Cloud computing is used in the healthcare industry for a number of clinical and non-clinical systems. The clinical systems include storing of patient data in the form of electronic health record (EHR), health and pharmacy information systems and picture archiving & communication system (PACS) among several other systems. On the other hand, the non-clinical systems include management systems including supply chain management, revenue cycle management and other billing and accounting systems. The cloud-computing in healthcare market is anticipated to record a CAGR of around 16% over the forecast period i.e. 2019-2027.
The market is segmented by application, by deployment, by service, by end user and by region, out of which, the end user segment is further segmented into hospitals, pharmacies, ambulatory centers, clinics and others. On the basis of end user, the hospitals segment is anticipated to hold the largest share in the cloud-computing in healthcare market on account of increasing number of patients in hospitals which can be further attributed to the growing prevalence of chronic health disorders among them.
According to a report published by the American Hospital Association in 2019, there are around 6,210 hospitals in the United States and the number is anticipated to further rise. The large number of patients facilitates the requirement of efficient information management and storage systems that would enable easy access and sharing of patient data.
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Cloud computing is used for managing and storing information online through hardware and software systems. It uses the latest technology in order to make data easily accessible by healthcare services providers. Along with this, keeping everything on cloud based systems prevents leakage of data to some extent. Using cloud technology is highly cost effective as it decreases the infrastructure expenses. Moreover, the information about one patient can be shared by different healthcare services providers through cloud computing technologies and can be accessed by them much faster as compared with other methods. It is a reliable source of storage of information as it prevents any form of data loss.
Growing Technological Advancements In IT And Healthcare Industries To Drive The Market Growth
Growing technological advancements and increasing demand for better technologies in the healthcare industry is estimated to propel the growth of this market. The adoption of machine learning and other such advanced technologies in healthcare industry is estimated to significantly increase the market growth.
Increasing Expenditure On Healthcare Industry To Boost The Market Growth
The use of cloud computing in healthcare industry is growing as a result of increasing expenditure on healthcare by a large section of the population. Almost every region in the world, including North America, Europe and Asia-Pacific, are spending large amounts on healthcare and improved technologies. This is another significant growth factor estimated to support the market.
High Maintenance Cost Of Cloud Computing Systems To Restrict The Market Growth
The high maintenance and one-time set up costs of cloud computing systems are estimated to limit the market growth, especially in developing nations. Apart from this, data might not be secure on cloud systems which raises security concerns among healthcare providers and patients, thus estimated to result in a restrained market growth.
Our in-depth analysis of the cloud-computing in healthcare market includes the following segments:
On the basis of regional analysis, the cloud-computing in healthcare market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Cloud computing is increasingly being accepted by countries in North America, which is estimated to account for the largest share in cloud computing in healthcare market in the region. Growing technological advancements in information technology and healthcare sectors as well as rising expenditure on healthcare are major factors supporting this growth in North America.
According to World Health Organization, the health expenditure per capita in North America was estimated to be around USD 9,351 in 2016, out of which, a majority was contributed by the United States. In addition to this, the market in Europe is estimated to hold a significant share during the upcoming years as a result of increasing healthcare expenditure in the region. For instance, the health expenditure per capita in United Kingdom was estimated to be around USD 4,177 in 2016.
Cloud computing market in healthcare industry in Asia-Pacific region is anticipated to witness highest growth in the market during the forecast period on account of growing advancements in both healthcare and information technology sectors. The increasing expenditure on health per capita in countries such as China was found to increase from USD 703 in 2015 to USD 761 in 2016 and is further anticipated to grow.
Rising number of patients in this region is another major factor estimated to initiate the market growth.
The cloud-computing in healthcare market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.