Global Healthcare Cloud Computing Market to Reach $76.8 Billion by 2026
Technologies like internet, cloud computing, big data, Internet of things (IOT), Artificial Intelligence, data analytics & science, machine learning, robotics are all poised to revolutionize healthcare and usher in benefits such as lower costs, and better care. Key benefits offered by IT technologies that enable providers to tackle the healthcare value challenge, include development of evidence based care, enhancement in medical practice efficiencies, and significant cost savings, among numerous others. The proliferation of cloud computing in healthcare helps drive these benefits further by adding capabilities such as such as mobility, collaboration with patients and peers, easy archiving of electronic records, streamlined collaboration, ability to access and deploy high-powered analytics, telemedicine capabilities, and simplification of data storage challenges, among others.
loud computing technology also offers several benefits to healthcare providers such as hospitals, physician clinics, and health clinics that need quick access to large storage facilities and computing. With cloud computing, healthcare providers can easily share healthcare data across regions, thereby eliminating delays in patient treatment. Cloud-based solutions also allow healthcare organizations to improve patient care and reduce costs of deploying IT infrastructure. Software as a Service (SaaS), for instance, has come as a boon for small-scale healthcare facilities keen on incorporating IT in their service delivery. SaaS has all the ingredients for small scale implementations, including low initial investments, and need for very less or no IT proficiency.
Major factor favoring adoption of cloud-based approaches to healthcare include cloud computing`s ability to allow mobilization of patient data among physicians, hospitals, and laboratories to provide improved services to patients and enhance operational efficiency. Applications of cloud in the healthcare industry include physician order entry, electronic health records (EHRs), software for pharmacy and imaging use, revenue cycle management, claims management, and patient billing. Healthcare organizations are increasingly turning to cloud computing in order to reduce costs of storing hardware locally. The technology is also gaining wider acceptance driven by the fact that the cloud can hold big data sets for genomic data, radiology images, and EHRs for clinical drug trials. Furthermore, growing need for storing radiology images in PACS (Archiving and Communication Systems) is also driving adoption of cloud computing technology in the healthcare industry.
Amid the COVID-19 crisis, the global market for Healthcare Cloud Computing estimated at US$26.8 Billion in the year 2020, is projected to reach a revised size of US$76.8 Billion by 2026, growing at a CAGR of 18.7% over the analysis period. Services, one of the segments analyzed in the report, is projected to grow at a 19.6% CAGR to reach US$70.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 15.9% CAGR for the next 7-year period. This segment currently accounts for a 24.6% share of the global Healthcare Cloud Computing market.
The U.S. Market is Estimated at $16.9 Billion in 2021, While China is Forecast to Reach $5.6 Billion by 2026
The Healthcare Cloud Computing market in the U.S. is estimated at US$16.9 Billion in the year 2021. The country currently accounts for a 50.9% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$5.6 Billion in the year 2026 trailing a CAGR of 21.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 16.8% and 17.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 18% CAGR while Rest of European market (as defined in the study) will reach US$6.7 Billion by the close of the analysis period.
Leveraging the benefits of cloud delivery models, healthcare organizations are provisioning storage and management of their healthcare IT resources as services over cloud, wherein a third party cloud service provider hosts healthcare information systems on remote cloud servers and provides access to the same directly to the users over the Internet as a service. In this context, information captured by client devices from different functional areas in a healthcare facility are directly transferred to respective healthcare information systems hosted on a centralized cloud data center, where they are not only stored and archived but can also managed and controlled remotely by cloud service providers. By helping provide access to healthcare information systems and data hosted on external cloud servers to healthcare organizations over the Internet in shared/multi-tenant, dedicated or hybrid service models, healthcare cloud computing especially comes across as the most cost effective healthcare information system provisioning model for healthcare organizations.
By Service Model, SaaS Segment to Reach $37.3 Billion by 2026 Select Competitors (Total 115 Featured)
Global market for SaaS (Service Model) segment is estimated at US$11.9 Billion in 2020, and is projected to reach US$37.3 Billion by 2026 reflecting a compounded annual growth rate of 20.5% over the analysis period. The United States constitutes the largest regional market for SaaS segment, accounting for 53.4% of the global sales in 2020. China is poised to register the fastest compounded annual growth rate of 23.9% over the analysis period, to reach US$3.2 Billion by end of the analysis period.
- Amazon.com, Inc.
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- Salesforce.com, Inc.