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The healthcare cloud computing market is estimated to grow at a CAGR of 20.55% between 2022 and 2027. The size of the market is forecast to increase by USD 42.21 billion. The growth of the market depends on several factors, including the integrated service offerings for healthcare, the increased number of cloud vendors, and the growing demand for reduced healthcare costs.
This report extensively covers market segmentation by product (SaaS, IaaS, and PaaS), component (hardware and services), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased number of cloud vendors is notably driving the healthcare cloud computing market growth, although factors such as the shortage of cloud professionals in the healthcare industry may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Healthcare Cloud Computing Market Driver
The increased number of cloud vendors is notably driving the healthcare cloud computing market growth. With the advent of the cloud in the healthcare industry, numerous vendors joined the market, providing services like EHR and EMR facilities. Vendors like Amazon.com, Microsoft, IBM, and Google provide cloud computing services globally. Also, Alibaba ventured into the market with the launch of its ET Medical Brain, which is an AI-assisted solution suite acting as a virtual assistant in medical imaging, drug development, and hospital management.
Apart from the major players such as Amazon, Microsoft Azure, Google, and IBM that dominate the industry, smaller players like Atmosera, Green House Data, Healthcare Blocks, and Virtustream offer specialized services. Players such as Atlantic.Net, Netgain Technology, NTT Data, and HIPPA Vault offer electronic health record (EHR) services. Apart from the regular services, companies like Datica and UKCloud Health offer Platform as a Service (PaaS). Though the market is dominated by a few players, other vendors are also joining the market by providing cloud services in partnership with the existing major vendors. For example, Rackspace (acquired by Apollo Global Management) offers cloud services in collaboration with Amazon.com. With a rise in the number of cloud service providers due to the increasing implementation of cloud computing in healthcare organizations, the market is expected to grow rapidly during the forecast period.
Key Healthcare Cloud Computing Market Trend
The introduction of edge computing is the primary trend driving the healthcare cloud computing market growth. Edge computing is a method of optimizing cloud computing systems by performing computing applications at the logical end-point of the network instead of cloud or data centers. Cloud computing in the healthcare industry is increasingly employing IoT devices for health monitoring and other applications. Typically, IoT data is collected and transmitted to a cloud or data center for processing and analysis, which is time-consuming. Hence, edge computing can help speed up data collection and analysis, improving the overall process speed.
In edge computing, sensors, controllers, and other connected devices collect and analyze IoT data themselves or transmit it to a nearby computing device such as a server or laptop for analysis. Thus, the data can be quickly retrieved and applied in edge computing systems. Edge computing takes advantage of the proximity between various IoT devices and their relationships with each other. Vendors like BioLert are providing software utilizing edge computing for monitoring epileptic patients, detecting and notifying the occurrence of epilepsy episodes in a patient, their family members, or caretakers. Edge computing also creates a record of patients' vitals and events, which can be used by medical professionals to determine a better treatment regime for patients.
Key Healthcare Cloud Computing Market Challenge
The shortage of cloud professionals in the healthcare industry is the major challenge impeding the healthcare cloud computing market growth. The deployment of cloud technologies in various industries has resulted in high demand for trained cloud computing professionals. Despite the high demand, there is a shortage of qualified and trained cloud computing professionals in the industry. Cloud computing is increasingly adopted across industries and will require a high number of trained professionals. According to a survey, around 45.6% of the respondents believe that the scarcity of skilled IT professionals has contributed to a slowdown in the adoption of cloud services in the healthcare industry. Furthermore, the limited number of cloud computing professionals in the market keeps them in high demand. In this competitive environment, hiring and retaining such talent becomes a major challenge.
With the increasing demand for cloud-supported networks in the healthcare industry, the requirement for trained professionals, who are trained in cloud deployment and are familiar with healthcare practices and processes, will be high. Healthcare organizations employing cloud computing will require an ever-increasing number of trained specialists for application development, data security, and management. Thus, the cost of hiring these specialists is high due to their increased demand. Therefore, a shortage of such professionals will hamper the growth of the market.
Key Healthcare Cloud Computing Market Customer Landscape
Our analysis of the life cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Healthcare Cloud Computing Market Customer Landscape
Vendors 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
Athenahealth - The company offers healthcare cloud computing services such as electronic health records. The company offers a medical application named athenaOne that helps in accessing patient records to prepare for and document exams, create and sign orders, respond to patient cases, and more. It is a medical application for doctors for disease content, interaction checking, and practical tools for clinical decision support.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the SaaS segment will be significant during the forecast period. With the high potential for cloud computing in healthcare, numerous vendors are providing SaaS-based products for healthcare organizations. Vendors like EKlinik, based out of Malaysia, offer services like iPatient-Portal, a connected healthcare portal for patients facilitating personal healthcare record management; iMedicID, an emergency notification information system; and U2Doc facilitating telemedicine. With the increasing migration of healthcare organizations toward cloud service, coupled with the high popularity of SaaS solutions, the market is expected to grow during the forecast period.
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The SaaS segment shows a gradual increase in the market share of USD 6.23 billion in 2017 and continue to grow by 2021. SaaS refers to the on-demand delivery of applications through the Internet-as-a-service on a subscription basis. It is also called web-based software, on-demand software, or hosted software. Healthcare organizations subscribing to SaaS applications do not need to implement on-premises software solutions, as they are centrally hosted on the servers of the service providers. This, in turn, reduces the licensing costs for healthcare organizations. Furthermore, our report provides a brief analysis of historical and forecast market share and their segment along with their reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the market by residential consumers, which is driven by an increase in the global demand for the healthcare cloud computing industry.
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North America is projected to contribute 39% by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Countries like the US and Canada, along with Mexico, are the major adopters of healthcare cloud computing solutions. The impetus for the development of cloud computing was provided by Amazon.com, which has launched various cloud computing products. Since then, numerous vendors have forayed into the cloud computing industry, including Salesforce, IBM, Oracle, Google, and Microsoft. Many healthcare institutes in the US are increasingly adopting cloud computing. For instance, to implement Google Cloud's healthcare data engine in its network hospitals across the US, LifePoint Health, an American company that provides healthcare services in rural communities and small towns, signed a multiyear strategic partnership with Google LLC. Such collaborations are expected to fuel the growth of the focused market in North America during the forecast period.
The COVID-19 pandemic positively impacted the growth of the market in North America in 2020. Owing to the pandemic, governments in countries including the US, Canada, and Mexico, imposed lockdowns in 2020, forcing people to stay at home to prevent the virus from spreading. As a result, industries, including healthcare in North America, were forced to undertake numerous trade activities online, leading to the widespread use of virtual private networks (VPNs) for remote work and teleconferencing in North America in 2020. Also, due to the surge in internet penetration, the adoption of cloud computing solutions in the North American healthcare ecosystem augmented the need for data storage with remote planning, tracking, and monitoring healthcare data status in 2020. This, in turn, fueled the demand for cloud spaces for storing such data, leveraging further the growth of the market in North America in 2020.
Technavio categorizes the global healthcare cloud computing market as a part of the healthcare technology segment, which, in turn, is a part of the overall IT spending market. The market includes the revenue generated from the sales of healthcare applications and IT systems; data processing software; Internet-based healthcare tools (such as monitoring devices), and IT consulting services to clinics, hospitals, or businesses operating primarily in the healthcare sector. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by product, component, and region.
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Healthcare Cloud Computing Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2022 |
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Historical year |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 20.55% |
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Market growth 2023-2027 |
USD 42.21 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
23.08 |
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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 39% |
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Key countries |
US, Canada, UK, Germany, and France |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Allscripts Healthcare Solutions 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.com Inc., Siemens AG, VMware Inc., and Amazon.com Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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