Top 10 Healthcare Software Vendors and Market Forecast 2015-2020

Worldwide Healthcare Applications Market to reach $19 billion by 2020, compared with $16.5 billion in 2015 at a compound annual growth rate of 2.8%.


In 2015, the global Healthcare applications market grew 5% to approach nearly $16.5 billion in license, maintenance and subscription revenues.

Last year Cerner Corporation led the pack with 11% market share and $1.8 billion in Healthcare product revenues, riding on a 38% jump in license, maintenance and subscription revenues. McKesson was No. 2 achieving 8% share, Allscripts was the third at 5% and athenahealth and Microsoft were fourth and fifth place with 4% and 4%, respectively.

Top 10 Healthcare Software Vendors & 2015 Healthcare Applications Market Shares
Top 10 Healthcare Software Vendors & 2015 Healthcare Applications Market Shares

Through our forecast period, the Healthcare applications market is expected to reach $19 billion by 2020, compared with $16.5 billion in 2015 at a compound annual growth rate of 2.8%.

Exhibit 2: Worldwide Healthcare Software Market 2015-2020 Forecast, $M
Year 2015 2020 2015-2020 CAGR, %
Total 16524 19008 2.8%

Source: Apps Run The World, June 2016

Market Definitions And Forecast Assumptions

Healthcare (Healthcare providers, hospitals, physicians, clinics, hospices) – Electronic Health Record, Practice Management, Revenue cycle management, Financials, HR, Procurement

Consolidation among national healthcare providers will accelerate system standardization, while reimbursement cuts especially by the US government will prompt regionals to do the same in order to drive costs down. New E-Prescription rules, medical procedure code changes, health record systems will have profound impact on workflow and revenue cycle management.

Here are the rankings of the top 10 Healthcare applications vendors in 2015 and their market shares in 2015.

Rank Vendor 2014 Healthcare Apps Revenues, $M 2015 Healthcare Apps Revenues, $M YoY Growth 2015 Healthcare Market Share, % Recent Developments
1 Cerner Corporation Subscribe Subscribe 38% 11% Acquired Siemens Medical in 2015.
2 McKesson Subscribe Subscribe -4% 8% Sold off its practice management apps to e-MDs in 2016.
3 Allscripts Subscribe Subscribe 1% 5% Acquired a stake in Netsmart for behavioral health systems and Nant Health for big data genomics.
4 athenahealth Subscribe Subscribe 24% 4% Projects up to 21% growth in 2016, down from 23% in 2015.
5 Microsoft Subscribe Subscribe -5% 4% In June 2016, Microsoft announced plans to buy LinkedIn for $26.2 billion, its largest acquisition in history, as it aims to strengthen its position in the Cloud applications market.
6 IBM Subscribe Subscribe -4% 3% Acquisition strategy may shift in response to Cloud focus.
7 Nuance Communications Inc. Subscribe Subscribe -0.2% 3% Cloud applications strategy is work in progress.
8 CompuGroup Subscribe Subscribe 6% 3% Projects up to 4% rise in 2016 sales, compared with 2% in 2015.
9 Medidata Solutions Subscribe Subscribe 20% 2% Projects up to 21% growth in 2016 sales, compared with 17% in 2015.
10 Medical Information Technology Subscribe Subscribe -12%  2% Sales continued to decline in 2015 amid shifting market conditions that resulted in lower product bookings.
Subtotal Subscribe Subscribe 8% 45%
Other Subscribe Subscribe 2% 55%
Total Subscribe Subscribe 5% 100%

Source: Apps Run The World, June 2016

Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.

Exhibit 4: Worldwide Enterprise Applications Market Forecast 2015-2020, By Vertical Industry, $M

Exhibit 2 - Worldwide Enterprise Applications Market Forecast 2015-2020, By Vertical Industry, $M
Exhibit 2 – Worldwide Enterprise Applications Market Forecast 2015-2020, By Vertical Industry, $M

Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database

On the buyer side, customers are investing in Healthcare Software applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.

Since 2010, our global team of researchers have been studying the patterns of the latest software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.

Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.

The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.


Further Readings

An expanded version of this report covers the top 400+ Healthcare Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares(SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.

More Enterprise Applications Research Findings

Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors(Apps Top 500) and the world’s 500 largest Cloud Applications Vendors(Cloud Top 500) ranked by their 2014-2015 product revenues. Their 2015 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.

Research Methodology

Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.

Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world. The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.

The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.