Microservices in Healthcare Market Size, Share & Trends Analysis Report By Component (Platform, Services), By Deployment Model (On-premise, Cloud-based, Public cloud, Private Cloud, Hybrid cloud), By End-User (Healthcare payers, Healthcare providers, Clinical laboratories, Life science organizations) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global microservices in healthcare market size was valued at USD 275.1 million in 2022 and is projected to reach a value of USD 1,683.9 million by 2031, registering a CAGR of 22.3% during the forecast period (2023-2031). Some reasons projected to drive global microservices in healthcare market share include the rising requirement for automation in the healthcare industry and the growing desire for faster service deployment.

In healthcare, microservices architecture entails designing and creating software solutions as a collection of small, self-contained, and modular services. In a microservices architecture, each service is focused on a single business capability and can operate and scale independently.

The healthcare industry is increasingly in need of digitization. The implementation of information technology in the healthcare sector. However, rising security and regulatory compliance issues hamper worldwide microservices in healthcare market growth. On the contrary, the emergence of IoT applications, increasing investments by leading vendors in developing new applications and software, and a rise in awareness about implementing microservices are expected to create significant opportunities for adopting healthcare microservices.

Market Dynamics

Global Microservices in Healthcare Market Drivers:

Agility and Rapid Development

The healthcare sector is ever-changing, with rules changing, patient requirements changing, and new technology emerging. Agility and rapid development are crucial for quickly adjusting to these changes, rapidly implementing upgrades, and responding to the shifting healthcare landscape. Due to rising demand for virtual healthcare services, a healthcare institution plans to upgrade its EHR system to include a new module for telemedicine appointments. The business can create and deploy the telemedicine module independently without interfering with the existing EHR functionality using microservices. This modular approach speeds up development and enables rapid adaptability to new trends. According to a Red Hat poll, 73% of healthcare IT professionals feel microservices architectures boost their organization's capacity to innovate quickly. According to another O'Reilly poll, 55% of healthcare firms are actively investigating or implementing microservices to boost agility and speed of development.

Furthermore, healthcare rules are frequently updated, requiring firms to adopt changes quickly to remain compliant. Specific compliance services can be updated individually using microservices. For example, if a regulatory change affects data security procedures, the business can update the necessary microservice without revamping the entire system. Hence, Microservices' agility and rapid development enable healthcare businesses to remain responsive to the dynamic landscape of healthcare technology and patient care. These elements are predicted to impact the microservices in healthcare market trends.

Global Microservices in Healthcare Market Restraints:

Data Security Concerns

Handling sensitive patient data across dispersed microservices poses data security and privacy problems. Organizations must adopt comprehensive security measures and maintain compliance with healthcare data protection requirements, which can add complexity and cost to the implementation process. Individual services in a microservices-based healthcare system may handle different components of patient records (e.g., demographics, medical history, lab results). It is critical to ensure secure communication and data storage between these services to avoid unauthorized access. According to the "2021 Cost of a Data Breach Report" published by IBM Security and Ponemon Institute, the average global cost of a healthcare data breach is USD 9.23 million. Healthcare remains one of the most targeted industries, with the greatest average cost per compromised record. Compliance with rules such as the Health Insurance Portability and Accountability Act (HIPAA) is critical, and healthcare firms must ensure that each microservice meets these requirements.

Furthermore, data breaches in healthcare systems can have serious effects, with an average cost of USD 429 per leaked record, according to a study published in the Journal of Medical Internet Research (JMIR). According to a poll by the Healthcare Information and Management Systems Society (HIMSS), data security is the top worry for 68% of healthcare companies when implementing new technology. As a result, data breaches in healthcare can have major financial consequences, such as expenditures associated with regulatory penalties, legal lawsuits, and reputational harm, inhibiting market expansion throughout the projection period.

Global Microservices in Healthcare Market Opportunity:

Innovation in Telemedicine and Remote Monitoring 

Microservices enable the development of cutting-edge telemedicine platforms and remote patient monitoring solutions. The global shift toward virtual healthcare services, spurred by the COVID-19 pandemic, has increased demand for innovative telemedicine systems and remote patient monitoring solutions. The microservices architecture lays the groundwork for developing agile, scalable, and feature-rich telemedicine systems. It enables healthcare organizations to develop modular services focused on telehealth functions such as video consultations, appointment scheduling, prescription management, and remote patient monitoring.

A telemedicine platform makes use of a microservice created exclusively for appointment scheduling. This microservice interfaces with the broader system, allowing patients to schedule virtual appointments easily. It can be upgraded independently to add new features, such as automated reminders. For example, over 850,000 telemedicine visits occurred between March 2020 and February 2022, with approximately 62% of visits via video and 38% via telephone. Telemedicine adoption varies greatly by service line. According to a McKinsey analysis, telehealth service usage has increased, with the number of telehealth visits in the United States increasing from 11% in 2019 to 46% in 2020. Microservices play a critical role in promoting creativity, scalability, and agility in creating virtual healthcare solutions as healthcare continues to adopt telemedicine as an integral aspect of service delivery.

Regional Analysis

The global microservices in healthcare market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global microservices in healthcare market shareholder and is estimated to grow at a CAGR of 22.4% over the forecast period. The constant advancement of technological innovations, rapid implementation of novel technology, increasing preference for automation of services, and expanding adoption of cloud computing technology by healthcare firms are important determinants of market growth in this area. According to ITU data, digital transformation technologies and services in Canada are expected to exceed USD 16 billion due to investment in emerging technologies.

Additionally, North American governments' efforts to develop electronic health records (EHR) and inclusion and communication choices encouraged healthcare professionals to explore architecture microservice alternatives. The federal government has set aside billions of dollars to assist hospitals and providers in implementing EHRs. The goal is to improve healthcare quality by sharing health data across providers. The United States is the region's preeminent microservices in the healthcare market. The United States was ranked eleventh in the 2022 World Index of Healthcare Innovation. As a result, microservices are projected to have a stronger market position.

Europe is anticipated to exhibit a CAGR of 22.6% over the forecast period. The European market is also expected to grow rapidly over the forecasted period, owing to assertive measures taken by government institutions, rising demands for developing service infrastructure, rapid improvement of healthcare departments in the sector, and reliance on cloud-based solutions. EU4Health is a seven-year program that will invest more than €5 billion in the European Union's health. The show will concentrate on pressing public health issues such as the COVID-19 crisis, cross-border health hazards, and cancer. Furthermore, by 2021, more than 60% of European healthcare providers will have invested in telehealth programs.

In the Asia-Pacific microservices healthcare industry are expected to grow at the current rate during the anticipated period. India, China, and Japan are likely to be the leading nations in the Asia Pacific microservices in the healthcare market. The constantly evolving healthcare system, massive investments in healthcare technology, rising per capita healthcare spending, and the growing need for healthcare automation. The Chinese medical equipment market is expected to reach RMB 958.2 billion by 2022. Medical device investments grew to USD 1.2 billion in the first quarter of 2022. These elements are anticipated to propel the market ahead.

The Latin American market is predicted to rise rapidly throughout the forecast period due to expanding investments made by significant regional corporations and various government measures, according to Microservices in Healthcare market insights. Due to a lack of information and advanced healthcare facilities, the Middle Eastern and African markets are expected to grow slowly.

Segmental Analysis

The global microservices in healthcare market is segmented based on component, deployment model, end-user, and region.

The market is further segmented by component into Platform Services (Consulting Services, Integration Services, Training, Support and Maintenance Services).

The platform holds the major market share. The core microservices platform provides the foundation for creating, deploying, and managing microservices in healthcare applications. It often covers the tools, frameworks, and infrastructure components required to develop and operate microservices. Healthcare microservices platforms are built to be scalable and adaptable to the ever-changing needs of healthcare organizations. This allows them to handle growing data quantities, interface with various systems, and aid in the creation of new microservices. Platforms sometimes have pre-built connectors and integrations with typical healthcare systems, such as EHRs and billing systems. This lowers the need for bespoke coding and simplifies development, saving time and resources. Platform's dominance is projected to remain in the coming years due to its essential role in facilitating microservice adoption and its capacity to adapt to the dynamic healthcare industry. 

Individual, independently deployable components encapsulating specific functionalities are called services. Each microservice is responsible for a certain business capacity, such as patient registration, appointment scheduling, or billing. Microservices are the foundation of the healthcare system as a whole. They are self-contained and provide flexibility, scalability, and modular development.

Based on the deployment model, the market is sub-segmented into On-premise, Cloud-based, Public cloud, Private cloud, and Hybrid cloud.

Cloud-based accounts for the largest share of the market. Cloud-based deployment entails hosting microservices on the infrastructure of third-party cloud service providers. Cloud service providers manage infrastructure, scalability, and security, allowing healthcare organizations to concentrate on application development. Cloud-based solutions eliminate the need for upfront hardware and software infrastructure investments, lowering startup costs and continuing maintenance obligations. This is especially appealing for healthcare organizations with small IT budgets. Cloud providers manage system updates, security patches, and disaster recovery, allowing IT personnel to concentrate on critical healthcare activities. This also ensures that the microservices environment is secure and current with recent advances. Hence, Cloud-based deployment offers scalability and flexibility, making it suitable for healthcare organizations seeking rapid scalability, cost-effectiveness, and the ability to leverage advanced cloud services.

On-premise deployment entails installing and executing the microservices architecture and apps on the servers and data centers owned by the healthcare company. The organization is responsible for maintenance, security, and updates. Certain healthcare firms may choose on-premise implementation because of data sovereignty issues, legal restrictions, or current investments in on-site infrastructure.

By end-user, the segment can be further bifurcated into Healthcare payers, Healthcare providers, Clinical laboratories, and Life science organizations.

Healthcare providers are the major end-users of the market. Healthcare providers include hospitals, clinics, physician practices, and other medical facilities that provide medical services to patients. Clinical workflows, patient management, and administrative operations benefit from microservices. Furthermore, healthcare providers require diverse microservices to serve various functions, including patient portals, appointment scheduling, electronic health records (EHRs), telemedicine platforms, and billing systems. The microservices design enables them to build and deploy these functionalities efficiently and independently. Microservices can be developed to collect and analyze data from various sources, giving healthcare professionals important insights about patient populations, resource consumption, and treatment outcomes. This data-driven strategy enables them to make more informed decisions and provide better patient care.

Insurance companies and health plans are examples of healthcare payers. These organizations are critical in managing and administrating health insurance policies, processing claims, and interacting with healthcare providers to ensure covered services. Microservices in healthcare for payers could include the creation of apps for claims processing, policy management, member engagement, and analytics to improve operational efficiency and customer satisfaction.

Recent Developments

• December 2023- Amazon Rekognition released Face APIs version 7 to improve accuracy and reduce latency.
• December 2023- IBM Consulting and Palo Alto Networks Expand Strategic Cybersecurity Partnership