The moderately fragmented cloud computing market in the healthcare industry is dominated by companies such as Microsoft Corporation, Cisco Systems Inc., ClearDATA Networks, Agfa Healthcare, CareCloud, and Dell Inc. The fragmentation of the cloud computing market in the healthcare industry is pronounced due to the different requirements of clients, which almost eliminates the possibility of a universal cloud computing design that can be monopolized by leading players.
In the coming years, key cloud computing solution providers to the healthcare industry are likely to focus on boosting the awareness about the benefits of cloud computing to expand their operations. Collaboration efforts are also likely to remain important for players in the cloud computing industry.
The global cloud computing market in the healthcare industry is expected to be valued at US$4.5 bn by the end of 2016 and further rise to a valuation of US$6.8 bn by the end of 2018.
North America to Remain Most Lucrative Market for Cloud Computing in Healthcare Industry
Geographically, North America is the leading contributor to the global cloud computing market in the healthcare industry. The U.S. is the key market for cloud computing in the healthcare industry in North America due to the widespread use of digital recordkeeping systems. This has allowed for easy incorporation of cloud computing into the existing technological framework. The role of North America as the traditional hub for intensive research into various aspects of the healthcare industry as well as the IT industry has also helped the region’s cloud computing market in the healthcare industry.
The North America market is expected to retain its dominance in the cloud computing market in the healthcare industry in the coming years, as well as exhibiting a formidable CAGR of 23.40% from 2012 to 2018.
By cloud type, private cloud is likely to remain the leading contributor to the cloud computing market in the healthcare industry. The private cloud segment is expected to be valued at US$2.2 bn by the end of 2016 and further rise to US$3.2 bn by the end of 2018. Nevertheless, the dominance of the private cloud segment is primarily due to its early adoption, and both public and hybrid cloud segments are expected to exhibit a higher CAGR of around 23% over the 2012-2018 forecast period.
Adoption of Cloud Computing in Healthcare Backed by Supportive Healthcare IT Reforms
One of the key drivers for the global cloud computing market in the healthcare industry is the initiation of supportive government regulations in numerous countries across the world. Healthcare expenditure constitutes a double-digit share in the total budget of several developed countries, and is increasing due to the initiation of IT-oriented healthcare reforms. Keeping the healthcare sector abreast of the latest developments in medical technology has been taken up as an important agenda by many governments, which is likely to remain a key driver for the cloud computing market in the healthcare industry in the coming years.
Cloud computing services have the crucial advantage of being easy to scale up or down, making them lucrative for companies operating in a dynamic competitive landscape. Any alterations in the user’s operations can thus be incorporated smoothly and swiftly through the use of cloud computing. The sensitive nature of the data processed in cloud computing in the healthcare industry, including patient records and confidential information about drug development, also drives the use of cloud computing in the healthcare industry, as cloud architecture provides better data security than conventional systems.
The information in this preview comes from a Transparency Market Research report titled ‘Cloud Computing Market In Healthcare Industry - Global Industry Analysis, Size, Share, Trends And Forecast 2012 - 2018.’
The global cloud computing market in the healthcare industry is segmented as follows:
By service model
By pricing model
By end user
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