According to a new research report by the market research and strategy consulting firm, Global Market Insights, Inc, the Healthcare Cloud Computing Marketworth over $55bn by 2025.Rising adoption of information technology (IT) in healthcare sector is the key factor driving healthcare cloud computing market growth during the forecast period. Usage of cloud computing technique provides IT facilities to retrieve assets from internet by using web-based tools and applications. It offers easy access to servers, storage, databases as well as a wide array of applications. Healthcare cloud computing offers flexibility to control data scalability, massive storage of clinical statistics in hospitals & clinics and quicker accessibility to digital medical records. Moreover, increasing demand for cloud computing in patient billing to reduce capital expenditure pertaining to conventional mode of billing practices will further spur the revenue size.
Technological advancements in healthcare industry along with increasing healthcare expenditure will further catalyze the healthcare cloud computing market growth. Growing need for deployment of cloud computing in healthcare and cutting-edge analytical tools for better operational efficiency will favor business growth. Furthermore, numerous government initiatives pertaining to adoption of cloud computing will create growth avenues for industry players. However, data safety issues and fear of cloud data breaches may negatively impact business growth over the coming years.
Clinical information systems segment accounted for over 62% revenue share in 2018. Segment growth is attributed to growing disease burden worldwide. Rapidly ageing population susceptible to various diseases will further increase the volume of patient data thus, will surge demand for clinical information systems. Moreover, high adoption of these systems in critical care such as ICUs for efficient management of patient data will positively impact segmental growth. Huge demand for clinical information systems from hospitals and healthcare providers will accelerate segment growth over analysis period.
Services segment was valued more than USD 15 billion in 2018 owing to development in healthcare cloud computing software that can address wide array of issues ranging from data storage to data management. Continuous demand for services such as installation, maintenance, training, education and consulting will propel segmental business. Additionally, growing adoption of e-prescribing, EHR systems and EMR systems for analyzing patient information, managing big data and providing accurate outcomes will substantially spur revenue size during the forthcoming years.
Private cloud segment of healthcare cloud computing market is anticipated to witness around 15.7% CAGR over the forecast timeline. Segment growth is attributed to inclination towards private cloud due to its benefits such as data protection and customization of the cloud environment. Private cloud models are owned by single organization and offer more control over data storage and its accessibility to users thus, should boost business growth. However, high cost associated with private cloud may impede segment growth in developing as well as in under-developed economies.
Hospitals segment held more than 22% revenue share in 2018 owing to increasing number of patient visits in hospital. Rising prevalence of chronic diseases and growing number of surgeries being performed in hospital settings will surge the demand for patient data storage. Such factors should foster the adoption of cloud computing in hospitals thereby augmenting segmental growth.
North America healthcare cloud computing market accounted for over USD 8.5 billion in 2018 and is estimated to show similar trend in upcoming years. Increasing healthcare expenditure in the region coupled with adoption of technologically advanced solutions will drive regional growth. Moreover, growing demand for EHRs among medical professionals as well as active involvement of private sector players in development of healthcare industry will boost North America healthcare cloud computing industry growth over the forecast period.
Some of the prominent industry players operating in healthcare cloud computing market includes CareCloud, Cisco, Athenahealth, Carestream Health, IBM, Oracle, EMC, GNAX Health, Cleardata and Merge Healthcare. The market players focus on inorganic strategies such as acquisition, merger as well as new product launch to sustain market competition. For instance, in April 2015, MCIS (Marshfield Clinic) partnered with CareCloud to deliver a complete health information solution to improve financial, clinical and administrative outcomes of large ambulatory medical practices. This partnership enabled company to strengthen its market position and gain more revenue.
