HEALTHCARE CLOUD COMPUTING MARKET ANALYSIS

The practice of establishing remote computers that can be accessed online to store, manage, and analyze healthcare-related data is known as cloud computing in the industry. This contrasts with setting up a data center on-site with servers or hosting the data on a personal computer. Healthcare-related technology including IoT (Internet of Things) devices, mobile apps, patient portals, electronic medical records, and big data analytics are made possible by the cloud. It offers hassle-free flexibility and scalability, which enhances the final decision-making process.

The global healthcare cloud computing market is estimated to be valued at US$ 54,385.9 million in 2022 and is expected to exhibit a CAGR of 15.6 % during the forecast period (2022-2030).

Figure 1. Global Healthcare Cloud Computing Market Share (%), by Offerings, 2022

Global Healthcare Cloud Computing Market: Drivers

Increasing product launches or approvals are expected to drive the growth of the global healthcare cloud computing market.

Key players operating in this market are involved in adopting organic strategies such as product launches or approvals. The increasing launches of cloud-based imaging systems and cloud-based software used in healthcare applications is expected to drive the global healthcare cloud computing market growth in the near future. For instance, in November 2021, Change Healthcare, a leading healthcare technology company, announced the launch of Stratus Imaging PACS, a cloud-native, zero-footprint picture archiving and communication system (PACS). In February 2019, JIUN Corporation, a company focused on developing medical care solutions, announced the launch of SonicDICOM PACS Cloud, a cloud-based medical image management system. Any computer or tablet with an internet connection can examine medical images stored in the cloud from anywhere in the globe by going to a specific uniform resource locator with the help of SonicDICOM PACS Cloud.

Figure 2. Global Healthcare Cloud Computing Market Share (%), by Region, 2022

The increasing use of telehealth services is expected to drive the global healthcare cloud computing market growth during the forecast period.

The increasing use of telehealth services and funding by healthcare organizations for diagnosis and treatment is expected to create opportunities for cloud computing adoption and drive the global healthcare cloud computing market growth. For instance, in May 2022, the Department of Health and Human Services (HHS), a branch of the U.S. government, provided US$ 16.3 million in grant funding to 31 grantees to improve and extend the telehealth infrastructure and capacity of Title X family planning clinics in 26 states in U.S. Title X is the only government grant program completely committed to providing comprehensive family planning and related preventive health services to individuals in communities across the U.S.

Global Healthcare Cloud Computing Market – Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 can affect the economy in three main ways: by directly affecting the production and demand for drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries, such as China, India, Saudi Arabia, the UAE, Egypt, and others, are facing problems with regard to the transportation of drugs from one place to another.

However, the COVID-19 pandemic had a positive impact on the global healthcare cloud computing market. Cloud computing in healthcare involves the utilization of remote servers via the internet. It facilitates the handling, processing, and storage of medical data. Cloud storage makes it simple for medical professionals and institutions to use web servers to safely store a vast amount of data. During the COVID-19 crisis, cloud computing has helped in facilitating collaboration, communication, and critical internet services. Thus, cloud computing is crucial to tackling the difficulty of working from home effectively. The aforementioned benefits of cloud computing in healthcare are expected to have a slightly positive impact on the global healthcare cloud computing market over the forecast period. Particularly in the healthcare sector, where data is currently the main asset, the cost of data storage and management makes it necessary to purchase more expensive servers, which raises the overall costs of healthcare services. Due to its scalability, cloud computing is cost efficient and enables hassle-free data backup and storage. One can also scale back during busy days with the help of the cloud.

Additionally, due to the widespread use of video conferencing and phone calls for consultations by healthcare practitioners during the pandemic, this market is anticipated to witness significant growth over the forecast period. Moreover, patients with minor symptoms of COVID-19 are required by the social isolation policies to choose remote consultation.

Global Healthcare Cloud Computing Market: Key Developments

In July 2022, Let's Talk Interactive, Inc., a provider of adaptable telehealth services, entered into a partnership with Amazon Web Services (AWS). Let's Talk Interactive launched its telemedicine solutions in 2021 on AWS as an active participant in the Public Sector Partner (PSP) Program of AWS. Let's Talk Interactive now offers telehealth software solutions on the AWS Marketplace, an online store for software, data, and services that makes it simple to browse, test, purchase, and deploy software and data items that work with AWS. AWS offers complete and widely used cloud solutions.

In March 2022, Babylon Health, a healthcare service provider, added Google Cloud to the roaster of suppliers that make up its hybrid cloud infrastructure that enables its business to scale globally.

In April 2021, IBM, a U.S.-based multinational technology corporation, announced significant innovations to its storage portfolio that are intended to enhance access to and administration of data across complicated hybrid cloud environments for improved data availability and resilience. Additionally, IBM announced updates to its IBM Elastic Storage System (ESS). The updated model ESS 5000 delivers 10% greater storage capacity, and the new ESS 3200 offers double the read performance of its forerunner.

Global Healthcare Cloud Computing Market: Restraint

The major factor that hinders the growth of the global healthcare cloud computing market is the limitations associated with healthcare cloud computing. Factors such as privacy and security-related issues and workflow issues are expected to hinder the global healthcare cloud computing market growth over the forecast period. According to the Journal of Medicine and Life, 2021, the primary issues in cloud security include data security, as well as information confidentiality and network security. Individuals doing unethical activities may endanger data security. With the introduction of wireless sensor networks, the number of network security concerns has quickly expanded. As a result, network security in cloud infrastructure has become an issue for companies. Furthermore, according to HIPAA Journal 2020, 80% of cloud service companies have experienced at least one cloud data breach from 2018 to 2020 worldwide, with cloud misconfigurations being the most common reason.

Key Players

Major players operating in the global healthcare cloud computing market include IBM Corporation, Athenahealth, Siemens Healthcare GmbH, Koninklijke Philips NV, Allscripts Healthcare Solutions, Fujifilm Holdings, General Electric Company, AGFA Healthcare, Carestream Health, Inc., and Carecloud Corporation