and to expand the Global Business Services (GBS) operations in the Philippines were announced by American healthcare firm Bon Secours Mercy Health (BSMH). Additionally, with its current team of 170, the BSMH is intending to expand its GBS operations to approximately 1,200 professionals in Manila.

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Global Healthcare ERP Market Revenue

The global healthcare ERP market is valued at $7.99 billion in 2024 and is expected to grow to $8.57 billion in 2025. Looking ahead, it’s projected to reach approximately $16.06 billion by 2034, expanding at an annual growth rate of 7.23% from 2025 to 2034. This growth is fueled by the increasing demand for advanced medical treatments, continuous technological innovations, and the rapid expansion of the healthcare industry.

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Segmental Insights

By function analysis

Why Did the Finance & Billing Segment Dominate in the U.S. Healthcare ERP Market in 2024?

By function, the finance & billing segment held the largest share of the market in 2024. Due to the presence of complex billing systems in the U.S. healthcare sector, the use of the healthcare ERP has increased. They helped in minimizing the complexities in the insurance or reimbursement policies. They also helped in minimizing the operational costs. Thus, this enhanced the market growth.

By function, the inventory & material management segment is expected to show the highest growth during the upcoming years. The cost associated with the medical supplies in the U.S. is high, which is increasing the demand for ERP solutions. Hence, the ERP helps in reducing the cost as well as helps in minimizing the unsold inventory. Moreover, it also helps in tracking the medical supplies, enhancing efficiency.

By deployment analysis

Which Deployment Type Segment Held the Dominating Share of the U.S. Healthcare ERP Market in 2024? 

By deployment, the on-premises segment held the dominating share of the market in 2024. The segment is driven by growth in the demand for data security. These systems helped in maintaining the patient's privacy and security and complying with the regulatory standards. It was also used for managing tasks and customizing workflows.

By deployment, the cloud segment is expected to show the fastest growth rate at a notable CAGR in the predicted time. They are being used to enhance the growth of healthcare systems due to their scalability and rapid implementation. It also enhances the remote access and reduces the capital expenditures.

By end-user analysis

How Hospital Segment Dominated the U.S. Healthcare ERP Market in 2024?

By end-user, the hospital segment led the market in 2024. The hospitals increased the adoption of ERP to minimize the complexities in their multiple departments. They were also used for managing the billing, financing, and inventories. Moreover, due to the large patient volume, their use was enhanced.

By end-user, the clinics segment is expected to show lucrative growth during the upcoming years. As there is a rise in specialty clinics, the utilization of ERP is increasing. They are being used for streamlining their workflow. Additionally, cloud-based ERP solutions are being used by them to provide quality services to the patients.

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Recent Developments in the U.S. Healthcare ERP Market

  • In August 2025, for the management, tracking, and forecasting of drug inventories, a ShortageCheck technology was launched by Bluesight, which is a hospital intelligence solutions provider, to assist hospitals and health systems. An integration of a comprehensive platform and collaborative planning tools, real-time inventory data, and predictive analytics will be provided by this ShortageCheck.
  • In March 2025, to launch an AI-driven lab focused on improving healthcare financial operations, which is R37, a collaboration between R1, which is a US-based revenue cycle management, and Palantir Technologies (PLTR) was announced. The key revenue cycle processes, like billing, denials, and coding management, will be automated by R37 by merging Palantir's AI capabilities with R1's expertise in payer-provider interactions.
  • In May 2025, to enhance the coding accuracy and clinical documentation, a new AI-powered revenue cycle platform was launched by Optum with a goal to minimize the administrative burden for health systems. Additionally, it also helps in capturing services for billing, reviewing clinical documentation, and assigning codes as the platform utilizes AI to automate point of care through final coding.

U.S. Healthcare ERP Market Key Players

  • Epic
  • Acumatica
  • Alivia Analytics, Inc.
  • McKesson Corporation
  • Epicor
  • Microsoft
  • Infor
  • SAP
  • Oracle
  • Software Connect
  • Workday, Inc.
  • Sage Group
  • Veradigm

Browse More Insights of Towards Healthcare:

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Segments Covered in The Report

By Function

  • Finance & Billing
  • Inventory & Material Management
  • Supply Chain & Logistics Management
  • Patient Relationship Management
  • Others

By Deployment

  • On-Premises
  • Cloud

By End-Use

  • Hospitals
  • Clinics
  • Others

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Access our exclusive, data-rich dashboard dedicated to the healthcare market - built specifically for decision-makers, strategists, and industry leaders. The dashboard features comprehensive statistical data, segment-wise market breakdowns, regional performance shares, detailed company profiles, annual updates, and much more. From market sizing to competitive intelligence, this powerful tool is one-stop solution to your gateway.

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About Us

Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics, with a strong emphasis on life science research. Dedicated to advancing innovation in the life sciences sector, we build strategic partnerships that generate actionable insights and transformative breakthroughs. As a global strategy consulting firm, we empower life science leaders to gain a competitive edge, drive research excellence, and accelerate sustainable growth.

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