Global Healthcare Cloud Computing Market, By Deployment Type (Private Cloud, Public Cloud, and Hybrid Cloud), By Application (Clinical Information Systems and Non-clinical Information Systems), By Service (Paas, Iaas, and Saas), By End-User (Healthcare Providers and Healthcare Payers), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global healthcare cloud computing market size is expected to be worth around USD 201.1 billion by 2032 from USD 41.4 billion in 2022, growing at a CAGR of 17.6% during the forecast period from 2023 to 2032.

Cloud Computing for the Healthcare Industry describes an approach to implementing remote servers accessible over the internet to store, manage, and process healthcare data. With the help of cloud computing, doctors and hospitals have become more engaged with their patients and have access to medical records, lab results, and doctor’s notes anytime, anywhere.

This gives patients more power and control and allows them to be better informed about their health. Recent technological advances and security enhancements are making the cloud accessible to more healthcare organizations than ever before.

Technological advancements such as remote monitoring, natural language processing APIs, and telemedicine cloud technologies will advance in multiple ways over the next few years, enabling new digital health settings. More than 83% of healthcare organizations are now using cloud services, according to an analytical study by HIMSS.

Market Scope

By Deployment Type Analysis

The private cloud segment is the most lucrative in the global healthcare cloud computing market

Based on type, the market for healthcare cloud computing is segmented into private cloud, public cloud, and hybrid cloud. Among these types, the private cloud segment is the most lucrative in the global healthcare cloud computing market. If a healthcare organization requires a secure computing environment that is not publicly accessible, using a secure private cloud is a profitable option. A private cloud securely stores health information (PHI) protected from attacks, breaches, and other threats to the patient’s sensitive data. Due to these factors, there will be an increase in the adoption of this segment.

With the help of the public cloud, all the data can be stored and accessed remotely, and the infrastructure (such as data storage systems) can be fully managed by the cloud provider, allowing hospitals to realize significant cost savings while keeping patients safe. Healthcare organizations need to accelerate the transformation of their IT assets to modern, flexible architectures. A hybrid cloud combines the benefits of the public cloud and on-premises infrastructure to improve the agility and scalability of enterprise applications and data.

By Application Analysis

Clinical information system dominates the healthcare cloud computing market

By Application, the market is further divided into clinical information systems and non-clinical information systems. In comparison to non-clinical information systems, the clinical information systems segment has achieved notable gains over the estimated period due to an increase in the number of health-related research activities, a growing patient pool, and growing demand for efficient patient management systems. Therefore, the clinical information system dominates the healthcare cloud computing market.

A clinical information system is a digital solution that automates the electronic data captured from the monitor, ventilator, infusion pumps, filter devices, and many more. Furthermore, clinical information system includes radiology information system, computerized physician order entry, and others. While non-clinical information system includes automatic patient billing, revenue cycle management, claim management, and others.

By Service Type Analysis

Saas services in the market accounted for the major revenue share

Based on this segment, the global healthcare cloud computing market is characterized into Paas (Platform as a service), Iaas (Infrastructure as a service), and Saas (Software as a service). In 2022, Saas services in the market accounted for the major revenue share due to several advantages this model offers such as security, faster deployment time, lower total cost of ownership, lower initial investment.

Infrastructure as a Service (Iaas) is a type of cloud computing service that provisions key computing, storage, and network resources on an on-demand, pay-as-you-go basis. Platform as a Service (PaaS) offers pharmaceutical companies, medical device manufacturers, and healthcare organizations a complete suite of medical-grade infrastructure solutions, including IT support, server space, cybersecurity, medical-grade cloud, and many more.

End-User Analysis

Healthcare provider segment dominated the market

Based on end-user, the market is further divided into healthcare providers and healthcare payers. In 2022, the healthcare provider segment dominated the market, capturing over 62.0% revenue share. This is due to the significant increase in connectivity to hospitals via cloud infrastructure, impacting demand for the SaaS model.

Benefits of these systems include secure offsite data storage and management, and easy outsourcing of IT solutions and services, eliminating the need for the IT staff in-house. Improved scalability, flexibility, data management with advanced computing systems and solutions, and constant technological advancements in this area are expected to drive the growth of this segment in the near future.

Health care payers include insurance companies, third party payers, and healthcare plan sponsors (employers and unions). Insurance companies are rapidly employed cloud computing solutions for secured storage of the collected data, claims processing, fraud prevention, and risk management.

Managing high-risk, high-availability patient populations has always been a challenge for payers. Payers are utilizing these advanced technologies and solutions to minimize rising healthcare costs. In addition, cloud computing helps payers grow their businesses, enhance their services, reduce administrative costs, and improve quality.

Key Market Segments

Based on Deployment

• Private Cloud
• Public Cloud
• Hybrid Cloud

Based on Application

• Clinical Information Systems
• Non-clinical Information Systems

Based on service

• Paas
• Iaas
• Saas

Based on End-User

• Healthcare Providers
• Healthcare Payers

Drivers

The implementation of breakthrough technologies and high speed internet is anticipated to increase the market growth rate.

Many healthcare organizations are looking to take these cloud computing solutions to the next level by implementing breakthrough technologies. Instead of collecting data and transferring it to the cloud, the system examines and processes the data at the point of collection. The pervasiveness of high-speed internet and the implementation of promising control measures are also expected to provide growth prospects for the global healthcare cloud computing market.

Rising geriatric population and growing adoption of electronic health records are key factors predicted to upsurge the market growth.

In majority of regions there is a rapid adoption of electronic health records due to advancement in the IT solutions, e-prescribing, mHealth, telehealth, and others. Rising geriatric population is one of the factors responsible for the growth of chronic diseases. Due to this reason, hospitals across the globe are facing shortage of beds, medical equipment and other healthcare facilities. Therefore, it is driving the market towards adoption of healthcare cloud computing solutions.

Restraints

Rising privacy and data security concerns, as well as lack of skilled IT professionals

Concerns related to data portability barriers, data protection, and increasing data breaches in the cloud are hindering the global development of the healthcare cloud computing market. Additionally, the lack of skilled IT professionals has slowed the implementation of this technology. Professionals with HIPAA expertise are hard to find, so the demand for qualified professionals is increasing. This compatibility drought is expected to slow the transition to cloud computing systems. Therefore, demand for healthcare cloud computing is increasing due to rising geriatric population.

Opportunity

Emergence of telecloud and use of block chain is estimated to extend the opportunity

The convergence of wireless technology and the cloud is proving to be a very powerful mechanism for delivering patient care in remote locations. In some countries, most doctors and specialists work in metropolitan areas and cities. Advanced medical facilities are therefore only available in such places, leaving rural patients neglected. This problem can be solved by using telecloud. Because the telecloud will enable doctors and medical professionals to diagnose and treat patients remotely, in real time, and at an affordable price.

Trends

Rising prevalence of diseases and government’s involvement in digitalization

Rising prevalence of various diseases, rising healthcare expenditures worldwide, and increased investment in research and development in this area are mainly improving the prospects for this business area. Strengthening efforts by governments to digitize healthcare systems, rapid development of clinical infrastructure, and increasing digital literacy of the public are also stimulating the market dynamics.

COVID-19 Impact Analysis

COVID-19 protocols shifted the doctors and patients towards online consultations

The COVID-19 pandemic has opened up profitable growth prospects for this industry. Restrictive containment measures, including travel bans and social distancing. This has resulted in postponing and delaying various medical procedures. Additionally, these protocols discouraged people from going to health centers for screening. As a result, both patients and doctors can communicate appropriately, and individuals have come to choose convenient online consultations.

Regional Analysis

North America is anticipated to hold the largest market share over the forecast period

Based on regions the healthcare cloud computing market includes North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America generated significant returns over the specified period. North America accounted for holding the market share of 51% in 2022.

This is due to the growing geriatric population, rising healthcare costs, increasing technological advances in the field, high adoption of healthcare IT services, and the presence of potential stakeholders. Increased acceptance of Health services, rising disposable incomes of the populace, and rising health awareness among citizens have also contributed to the rise of this local industry.

Asia Pacific is predicted to be the fastest growing market during the forecast period. The Asia-Pacific region is expected to account for a high percentage of sales during the forecast period, owing to rising prevalence of chronic diseases, technological innovation in this field, widespread internet penetration, and rapid population growth. Therefore, Asia Pacific stands second in the list in the healthcare cloud computing market.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Government agencies are expected to create a need for this system during exploration. Leading industry performers have introduced services and software that enable the collection and processing of a wealth of health information that has proven beneficial to industry advancement.

In addition, such software also provides hassle-free access to patient information that helps healthcare professionals make accurate decisions. In addition to the above factors, the high implementation rate of cloud computing software to improve hospital management and strengthen anti-fraud measures is also creating an optimistic path for the growth of the healthcare cloud computing industry.

Additionally, the major factors contributing to the growth of major companies involves collaborations, partnerships, mergers & acquisitions and new product launch by the prominent players.

Recent Developments

• In November 2022, Wipro Ltd partnered with U.S-based cloud computing service provider VMware. As part of the partnership, Wipro will maintain the VMware business unit and offer the platform as a service to customers. Wipro brings up to 5,000 professionals across VMware’s cross-cloud offerings, delivering multi-cloud enterprise tools and focusing on sectors such as banking, financial services and insurance (BFSI), consumer, healthcare, and retail services training.
• In June 2022, the Saudi Arabian Ministry of Health (MoH) deployed VMware’s multi-cloud solution to digitally transform the country’s public health sector. This will enable the ministry to provide secure, cloud-based services to public health institutions such as hospitals, clinics and pharmacies, significantly increasing efficiency and enabling growth and innovation.

Listed below are some of the major players operating in the healthcare cloud computing industry.

Market Key Players

• Amazon Web Services, Inc.
• Athenahealth, Inc.
• CareCloud, Inc.
• ClearDATA
• Dell Inc.
• Euris Group
• e-Zest Solutions Ltd.
• IBM Corporation
• Iron Mountain Inc.
• Koninklijke Philips N.V.
• Microsoft Corporation
• Oracle Corporation
• OSP Labs
• Siemens Healthineers AG
• Zymr, Inc.
• Other Key Players

Report Scope