Healthcare Cloud Computing Market: Current Analysis and Forecast (2020-2027)

Report Description

The global Healthcare Cloud Computing market was valued at US$ 23.7 billion in 2019 and is projected to expand significantly with a CAGR of 14.54% from 2021-2027. Cloud computing is a self-service network system on demand that allows the user to access computing services from anywhere at any time. More than just delivering medical information from multiple computers at any time, anywhere, and on any mobile device, transforming healthcare through the cloud is about more. It is also about the advantages of linking medical centers and cloud users to share the health data of patients over the Internet. It transforms healthcare to share patient information between medical providers on urgent cases in real-time.

In healthcare, cloud computing improves the industry’s productivity while reducing costs. Cloud computing makes it simpler and safer for medical record-sharing, automates back-end processes, and makes it easier to build and manage telehealth applications. More patient data management and decreased maintenance burden and cost savings on the side of the company are contributing to the growth in healthcare cloud adoption. According to the West Monroe Partner’s report, 35% of healthcare organizations surveyed held more than 50% of data or infrastructure in the cloud. In contrast to other sectors, healthcare proved to be the farthest along with cloud adoption. The widespread adoption of healthcare cloud computing goes far beyond merely storing cloud architecture data. This technology is already being utilized by healthcare professionals to achieve efficiencies, optimize workflows, and healthcare delivery costs and provide personalization in care plans to maximize performance. According to various surveys, approximately 93% of cloud services in healthcare are at a medium-high security risk, nearly 94 million total healthcare records have been exposed in the 12 months. Also, US$ 50 is the average cost of an individual health record with 7% of cloud services in use comply with enforcement and security requirements, and a total of 8 TB of data uploaded to the cloud/month by an average health provider.

Percentage of Cloud Adoption in Healthcare

Allscripts Healthcare Solutions, Amazon Web Services, Athenahealth, Cisco Systems, Fujifilm Holdings, GE Healthcare, IBM Corporation, Koninklijke Philips N.V., Microsoft Corporation, and Siemens Healthineers are some of the prominent players operating in the global Healthcare Cloud Computing market. Several M&A’s along with partnerships have been undertaken by these players to facilitate costumers with hi-tech and innovative products.

Insights Presented in the Report

“Amongst services, SaaS segment holds the major share”

Based on services type, the market is fragmented into SaaS, IaaS, and PaaS. The SaaS dominated the market with a share of 61.3% in 2019 and is expected to maintain its dominance during the forecast period owing to the increased security, a lower expense of ownership, quicker deployment time, and restricted up-front investment expenses.

“Amongst deployment, private cloud is anticipated to dominate the market during the analyzed period”

Based on deployment, the market is mainly into the private cloud, public cloud, and hybrid cloud. In 2019, Private Cloud accounted for a maximum market revenue share of 38.7% and is expected to remain dominant during the analyzed period owing to the rising visibility and control it gives organizations over their data. It gives organizations the ability to customize their cloud environment and security. However, the Hybrid cloud is anticipated to grow at the highest CAGR over the forecast period.

“Amongst application, non-clinical information systems segment dominated the market during the forecast period”

Based on application, the market is mainly into clinical information systems and non-clinical information systems. In 2019, Non-clinical information systems accounted for a maximum market revenue share of 54.2% and are expected to remain dominant during the analyzed period. Automating the method of cloud-based medical billing and collections saves time, improves profits from practice, and decreases paper statement costs dramatically. However, clinical information systems are anticipated to grow with the highest CAGR over the forecast period.

“Amongst end-user, Healthcare providers segment holds the major share”

Based on end-user, the market is fragmented into healthcare providers and healthcare payers. In 2019, the healthcare providers accounted for the maximum market share with 68.4% and are expected to be the leading segment of the Healthcare Cloud Computing market during the forecast period due to the increasing volume of patient data.

“North America represents one of the largest markets of Healthcare Cloud Computing market”

For a better understanding of the market dynamics of the Healthcare Cloud Computing market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of APAC), Rest of World has been conducted. North America dominated the market and generated revenue of US$ 13.6 billion in 2019 owing to the rising adoption of healthcare IT solutions, electronic health records (EHRs) among medical professionals, legislative initiatives, and accessibility of advanced healthcare IT infrastructure. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Global Healthcare Cloud Computing Market were the three major steps undertaken to create and analyze the adoption of Healthcare Cloud Computing across various verticals in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Healthcare Cloud Computing sector. Post assumption and validation of market numbers through primary interviews, we employed a top-down approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Healthcare Cloud Computing through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Healthcare Cloud Computing, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are services, deployment, application, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of Healthcare Cloud Computing in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Healthcare Cloud Computing. Further, we conducted factor analysis using dependent and independent variables such as rising adoption of wearable devices, big data analytics, IoT in healthcare, and technological advancements. A thorough analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, and product launches in the Healthcare Cloud Computing sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Healthcare Cloud Computing market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e. top-down approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of Healthcare Cloud Computing across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Healthcare Cloud Computing market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Healthcare Cloud Computing market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of services, deployment, application, and end-user of the Healthcare Cloud Computing market.

Main Objective of the Healthcare Cloud Computing Market Study

The current & future market trends of Healthcare Cloud Computing were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Healthcare Cloud Computing in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of services, deployment, application, and end-user
• Define and analysis of the regulatory framework for the Healthcare Cloud Computing industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the Healthcare Cloud Computing market for the major region
• Major regions studied in the report include North America (the U.S and Canada), Europe (Germany, France, Italy, Spain, and United Kingdom), Asia-Pacific (China, Japan, India, and Australia), Rest of the World
• Company profiles of the Healthcare Cloud Computing market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry