2019-26: Healthcare Poses Rising Trend for Cloud Computing Adoption!
Healthcare is one industry that has seen a disruptive transformation over the decades.
Be it advanced high-end medical devices, scanning systems, detection methods and more, healthcare has been at the forefront in adopting new technologies.
The cloud computing technology has offered due boost to the industry’s pace of technology adoption. Resultant is what we see around as mobile apps, fitness devices, online consulting, among various other implementations.
Considering the current scenario, the healthcare industry holds some promising future for cloud computing technology.
The Healthcare Cloud Computing market is expected to grow rapidly during the forecast period (2019-26) and reach the USD 40 billion market value by 2026, at a CAGR of 14 %
Increasing IT adoption is expected to add to the cloud computing trend in the healthcare industry, which is expected to increase at a considerable rate.
Growing demand for cloud software among healthcare professionals is expected to be the major driver for the rising cloud trend over the coming years.
Moreover, efficient management of patient records across hospitals and laboratories, for both clinical and administrative purposes, is going to be another key driver for the cloud computing adoption in the healthcare industry.
However, lack of skilled personnel and high initial investment are likely to be the strong barriers! Inefficient data transfer mechanisms and inability to ensure disaster recovery solutions are going to be among the top constraints curbing the cloud adoption in the healthcare industry.
To tackle the rising menace, the industry demands strict regulatory scenario that ensures the quality of the healthcare cloud software.
Regulatory bodies like USFDA and EU Commission have already developed laws and directives to ensure the safety of operating software and systems.
Authorization of cloud computing service providers and cloud software is also crucial for data protection in the healthcare industry through cloud platforms.
Looking at the statistics, the demand for raw data among doctors and physicians generated around USD 12 billion revenue in the clinical information systems segment.
On the other side, non-clinical segments are also expected to see around 15 percent growth over the review period.
- By Deployment, the public cloud computing market in healthcare was valued at USD 10 billion in 2018 and is expected to see a similar trend over the coming years, while the private cloud deployments are expected to see a 15 percent growth.
- By Component, software segment accounted for 23 percent of the cloud market revenue, by component, in 2018. While services segment is poised for 15 percent growth over the forecast period.
- By End-use, the hospital segment was valued more than USD 4 billion in 2018 with a significant rise attributed to the demand for patient data. Meanwhile, the pharmacy segment is expected to witness a CAGR of 15 percent over the forecast period.
- By Region, North America accounted for USD 8 billion cloud market in 2018 and is expected to see a similar trend over the forecast period. Whereas, the European healthcare cloud market is expected to see a 15.5 percent growth rate over the forecast period.
Overall, the healthcare industry depicts a positive trend for cloud computing adoption for the period 2019-26.