Cloud Computing in Healthcare to Reach $911.6 Billion Amid High Demand from HCPs

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From its $383 billion market value in 2020, global cloud computing in the healthcare market is projected to reach $911.6 billion in 2028 at a double-digit CAGR of 10.8%. The sustained high demand for healthcare services amid the COVID-19 pandemic, aging populations, and the need to optimize and efficiently manage complex IT systems, company resources, and patient data were cited as some of the key drivers of the growth. The industry report published by Transparency Market Research also provides analyses of different market segments, including end-users, technologies applied in the industry, important regions for expansion, and the major players in the market.

As for end-users, non-clinical information systems (NCIS) held the major market share in 2020. Non-clinical pertains to healthcare processes such as medical billing, claims management, and other non-crucial operations data. This was attributed to the security concerns and apprehensions of many companies when thinking about the security of the cloud. Thus, data and processes not directly involved in daily workflows were first to be moved to the cloud. In contrast, clinical information systems (CIS) are comprised of various software solutions allowing for effective clinical workflow such as electronic medical records, laboratory information systems, and picture archiving and communication systems (PACS).

Meanwhile, artificial intelligence and machine learning are technologies driving the adoption of public cloud in the healthcare industry. AI and ML enable a wide range of automated processes—from patient care services to customer service, employee workflow, and financial management.

On the regional level, North America had the largest share of the market in 2020 and the trend is projected to continue during the forecast period. However, Asia Pacific is seen as a high growth region as well owing to factors such as technological advancements in the healthcare industry and widespread adoption of cloud-based solutions for providing effective patient services and saving costs for companies.

The report includes a company profile section that provides information on key players in the market. Some of the companies listed are CareCloud Corporation, ClearDATA Networks, AGFA Healthcare, AWS, and Cisco Systems.

IaaS, PaaS, and SaaS in Healthcare

Cloud computing in terms of service models is categorized into infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). The report pointed out that IaaS accounted for the largest share in the global market in 2020. This is not surprising since many healthcare providers (HCPs) have a huge requirement for storage for their ever-growing database. IaaS provides such service at practical usage-based pricing and allows companies to enjoy other benefits such as reduced costs, and dynamic scaling.

However, stakeholders and vendors shouldn’t overlook the demand for SaaS in the healthcare sector. As we previously reported, SaaS apps are dominating healthcare services—from EHR software to CRMs, ERPs, mobile health apps, and remote patient monitoring systems. More and more healthcare providers will continue to require a variety of apps and digital tools for their daily operations.

As for PaaS, the report also predicts rapid growth for this service since it simplifies application development for DevOps and deployment on the cloud. We see this growth as directly connected to the increasing demand for SaaS apps. Developers will need PaaS to create and continuously update apps without the need for underlying software or hardware. PaaS supports the entire life cycle of designing, building, and delivering web applications to end-users.

Overall, these three service models are the framework of cloud computing. One may dominate the other but they are all equally necessary for enterprises that rely on cloud computing in the healthcare industry.