Wilmington, Delaware, United States: According to the report, the global cloud computing market in healthcare industry was valued at US$ 383.0 Bn in 2020 and is projected to expand at a CAGR of 10.8% from 2021 to 2028. Cloud computing is delivery of tools and applications such as data storage, software, databases, servers, and networking services through the Internet. Cloud computing enables accessing data and information virtually or on cloud remotely.
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Companies use cloud computing services to store files and applications at remote severs and access all the data though Internet. Cloud computing is either private or public, with public cloud services offered through Internet at certain price and private cloud services offered to particular group of people.
Rise in cost of delivering healthcare services to the patient community has induced the healthcare industry to evolve as one of the largest industries with trillions of dollars spent within the public and private sectors. Aging population and global economic development have resulted in demand for better healthcare, which fueled the growth of the healthcare industry. Cost-effective approaches with optimal operational efficiency are in demand. Cloud computing helps healthcare organizations share all the information that is stored across various information systems in real time and increases productivity and cost-efficiency. The healthcare cloud computing market in healthcare industry is estimated to witness high growth over the next few years.
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Technological Advancements to Drive Cloud Computing Market in Healthcare Industry
Cloud computing is a growing trend in the digital transformation of the healthcare industry catering to the needs of the patients. Companies such as IBM and Microsoft are prominent in providing technically advanced cloud-based solutions to patients. Cloud-based solutions tackle the key challenges in the healthcare industry by increasing the cost effectiveness and managing the sufficient healthcare ecosystem. Contribution of cloud computing in boosting the personalized medicine industry that caters to the requirement of patients to identify disease risk and response to the tailor-made treatment therapy.
HCPs utilize the cloud computing technology to enhance their forecasting, communication, and decision-making capabilities to develop an IT infrastructure. The HCPs use big datasets for accurate decision and to establish a cost-effective model. For instance, Pfizer incorporated cloud-computing technology in lung cancer drug, Xalkori, which is used for treatment of patients with ALK mutation. Wireless technologies and cloud are a perfect solution for the problems related to unavailability of healthcare in rural areas. TeleCloud, the combination of telecare and cloud allows physicians and healthcare experts to diagnose and treat patients beyond geographies, real time, and cost effectively.
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Key Strategies Adopted by Prominent Players to Drive Cloud Computing Market in Healthcare Industry
In February 2022, Salesforce announced launch of safety cloud product, which would bring the business and communities for managing health and entry & testing protocols for creating safer in-person experiences at workplace and events. In January 2022, Mayo Clinic selected Oracle Fusion Analytics and Oracle Fusion Cloud Applications Suite to integrate and meet the goals set in 2030. This cloud-based solution will provide Mayo Clinic a single administrative platform for streamlining the supply chain management, HR, resource planning, analytics, and simplifying the processes.
In January 2022, IBM announced selling its healthcare data and analytics assets business from Watson Health business company to Francisco Partners. This collaboration will strengthen Francisco Partners technology products and utilize its healthcare acquisitions to advance in the healthcare industry.
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Platform-as-a-Service (PaaS) Segment to Expand at High Growth Rate
The global cloud computing market in healthcare industry has been segmented based on service model, pricing model, cloud type, and end-user. In terms of service model, the global market has been classified into infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). The infrastructure-as-a-service (IaaS) segment accounted for the largest market share in 2020.
The platform-as-a-service (PaaS) segment is expected to grow at rapid pace during the forecast period. This is because PaaS simplifies application development and deployment on the cloud. PaaS creates web applications quickly, without the need of underlying software or hardware and provides all the support for complete life cycle of building and delivering web applications entirely on the web.
North America to Lead Cloud Computing Market in Healthcare Industry
North America dominated the global cloud computing market in healthcare industry in 2020, accounting for the largest share. Technological advancements in healthcare, well-established healthcare infrastructure, large biopharmaceutical industry, adoption of artificial intelligence, machine learning, and use of electronic health records to streamline the operations across hospitals & clinics and to maintain patient records are anticipated to propel the cloud computing market in healthcare industry in the region during the forecast period. The growth of the market in North America can be attributed to the need of healthcare organizations to manage and optimize their complex IT systems, provide faster & flexible healthcare delivery to patients and physicians through mobile & other easy access systems, comply with regulatory standards, and maintain confidentiality of patient data.
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Europe held the second largest share of the global cloud computing market in healthcare industry in 2020. The market in the region is expected to expand at a faster CAGR over the next few years. Cloud deployment enables healthcare organizations to save cost, manage complex healthcare processes, and maintain patient information securely. These factors are likely to drive the healthcare market in the next few years, which in turn is projected to fuel the growth of the cloud computing market in healthcare industry in the near future.
Competition Landscape
The global cloud computing market in healthcare industry is niche due to presence of prominent and established players in the market. Key players operating in the market are CareCloud Corporation, ClearDATA Networks, Carestream Health, Inc., AGFA Healthcare, Cisco Systems, Inc., Merge Healthcare, Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, Oracle Corporation, Amazon Web Services, e-Zest, Kinvey, and Salesforce.
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Cloud Computing Market in Healthcare Industry Insights and Emerging Trends by 2028 - BioSpace
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