Healthcare Cloud Computing Market

The global Healthcare Cloud Computing Market is valued at USD 38.25 Billion in 2022 and is projected to reach a value of USD 145.86 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 18.2% between 2023 and 2030.

Premium Insights

According to a report by Philips in June 2022, healthcare executives anticipate moving their technological infrastructures to the cloud at a rate of 66% in 2022 and 96% by 2024. This strategy fits with the industry's growing reliance on cutting-edge digital technologies to improve patient care, operational effectiveness, and data management. As healthcare leaders move toward cloud adoption, it denotes a general understanding of the cloud's potential to simplify procedures, enable seamless data sharing, and stimulate innovation, ultimately generating a more flexible and responsive healthcare ecosystem.

• The demand for rises due to increased usage of technology and advances in cloud computing, which will fuel market expansion throughout the forecast period. For instance, Microsoft Corp. added additional capabilities and solutions in the areas of data, artificial intelligence, and clinician experiences to its healthcare cloud strategy.
• North America generated more than 41.5% of revenue share in 2022
• Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
• Healthcare Provider Solutions accounted for the largest market growth. It contributed over 52.8% of the total revenue share in 2022 due to its vital role in enhancing operational efficiency and patient care through services such as electronic health records (EHRs), patient portals, telehealth, and revenue cycle management.
• Private Cloud segment revealed the most significant market growth, contributing more than 35.5% of the total revenue share in 2022
• Software segment has accounted for largest market share in 2022 with 52.5%
• Pay-as-you-go segment has accounted for largest market share in 2022 with 53.3%
• Software as a service segment accounts for largest revenue of 62.2% in 2022

Economic Insights

The has grown significantly. Cost-effective methods, scalability benefits, and access to cutting-edge technologies all influence the economic dynamics of the market. Through pay-as-you-go business models, cloud solutions enable healthcare enterprises to reduce operational expenses while improving resource allocation and financial flexibility. This scalability encourages innovation in diagnostics and patient care, creating economic value, when combined with integration with technologies like AI and data analytics. Additionally, the market's economic impact is influenced by its ability to reach a worldwide audience, create jobs, and have long-term costs that are predictable.

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Top Market Trends

• Increasing adoption of EHRs and other healthcare IT solutions: For storing and managing patient data, electronic health records (EHRs) are crucial, and cloud computing can assist healthcare organizations in deploying and administering EHRs more effectively and affordably.
• Growing adoption of big data analytics and artificial intelligence (AI): Large amounts of healthcare data may be stored and analyzed using cloud computing, which can be used to enhance patient care, spot fraud and waste, and make wiser decisions.
• Increasing adoption of telehealth and remote patient monitoring: Telehealth services and remote patient monitoring can be provided by healthcare organizations with the aid of cloud computing, which can increase patient access to care and lower expenses.
• Growing focus on patient-centred care: Healthcare businesses can benefit from using cloud computing to give patients more individualized and well-coordinated care, which can lead to better patient outcomes.
• Increasing focus on data privacy and security: Healthcare data needs to be protected from unwanted access as it grows increasingly valuable. To meet this need, cloud computing providers are making significant investments in security measures.

Market Segmentation

The globel Healthcare Cloud Computing market can be categorized into Product, Deployment , Component , Pricing Model, Service model, Region . The Market can be categorized into Healthcare Provider Solutions , Healthcare Payer Solutions based on Product. The Market can be categorized into Private Cloud , Hybrid Cloud , Public Cloud based on Deployment . The Market can be categorized into Services , Software based on Component . The Market can be categorized into Pay-as-you-go , Spot pricing based on Pricing Model. The Market can be categorized into Software as a service, Platform as a service, Infrastructure as a service based on Service model. The Market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region .

Based on Product

Healthcare Provider Solutions holds the largest share

The healthcare provider solutions hold largest share in 2022 due to the faster deployment and maintenance made possible by cloud computing are beneficial to the growing integration of EHRs, which are essential for managing patient information. The accessibility and cost-savings of remote patient care are amplified by the growing telehealth use. Artificial intelligence (AI) is also being used more and more, which improves decision-making, work automation, and individualized patient care.

Based on Deployment

Private cloud will dominate the market during Forecast Period

The private cloud segment is dominating the market throughout the forecast period. The need for strict security and compliance adherence in the healthcare industry is foremost among these; private clouds provide greater control and protection than their public counterparts. Furthermore, private clouds' intrinsic flexibility is crucial since it allows them to be specifically tailored to the needs of healthcare companies. Notably, scalability is still another crucial benefit, enabling seamless adaptation to fluctuating workloads, an essential asset for healthcare organizations. Furthermore, private clouds are excellent for providing the high levels of security and control required for the growing integration of cutting-edge technologies like artificial intelligence (AI) and machine learning in healthcare, emphasizing their crucial role in this.

Based on Component

Software will account for largest market share

The software sector is positioned to acquire the greatest market share in the market because of the widespread adoption of cloud-based healthcare apps as evidenced which include scalability, flexibility, and cost-effectiveness. Cloud-based software solutions capable of satisfying regulatory requirements provide fulfillment for the necessity for strict security and compliance, which is essential in the healthcare industry. Additionally, organizations must rely on turnkey solutions provided by cloud-based software, offering organizations with quickly deployable solutions, due to the pervasive lack of in-house skills to build and maintain software applications in the healthcare industry.

Based on Pricing Model

Pay-as-you-go dominated the market in 2022

The pay-as-you-go pricing model accounts for largest share in the market due to its inherent flexibility and cost-effectiveness. Due to its ability to provide businesses with a streamlined strategy, allowing them to only pay for the resources they actively use and aligning expenses with exact consumption patterns, this model commands the biggest market share.

Based on Service model

Software as a service lead the market in 2022

The software as a service (SaaS) paradigm dominates the market due to the inherent scalability and flexibility of SaaS solutions, This gives healthcare organizations the agility to seamlessly adjust their usage in accordance with dynamic workloads, an essential quality given the variable nature of patient volumes. Significantly, SaaS solutions have a lower cost of ownership than competing service models like platform as a service (PaaS) and infrastructure as a service (IaaS). This results from the SaaS provider taking on platform and infrastructure duties, leaving healthcare companies to only be compensated for software consumption.

Based on Region

North America will lead the market

North America is anticipated to be the market leader for in 2022, due to the region’s dominance is strengthened by the vast and expanding healthcare industry, which is driving up demand for cloud-based healthcare solutions. The region's strict healthcare regulatory environment, which necessitates the integration of cloud-based solutions to ensure regulatory compliance, is a significant factor. Importantly, the existence of significant cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform further solidifies North America's dominance by providing healthcare companies with a wide range of cloud-based options to meet their unique requirements.

Competitive Landscape

The global market is fragmented, including a diverse array of the presence of several key players, ranging from solutions and manufacturers to emerging companies specializing in patient care. Focused on security, compliance, and innovation, providers collaborate with healthcare partners to develop cutting-edge solutions, including AI-driven diagnostics and predictive analytics. Start-ups and niche players also contribute specialized offerings, while global reach, scalability, and customer support enhance their competitive edge. For instance, The acquisition of Envizi, a top provider of data and analytics software for environmental performance management, by IBM was announced in January 2022.

The players in the global market include IBM, Carestream Health, athenahealth, Hyland Software, Siemens Healthineers, eClinicalWorks, Koninklijke Philips NV, Allscripts Healthcare Solutions, Fujifilm Holdings, GE Healthcare among others.

Recent Market Developments

• February 2022: IBM (US) bought Neudesic, LLC (US) in order to broaden its offering of hybrid multi-cloud services and further the company's hybrid cloud and Al strategy.
• February 2022: In order to make it simpler for clients to adopt a hybrid cloud strategy and shift mission-critical workloads from SAP® solutions to the cloud for regulated and non-regulated industries, IBM and SAP (NYSE: SAP) have joined forces.
• January 2022: In a definitive agreement that was signed, Francisco Partners will purchase healthcare data and analytics assets from IBM that are currently a part of the Watson Health business. Francisco Partners is a top global investment firm that specializes in working with technology companies.

Segmentation of the Global Market