According to the report, the U.S. healthcare cloud computing market was valued approximately USD 7,139 million in 2018 and is expected to reach a value of around USD 30,231 million by 2027, at a CAGR of around 17.4% between 2019 and 2027.
Cloud computing is among the most revolutionary technologies worldwide. The number of applications involving cloud computing is escalating globally. Today, the applications of cloud computing are widespread to such an extent that they are also being used by the healthcare industry. The evolution of cloud computing in healthcare has been rapid in recent times. Thus, major parts of the healthcare services are likely to be moved onto the cloud, to provide cost-effective and efficient healthcare services globally. National Institute of Standards and Technology (NIST) defines cloud computing as a model for facilitating on-demand, well-situated network access to a shared band of configurable computing resources, such as servers, networks, applications, storage, and services, which can be rapidly released and provisioned with minimal management efforts or service provider interaction.
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Rising clinical innovations majorly driving the U.S. healthcare cloud computing market
The healthcare sector constantly strives for innovation. Advances in technology combined with government incentives push organizations to adopt new technologies. Thus, there must be mechanisms in place for these organizations to deploy, test, and validate the effectiveness of these proposed solutions without significant upfront investments. Clinical innovation drives better patient care and outcomes, which is a hospital's primary objective. Thus, enabling facilities to deploy these new technologies in a cost-effective manner will be a major growth driver for the U.S. healthcare cloud computing market.
Private cloud segment will grow rapidly
In 2018, the private cloud segment held the largest market share. It will register a CAGR of 17.9% over the forecast time period, owing to its various benefits like flexibility, strong security, guaranteed resource availability, and regulatory compliance. These benefits help organizations by smoothly running their IT systems in a private cloud environment alongside cost savings. This flexibility and improved resource utilization help organizations ensure top-level application performance at economical costs by optimum use of their servers.
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Top Market Players:
Key players operating in the U.S. healthcare cloud computing market are IBM, Microsoft, Quality Systems, CareCloud Corporation, ClearDATA Networks, INFINITT Healthcare, VMware, Carestream Health, CloudMine, SAS Institute, Progress Software Corporation, Salesforce.com, Napier Healthcare Solutions, Siemens Healthcare, Cerner Corporation, General Electric, Athenahealth, and Oracle Corporation, among others.
Software as a service is likely to be the largest market segment
In 2018, the software as a service segment accounted for a major share of the U.S. healthcare cloud computing market. Several leading IT companies offer software as a service on their own computers and servers to the users. One doesn’t need to buy a server for maintaining and managing data, as everything is installed on the third party. This helps in saving time, reducing costs, and increasing profits.
South region will dominate the U.S. healthcare cloud computing market
In 2018, the South region a 30.4% share of the U.S. healthcare cloud computing market. This region is projected to dominate the market in the future as well, owing to the rising healthcare IT spending, increasing adoption of technological advancements, and the presence of well-established research infrastructure.
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The study provides a decisive view of the U.S. healthcare cloud computing market by segmenting it based on component, deployment mode, pricing model, service model, application, end-user, and region. All the segments have been analyzed based on present and future trends and the market is estimated from 2019 to 2027. The state segment includes the current and forecast demand for Northeast, Midwest, South, and West.
The major growth driver of the U.S. healthcare cloud computing market is the delivery of cost-effective healthcare services to the patients. The healthcare delivery costs have grown to such huge proportions that governments are faced with serious funding issues. Healthcare costs in some countries amount to 35% of the Gross Domestic Product, which needless to say is an unsustainable figure. The need for lowering the cost of healthcare delivery has become highly predominant. Alternative models that ensure cost savings and efficiencies must be explored to rein in the increasing costs of healthcare delivery.
The component segment of the market is bifurcated into hardware and software. By deployment mode, the market is categorized into a hybrid, public, community, and private cloud. On the basis of the pricing model, the market comprises spot/subscription and pay-as-you-go. Based on the application, the market includes non-clinical and clinical information systems. By service model, the market includes software as a service, platform as a service, and infrastructure as a service. The end-user segment includes healthcare providers and healthcare payers.
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