Healthcare Cloud Computing Market

SKU: DMHCIT1038 | Last Updated On: Sep 16 2022 | Available Formats

>Healthcare Cloud Computing Market Expected to reach a high CAGR of 17% By 2022-2029:

Healthcare Cloud Computing Market is segmented By Service (Infrastructure-as-a-service, Software-as-a-Service, Platform-as-a-Service), By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Application (Clinical Information Systems (CIS) (Electronic Health Record (EHR), Picture Archiving and Communication System (PACS), Radiology Information Systems (RIS), Computerized Physician Order Entry (CPOE), Pharmacy Information Systems (PIS)), Nonclinical Information Systems (NCIS) (Revenue Cycle Management (RCM), Automatic Patient Billing (APB), Payroll Management System, Claims Management)), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029.

Healthcare Cloud Computing Market is expected to grow at a CAGR of 17% during the forecasting period (2022-2029). Cloud computing has been defined as 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.

Healthcare Cloud Computing Market Dynamics

Healthcare Cloud Computing Market growth is driven by the technological upgradation in healthcare industry, increasing focus on healthcare digitization and increasing deployment of cloud-based HCIT solutions by healthcare providers to improve the care process.

Increasing adoption of big data analytics, wearable devices, and IoT in healthcare is expected to drive the growth in the forecast period

Healthcare providers generate and collect a huge amount of data from various internal sources, such as electronic health records (EHRs), radiology images, pharmacy sales, prescription information, lab tests, and insurance claims data. The volume of this digital data is growing exponentially every year, majorly due to changes in the payer environment, such as incentives for the meaningful use of EHRs and a shift towards value-based payments. The effective management of a large volume of data requires significant computing power and IT bandwidth. In the on-premise storage of data, healthcare providers must invest more in IT infrastructure with an increase in data load. As a result, on-premise storage is not considered a viable option for storing a large volume of healthcare data. On the other hand, cloud computing enables all big data operations through the provision of large storage and processing power. Additionally, cloud-based analytical tools help providers better manage patients by transforming health data into actionable insights.

Data security and privacy concerns is likely to hinder the market growth

A major concern related to cloud solutions is that the data hosted by vendors is not as secure as data stored on-premise. Patient information is considered sensitive, and a high degree of privacy needs to be maintained so that this information is accessible to authorized users only. Though the cloud offers various benefits and security measures, the data stored on the cloud is still prone to cyber-attacks. With the growing volume of patient data and rising initiatives towards digital transformation in healthcare, data security and privacy concerns are increasing rapidly. Moreover, patients themselves are concerned about the security of their data, which adds to the necessity of maintaining security standards for data protection. Public clouds face similar security issues as traditional IT systems and are thus not preferred. Although private clouds offer more secure access protocols and systems, the healthcare industry is still skeptical about the data security of a private cloud.

COVID-19 Impact Analysis

The COVID-19 outbreak 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 number of research work 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 dedicated cloud channels. A major benefit of cloud-based services to organizations and companies during the COVID-19 pandemic is 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.

Healthcare Cloud Computing Market Segment Analysis

The electronic health record (EHR) segment is expected to hold the largest share in this market segment

The COVID-19 pandemic is expected to impact the market for EHR positively. According to an article appearing in the Journal of the American Medical Informatics Association (JAMIA) 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 collect and analyze data from public health departments, healthcare organizations, and socioeconomic indicators. This can be of immense importance while preparing to roll out programs designed to tackle COVID-19.

According to the Center for Medicare and Medicaid Services (CMS), EHR refers to an electronic version 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 prevented the sharing of this data. However, as companies are currently developing more patient-friendly interoperable devices, the situation is now changing. Complex healthcare systems require various EHR products to share information seamlessly. By enabling better workflows and reducing ambiguity, interoperable EHR allows data transfer between EHR systems and healthcare stakeholders much more easily. Thus, the market is expected to witness a high growth rate over the forecast period due to the factors mentioned above.

Healthcare Cloud Computing Market

Metrics

Details

Market CAGR

17%

Segments Covered

By Service, By Deployment Model, By Application, By Application, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

Healthcare Cloud Computing Market Geographical Analysis

North America region holds the largest market share of global healthcare cloud computing market

North America holds a major share in the healthcare cloud computing market and is expected to show a similar trend over the forecast period. The United States 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. Implementing 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 time, and 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 huge number of data breaches calls for more robust implementation of cloud technology in the healthcare sector to improve security. Hence, the market is expected to witness high growth over the forecast period due to all the factors mentioned above.

Healthcare Cloud Computing Market Competitive Landscape

The global healthcare cloud computing market is moderately competitive with presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Amazon Web Services Inc, Dell Inc, IBM Corporation, Oracle Corporation, Koninklijke Philips NV, Athenahealth Inc, CareCloud Corporation, ZYMR Inc, ClearDATA and Siemens Healthineers. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the market globally. For instance, In September 2021, MetaCell, a lifescieneces 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.

Key Companies to Watch

Koninklijke Philips NV

Company Overview: Koninklijke Philips N.V. is a Dutch multinational conglomerate corporation that was founded in Eindhoven in 1891. Since 1997, it has been mostly headquartered in Amsterdam, though the Benelux headquarters is still in Eindhoven.

Product Portfolio: It includes product like HealthSuite Platform.

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