Healthcare Cloud Infrastructure Market Size, Share & Trends Analysis Report By Component (Hardware, Services), By End Use, By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2021 - 2028

Report Overview

The global healthcare cloud infrastructure market size was valued at USD 40.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 16.7% from 2021 to 2028. The growing trend of digitalization of healthcare, integration of advanced AI/ML algorithms, cloud deployment of healthcare systems, rising expenditure, inefficient facility management, and overburdened systems are creating a surge in demand for healthcare cloud infrastructure. Care facilities would be able to integrate and streamline their workflows, drive their operational & functional outcomes, enhance data management & security, and deliver optimum care. It is anticipated to boost the adoption and demand for these cloud infrastructure systems and bolster market growth.

The increasing access of the healthcare industry to advanced technological solutions and the rise in adoption of cloud computing to reduce costs and improve flexibility, storage, and scalability. The growing IT infrastructure in developed countries is one of the key contributing factors driving the demand. Care facilities are burdened with the growing patient population and volume of patient information and demanding real-time data access and integration of data. The potential of the healthcare IT industry is attracting public and private investments, which are expected to positively impact market growth.

In the last quarter of 2017, the University of Pittsburgh Medical Center (UPMC) announced an investment of USD 2 billion to digitally transform all their hospitals, especially UPMC Vision & Rehabilitation Hospital, UPMC Hillman Cancer Hospital, and UPMC Heart and Transplant Hospital. Organizations are using cloud-deployed data dashboards to deliver real-time data visualizations and analytics for enhanced data management. For example, in March 2020, the Australian Department of Health launched the Coronavirus Australia App using Google Cloud to deliver real-time information about the virus spread patterns, lockdowns and restrictions, and Covid-19 specific healthcare information.

COVID19 healthcare cloud infrastructure market impact: 9.7% increase in revenue growth from 2019 to 2020

The rising demand for cost-effective healthcare services, growing demand for technological solutions, growing need for high information mobility, growing government initiatives & incentives, and growing funding to implement hospital cloud computing technologies in care facilities is expected to drive the market growth. Cybercrimes and privacy threats are some of the main concerns restraining the market growth. Cloud infrastructure has been forming the base for recent advancements in the field of telemedicine, digital medical libraries, and management information systems.

The ongoing Covid-19 pandemic has only reassured the need for advanced computing technologies to adhere to successful digital transformations. Furthermore, the adoption of these advanced systems allows organizations to improve cost optimization and leverage these systems to efficiently handle rising network traffic, enhance resource management, and mitigate risks. Organizations are adopting the hybrid cloud model strategy to integrate operations & functions across multiple clouds. A growing need to adopt secure and scalable IT infrastructure in healthcare organizations to manage and maintain patient data.

Business organizations are rapidly implementing advanced computing systems and solutions to digitally transform their businesses, streamline their workflow, and reduce the burden on networks. The market is fragmented and some of the key players providing these solutions are IBM, Microsoft, Oracle, Salesforce, and Amazon. Companies are entering technological collaborations to expand and co-develop innovative products and solutions. In July 2020, Microsoft and Allscripts Healthcare Solutions, Inc. entered a strategic partnership to develop cloud-based healthcare IT solutions. It is creating space for co-innovation to develop more scalable, and smarter solutions.

Component Insights

In 2020, the services segment dominated the market and accounted for the highest revenue share of 79.4%. Companies and organizations lack the resources and skillsets required for the deployment of advanced computing systems and solutions. The easy availability of outsourcing IT services can be availed for short-term project-based or long-term contracts. These services are available as Software-as-a-service (SaaS), Infrastructure-as-a-service (IaaS), and Platform-as-a-service (PaaS). Software-as-a-Service (SaaS) dominated the services segment with a revenue share of 57.5% due to the growing adoption of the model in hospital and clinical settings.

The services included in the SaaS model range from web-based email to inventory control to database processing. However, the Platform-as-a-Service (PaaS) model is expected to record the fastest growth rate over the forthcoming years, since it offers enhanced control and customization of apps developed by providers and additionally minimizes costs and ownership concerns which are usually associated with Infrastructure-as-a-Service (IaaS).

On the other hand, the hardware segment is anticipated to record the fastest growth rate over the forthcoming years. An increase in demand for hardware platforms with high computing power to operate cloud infrastructure and systems is contributing to the segment growth. Hardware corresponds to all electronic devices and human-machine interface devices, such as computer systems and network assistant devices. The price of these devices, especially electronic devices, is expected to fall over the forecast period, which is anticipated to reduce the overall cost of healthcare cloud infrastructure implementation and thereby contribute to the growth in demand.

End-use Insights

In 2020, the healthcare providers segment dominated the market and accounted for the largest revenue share of 60.4% due to a significant surge in hospital connections over the cloud infrastructure, thereby impacting the demand for the SaaS model. Some of the benefits of these systems are secure off-site data storage and management and the easy availability of outsourcing of IT solutions and services eliminating the need for in-house IT personnel. Scalability, flexibility, and enhanced data management offered by advanced computing systems and solutions and constant technological advancements in this space is expected to drive the demand and boost the care providers’ segment growth over the forthcoming years.

On the other hand, the healthcare payers segment is anticipated to register the fastest growth rate over the forthcoming years. Healthcare payers comprise insurance companies, health plans sponsor (employers and unions), and third-party payers. Payers are rapidly adopting cloud computing solutions for secure data collection & storage, settlement of insurance claims, risk assessment, and fraud prevention. Management of high-risk patient populations and high utilizer has always been a challenge for payers. Payers are adopting these advanced technological systems and solutions to minimize rising healthcare expenses. Furthermore, cloud computing helps payers expand their business, improve services, enhance quality, and reduce administrative costs.

Regional Insights

North America dominated the healthcare cloud infrastructure market and held the largest revenue share of 53.9% in 2020 and is attributable to the rapidly rising care expenditure and growing advancements in the IT infrastructure. The market is composed of some of the major market players developing healthcare cloud infrastructure products & solutions and providing installation & training facilities, which is expected to contribute significantly to the regional market growth. To streamline their workflows, eliminate data siloes, and drive their operational, clinical, and financial outcomes, care facilities in North America are adopting cloud infrastructure products and services.

However, in Asia Pacific, the market is anticipated to register the fastest growth rate during the forecast period owing to the surge in several innovative start-ups specializing in healthcare cloud infrastructure products and services. Furthermore, the developing healthcare IT infrastructure and the rise in adoption of advanced technological solutions by care facilities to enhance their workflow management and effectively serve the growing patient population is expected to propel the growth of the market in Asia Pacific. The growing IT industry is showing tremendous potential and attracting public and private investors. It is expected to accelerate the future development of the industry.

Key Companies & Market Share Insights

The key players are constantly focusing on innovating and developing advanced products & solutions and providing services such as pre-implementation and user training. Key players are devising their technological collaboration strategies to expand their offerings and cater to larger clientele in developing nations. For instance, in June 2021, Persistent Systems collaborated with IBM to help fuel core IT modernization, open hybrid cloud adoption, and digital transformation for clients. Similarly, in July 2021, Amazon Web Services launched AWS for Health, a range of services aimed at helping healthcare and life science enterprises achieve their digital goals. Some of the prominent players in the healthcare cloud infrastructure market include:

• Dell, Inc.

• Hewlett Packard Enterprise Development LP

• Microsoft

• Oracle

• IBM

• Salesforce

• Amazon

Healthcare Cloud Infrastructure Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub segments from 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global healthcare cloud infrastructure market report on the basis of component, end-use, and region:

• Component Outlook (Revenue, USD Million, 2016 - 2028)

  • Hardware

    • Server

    • Storage

    • Network

  • Services

    • Software-as-a-service (SaaS)

    • Infrastructure-as-a-service (IaaS)

    • Platform-as-a-Service (PaaS)

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • Healthcare Providers

    • Hospitals

    • Diagnostic & Imaging Centers

    • Ambulatory Centers

  • Healthcare Payers

    • Private Payers

    • Public Payers

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Singapore

    • Australia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • UAE

    • Saudi Arabia