[262 Pages Report] The market for healthcare cloud computing is expected to grow from USD 28.1 billion in 2020 to USD 64.7 billion by 2025, at a CAGR of 18.1% during the forecast period. Growth in the healthcare cloud computing market can be attributed to factors such as technological upgradation in healthcare industry, increasing focus on healthcare digitization and increasing deployment of cloud-based HCIT solutions by healthcare providers to improve the care process.

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COVID-19 Impact on the Healthcare Cloud Computing Market

The COVID-19 outbreak, has upended many lives and businesses on an unprecedented scale. However, if there is one sector that has emerged stronger from this event, it would be the cloud computing industry. While many organizations are finding it difficult to run smoothly, the companies that opted for cloud computing infrastructure are functioning well. Cloud computing assists in hassle-free data storage and backup because of its scalability, and also enables one to scale back during hectic days. Moreover, the social distancing measures have mandated patients with mild symptoms to opt for remote consultation. With many healthcare providers giving consultation over video conferencing and phone calls, in place of this pandemic, the growth of healthcare cloud computing market is likely to augment considerably over the forecast period.

Healthcare Cloud Computing Market Dynamics

Drivers: Increasing adoption of big data analytics, wearable devices, and IoT in healthcare

Healthcare providers generate and collect a large amount of data from a vast array of internal sources, such as electronic health records (EHRs), radiology images, pharmacy sales, prescription information, lab tests, and insurance claims data. The volume of this digital data is growing exponentially every year, majorly due to changes in the payer environment, such as incentives for the meaningful use of EHRs and a shift towards value-based payments. The effective management of a large volume of data requires significant computing power and IT bandwidth. In the on-premise storage of data, healthcare providers are required to invest more in IT infrastructure with an increase in data load. As a result, on-premise storage is not considered as a viable option for the storage of a large volume of healthcare data. Cloud computing, on the other hand, enables all big data operations through the provision of large storage and processing power. Additionally, cloud-based analytical tools help providers better manage patients by transforming health data into actionable insights.

Restrains: Data security and privacy concerns

A major concern related to cloud solutions is that the data hosted by vendors is not as secure as data stored on-premise. Patient information is considered sensitive, and a high degree of privacy needs to be maintained so that this information is accessible to authorized users only. Though the cloud offers various benefits and security measures, the data stored on the cloud is still prone to cyber-attacks. With the increasing volume of patient data and rising initiatives towards digital transformation in healthcare, data security and privacy concerns are increasing rapidly. Moreover, patients themselves are concerned about the security of their data, which adds to the necessity of maintaining security standards for data protection. Public clouds face similar security issues as traditional IT systems and are thus not preferred. Although private clouds offer more secure access protocols and systems, the healthcare industry is still skeptical about the data security of a private cloud.

Opportunities: Emergence of the telecloud

The convergence of wireless technology and the cloud is proving to be a very strong mechanism for patient care delivery to remote locations. In several countries, most physicians and specialists work in metros and cities. Hence, advanced care facilities are only available in such places, leaving patients in rural areas unattended. This problem can be addressed through the use of a telecloud, as it enables physicians and healthcare specialists to diagnose and treat patients over large distances in real-time and at affordable costs. With the rising awareness of telehealth among healthcare providers, the adoption of the telecloud is expected to increase in several countries and thereby offer potential growth opportunities to players operating in the healthcare cloud computing market.

Challenges: Interoperability and portability issues

One of the major requirements of any hospital or healthcare organization is easy and rapid access to patient data. When data is migrated to the cloud by a hospital, it is stored on systems and platforms maintained by the service vendor who can create certain interoperability challenges. Cloud APIs and interfaces pose the main challenge to organizations attempting cloud computing interoperability. The lack of standardization among the cloud service providers limits the data sharing between different cloud tools leading to portability issues.

Increasing demand for clinical and non-clinical information systems to drive the market growth

On the basis of product, the healthcare cloud computing market is broadly segmented into healthcare provider solutions and healthcare payer solutions. The healthcare provider solutions segment that comprises clinical information systems (CIS) and nonclinical information systems (NCIS) is expected to grow at the highest rate during the forecast period. The high growth rate of this segment can be attributed to the surge in demand for cloud-based CIS and NCIS solutions owing to its benefits, such as on-demand storage, smooth integration of applications, effective migration strategies, compliance, data control, and security.

The private cloud deployment model to hold largest market share in 2020

On the basis of deployment model, the healthcare cloud computing market is segmented into the public cloud, private cloud, and hybrid cloud. The private cloud deployment model is expected to hold the largest market share in 2020. The on-premise private cloud offers high-security options and provides control over the network. The private cloud storage works well for larger organizations that have IT staff and security expertise. Additionally, on-premise private cloud allows organizations to deploy their own applications and adhere to any compliance issues, thus, leading to increased adoption in the coming years.

Reliance of healthcare IT industry on service providers to boost the segment growth

On the basis of component, the healthcare cloud computing market is segmented into software and services. The services segment is expected to grow at the highest rate during the forecast period. The high growth rate of this segment can be attributed to the recurring nature of services such as training and education, installation, software upgrades, consulting, and maintenance. Introduction of complex software and the need to ensure the integration and interoperability of software will further upsurge the demand for various services.

Pay-as-you-go pricing model accounted for the largest market share in 2019

On the basis of pricing model, the global healthcare cloud computing market is segmented into pay-as-you-go and spot pricing model. The pay-as-you-go (PAYG) model commanded the largest share of the market in 2019. The large share is attributed to the fact that the pay-as-you-go model also known as the utility-based economic model, allows healthcare providers to leverage the latest software solutions while keeping operating costs to a minimum.

SaaS service model is expected to be the largest contributor to the healthcare cloud computing market

On the basis of service model, the market is segmented into software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). The SaaS model accounted for the largest share of the market in 2019 owing to its several advantages over on-premise solutions, such as security, lower total cost of ownership, faster deployment time, and limited up-front capital expenses. The demand for healthcare cloud computing among healthcare providers is primarily driven by its multi-tenant service that supports unlimited users and provides access to users anytime and anywhere. As this service is hosted by a vendor or a service provider, it reduces maintenance costs and increases the use of resources.

Asia Pacific to emerge as a potential market for healthcare cloud computing solutions

The global healthcare cloud computing market has been categorized on the basis of four major regional segments�North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific is expected to grow at the highest CAGR during the forecast period. The changing demographics in highly populous countries such as China and India, large volumes of patient data generated as a result of the growing disease burden in the region and various government initiatives focusing on healthcare digitization are driving the growth of the healthcare cloud computing market in the Asia Pacific. In addition, the current outbreak of COVID-19 in the region has resulted in the increased patient pool, leading to subsequent increase in telehealth and virtual care delivery options. Increasing investments for modernization of the country�s healthcare infrastructure is thus, expected to fuel the growth of the healthcare cloud computing market in the APAC region.

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Market Key Players

IBM (US), athenahealth (US), Siemens Healthineers (Germany), Koninklijke Philips NV (Netherlands), Allscripts Healthcare Solutions (US), Fujifilm Holdings (Japan), GE Healthcare (US), are some of the leading players of the healthcare cloud computing market.

Market size for years 2018-2025 Base year considered 2019 Forecast period 2020�2025 Forecast units Value (USD Million) Segments covered By Product, By Deployment Model, By Component, By Pricing Model, By Service Model Geographies covered North America, Europe, Asia Pacific, ROW Companies covered The major market players include IBM (US), Carestream Health (US), athenahealth (US), Hyland Software (US), Siemens Healthineers (Germany), eClinicalWorks (US), Koninklijke Philips NV (Netherlands), Allscripts Healthcare Solutions (US), Fujifilm Holdings (Japan), GE Healthcare (US) (Total 20 companies)

The study categorizes the healthcare cloud computing market based on product, deployment model, component, pricing model and service model at the regional and global level.

By Product

Healthcare Provider Solutions Clinical Information Systems (CIS) EHR/EMR PACS and VNA RIS LIS PIS PHM Solutions Telehealth Solutions Other CIS Non-clinical Information Systems (NCIS) RCM Solutions Financial Management Solutions HIE Solutions Supply Chain Management Solutions Billing & Accounts Management Solutions Other NCIS

Healthcare Payer Solutions Claims Management Solutions Payment Management Solutions Customer Relationship Management Solutions Provider Network Management Solutions Fraud Management Solutions



By Deployment Model

Private Cloud

Hybrid Cloud

Public Cloud

By Component

Services

Software

By Pricing Model

Pay-as-you-go

Spot Pricing

By Service Model

Software-as-a-Service (SaaS)

Infrastructure-as-a-Service (IaaS)

Platform-as-a-Service (PaaS)Payers

By Region

North America

Europe

Asia Pacific (APAC)

Rest of the World (RoW)

Recent Developments

In 2020, Allscripts (US) and Microsoft (US) extended their strategic alliance for five years to transform its cloud-based health IT solutions

In 2020, British SWASH consortium of NHS Trusts (UK) has prolonged its radiology imaging contract with Sectra (Sweden) to consolidate its four existing solutions into one, for efficient access and collaboration around patient imaging and improved enterprise-wide access

In 2020, NextGen Healthcare (US) partnered with Doctible (US) to offer a fully automated and integrated cloud-based system to support clinicians retain patients and boost the growth of small practices

In 2019, IBM (US) acquired Red Hat (US) that enhanced IBM�s hybrid cloud portfolio and enabled the development of a next-generation multicloud hybrid platform

Frequently Asked Questions (FAQ):

What is the market size of Healthcare Cloud Computing Market? The healthcare cloud computing market is projected to reach USD 64.7 billion by 2025 from USD 28.1 billion in 2020, at a CAGR of 18.1%. What are some of the major drivers for this market? The market is primarily driven by the increasing adoption of big data analytics, wearable devices and IoT in healthcare, benefits offered by cloud computing such as better storage, flexibility and scalability of data, and increasing cloud deployment to overcome ongoing challenges in the healthcare industry among others. Who are the major players in the healthcare cloud computing market? The major players include IBM (US), athenahealth (US), Siemens Healthineers (Germany), DXC Technology (US), eClinicalWorks (US), Koninklijke Philips NV (Netherlands), NTT DATA (Japan), Allscripts Healthcare Solutions (US), Fujifilm Holdings (Japan), GE Healthcare (US), EnSoftek (US), and NextGen Healthcare (US) among others. What is the impact of COVID-19 on the healthcare cloud computing market? The rising prevalence of COVID-19 has driven the demand for telehealth solutions for the accurate exchange of patient health records and real-time insights on patient�s health. The need for social distancing among physicians and patients, during the pandemic has increased the adoption of wearable devices, and IoT in healthcare. Healthcare organizations, where data serves as the primary asset today, storage and management of data is cost-prohibitive, cloud computing assists in hassle-free data storage and backup because of its scalability. Moreover, cloud computing greatly reduces the burden on hospitals experiencing high numbers of COVID-19 patients. What are the newer government initiatives undertaken to improve adoption of the healthcare cloud computing solutions? The NHS launched the Five Year Forward View in the UK to make all patient records �largely paperless� by 2020. This initiative aims to develop fully interoperable EHRs, provide patients with access to their medical records, and promote interoperability. In the US, the CMS launched the MyHealthEData Initiative which aimed at improving healthcare by placing patients at the center of the US healthcare system and providing patients electronic access to their own health records. In May 2018, The Centers for Medicare & Medicaid Services (CMS) made telehealth and telemedicine a cornerstone in its first Rural Health Strategy. Additionally, the Japanese government has taken various initiatives like the e-Japan policy and iJapan Strategy 2017 to encourage hospitals to adopt interoperable solutions and effectively manage the inflow of patients, lower hospital operational expenditure, and improve the quality of services. Other government efforts such as Carequality, CommonWell, the Argonaut Project, and Healthcare Services Platform Consortium (HSPC), is further expected to support the adoption of HCIT solutions. .

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