Hospital Risk Management Market Size and Share Analysis by Type (Risk and Compliance Management, Audit Management, Third-Party Risk Management, Enterprise Risk Management, Risk Mitigation and Remediation, Workflow Management, Reporting and Visualization), Hospital Size (Small Hospitals, Medium-Size Hospitals, Large Hospitals), Deployment (Cloud-Based, On-Premises) - Revenue Estimation Through 2030

Market Overview

The global hospital risk management market size stood at $1,115.4 million in 2021, which is expected to reach $3,482.3 million by 2030, advancing at a CAGR of 13.5% during 2021–2030. This will prominently be due to the rising frequency of medical errors, coupled with the high pervasiveness of chronic diseases all over the world.

Risk and Compliance Management Category to Witness Fastest Growth

The risk and compliance management category is expected to generate the fastest CAGR, over 14%, during 2021–2030. This will be on account of the rising patient safety concerns, necessity to decrease healthcare costs, and surging hospital-acquired infection incidence. As per a government agency, there was a more than 30% increase in the standardized infection ratio associated with ventilators, an around 15% increase in hospital-onset methicillin-resistant Staphylococcus aureus (MRSA) infection, and a 25% increase in the frequency of central line-associated bloodstream infections (CLABSI) in 2020. Such a drastic increase in hospital-associated infections is causing a huge spike in the demand for risk and compliance management solutions in hospitals.

The workflow management category accounted for the second-largest share, of around 20%, in 2021. The volume of medical data is expanding globally on account of the rising prevalence of chronic diseases, which is putting huge pressure on medical infrastructure. As per a government agency, chronic diseases lead to more than 40 million deaths every year, which is around 70% of the deaths all over the world. Workflow management solutions enhance the internal operations in hospitals through automation and provides higher efficiency in medical data control, which drives the hospital risk management market growth.         

Cloud-Based Category Leads Market

The cloud-based category accounted for the larger revenue share, over 80%, in 2021. The same category is expected to show the higher CAGR, of around 14.0%, in the forecast period. This is on account of the rising need to promote interoperability amongst different hospitals and companies, to exchange information between databases, applications, and other computer systems and reduce operating costs. Moreover, the rising adoption of e-prescriptions, EHRs, mHealth, and telehealth also drives the market growth.

Similarly, COVID-19 has led to the high adoption of cloud-based hospital risk management software to establish a strong network amongst hospitals, to get data regarding the number of COVID-19 patients and availability of beds.

Considering the importance of cloud-based risk management software in hospitals, the prominent players are actively participating to strengthen their position through acquisitions. For instance, in February 2022, IBM Corporation acquired Neudesic LLC to expand its portfolio of hybrid multi-cloud services.

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Hospital Risk Management Software is Being Used the Most in Large Hospitals

The large hospitals category is expected to hold the largest share, of around 60%, in 2030. This will be on account of the rising number of large hospitals, promulgating hospital spending, and adoption of EHRs in hospitals. For instance, more than 90% of the U.S. hospitals are in the process of validating EHRs. Hospital risk management is required for the proper functioning of EHR systems, to eradicate the occurrence of medical errors. The hospital bed density is the highest in Japan, South Korea, Russia, and Germany, of around 12.8, 12.4, 8.0, and 7.9 beds per 1,000 population, respectively.

North America is Leader in Market

North America dominated the hospital risk management market in 2021. This is primarily attributable to the presence of a large number of market players in the U.S., shifting of the on-premises risk management and other healthcare IT solutions to cloud-based solutions, and growing use of data analytics to facilitate the workflow in hospitals.

In addition, the rising prevalence of medical errors in the region contributes to the high-paced market growth. For instance, around 10,000 Americans die as a consequence of medication errors in hospitals every year. The rising number of medical errors also leads to a high healthcare spending, which further drives the market growth. The U.S. spends around $40 billion every year on patients afflicted with medication errors. Preventable medical errors in hospital predominate the mortality rate from foreseeable hazards, such as breast cancer, car accidents, and AIDS.

Recent Strategic Developments of Key Players

The competition among players is increasing as a result of the growing demand for risk management and safety solutions, coupled with the rising frequency of medical errors and patient data security concerns. Furthermore, the rising demand for software solutions is expected to favor new entrants, due to technological advancements, increasing patient awareness, and product acceptance.

Furthermore, to capture a larger share of the market, companies are expanding geographically and widening their product portfolio through product launches, mergers and acquisitions, and partnerships. For instance, in February 2021, Symplr acquired The Patient Safety Company (TPSC) to expand its end-to-end healthcare governance, risk, and compliance (GRC) SaaS platform.

Top Players in Hospital Risk Management Market Are:

• RSA Security LLC
• AuditBoard Inc.
• Diligent Corporation
• IBM Corporation
• LogicGate Inc.
• LogicManager Inc.
• MetricStream
• NAVEX Global Inc.
• OneTrust LLC
• Reciprocity Inc.

Market Size Breakdown by Segment

The research offers the market size of the global hospital risk management market for the period 2017–2030.

Based on Type

• Risk and Compliance Management
• Audit Management
• Third-Party Risk Management
• Enterprise Risk Management
• Risk Mitigation and Remediation
• Workflow Management
• Reporting and Visualization

Based on Hospital Size

• Small Hospitals
• Medium-Size Hospitals
• Large Hospitals

Based on Deployment

• Cloud-Based
• On-Premises

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa