Practice Management System Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The practice management system market size has grown rapidly in recent years. It will grow from $13.41 billion in 2024 to $14.82 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to transition to electronic health records (ehrs), increasing regulatory compliance requirements, focus on revenue cycle management, shift to value-based care, integration of telehealth services.

The practice management system market size is expected to see strong growth in the next few years. It will grow to $20.66 billion in 2029 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to advancements in artificial intelligence (ai) and automation, interoperability and health information exchange (hie), patient-centric care models, population health management strategies, global health crisis response. Major trends in the forecast period include focus on cybersecurity, consumerization of healthcare, advancements in health information technologies:, patient engagement tools, telehealth integration.

The rising adoption of e-prescriptions is anticipated to drive the growth of the practice management system market in the future. E-prescriptions involve the electronic transmission of prescriptions from healthcare providers to pharmacies or dispensing entities, replacing traditional paper prescriptions. Practice management systems play a crucial role in e-prescriptions by facilitating the auto-filling of patient information, ensuring secure prescription of controlled medications, and providing alerts and warnings. As reported in July 2023 by Surescripts National Progress Report, a U.S.-based information technology company, e-prescriptions experienced significant annual growth of 10.4%, reaching 2.34 billion in 2022. This surge in e-prescription adoption is contributing to the expansion of the practice management system market.

The increasing expenditure on healthcare is expected to propel the growth of the practice management system (PMS) market going forward. Healthcare refers to the organized system of medical services, professionals, and resources designed to promote and restore the physical and mental well-being of individuals and populations. Practice management systems are vital tools in managing healthcare expenditures, as they help optimize revenue collection, streamline resource allocation, and reduce administrative costs. For example, according to economic forecasts from the Office for Budget Responsibility (OBR) and the Treasury, the UK’s planned health spending is projected to rise to £192 billion ($244.43 billion) in 2024/25, up from £182 billion ($231.7 billion) in 2022/23. This increase in healthcare spending will likely drive demand for practice management systems, as healthcare providers seek to enhance operational efficiency and manage growing costs more effectively. Therefore, the rising healthcare expenditure is contributing to the growth of the PMS market.

Major companies operating in the practice management system market are focusing on adopting new technologies, such as Karbon AI, to enhance their profitability in the market. Karbon AI is a GPT-powered AI tool integrated into the industry-leading accounting practice management software, which enhances the working efficiency of accountants. For instance, in May 2023, Karbon Inc., a U.S.-based leading provider of collaborative practice management platforms for accounting firms, launched Karbon AI, a GPT-based artificial intelligence tool that improves the productivity of accounting firms. Karbon AI includes features such as summarizing lengthy emails, assessing the email inbox, and composing email drafts.

In May 2023, Dye & Durham Limited, a Canada-based provider of cloud-based software, acquired GhostPractice Inc. for an undisclosed amount. With this acquisition, Dye & Durham Limited aims to expand its practice management software capabilities and accelerate the company's growth. GhostPractice Inc. is a Canada-based provider of legal practice management software.

Major companies operating in the practice management system market report are McKesson Corporation, General Electric Company, Henry Schein Inc., EPIC Systems Corporation, Allscripts Healthcare Solutions Inc., Athenahealth Inc., CompuGroup Medical SE & Co. KGaA., eClinicalWorks LLC, NextGen Healthcare Information Systems LLC, Medical Information Technology Inc., Practo Technologies Pvt. Ltd., AdvantEdge Healthcare Solutions Inc., CareCloud Corporation, Greenway Health LLC, Modernizing Medicine Inc., Kareo Inc., Advanced-Data Systems Corporation, PracticeSuite Inc., AdvancedMD Inc., Practice Fusion Inc., Luma Health, WRS Health, OfficeAlly Inc., DrChrono Inc., TherapyNotes LLC, SimplePractice LLC, CollaborateMD Inc., Accumedic Computer Systems Inc., Qminder OU.

North America was the largest region in the practice management system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the practice management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the practice management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The practice management system market includes revenues earned by entities by providing practice management software such as capture patient demographics, schedule appointments, and preregister patients. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The practice management system market consists of sales of computers, servers, and routers and switches. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

A practice management system is a software solution crafted to streamline and optimize various administrative and operational tasks within a practice or organization. This type of software is designed to improve clinical processes, automate billing procedures, assist in claims management, reduce operational costs, and enhance overall efficiency.

The main product types in practice management systems include standalone and integrated solutions. Standalone refers to specialized software applications tailored to help professionals and organizations efficiently manage various aspects of their daily operations and administration within a specific industry or practice area. These solutions typically encompass software components and services provided through different modes of delivery, such as on-premise or cloud-based solutions. Practice management systems are utilized by various end users, including pharmacies, diagnostic laboratories, hospitals, and other entities within the healthcare and related industries.

The practice management system market research report is one of a series of new reports that provides practice management system market statistics, including the practice management system industry global market size, regional shares, competitors with practice management system market share, detailed practice management system market segments, market trends and opportunities, and any further data you may need to thrive in the practice management system industry. This practice management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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