Healthcare Cloud Computing Market: Trends, Forecasts & Growth
The healthcare cloud computing industry was worth USD 23,749.33 million in 2020. It is predicted to grow to USD 52,303.35 million by 2026, with a CAGR of 14.12% from 2021 to 2026.
The pandemic of COVID-19 is assumed to have a generally good impact on the healthcare market. Cloud technologies provide computing resources and data storage that external providers control to enhance healthcare security, reliability, and effectiveness. In the battle against COVID-19, it has now become critical.
As there are so many research projects and clinical studies going on throughout the globe, the study results that are created have to be maintained in a protected environment. Moreover, it should be able to handle large volumes of information. Cloud computing addresses space restrictions and security concerns by allowing large volumes of data to be stored on secure, dedicated cloud networks.
Factors That Promote Growth
Several healthcare organizations may use the cloud’s benefits more now than ever, given recent technological advancements and enhanced security. To meet unique digital health environments distinctly, several new technological advancements will continue to evolve in the coming years. Examples of these technological advancements are Remote monitoring, NLP APIs, and telemedicine cloud technologies.
The development of high-speed broadband and future governing actions are also expected to boost the global healthcare cloud computing market’s growth possibilities. However, worries about data portability, privacy protection, and the growing cloud data theft are stifling the global growth of the medical cloud computing industry.
Furthermore, a scarcity of skilled IT experts has slowed the adoption of cloud computing. Due to the difficulty in locating individuals with HIPAA experience, competent professionals are in high demand. This skills shortage is projected to slow the transition to cloud-based computing platforms.
Benefits of Cloud-Based Services
The use of cloud services and amenities to store, retain, and extract protected health information is referred to as healthcare cloud computing.
Cloud technology has aided the healthcare industry by creating a forum for on-demand managed services, on-demand computation, huge memory, and a variety of other services. It has made data and records more accessible to administrators, nurses, and clinicians.
Even during the pandemic, one of the key benefits of cloud-based amenities for businesses and organizations is that they permit rapid implementation and resizing across various settings. They don’t require extra gear and can be installed remotely.
Overview of the Market
Cloud-based computing is storing, managing, and processing data utilizing a system of distant servers housed on the net. It eliminates the need for or usage of a local network, lowering total costs by reducing infrastructure costs. In the case of cloud computing, maintenance costs are extra on the one-time setup costs.
As per the HIMSS, an international NPO focused on improved health through IT, the two most significant facilitators of cloud-based computing are accelerated implementation and expandability, and the availability of advanced modern technology, like machine learning.
From patient history information to picture and video information, healthcare may create a large amount of data. Advanced systems with significant processing power are necessary to store and analyze information efficiently. However, to have these capabilities in a medical facility, caregivers will have to commit considerably more now than they have thus far.
As a result, the significant amount required for effective IT network design prevents health professionals from establishing in-house arrangements and opting for cloud services. Faster adoption and adaptability, as well as efficient processing and storage, are likely to drive market expansion.
Market Trends to Watch
Numerous trends are shaping the future of the healthcare cloud computing market. Discussed below are a few of them:
Rising Market Share of EHR
The pandemic is projected to have a beneficial influence on this sector. EHR systems may be used to gather and interpret data from health departments, medical institutions, and socioeconomic variables as they are multi-disciplinary. It is critical information to have as you prepare to implement COVID-19-fighting programs.
Earlier, the medical data could not be shared due to a lack of compatibility. However, as firms try to produce better patient-friendly compatible devices, the scenario will shift. Complicated healthcare systems need a variety of EHR packages for data to be exchanged seamlessly.
Interoperable EHR facilitates data transmission across electronic health records and medical providers by enabling improved processes and minimizing ambiguity. As a result of the reasons mentioned above, the market is likely to develop rapidly throughout the projected timeline.
North America Holds the Largest Market Share
North America dominates the healthcare cloud computing industry, and this trend is likely to continue during the projected timeframe. The US is the dominant player in medical cloud computing. That is due to its high adoption rate of medical IT solutions and ongoing economic and legal backing from federal agencies. The HITECH Act sped up the deployment of electronic health records and associated systems.
Furthermore, reputable cloud services seldom enable data loss. Over 83% of healthcare businesses in the US claimed they currently employ cloud services, as per the latest HIMSS Analytics survey from 2018.
Due to the existence of a few prominent competitors in the industry, the healthcare cloud-based computing industry is relatively concentrated. To get a larger part of the market, the corporations employ aggressive competing techniques.
Corporations are pursuing various methods like new product introductions and R&D expenditures to stay afloat in this highly competitive market.
According to the HIMSS Analytics Survey, well over 83% of healthcare businesses now employ cloud services. Many healthcare organizations want to elevate cloud computing services to another level by incorporating cutting-edge technologies. Rather than capturing and transmitting information to the server, the system evaluates and works with it on the spot.
The emergence of the adoption of advanced IT in the medical sector and the availability of specialized technology like ML are all major growth drivers of the medical cloud computing industry. Additionally, the use of cloud-based computing improves scalability, collection, and versatility.