The global healthcare cloud computing market size was estimated at USD 10.1 billion in 2018 and is anticipated to grow at a CAGR of 11.8% over the forecast period. Growing demand for integrated information systems majorly due to an increase in the prevalence of chronic diseases and the aging population are key drivers for this market.
The growing demand-supply gap in the healthcare industry has led to an increased need for IT, boosting the adoption of cloud computing in this industry. The rising demand for cloud-based information systems is expected to boost the market. Moreover, technologically advanced healthcare infrastructure, especially the hospitals in developed economies, is one of the key factors impelling market demand. With the rising population and volume of patient information, integration of data and having real-time access have become the need of the hour. An increase in investments by several private and public organizations in healthcare IT infrastructure is also one of the factors expected to positively impact growth in the near future.
For instance, the University of Pittsburgh Medical Center (UPMC) in the last quarter of 2017 invested USD 2.0 billion to transform its hospitals digitally across all its locations. UPMC is focused on its three digital specialty hospitals, namely, UPMC Hillman Cancer Hospital, UPMC Vision and Rehabilitation Hospital, and UPMC Heart and Transplant Hospital. UPMC has also announced that it will work with Microsoft to enhance digital hospitals.
Recent advancements in the field are telemedicine technologies such as teleradiology, video/audio conferencing, and telesurgery. These services not only allow patients to get clinical treatment without going to healthcare professionals but also help medical specialists share opinions & consult others on complex cases.
Furthermore, digital medical libraries offer a variety of services, such as query languages, library management systems, and indexing services, which enables physicians to improve their practice. The management information system is used to manage finance, billing, & human resource. The rising trend of opting for advanced technology for decision-making & forecasting is further anticipated to provide lucrative growth opportunities to this market in the near future.
Non-clinical information systems accounted for a major revenue share of the application segment in 2018, owing to the higher penetration of cloud computing services for various applications including revenue cycle management, healthcare information exchange, fraud management, supply chain management, billing & accounts management, and financial management.
The clinical information systems are expected to witness lucrative growth over the forecast period, owing to increasing demand for applications, such as electronic medical records, telehealth, laboratory information systems, etc. Increasing prevalence of chronic diseases creates the need for storage of a large amount of clinical information data. This has resulted in high demand for clinical information systems by medical professionals.
The data collected by healthcare providers through Electronic Health Records (EHRs), radio images, insurance claims, pharmacy sales, prescriptions, lab tests, wearables, and IoT-enabled devices are managed through these systems. The data helps stakeholders, like hospitals, laboratories, and companies generate meaningful insights. Cloud computing in hospitals and laboratories helps in reducing the cost associated with IT infrastructure. The aforementioned factors are anticipated to boost demand in the coming years.
The deployment model is categorized into private, hybrid, and public, based on the proprietorship, size, nature, and purpose. The private model, also is known as “Internal Cloud,” is a secured platform that only provides access to authorized users. This model is highly secured and controlled by the organization. Hence, this segment is accounted for the largest revenue share as of 2018. The public model is a cloud hosting platform that provides clients access to systems and services. Companies like Amazon, Microsoft, IBM, etc., provide these types of services.
Hybrid cloud is an integration of public and private deployment model. This segment is expected to witness lucrative growth. Growing demand for cloud servers, including hybrid and multi-cloud services, when compared to on-premise servers in the healthcare industry, is one of the key factors highlighting storage requirements in this industry. As per various industry reports, in 2018, nearly half of the major enterprises had some form of hybrid cloud deployment.
Software as a Service (SaaS) segment accounted for over 45.00% revenue share in 2018 due to the high adoption of this model in clinical settings. SaaS includes services ranging from inventory control to web-based email and database processing. The service provider basically has both data & application and the end-user can use the service anywhere, anytime.
The infrastructure-as-a-Service (IaaS) model is anticipated to register lucrative CAGR over the forecast period due to its benefits. It helps simplify application development and deployment on the cloud.
The pay-as-you-go and spot pricing are the two pricing models. The pay-as-you-go model is usually connected with SaaS providers. The Pay-as-you-go app provides the latest software solutions at minimum cost. These benefits of using pay-as-you-go can be attributed to its lucrative growth over the forecast period.
Spot pricing is considered a remarkable supplement for other pricing model. It is different from the forward or future price methods, as it is based on buying and selling of assets for immediate payment and delivery. Moreover, the study of SLR shows that consumers as well as providers are still hesitant to enter into spot pricing due to lack of practical and easily deployable market-driven mechanisms.
Healthcare providers held a dominant share in 2018. An increasing number of hospital connections over the cloud has positively impacted the demand for the SaaS model. The benefits of these systems such as off-site data storage to save space and outsourcing of IT solutions from hosting vendors eliminate the need for in-house IT staff, which is expected to fuel market demand over the forecast period.
The providers segment is also expected to witness the fastest CAGR in the next 7 years due to increasing adoption, as cloud computing offers flexibility, scalability, and improved data storage. Advancements in technology allow pharmacists to choose data management solutions in order to track historical data related to payment and drugs sold to patients. These factors are expected to contribute to the growing demand from healthcare players in the coming years.
In 2018, North America dominated the overall healthcare cloud computing market with a revenue share of 55.0%. Growing adoption of EHRs and expanding applications of analytical IT solutions in health management to streamline workflow as well as improve the efficiency of processes are among key factors that can be attributed to the high revenue share. In addition, advancements in healthcare IT infrastructure and the rise in IT initiatives by public and private players are also positively impacting the market growth.
Asia Pacific is anticipated to be the fastest-growing market with a CAGR of 13.5%, with economies such as India, China, and Japan presenting lucrative opportunities. Growth in the geriatric population, the increase in chronic disease burden, and the presence of initiatives supporting the adoption of integrated health systems are among factors boosting the market. Improving healthcare infrastructure in this region, with growing usage of IT solutions in the medical field, is expected to drive the market.
The market is fragmented in nature. Some of the major companies 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. Companies are adopting strategies such as mergers and acquisitions, collaborative agreements, regional expansion, and new product launches to gain competitive advantage. For instance, Ambra Health in November 2018 announced that the company has collaborated with the Google Cloud to advance research on medical imaging data. Initiatives like this are anticipated to boost growth.
Market size value in 2020
USD 14,123.3 million
Revenue forecast in 2026
USD 27,856.1 million
CAGR of 11.8% from 2019 to 2026
Base year for estimation
2014 - 2017
2019 - 2026
Revenue in USD million and CAGR from 2019 to 2026
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Application, deployment model, service model, pricing model, end-use, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; France; Italy; Spain; Netherlands; Sweden; Denmark; Russia; Japan; China; India; Australia; Singapore; Brazil; Argentina; Chile; South Africa; KSA
Key companies profiled
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; Ambra Health
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This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2026. For the purpose of this study, Grand View Research has segmented the global healthcare cloud computing market report on the basis of application, deployment model, service model, pricing model, end-user, and region:
Application Outlook (Revenue, USD Million, 2014 - 2026)
Clinical Information Systems
Electronic Medical Records
PACS, VNA, and Image Sharing Solutions
Population Health Management
Laboratory Information Management Systems
Pharmacy Information Systems
Radiology Information Systems
Non-Clinical Information Systems
Revenue Cycle Management
Billing and Accounts Management
Healthcare Information Exchange
Supply Chain Management
Deployment Outlook (Revenue, USD Million, 2014 - 2026)
Service Model Outlook (Revenue, USD Million, 2014 - 2026)
Pricing Model Outlook (Revenue, USD Million, 2014 - 2026)
End-use Outlook (Revenue, USD Million, 2014 - 2026)
Regional Outlook (Revenue, USD Million, 2014 - 2026)
Central & South America
Middle East & Africa
Kingdom of Saudi Arabia
b. The global healthcare cloud computing market size was estimated at USD 12,740.9 million in 2019 and is expected to reach USD 14,123.3 million in 2020.
b. The global healthcare cloud computing market is expected to grow at a compound annual growth rate of 11.8% from 2019 to 2026 to reach USD 27,856.1 million by 2026.
b. North America dominated the healthcare cloud computing market with a share of 54.74% in 2019. This is attributable to growing adoption of EHRs and expanding applications of analytical IT solutions in health management, advancements in healthcare IT infrastructure and rise in IT initiatives by public and private players.
b. Some key players operating in the healthcare cloud computing market include 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.
b. Key factors that are driving the healthcare cloud computing market growth include growing demand for integrated information systems majorly due to increase in prevalence of chronic diseases and aging population coupled with high demand for cloud-based information systems and technologically advanced healthcare infrastructure.
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