Healthcare Cloud Infrastructure Market

Market Overview

The Global Healthcare Cloud Infrastructure Market size was valued at USD 47.75 billion in 2021 and is predicted to reach at USD 191.84 billion by 2030, increasing at a CAGR of 16.71% from 2022 to 2030.

Real-time data collection and improved access to the data are two of the benefits of healthcare cloud computing for enterprises of all sizes and from any place. Healthcare Cloud Computing has various benefits for the healthcare business, including the ability to store and access data from any location. Implementation of cloud computing as an effective data transportation and storage facility would transform the slow speed of clerical tasks in medical organisations due to its ability to store large amounts of data. Medical practitioners and pharmacologists may find a database that keeps track of a patient's medical history, alerts any institution that needs it, and updates it with current health and medicine circumstances to be beneficial.

In several end-use industries, including healthcare, digitization and cloud computing have become key trends. When it comes to health care, cloud computing is becoming a key trend since hospitals and other healthcare facilities are using technology to eliminate errors and improve efficiency. The market is also predicted to increase as a result of the proliferation of high-speed internet and the implementation of favourable regulatory measures. Data privacy, data portability difficulties, and an increasing number of cloud data breaches may limit the growth of the healthcare cloud computing market throughout the study period.

Market Dynamics

Market Drivers

• Machine Learning and Artificial Intelligence (AI) Integration

It is primarily driven by digitizing the healthcare infrastructure, integrating new technologies like machine learning and artificial intelligence, deploying cloud healthcare systems, and inefficiencies in management as a result of the growing burden. Increased use of telemedicine and cloud-based healthcare services in the worldwide healthcare sector is driving the global healthcare cloud infrastructure market. Increasing sickness burden and an ageing population lead to an increase in the number of patients seen. As the number of patients grows, so does the amount of data that must be generated, and healthcare institutions are under increasing pressure to meet that need quickly and effectively. Digital technologies are being used by healthcare facilities to increase operational efficiency, data management, and patient care. The global healthcare cloud infrastructure market is being fueled by the increasing use of digital technologies in the healthcare sector. Growth in healthcare cloud infrastructure was spurred by the rapid expansion and penetration of both wireless and internet technologies as well as strong IT and telecommunications infrastructure development.

• An Important Factor Is the Rise in Investments by The Government and Corporations

The worldwide healthcare cloud infrastructure market is being fueled by an increase in government and business investments in IT infrastructure. The University of Pittsburgh Medical Center, for example, made a $2 billion investment in digitization in 2017. The use of cloud-deployed dashboards for real-time data analytics and visualization is growing among healthcare facilities.

Governments worldwide are now leveraging cloud technology to communicate real-time statistics and information about COVID-19-related restrictions, lockdowns and spreading tendencies. The Australian Department of Health, for instance, introduced the Coronavirus Australia App. Furthermore, the increasing demand for information mobility, increasing investments to deploy cloud-computing technologies in hospitals, the growing number of Smart Hospitals, the rising demand for advanced technological solutions, and the rising demand for effective healthcare solutions are expected to be the driving forces of the healthcare cloud infrastructure market in the near future.

Market Restraints

• Concerns About Data Security and Privacy Are Increasing

The data housed by cloud service providers is not as secure as data held on-premise. A high degree of privacy needs to be maintained to ensure that only authorized persons have access to patient information. Various legislative systems, such as the US's HIPAA (Health Insurance Portability and Accountability Act), have scrutinized patient data in various countries. Similarly, the European Union has a number of directives on data protection. There are numerous nations where it is illegal to transfer patient Protected Health Information (PHI) from one location to another. Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) safeguards personal information gathered, utilized, or disclosed. Non-compliance with the Act could result in legal action for Canadian organizations.

Even though the cloud offers many advantages and security precautions, data stored in the cloud is still vulnerable to cyber-attack. Data security and privacy concerns are on the rise as the volume of patient data grows and the number of attempts to implement digital transformation in healthcare rises. In addition, patients are concerned about the safety of their personal information, which increases the need of upholding high security standards for patient data. Public clouds have the same security concerns as traditional IT systems; hence they are not recommended.

Key Future Opportunities

• There Has Been an Increase in Telemedicine and Tele-cloud Services

Patient care can now be delivered to far-flung locales because to the convergence of wireless and cloud technology. In many nations, the majority of doctors and specialists are employed in major cities and metropolitan areas. As a result, only in urban regions can patients access the most cutting-edge medical technology. To solve this challenge, doctors and healthcare specialists can use a tele-cloud to diagnose and treat patients across enormous distances in real-time and at low prices.

It was in May of this year that the Centers for Medicare and Medicaid Services (CMS) announced its first Rural Health Strategy, which included telehealth and telemedicine as key components. An eight-page plan outlining five key steps aimed at increasing the number of people in rural and underserved areas who have easy access to medical care was unveiled by CMS. In addition, Cisco provides telehealth and remote patient monitoring services to more than 17,000 healthcare organizations in 118 countries. For cloud computing businesses in the healthcare sector, the use of telehealth in numerous nations is likely to rise, and this could lead to growth opportunities for those in the sector.

Regional Analysis

The Global Healthcare Cloud Infrastructure Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. 

In 2021, North America commanded more than a 52 percent revenue share of the market, making it the most dominant region. This can be linked to the fast-growing cost of medical care as well as the always improving infrastructure of information technology. Some of the most significant market players are involved in the development of healthcare cloud infrastructure products and solutions, as well as the provision of installation and training facilities. This is one of the factors that is anticipated to significantly contribute to the expansion of the regional market. A growing number of healthcare facilities in North America are adopting products and services that are related to cloud infrastructure in order to improve their operational, clinical, and financial outcomes, as well as to streamline their processes and eliminate data silos.

As a result of the proliferation of various cutting-edge start-ups in the region that specialise in healthcare cloud infrastructure goods and services, it is predicted that the market will expand at the most rapid rate in the Asia Pacific region over the course of the forecast period. Additionally, the evolving healthcare IT infrastructure and the increase in implementation of smart technological solutions by care centres to improve their processes and workflows and adequately address the rising patient population are anticipated to fuel the growth of the market in the Asia Pacific region. This is expected to drive the growth of the market in the Asia Pacific region. The rapidly expanding information technology sector is demonstrating remarkable potential and luring both public and private investors. It is anticipated that this will speed up the industry's overall development in the years to come.

Segmental Analysis

The Global Healthcare Cloud Infrastructure Market is divided into different segments according to the Component, End-use, and Region (Geography).

By Component, the Global Healthcare Cloud Infrastructure Market is segmented into Hardware and Services. More than 72% of income in 2021 came from the services sector. Fewer and fewer firms have the resources and expertise needed to implement more advanced computer technologies. There is also a wide range of short-term and long-term contract options for outsourced IT services. SaaS, PaaS, and IaaS are the most common sorts of these services, although there are a few more as well (IaaS). There has been a rising use of the system in the hospital, clinical, and community contexts and this has led to a significant increase in SaaS's revenue share in 2021.

From web-based email to inventory management to database processing, the SaaS model includes a wide range of services. Due to greater control and customizability of programs built by service providers, and reduced ownership expenses and costs associated with Infrastructure-as-a-Service (IaaS), the PaaS model is predicted to grow at the quickest rate over the next few years (IaaS).

Over the projection period, hardware is expected to grow at the fastest rate. The market is expanding as a result of a growing demand for strong hardware platforms that can run cloud infrastructure and systems. Furthermore, hardware includes all electrical devices, as well as human-machine interface devices, such as computers and network assistants. A decrease in the cost of various equipment, particularly electronic devices, is expected over the forecast period, which is expected to contribute to the growth of demand for healthcare cloud infrastructure.

By End-use, the Global Healthcare Cloud Infrastructure Market is segmented into Healthcare Providers and Healthcare Payers. The healthcare providers category accounted for more than 58% of the market's revenue in 2021. In part, this is due to an increase in the number of hospital connections made via cloud infrastructure. As a result, there is no need to employ in-house IT staff because of the convenience of outsourcing IT solutions and services, which reduces costs. Advanced computer systems and solutions, as well as continual technical breakthroughs in this domain, are projected to drive the expansion of the category in the near future.

Over the next few years, healthcare payers are expected to have the fastest increase. Insurance companies, health plans sponsors (employers and unions), and third-party payers all fall under the umbrella term "healthcare payers." For safe data collection and storage, settlement of insurance claims, risk assessment, and fraud prevention, payers are rapidly using cloud computing solutions Payers have always had a difficult time managing high-risk patient populations and high-utilizers. As healthcare costs soar, payers are turning to these cutting-edge technological systems and solutions. As an added benefit, cloud computing helps payers develop and grow their organization while also lowering administrative costs.

By Region, the Global Healthcare Cloud Infrastructure Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2021, North America's revenue share of the global market was above 52%. This is due to a combination of increased healthcare costs and technological improvements. Because of the influx of innovative start-ups focusing in healthcare cloud infrastructure goods and services, the Asia Pacific region is expected to have the quickest growth rate over the projection period.

Recent Developments

April 2022 - Hewlett Packard Enterprise removed hurdles for organisations to construct and train machine learning models at scale with the new HPE Machine Learning Development System. Purpose-built for AI, the new system incorporates a machine learning software platform, computation, accelerators, and networking to design and train more accurate AI models faster and at scale.

March 2022 - Allscripts Healthcare Solutions announced an agreement with Constellation Software Inc. to sell its Hospitals and Large Physician Practices business unit to N. Harris Computer Corporation. SunriseTM, Paragon®, Allscripts TouchWorks®, Allscripts® Opal, STARTM, HealthQuestTM and dbMotionTM are Hospitals and Large Physician Practices solutions. Allscripts will continue to own Veradigm's assets after this purchase.