North American Healthcare Cloud Computing Market - Forecast(2021 - 2026)

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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.

Report Coverage

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.

    Key Takeaways

      • 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 Share
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      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:

      1. CareCloud Corporation
      2. Carestream Health Inc
      3. ClearData Networks Inc
      4. Cisco Systems
      5. EMC Corporation
      6. Dell inc.
      7. Hewlett-Packard Company
      8. IBM Corporation
      9. Oracle Corporation
      10. Microsoft Corporation 

      Partnerships/Product Launches:

      • 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.

      Relevant Links:

      Report Code: HCR 1223

      Report Code: HCR 0644

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      1. North American Healthcare Cloud Computing Market - Overview
          1.1 Definitions and Scope
      2. North American Healthcare Cloud Computing Market - Executive Summary
          2.1 Market Revenue and Key Trends by Company
          2.2 Key trends by Service Type
          2.3 Key trends by Deployment
          2.4 Key trends by Geography
      3. North American Healthcare Cloud Computing Market – Comparative Analysis
          3.1 Company Benchmarking – Key Companies
          3.2 Financial Analysis – Key Companies
          3.3 Market Value Split by Key Companies
          3.4 Patent Analysis
          3.5 Pricing Analysis – Average Selling Price
      4. North American Healthcare Cloud Computing Market - Startup Companies Scenario Premium
          4.1 Key Startup Company Analysis by
              4.1.1 Investment
              4.1.2 Revenue
              4.1.3 Venture Capital and Funding Scenario
      5. North American Healthcare Cloud Computing Market – Industry Market Entry Scenario Premium Premium
          5.1 Regulatory Framework Overview
          5.2 New Business and Ease of Doing business index
          5.3 Case Studies of Successful Ventures
      6. North American Healthcare Cloud Computing Market - Forces
          6.1 Market Drivers
          6.2 Market Constraints/Challenges
          6.3 Porters five force model
              6.3.1 Bargaining power of suppliers
              6.3.2 Bargaining powers of customers
              6.3.3 Threat of new entrants
              6.3.4 Rivalry among existing players
              6.3.5 Threat of substitutes
      7. North American Healthcare Cloud Computing Market – Strategic Analysis
          7.1 Value Chain Analysis
          7.2 Opportunities Analysis
          7.3 Market Life Cycle
      8. North American Healthcare Cloud Computing Market – By Service Type (Market Size –$Million/$Billion)
          8.1 Software-as-a-service (SaaS)
          8.2 Infrastructure-as-a-service (IaaS)
          8.3 Platform-as-a-service (PaaS).
      9. North American Healthcare Cloud Computing Market – By Application (Market Size –$Million/$Billion)
          9.1 Clinical Information Systems
              9.1.1 Health Information System,
              9.1.2 Picture Archiving & Communication System (PACS)
              9.1.3 Pharmacy Information Systems
              9.1.4 Laboratory Information Management System
              9.1.5 Radiology Information Systems
              9.1.6 Computerized Physician Order Entry
              9.1.7 Ambulatory or Outpatient CIS
              9.1.8 Others
          9.2 Non - Clinical Information Systems
              9.2.1 Revenue Cycle Management
              9.2.2 Supply Chain Management Solutions
              9.2.3 Automatic Patient Billing (APB)
              9.2.4 Payroll Management System
              9.2.5 Claims Management
              9.2.6 Cost Accounting
              9.2.7 Others
      10. North American Healthcare Cloud Computing Market – By Deployment (Market Size –$Million/$Billion)
          10.1 Private Cloud
          10.2 Public Cloud
          10.3 Hybrid Cloud
      11. North American Healthcare Cloud Computing Market - By End User (Market Size –$Million/$Billion)
          11.1 Healthcare Providers
              11.1.1 Hospitals
              11.1.2 Pharmacies
              11.1.3 Diagnostic & Imaging Centers
              11.1.4 Ambulatory Centers
              11.1.5 Others
          11.2 Healthcare Payers
              11.2.1 Private Payers
              11.2.2 Public Payers
          11.3 Life Sciences Companies
      12. North American Healthcare Cloud Computing Market - By Geography (Market Size –$Million/$Billion)
          12.1 US
          12.2 Canada
          12.3 Mexico
      13. North American Healthcare Cloud Computing Market - Entropy
      14. North American Healthcare Cloud Computing Market – Industry/Segment Competition Landscape Premium
          14.1 Market Share Analysis
              14.1.1 Market Share by Countries – Key Companies
              14.1.2 Competition Matrix
              14.1.3 Best Practices for Companies
      15. North American Healthcare Cloud Computing Market – Key Company List by Country Premium Premium
      16. North American Healthcare Cloud Computing Market Company Analysis
          16.1 Company 1
          16.2 Company 2
          16.3 Company 3
          16.4 Company 4
          16.5 Company 5
          16.6 Company 6
          16.7 Company 7
          16.8 Company 8
          16.9 Company 9
          16.10 Company 10
      "*Financials for private companies would be provided on a best-efforts basis”.