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The healthcare cloud computing market size is forecast to increase by USD 98.6 billion at a CAGR of 31.52% between 2023 and 2028. The market is experiencing significant growth due to the integration of advanced technologies such as telemedicine, remote consulting, connected devices, wearables, mobile apps, and continuous monitoring. These technologies enable healthcare professionals to provide personalized treatments based on real-time health data, treatment options, and drug choices. The trend towards managed services and edge computing is also driving market growth, as healthcare organizations seek to improve efficiency and reduce costs. However, the shortage of cloud professionals in the healthcare industry poses a challenge to the widespread adoption of cloud computing. To address this, industry players are investing in training and development programs to build a skilled workforce. In summary, the market is witnessing increased adoption due to the integration of advanced technologies, the trend towards managed services and edge computing, and the need to address the shortage of cloud professionals.
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The healthcare industry is undergoing a digital transformation, with cloud computing playing a pivotal role in the storage, management, and analysis of large volumes of data. This transformation encompasses various sectors, including electronic health records (EHR), telehealth, internet of things (IoT), and big data analytics. The adoption of cloud computing in healthcare is on the rise, as it offers several advantages, such as cost savings, scalability, and flexibility. Healthcare providers are increasingly moving their EHR systems, telehealth services, and IoT applications to the cloud for seamless data access and sharing.
As the amount of healthcare data continues to grow, there is a pressing need for efficient data storage and scalability solutions. Cloud computing offers a cost-effective and flexible alternative to traditional on-premises storage systems. With cloud-based data storage, healthcare providers can easily scale their storage capacity to meet their evolving needs. The market is witnessing significant growth in the use of big data analytics for personalized medicines and clinical research. By leveraging cloud computing, healthcare providers can store, process, and analyze large datasets to gain insights into patient health patterns, identify potential health risks, and develop targeted treatment plans.
Wearable medical devices are revolutionizing healthcare by enabling real-time data collection and analysis. Cloud computing plays a crucial role in the seamless integration and processing of data from these devices. This data can be used to monitor patient health, provide remote care, and improve overall patient outcomes. Cloud computing also offers flexible payment models, such as pay-as-you-go and subscription-based services, which can help healthcare providers manage their IT costs and budgets more effectively. These models can also make healthcare services more accessible to a larger population.
Data security and regulatory compliance are critical concerns in the healthcare industry. Blockchain technology offers a secure and decentralized solution for data storage and sharing. By using blockchain, healthcare providers can ensure the confidentiality, integrity, and availability of patient data while complying with regulatory requirements. Cloud computing is also being used to manage non-clinical information, such as financial and administrative data, in the healthcare industry. This can help streamline administrative processes, reduce operational costs, and improve overall efficiency. In conclusion, the market is witnessing significant growth, driven by the adoption of EHR systems, telehealth services, IoT applications, and big data analytics.
Cloud computing offers several advantages, including cost savings, scalability, flexibility, and improved data security and regulatory compliance. As the healthcare industry continues to digitalize, cloud computing will play an increasingly important role in delivering high-quality, personalized care to patients.
The healthcare cloud computing market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The saas segment is estimated to witness significant growth during the forecast period.In the realm of healthcare technology, Software as a Service (SaaS) has emerged as a preferred choice for organizations seeking cost-effective and efficient solutions. SaaS refers to the delivery of applications over the Internet on a subscription basis. Healthcare entities subscribing to these services avoid the need for on-premises software installations, as they are centrally hosted on the servers of the service providers. This arrangement significantly reduces licensing costs for healthcare organizations. SaaS solutions dominate the market due to their ease of deployment, shorter implementation timelines compared to traditional on-premises software, and the service provider's responsibility for maintenance and support.
Healthcare organizations utilize SaaS-based solutions to optimize their customer relationship management (CRM), accounting, payroll, supply chain management (SCM), and electronic health records (EHR) systems. Moreover, the integration of advanced technologies like telehealth, Internet of Things (IoT), big data analytics, and wearable devices in healthcare has fueled the demand for scalable and flexible SaaS solutions. These technologies generate massive amounts of data, necessitating robust data storage and analytics capabilities. SaaS caters to these requirements, offering healthcare organizations the ability to manage and analyze vast volumes of data, enabling them to make informed decisions and improve patient care. Payment models for SaaS solutions in healthcare can be structured as component-based or service-based, allowing organizations to choose the model that best suits their needs and budget.
The component model involves paying for individual features or modules, while the service model entails paying for the overall usage of the software. In conclusion, SaaS solutions have become indispensable for healthcare organizations due to their cost-effectiveness, ease of deployment, and the ability to accommodate advanced technologies and data-intensive applications. The market for healthcare SaaS solutions is expected to grow further as the industry continues to embrace digital transformation and the integration of emerging technologies.
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The SaaS segment accounted for USD 7.60 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 47% to the growth of the global healthcare cloud computing market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Healthcare cloud computing has gained significant traction in countries such as the US, Canada, and Mexico. The adoption of this technology was initiated by Amazon, which introduced various cloud computing solutions. Following this, numerous companies entered the cloud computing industry. In the US healthcare sector, institutions are increasingly implementing cloud computing. For instance, LifePoint Health, an American company providing healthcare services in rural communities and small towns, partnered with Google LLC for a multiyear strategic agreement to utilize Google Cloud's healthcare data engine across its network hospitals in the US. Telehealth solutions, such as physician order entry, electronic medical records, pharmacy information systems, radiology information systems, laboratory information systems, health information systems, personalized medicines, clinical research, and drug development, are major applications of healthcare cloud computing.
Blockchain technology is also being integrated into healthcare cloud computing for enhanced security and data privacy. These advanced technologies enable efficient and secure data management, streamlining workflows, and improving patient care. In conclusion, healthcare cloud computing is transforming the US healthcare industry by offering secure, efficient, and cost-effective solutions for managing and analyzing large volumes of healthcare data. The integration of advanced technologies, such as telehealth solutions and blockchain, further enhances the capabilities of healthcare cloud computing, making it an essential tool for healthcare providers.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Integrated service offerings for healthcare is the key driver of healthcare cloud computing market growth. In the healthcare sector, cloud computing plays a crucial role in managing and storing vast amounts of data generated from various clinical data sources, including wearable medical devices, telemedicine, imaging data, lab results, and patient-reported outcomes. Compliance with regulatory requirements is essential in this industry, making cloud platforms an attractive solution due to their ability to ensure data security and privacy. companies offer cloud services in the form of software, platforms, and infrastructure to facilitate seamless data migration and sharing among healthcare providers.
Electronic Health Records (EHR) and Electronic Medical Records (EMR) are popular cloud-based services that enhance data management, improve resource allocation, and enable effective treatment decisions based on the most current patient health status. These advancements contribute significantly to enhancing the quality of patient care and recovery.
Introduction of edge computing is the upcoming trend in the healthcare cloud computing market. In the healthcare sector, cloud computing is being adopted to enhance professional services, productivity, and cost-effectiveness. The healthcare payers segment is particularly benefiting from cloud computing through improved communication platforms, claims processing, settlement, and fraud detection. The public cloud segment is dominating the market due to its scalability and flexibility. Edge computing, an advanced technology, is optimizing cloud computing systems by processing applications at the network's logical endpoint instead of the cloud or data centers. This method is especially beneficial in healthcare with the increasing use of IoT devices for health monitoring.
Edge computing speeds up data collection and analysis, making the process more efficient. IoT devices, such as sensors and controllers, collect and analyze data themselves or transmit it to nearby computing devices for analysis, reducing latency and enhancing overall process speed.
Shortage of cloud professionals in healthcare industry is a key challenge affecting healthcare cloud computing market growth. The healthcare industry's adoption of cloud computing is on the rise, with telemedicine platforms, remote consulting, and connected devices becoming increasingly popular. Health data, including information from wearables and mobile apps, is being collected and analyzed in real-time for continuous monitoring and personalized treatment options. This data enables healthcare professionals to make informed decisions regarding treatment and drug choices. However, the high demand for cloud computing professionals in the healthcare sector is outpacing the supply.
A survey revealed that 45.6% of respondents identified the scarcity of skilled IT professionals as a barrier to cloud service adoption in healthcare. The limited pool of cloud computing experts keeps them in high demand, making recruitment and retention a significant challenge for organizations. To remain competitive, healthcare providers must invest in training and developing their in-house talent or partner with managed services providers to access a larger pool of skilled professionals.
The healthcare cloud computing market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the healthcare cloud computing market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ALLSCRIPTS HEALTHCARE SOLUTIONS INC. - The market in North America is experiencing significant growth, with an increasing number of healthcare providers adopting cloud solutions for improved patient care and operational efficiency. Cloud computing enables the secure storage, management, and sharing of large volumes of healthcare data, facilitating better collaboration among healthcare professionals and leading to enhanced patient outcomes.
The healthcare cloud computing market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The healthcare industry is witnessing a significant shift towards cloud computing, with Electronic Health Records (EHR) being a key component. Telehealth, enabled by cloud deployment, is revolutionizing healthcare delivery through telecloud and wireless technology. IoT devices, wearable devices, and sensor data are integral to remote monitoring and big data analytics. Cloud platforms offer data storage and scalability, facilitating data interoperability and portability issues. Payment models, including Medicaid and Medicare, are adopting cloud services for cost-effectiveness and managed services. Chronic diseases such as cancer, CVD, and diabetes are managed through telehealth consultations and e-prescribing. Data security and privacy concerns are addressed through encryption, access controls, and regulatory compliance. Big data applications, including clinical research and drug development, are leveraged for personalized medicines and treatment decisions.
Blockchain technology ensures data security and integrity. Healthcare providers offer SAAS models, including Cerner, Amazon Web Services, and other telehealth solutions. Component services, including physician order entry, electronic medical records, pharmacy information systems, radiology information systems, and laboratory information systems, are integrated for comprehensive health information systems. Telemedicine platforms enable remote consulting, continuous monitoring, and treatment options, enhancing productivity and patient care. Health data, including clinical data sources, imaging data, patient-reported outcomes, and the patient's health status, are shared securely for informed treatment decisions. Healthcare payers segment benefits from communication platforms, claims processing, settlement, and fraud detection and prevention. The public cloud segment offers flexibility and cost-effectiveness, making it an attractive option for healthcare organizations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 31.52% |
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Market growth 2024-2028 |
USD 98.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
25.3 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, Canada, UK, France, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ALLSCRIPTS HEALTHCARE SOLUTIONS INC., Amazon.com Inc., athenahealth Inc., CareCloud Inc., Carestream Health Inc., ClearDATA Networks Inc., Cognizant Technology Solutions Corp., Dell Technologies Inc., DXC Technology Co., General Electric Co., Intelerad Medical Systems Inc., International Business Machines Corp., Microsoft Corp., NextGen Healthcare Inc., NTT DATA Corp., Oracle Corp., Salesforce Inc., Siemens AG, and VMware Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our healthcare cloud computing market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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