|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
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The healthcare cloud computing market was valued at USD 33,390.56 million in 2021, and it is expected to reach USD 71,730.64 million by 2027, registering a CAGR of 14.12% during the forecast period 2022-2027.
The COVID-19 pandemic is expected to have an overall positive effect on the market. There is now an increasing understanding of the potential of cloud technologies, which provide data storage and computing resources managed by external service providers to help improve the safety, quality, and efficiency of healthcare. This has become important in the fight against COVID-19. Due to the huge amount of research and clinical trials being carried out worldwide, the research data being generated needs to be stored in a secure environment that can house large amounts of data. Cloud computing solves the problem of both space constraints and security as it allows the hosting of huge amounts of data on private and dedicated cloud channels. A major benefit of cloud-based services for organizations and companies during the COVID-19 pandemic has been that they allow faster implementation and upscaling across a range of different settings. They do not require companies to procure additional hardware (such as servers needed for on-premises solutions), and they can be implemented remotely. For example, in March 2020, an AI-enabled auxiliary diagnostic system was offered by Huawei Cloud, the cloud computing unit of Huawei, and artificial intelligence company Huiying Medical Technology Co. Ltd to hospitals in Ecuador remotely.
The major factors bolstering the growth of the healthcare cloud computing market include increasing access to advanced technology, such as machine learning, the rise in adoption of information technology in the healthcare sector, and usage of cloud for reducing cost and improving scalability, storage, and flexibility. Cloud computing involves the use of remote servers that are hosted on the internet to manage, store, and process data. A local server is not used for cloud computing, due to which infrastructure costs are reduced significantly. In addition to one-time set-up cost, maintenance cost is also lesser in the case of a cloud-based architecture. The benefits of cloud computing were felt during the COVID-19 pandemic when there was a shortage of healthcare workers, mass lockdowns, and a lack of coordination between healthcare services. For example, in May 2020, the Oklahoma State Department of Health launched a mobile app that allows healthcare workers to engage remotely with at-risk citizens who may have been exposed to the COVID-19 virus. The app, which Google and MTX Group jointly created, uses Google Cloud to enable the state to quickly contact citizens who report COVID-19 symptoms and send them to testing sites. Agencies were also using cloud-based data dashboards to provide real-time analytics and data visualizations to track and control the spread of the virus. In the last week of March 2020, the Australian government’s Department of Health launched its Coronavirus Australia App. Built on the Google Cloud, the app can offer real-time information and advice about lockdowns, the spread patterns, and healthcare information about the COVID-19 pandemic. These developments are expected to positively affect market growth.
Scope of the Report
As per the scope of this report, cloud computing has been defined as the practice of using remote servers in place of local servers or networks to store, manage, and process the data. Therefore, the use of the cloud moves the data center infrastructure outside of the organization. This report analyzes and discusses the market for cloud computing in the healthcare sector. The revenue from cloud services has been tracked in the report. The market is segmented by application (clinical information systems (CIS) and non-clinical information systems (NCIS)), deployment (private cloud and public cloud), service (software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS)), end user (healthcare providers and healthcare payers), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions, globally. The report offers the value (in USD million) for all the above segments.
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Key Market Trends
Electronic Health Record (EHR) Segment Expected to Hold the Largest Market Share During the Forecast Period
The COVID-19 pandemic is expected to have a positive impact on the EHR market segment. According to an article in the Journal of the American Medical Informatics Association (JAMIA) published in November 2020, the development, implementation, and evaluation of EHR-based data sharing networks and platforms and public health information systems are required in the fight against COVID-19. Since EHR systems can be multi-disciplinary, they can be utilized to collect and analyze data from public health departments, healthcare organizations, and socioeconomic indicators. This can be important while preparing to roll out programs designed to tackle COVID-19.
According to the Center for Medicare and Medicaid Services (CMS), EHR is an electronic record of patient health information that includes vital signs, patient demographics, progress notes, problems, past medical history, medications, laboratory data, immunizations, and radiology reports. Lack of interoperability has previously prevented the sharing of this data. However, as companies are currently working to develop more patient-friendly interoperable devices, the situation is now changing. Complex healthcare systems require diverse EHR products so that information may be shared seamlessly. By enabling better workflows and reducing ambiguity, interoperable EHR allows data transfer between EHR systems and healthcare stakeholders quickly. Thus, due to the factors mentioned above, the market is expected to witness a high growth rate over the forecast period.
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North America Accounted for the Largest Market Share
North America holds a significant share in the healthcare cloud computing market and is expected to show a similar trend over the forecast period. The US is a leader in the healthcare cloud computing market, mainly due to the high adoption rate of healthcare IT services and the continuous financial and regulatory support from government agencies. The implementation of the Health Information Technology for Economic and Clinical Health Act (HITECH Act) stimulated the adoption of EHR and supporting technologies across the country. According to the Act’s provisions, healthcare providers would be offered financial incentives for demonstrating meaningful use of EHRs until a certain period, after which time penalties may be levied for failing to explain such use. Moreover, to better support providers and patients, Microsoft launched a cloud service specifically for healthcare in May 2020. Healthcare systems can leverage this industry-specific cloud service to increase patient engagement, schedule telehealth visits, maintain patient data, and ensure compliance with the Health Insurance Portability and Accountability Act (HIPAA). Cloud-based services are helpful for all stakeholders. Most healthcare institutions neither have the time nor resources to devote attention to cybersecurity that an established cloud provider may have. The high number of data breaches calls for more robust implementation of cloud technology in the healthcare sector to improve security. Thus, owing to all the aforementioned factors, the market is expected to witness high growth over the forecast period.
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The healthcare cloud computing market is moderately consolidated, owing to the presence of a few key players in the market. The companies are applying powerful competitive strategies to gain more market share. Some of the market players are Amazon Web Services, Dell Inc., IBM Corporation, Oracle Corporation, and Koninklijke Philips NV.
The companies are involved in various strategies such as product launches and investments in R&D activities to sustain themselves in the highly competitive environment. For example, in November 2020, Microsoft launched the Microsoft Cloud for Healthcare suite to boost patient engagement, health team collaborations, and improve clinical and operational insights.
· In December 2021, CVS Health and Microsoft started collaborating in order to accelerate digital healthcare via AI and cloud computing.
· In September 2021, MetaCell, a life sciences software company, introduced a new product, “MetaCell Cloud Hosting,” that provides advanced cloud computing solutions specifically designed for life science and healthcare organizations in order to facilitate research and innovation.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Adoption of Information Technology in the Healthcare Sector
4.2.2 Access to Advanced Technology, such as Machine Learning, is Easier on Cloud Systems
4.2.3 Usage of Cloud Reduces Cost and Improves Scalability, Storage, and Flexibility
4.3 Market Restraints
4.3.1 Data Security and Integrity Issues
4.3.2 Lack of Interoperability and Industry Standards
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Clinical Information Systems (CIS)
220.127.116.11 Electronic Health Record (EHR)
18.104.22.168 Picture Archiving and Communication System (PACS)
22.214.171.124 Radiology Information Systems (RIS)
126.96.36.199 Computerized Physician Order Entry (CPOE)
188.8.131.52 Other Applications
5.1.2 Non-clinical Information Systems (NCIS)
184.108.40.206 Revenue Cycle Management (RCM)
220.127.116.11 Automatic Patient Billing (APB)
18.104.22.168 Payroll Management System
22.214.171.124 Other Non-clinical Information Systems
5.2 By Deployment
5.2.1 Private Cloud
5.2.2 Public Cloud
5.3 By Service
5.3.1 Software-as-a-Service (SaaS)
5.3.2 Infrastructure-as-a-Service (IaaS)
5.3.3 Platform-as-a-Service (PaaS)
5.4 By End User
5.4.1 Healthcare Providers
5.4.2 Healthcare Payers
5.5.1 North America
126.96.36.199 Rest of Europe
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.5.4 Middle-East and Africa
220.127.116.11 South Africa
18.104.22.168 Rest of Middle-East and Africa
5.5.5 South America
22.214.171.124 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Amazon Web Services Inc.
6.1.2 Athenahealth Inc.
6.1.3 CareCloud Corporation
6.1.4 ZYMR Inc.
6.1.6 Dell Inc.
6.1.7 IBM Corporation
6.1.8 Iron Mountain Inc.
6.1.9 Oracle Corporation
6.1.10 Siemens Healthineers
6.1.11 Koninklijke Philips NV
6.1.12 e-Zest Solutions
6.1.13 OSP Labs
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Healthcare Cloud Computing Market market is studied from 2019 - 2027.
What is the growth rate of Healthcare Cloud Computing Market?
The Healthcare Cloud Computing Market is growing at a CAGR of 14.12% over the next 5 years.
What is Healthcare Cloud Computing Market size in 2019?
The Healthcare Cloud Computing Market is valued at 33390 Million USD in 2019.
What is Healthcare Cloud Computing Market size in 2027?
The Healthcare Cloud Computing Market is valued at 71730 Million USD in 2027.
Which region has highest growth rate in Healthcare Cloud Computing Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Healthcare Cloud Computing Market?
North America holds highest share in 2021.
Who are the key players in Healthcare Cloud Computing Market?
Amazon Web Services Inc., Dell Inc., IBM Corporation, Oracle Corporation, Koninklijke Philips NV are the major companies operating in Healthcare Cloud Computing Market.