North American Healthcare Cloud Computing Market by Application (PACS, RCM, EMR), by Deployment (Private, Public), by Service (SaaS, PaaS), & by End-User (Providers, Payers, Life Sciences) - Analysis & Forecasts to 2021 - 2026
North American Healthcare Cloud Computing Market Overview
The North American Healthcare Cloud Computing market size is estimated to reach $22.3 billion by 2026, growing at a CAGR of 11.1% during the forecast period 2021-2026. Cloud computing allows hospitals and other health centers to store large amounts of data securely in a network of remotely accessible servers. The adoption of cloud computing in the healthcare sector significantly enhances efficiency, reduces costs, increases data security, and makes sharing of electronic medical record easier. Moreover, they also allow healthcare providers to maintain telehealth apps, whose popularity has exponentially increased during the Covid-19 pandemic period for patients. Services like SaaS solutions are used for clinical information systems and Non - Clinical Information System applications in the sector. The increase in government and private healthcare R&D funding in North America is anticipated to drive the market during the forecast period. However, the high investment and maintenance cost of cloud computing systems act as a key challenge for the North American Healthcare Cloud Computing industry.
The report: “North American Healthcare Cloud Computing Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the North American Healthcare Cloud Computing Market.
By Service Type: Software-as-a-service (SaaS), Infrastructure -as-a-service (IaaS) and Platform-as-a-service (PaaS).
By Application: Clinical Information Systems and Non - Clinical Information Systems.
By Deployment: Private Cloud, Public Cloud, and Hybrid Cloud.
By End User: Healthcare Providers, Healthcare Payers, and Life Sciences Companies.
By Geography: the U.S., Canada, and Mexico.
- Geographically, the US Healthcare Cloud Computing market accounted for the largest share in 2020 owing to high healthcare investment and technological advancements in the country.
- The increase in the adoption rate of big data analytics and telehealth applications is predicted to drive the market during the forecast period. However, growing privacy concerns and the risk of cyber-attacks are major threats to market growth.
- Detailed analysis on the
Strength, Weaknesses, and Opportunities of the prominent players operating in the
market will be provided in the North
American Healthcare Cloud Computing Market Report.
North American Healthcare Cloud Computing Market Share, By Geography, 2020(%)
North American Healthcare Cloud Computing Market Segment Analysis - By Application
Based on Application, the North American Healthcare Cloud Computing Market is segmented into Clinical Information Systems and Non - Clinical Information Systems. The Clinical Information Systems segment is anticipated to have the largest share of the market in 2020 and is poised to dominate the market during the forecast period 2021-2026. The system is designed for intensive care environments in the healthcare sector. It enables medical professionals to draw information from various computer systems in different departments of the hospital such as cardiology and pathology. This segment is also projected to grow the fastest at a CAGR of 11.7% owing to the various benefits the system provides such as improving communication between different departments that care for the same patient, increasing the data available for medical professionals to enhance decision making, and streamlining and simplifying diagnostic procedures such as X Rays and MRIs for the patient.
North American Healthcare Cloud Computing Market Segment Analysis - By Deployment
The North American Healthcare Cloud Computing Market based on Deployment can be further segmented into Private Cloud, Public Cloud, and Hybrid Cloud. The Public Cloud segment accounted for the largest share of the market in 2020. This is attributed to the rapid rise in the use of public cloud solutions for processes such as image storage through picture archiving and communication systems (PACS) and prevalence in the use of various administrative software such as Microsoft office 365 for the non-clinical requirements of the healthcare sector. Moreover, public clouds are more scalable and cost-efficient than private clouds as the public cloud providers frequently release patches, bug fixes, and updates. This allows the healthcare provider to save hardware and software infrastructure expenditure. The Private Cloud segment is anticipated to witness the fastest growth during the forecast period at a CAGR of 12.4% owing to an increase in single ownership and control over infrastructure and other resources including cloud computing in North America.
North American Healthcare Cloud Computing Market Segment Analysis - By Geography
The North American Healthcare Cloud Computing Market based on Geography can be segmented into the US, Canada, and Mexico. The US segment is projected to dominate the North American Healthcare Cloud Computing market during the forecast period 2021-2026 with a market share of 72% and is also predicted to register the fastest growth. This rapid growth is owing to the presence of highly developed healthcare infrastructure, high patient healthcare expenditure, and large public, and private investment in R&D and innovation in the US. Moreover, the presence of key industry players in the country such as International Business Machines (IBM) Corporation, Cisco, Dell, Hewlett-Packard, and Microsoft corporation ensure relatively lower costs, diverse software options, more customizations, and easier after-sales support for the healthcare providers in the region.
North American Healthcare Cloud Computing Market Drivers
Increase in Patient Flow into Hospitals is Projected to Drive Market Growth
The increase in chronic lifestyle diseases in North America and the growing geriatric population are leading to a growth in the influx of hospital admissions. The patient inflow further surged owing to the COVID-19 Pandemic. For instance, more than 100,000 patients were in hospitals owing to COVID-19 in the US during August 2021. This is driving the demand for cloud computing systems for enabling streamline and efficient storage, retrieval, and backup of large volumes of data. This prevents chances of errors with patient files and ensures that doctors gain access to all the data available for each patient in real-time. Moreover, the increase in the adoption of Artificial Intelligence (AI) devices in the medical sector is further generating demand for cloud-based systems in hospitals.
The rise in Tele Medicine is Anticipated to Boost Demand
The increase in the adoption of Tele Medicine in the US and Canada is predicted to drive the demand for the North American Healthcare Cloud Computing Market during the forecast period. Telehealth involves the distribution of medical information remotely through electronic devices. This allows the patient to gain access to clinician contact, medical care, real-time health monitoring, and remote admissions. In the US, around 76% of the hospitals used telemedicine to connect with patients in 2020. 39.5% of medical professionals practicing in Radiology, 27.8% in Psychiatry, and 24.1% in Cardiology used telemedicine to connect with patients. This helped hospitals provide quality care to patients without increasing their risk of infection during the COVID-19 Pandemic.
North American Healthcare Cloud Computing Market Challenges
The Risk of Cyberattacks and Data Leaks is Anticipated to Hamper Market Growth
The growing concern regarding the leak of confidential patient information from hospital networks owing to cyber attacks is a major challenge that can hamper the market growth. For instance, on average, more than 3.34 million healthcare records were breached every month in the US between July 2020 and June 2021 by ransomware and other cyberattacks. The leaked information includes patient names, addresses, diagnosis information, contact details, and insurance information. The American health service provider UHS lost around $67 million in 2020 owing to network shutdowns caused by ransomware attacks.
High Pressure on the Healthcare System owing to the Pandemic is Projected to Limit Growth Opportunities
The rapid spread of the Covid-19 virus and the increased cases of hospitalizations in North America have led to hospitals diverting funds and manpower from other departments for the treatment of COVID-19 and purchasing essential equipment such as ventilators, PPE kits, and oxygen tanks. The American Hospital Association estimates that around $202.6 billion of revenue was lost for US hospitals and healthcare systems owing to the pandemic. This significantly decreases the purchasing power of hospitals and thereby, reduces the demand for installation and maintenance of expensive cloud-based systems in health facilities during the period.
North American Healthcare Cloud Computing Market Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the North American Healthcare Cloud Computing Market. The top 10 companies of the industry include:
- CareCloud Corporation
- Carestream Health Inc
- ClearData Networks Inc
- Cisco Systems
- EMC Corporation
- Dell inc.
- Hewlett-Packard Company
- IBM Corporation
- Oracle Corporation
- Microsoft Corporation
- In November 2020, Microsoft announced the official launch of Microsoft Cloud for Healthcare to boost patient engagement, health team collaboration, and improve clinical and operational insights. Moreover, Microsoft Cloud will allow integration with Microsoft 365, Azure, Dynamics 365, and Power Platform.
- In February 2021, Cisco Systems acquired cloud communications software provider IMI mobiles for around $730 million. IMImobile which has key cloud communications software and communications platform will help in expanding the capabilities of the Cisco Webex Contact Center.