The major factors for the growth of the healthcare cloud computing market include the rise in adoption of information technology in the healthcare sector, access to advance technology, such as machine learning, and usage of cloud reduces cost and improves scalability, storage, and flexibility.
- Cloud computing is the practice of using a network of remote servers hosted on the internet, to store, manage, and process data. It does not require or use a local server and significantly reduces the overall cost by cutting infrastructural expenses. In addition to one-time set-up cost, maintenance cost is also huge in case of a cloud.
- According to the Healthcare Information and Management System Society (HIMSS), a global not-for-profit organization focused on better health through Information Technology (IT), survey for 2014, the top two drivers of cloud computing are faster deployment and scalability and access to advance new technology, such as machine learning.
- Healthcare can generate quantum of data, from patient background information to image and video data. To effectively store, as well as process this data, advanced computer with high computation power is required and to have such systems in a healthcare institution, providers may have to invest much more than what they have invested so far. Hence, a considerable amount needed for proper IT infrastructure set-up is restraining the healthcare providers from setting in-house set-up and going cloud service.
- Faster deployment and scalability and effective storage and processing are the factors expected to fuel the market growth.
Scope of the Report
As per the scope of this report, cloud computing can be defined as the practice of using remote servers in place of the local server or network, to store, manage, and process the data. Therefore, the use of cloud moves the data center infrastructure outside of the organization. This report analyzes and discusses the market for cloud computing in the healthcare sector. The revenue from cloud services has been tracked in the report. The healthcare cloud computing market is segmented by application, deployment, service, end user, and geography.
Key Market Trends
Electronic Health Record (EHR) Segment is Expected to hold the Largest Market Share During the Forecast Period
According to the Center for Medicare and Medicaid Services (CMS), EHR is an electronic version of patient health information, including patient demographics, progress notes, problems, and medications, vital signs, past medical history, immunizations, laboratory data, and radiology reports. However, sharing of data has not been that easy till now, because of the lack of interoperability. Interoperability is not only among the products of two different manufacturers, but also sometimes among the product of the same company. However, the situation is changing rapidly and companies are working to develop more patient-friendly interoperable devices. A complex healthcare system requires diverse EHR products that must be able to share information seamlessly. An interoperable EHR makes this possible by enabling better workflows and reduced ambiguity and allows data transfer among EHR systems and healthcare stakeholders. According to a survey conducted by the Software AdviceTM in 2015, 46% of patients want their doctors to directly exchange their medical records instead of in-person delivery. The high cost is a restraining factor, however, the United States Government is giving sufficient incentives monetarily to minimize its effect. The Centers for Medicare and Medicaid Services (CMS) paid more than USD 30 billion as financial incentives to more than 468,000 MEDICARE AND MEDICAID providers for implementing the system. Thus, owing to all aforementioned factors the market is expected to witness high growth rate over the forecast period.
North America Accounted for the Largest Share in the Global Market
North America is found to hold a significant share in the healthcare cloud computing market and is expected to show a similar trend over the forecast period, without substantial fluctuations. The United States is a leader in the healthcare cloud computing market, mainly due to the high adoption rate of healthcare IT services and continuous support, financially and otherwise, from the government agency. The implementation of the Health Information Technology for Economic and Clinical Health Act (HITECH Act), primarily to stimulate the adoption of EHR and supporting technologies in the country. According to the Act, starting from 2011, healthcare providers would be offered financial incentives for demonstrating meaningful use of EHRs until 2015, after which, time penalties may be levied for failing to explain such use. Cloud-based services are helpful for everyone. Most healthcare institutions neither have the time nor resources to devote to cybersecurity that an established cloud provider may have. Moreover, it is hard to believe that any established cloud provider may leak data or allow the leakage of data knowingly. Thus, owing to all aforementioned factors the market is expected to witness high growth over the forecast period.
The healthcare cloud computing market is a moderately consolidated market, owing to the presence of a few key players in the market. The companies are applying powerful competitive strategies to gain more market share in the healthcare cloud computing market. Some of the market players are Athenahealth, Inc., CareCloud Corporation, Carestream Health, Dell Inc., IBM Corporation, Oracle Corporation, and Siemens Healthineers.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise in Adoption of Information Technology in the Healthcare Sector
4.2.2 Access to Advance Technology, Such as Machine Learning, is Easier in Cloud System
4.2.3 Usage of Cloud Reduces Cost and Improves Scalability, Storage, and Flexibility
4.3 Market Restraints
4.3.1 Data Security and Integrity Issues
4.3.2 Lack of Interoperability and Industry Standards
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Application
5.1.1 Clinical Information Systems (CIS)
220.127.116.11 Electronic Health Record (EHR)
18.104.22.168 Picture Archiving and Communication System (PACS)
22.214.171.124 Radiology Information Systems (RIS)
126.96.36.199 Computerized Physician Order Entry (CPOE)
188.8.131.52 Pharmacy Information Systems (PIS)
184.108.40.206 Other Applications
5.1.2 Nonclinical Information Systems (NCIS)
220.127.116.11 Revenue Cycle Management (RCM)
18.104.22.168 Automatic Patient Billing (APB)
22.214.171.124 Payroll Management System
126.96.36.199 Claims Management
188.8.131.52 Cost Accounting
184.108.40.206 Other Nonclinical Information Systems
5.2 By Deployment
5.2.1 Private Cloud
5.2.2 Public Cloud
5.2.3 Hybrid Cloud
5.3 By Service
5.3.1 Software-as-a-Service (SaaS)
5.3.2 Infrastructure-as-a-Service (IaaS)
5.3.3 Platform-as-a-Service (PaaS)
5.4 By End User
5.4.1 Healthcare Providers
5.4.2 Healthcare Payers
5.5.1 North America
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.5.4 Middle East & Africa
126.96.36.199 South Africa
188.8.131.52 Rest of Middle East & Africa
5.5.5 South America
184.108.40.206 Rest of South America
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Amazon Web Services Inc.
6.1.2 Athenahealth Inc.
6.1.3 CareCloud Corporation
6.1.4 Carestream Health
6.1.6 Dell Inc.
6.1.7 IBM Corporation
6.1.8 Iron Mountain Inc.
6.1.9 Oracle Corporation
6.1.10 Siemens Healthineers
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.