CAGR: Current Market Size: USD 12 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2022-2029Base Year: 2021
Global Healthcare Cloud Computing Market- Market Overview:
The Global healthcare cloud computing market is expected to grow from USD 12 billion in 2021 to USD 29 billion by 2029, at a CAGR of 12% during the Projection period 2022-2029. The growth of this market is mainly driven by the growing demand for integrated information systems majorly due to an increase in the prevalence of chronic diseases and the aging population
Healthcare providers use healthcare cloud computing to store, preserve, and back up patient health information (PHI). It delivers flexible resources, economies of scale, and instant access to data everywhere, all while lowering overall operational expenses. Remote conferencing, it assists in updating patient records, improving analysis, and tracking information on diagnosis, treatment, cost, and performance. Additionally, it helps in cost-saving and resilience-improving tailored care delivery, patient outcomes improvement, and compliance requirements fulfillment. As a result, it is becoming more popular across the globe due to its increased simplicity and improvement of healthcare organizations’ general efficiency. The healthcare sector's expanding demand-supply imbalance has raised the need for IT, which has accelerated the adoption of cloud computing in this sector. The market is anticipated to grow as a result of the increased demand for cloud-based information systems. Furthermore, one of the main drivers of market demand is healthcare infrastructure that is technologically advanced, particularly hospitals in developed economies. Integration of data and real-time access are now essential due to the growing population and volume of patient data. One of the elements anticipated to have a favorable impact on growth in the near term is a rise in expenditures made in healthcare IT infrastructure by a number of private and governmental entities. For instance, the University of Pittsburgh Medical Center (UPMC) invested USD 2.0 billion in its hospitals' digital transformation across all of its campuses in the final quarter of 2017. The UPMC Hillman Cancer Hospital, UPMC Vision and Rehabilitation Hospital, and UPMC Heart and Transplant Hospital are the organization's three digital speciality hospitals. Additionally, UPMC has declared that it would collaborate with Microsoft to improve digital hospitals. Telemedicine technology including teleradiology, video/audio conferencing, and telesurgery, are recent developments in the industry. These services assist medical experts to share thoughts & consult others on challenging issues, enabling patients to receive clinical therapy without visiting healthcare providers.
Sample Request: - Global Healthcare Cloud Computing Market
Market Dynamics:
Drivers:
The healthcare sector's expanding demand-supply imbalance has raised the need for IT, which has accelerated the adoption of cloud computing in this sector. The market is anticipated to grow due to the increased demand for cloud-based information systems. Furthermore, one of the main drivers of market demand is healthcare infrastructure that is technologically advanced, particularly hospitals in developed economies. Integration of data and real-time access is now essential due to the growing population and volume of patient data. One of the elements anticipated to have a favourable impact on growth in the near term is a rise in expenditures made in healthcare IT infrastructure by a number of private and governmental entities.
Restraints:
Cloud service provider data storage is less secure than on-premise data storage. To make sure that only people with permission can access patient information, a high level of privacy must be maintained. Patient data has been examined by several legal frameworks, including the US's HIPAA (Health Insurance Portability and Accountability Act). Similarly to this, the European Union has a variety of data protection directives. Transferring patient Protected Health Information (PHI) from one country to another is prohibited in many others. Personal information that is obtained, used, or disclosed is protected by Canada's Personal Information Protection and Electronic Documents Act (PIPEDA). Canadian organizations may face legal prosecution for failing to comply with the Act.
Opportunities:
Due to the convergence of wireless and cloud technology, patient care can now be provided in remote locations. The bulk of doctors and specialists work in big cities and metropolitan areas in various countries. Patients can only obtain the most advanced medical technology in urban areas as a result. To overcome this difficulty, medical professionals can employ a tele-cloud to diagnose and treat patients over vast distances in real-time and affordably.
Challenges:
The cloud has numerous benefits and takes many security measures, yet data stored there is still susceptible to hacker attacks. As the number of patient data increases and there are more initiatives to adopt digital transformation in healthcare, data security and privacy concerns are growing. Additionally, patients' worries about protecting their data raise the requirement for maintaining high-security standards for patient data. Public clouds are not advised because they have the same security issues as conventional IT systems.
Segmentation Analysis:
The global healthcare cloud computing market has been segmented based on application, deployment, service, end-user, and region.
By Application
The application segment is Clinical Information Systems (CIS) and Non-clinical Information Systems (NCIS). The non-clinical information systems (NCIS) segment led the largest share of the healthcare cloud computing market with a market share of around 6.6% in 2021. Due to the increased use of cloud computing services for a variety of applications, including billing & accounts management, revenue cycle management, healthcare information sharing, fraud management, supply chain management, and financial management.
By Deployment
The deployment segment includes Private Cloud and Public Cloud. The private cloud segment led the healthcare cloud computing market with a market share of around 7.2% in 2021. The private model commonly referred to as the "Internal Cloud," is a protected platform to which only authorized users have access. This model is well-guarded and under organization control. As a result, as of 2018, this category accounted for the highest revenue share. A cloud hosting platform called the public model gives users access to various systems and services. These services are offered by businesses like Amazon, Microsoft, IBM, etc.
By Service
The service segment includes Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS). The software-as-a-service (SaaS) segment led the healthcare cloud computing market with a market share of around 4.56% in 2021. Because this paradigm is often used in clinical settings. SaaS services range from database processing and web-based email to inventory control. The user can utilize the service anywhere, at any time, because the service provider essentially owns both data and applications.
Global Healthcare Cloud Computing Market- Sales Analysis.
The sale of the healthcare cloud computing market has been segmented based on application, deployment, service, and end-user expanded at a CAGR of 9.7% from 2015 to 2021.
It is anticipated that the COVID-19 epidemic will largely benefit the market. The promise of cloud technologies, which offer data storage and computing resources managed by external service providers to aid in improving the security, caliber, and effectiveness of healthcare, is increasingly being recognized more and more. The research data that is being generated needs to be stored in a secure environment that can contain vast amounts of data due to the enormous number of research and clinical trials that are being conducted globally. Due to its ability to hold massive volumes of data on private and dedicated cloud channels, cloud computing addresses the issues of both security and space limitations.
For instance, the University of Pittsburgh Medical Center (UPMC) invested USD 2.0 billion in its hospitals' digital transformation across all campuses in the final quarter of 2017. The UPMC Hillman Cancer Hospital, UPMC Vision and Rehabilitation Hospital, and UPMC Heart and Transplant Hospital are the organization's three digital speciality hospitals. UPMC also declared that it would collaborate with Microsoft to improve digital hospitals. Telemedicine technology, including teleradiology, video/audio conferencing, and telesurgery, are recent developments in the industry. These services assist medical experts in sharing thoughts & consult others on challenging issues, enabling patients to receive clinical therapy without visiting healthcare providers.
Thus, owing to the aforementioned factors, the global healthcare cloud computing market is expected to grow at a CAGR of 12% during the Projection period from 2022 to 2029.
Global Healthcare Cloud Computing Market- By Regional Analysis:
The regions analyzed for the healthcare cloud computing market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the healthcare cloud computing market and held a 39% share of the market revenue in 2021.
Global Healthcare Cloud Computing Market- Country Analysis:
Germany's healthcare cloud computing market size was valued at USD 0.18 billion in 2021 and is expected to reach USD 0.28 billion by 2029, at a CAGR of 6% from 2022 to 2029. A favourable trend for cloud computing is anticipated due to consumer adoption of multi-cloud strategies. Since a few years ago, cloud computing technology has entered a golden age and is gaining popularity in all commercial sectors. Adopting cloud services by businesses in Germany is a top priority globally since it will reduce infrastructure costs and provide operational flexibility.
China’s healthcare cloud computing market size was valued at USD 0.39 billion in 2021 and is expected to reach USD 0.83 billion by 2029, at a CAGR of 10% from 2022 to 2029. The growing adoption of innovative technological solutions by care facilities to enhance their procedures and workflows and appropriately address the growing patient population is predicted to fuel the market's expansion in China.
India's healthcare cloud computing market size was valued at USD 0.31 billion in 2021 and is expected to reach USD 0.57 billion by 2029, at a CAGR of 8% from 2022 to 2029. The astonishing potential is being shown by the quickly growing information technology sector, which is attracting both public and private investors. In the years to come, it is projected that this will hasten the industry's overall development.
Key Industry Players Analysis:
To increase their market position in the global healthcare cloud computing business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
12% |
Market Size |
12 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Application, By Deployment, By Service, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
CareCloud Corporation, ClearData Networks, Inc., Athenahealth, Cerner Corporation, Epic Systems Corporation, NextGen Healthcare, Carestream Corporation, Dell, Inc., DICOM Grid, Inc., INFINITT Healthcare, Sectra AB, Merge Healthcare, Inc, Siemens Healthineers, iTelagen, Inc., NTT DATA Corporation, Nuance Communications, and Ambra Health. |
By Application |
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By Deployment |
|
By Service |
|
By End-User |
|
Regional scope |
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Scope of the Report
Global Healthcare Cloud Computing Market By Application:
Global Healthcare Cloud Computing Market By Deployment:
Global Healthcare Cloud Computing Market By Service:
Global Healthcare Cloud Computing Market By End User:
Global Healthcare Cloud Computing Market By Region:
Global healthcare cloud computing market is expected to reach USD 29 billion by 2029, at a CAGR of 12% from 2022 to 2029.
The healthcare cloud computing market is projected to have a CAGR of 12%.
The healthcare sector now has a greater need for IT, which has accelerated the adoption of cloud computing in this sector due to the widening demand-supply mismatch in that sector. The market is anticipated to grow as a result of the increased demand for cloud-based information systems.
Leading market players active in the global healthcare cloud computing market are CareCloud Corporation; Athenahealth; ClearData Networks, Inc.; Cerner Corporation; Epic Systems Corporation; NextGen Healthcare; Carestream Corporation; Dell, Inc.; DICOM Grid, Inc.; INFINITT Healthcare; Sectra AB; Merge Healthcare, Inc.; Siemens Healthineers; iTelagen, Inc.; NTT DATA Corporation; Nuance Communications; and Ambra Health among others.
Based on end-user, the healthcare cloud computing market is segmented into Healthcare Providers and Healthcare Payers.