Cloud Computing Market Analysis

Information Technology (IT) sector supports the healthcare industry mainly in two processes:

• Drug manufacturing process
• Healthcare delivery/provisioning process

These processes generate loads of patient related information and other data such as images, bills, records and more. IT and computing helps the healthcare industry manage this data efficiently. The drug manufacturing process is an important system of the pharmaceutical industry where novel drugs are discovered through research and development (R&D). IT systems support secured and error free organizing, storage, processing and sharing of tons of data across regions, users and applications becomes mandatory. Cloud computing has evolved as a cost effective solution that caters to all the requirements of drug manufacturing and other processes of the pharmaceutical industry.

The global cloud computing market in healthcare industry is estimated to account for US$ 10,045.0 Mn by 2020 in terms of value and is expected to reach US$ 40,188.3 Mn by the end of 2027.

Global Cloud Computing Market in Healthcare Industry: Drivers

Adoption of unified database in the healthcare industry is expected to propel growth of the global cloud computing market in healthcare industry over the forecast period. For instance, in August 2018,   the government of Dubai, announced to launch a unified database that will link the complete medical data of citizens, giving all doctors access to data from hospital visits and lab tests from any healthcare center.

Moreover, increasing healthcare spending is also expected to boost demand for computing market in healthcare industry. For instance, according to the Centers for Medicare & Medicaid Services (CMS), health spending in the U.S. is projected to grow at an average rate of 5.5 percent per year for 2018-27 and to reach nearly US$ 6.0 trillion by 2027.

IaaS held dominant position in the global cloud computing market in healthcare industry in 2019, accounting for 80.8% share in terms of value, followed by PaaS and SaaS, respectively.

Figure 1. Global Cloud Computing Market in Healthcare Industry Share (%), by Value, by Service Model, 2019

Global Cloud Computing Market in Healthcare Industry: Restraints

High cost of cloud computing services is expected to hinder growth of the global cloud computing market in healthcare industry. Cloud computing is considered a revolution in the healthcare IT industry. Cloud solutions are cost effective for an organization, which has multiple users across multiple locations with large amounts of data. However, the same is not true for small to medium scale organizations.

Moreover, cloud computing in the healthcare industry also faces issues with control and visibility, availability, and data security. Such scenario is also expected to limit the market growth.

Cloud Computing Market in Healthcare Industry Report Coverage

Report Coverage	Details
Base Year:	2019	Market Size in 2019:	US$ 8,258.1 Mn
Historical Data for:	2016 to 2019	Forecast Period:	2020 to 2027
Forecast Period 2020 to 2027 CAGR:	21.9%	2027 Value Projection:	US$ 40,188.3 Mn
Geographies covered:	North America: U.S., Canada Latin America: Brazil, Argentina, Mexico, Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific Middle East: GCC Countries, Israel, Rest of Middle East Africa: South Africa, North Africa, Central Africa
Segments covered:	By Service Model: IaaS, PaaS, SaaS. By Pricing Model: Spot Pricing Model, Pay-as-you-go Model. By Cloud Type: Public, Private, Hybrid. By Application: CIS, NCIS.
Companies covered:	Carecloud Corporation, Cleardata Networks, Carestream Health, Inc., AGFA Healthcare, Cisco Systems, Inc., Merge Healthcare, Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, Topcon Corporation, AdvancedMD, RxSafe, LLC, Ambra Health, Sectra, and MedShift
Growth Drivers:	Technological advancement Increasing use of mobile applications & connected health
Restraints & Challenges:	Low adoption of internet in some emerging economies

Global Cloud Computing Market in Healthcare Industry: Opportunities

Emergence of Covid-19 is expected to offer lucrative growth opportunities for players in the global cloud computing market in healthcare industry. For instance, globally, as of 2:48pm CEST, 1 September 2020, there have been 25,327,098 confirmed cases of COVID-19, including 848,255 deaths, reported to the World Health Organization.

Moreover, increasing adoption of telehealth services is also expected to boost demand for cloud computing market in healthcare industry. For instance, in early March 2020, the Cleveland Clinic, U.S. reported “a fifteen-fold increase in telehealth visits” over the course of just one week.

The global cloud computing market in healthcare industry was valued at US$ 8,258.1 Mn in 2019 and is forecast to reach a value of US$ 40,188.3 Mn by 2027 at a CAGR of 21.9% between 2020 and 2027.

Figure 2. Global Cloud Computing Market in Healthcare Industry Value (US$ Mn), and Y-o-Y Growth (%), 2019-2027

Market Trends/Key Takeaways

Major players in the global cloud computing market in healthcare industry are focused on offering limited free storage services to enhance their market share. For instance, in December 2018, Topcon Medical Systems began offering 20GB of free storage on the new Topcon Cloud platform for its OCT product line.

Major players in the market are also focused on adopting M&A strategies to enhance their market share. For instance, in July 2018, AdvancedMD acquired U.S.-based healthcare software as a service company, Nuesoft Technologies, in order to expand its cloud network of practitioners and physicians that utilize end-to-end workflow automation.

Global Cloud Computing Market in Healthcare Industry: Competitive Landscape

Major players operating in the global cloud computing market in healthcare industry include, Carecloud Corporation, Cleardata Networks, Carestream Health, Inc., AGFA Healthcare, Cisco Systems, Inc., Merge Healthcare, Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, Topcon Corporation, AdvancedMD, RxSafe, LLC, Ambra Health, Sectra, and MedShift.

Global Cloud Computing Market in Healthcare Industry: Key Developments

Major players in the global cloud computing market in healthcare industry are focused on launching new services to expand their product portfolio. For instance, in February 2018, RxSafe, LLC launched RxCloud Analytics, which offers 24/7 cloud-based analytics to independent pharmacy owners using the RxSafe 1800 system.

Major players in the global cloud computing market in healthcare industry are also focused on adopting partnership strategies to expand their product portfolio. For instance, in March 2020, Ambra Health, a provider of cloud-based medical image management suite, partnered with Perspectum Diagnostics, a developer of medical image analysis technologies, under which Perspectum's flagship product LiverMultiScan will leverage Ambra Health's Cloud PACS to enable anytime, anywhere access to images