Healthcare Cloud Computing Market Size, Demand Outlook and Industry Estimates 2021-2027
The global healthcare cloud computing market is projected to grow at a CAGR of 21.0% over the next six years. The key drivers impeding the growth of the market include; Increasing expenditure in Healthcare IT sector, increasing focus on digitalization of healthcare data, rapid adoption of wearables, and data automation in the healthcare sector, and growing preference for Virtual healthcare offerings.
The healthcare industry is undergoing massive digital transformation. The sector is one of the most data intensive industry. Moreover, the adoption of modern healthcare information systems, which includes Electronic Health Records (EHR), Computerized Physician Order Entry (CPOE), among others, and advanced imaging technologies has led to an enormous increase in the volume and diversity of healthcare data. In order to manage this data, more and more organizations are moving to the cloud technology. Apart from reducing the cost of the infrastructure management, cloud computing enables healthcare organizations to focus entirely on clinically relevant services. Cloud computing helps smaller hospitals and individual medical practitioners to leverage the economies of scale.
The global outbreak of the COVID-19 pandemic has transformed virtual healthcare from a niche delivery model to one of the most preferred among the public. The cloud technologies have enabled the healthcare industry to implement virtual care effectively. Cloud hosted telehealth technologies have facilitated real time monitoring of patients in high-risk settings for COVID-19. Favorable reimbursement policies towards virtual healthcare have also aided in the development of the healthcare cloud computing market. Moreover, Lack of caregivers in the rural areas, especially in the developing world has always been a major concern. Cloud computing is helping patients connect with the doctors over smartphones, irrespective of their locations.
The healthcare cloud computing market may be hampered to some extent due to the concerns regarding security and privacy risks. The risk of personal information being exposed to unauthorized parties is considered to be high as the data is stored into 3rd-party, remote data centers. Most of the cloud providers are now focusing on offering risk management, and monitoring services to protect their users from unauthorized access. Furthermore, organizations are now required to comply with various regulations. These regulations include United States’ Health Insurance Portability and Accountability Act (HIPAA) for secure data portability, or the HITRUST Alliance’s CSF and Europe’s General Data Protection Regulation (GDPR) for the protection of personal data.