Cloud Computing Market in Healthcare Industry

A recent market study conducted by Transparency Market Research (TMR) shows the healthcare industry playing catchup with cloud computing technology – as the medical industry stands to benefit immensely.  The American Recovery and Reinvestment Act of 2009 (ARRA), brought into action by the federal government, encourages entities in the healthcare industry to adopt and utilize latest technologies, such as cloud computing for maintaining electronic medical records.

Cloud technology is rapidly replacing traditional systems within the healthcare industry by offering them easier and faster access to data and introducing them to safer and more secure ways to access information. With cloud technology, treatment teams are able to store treatment information in one convenient database – and access them from desktops, tablets, and increasingly – mobile. According to a recently published report, the healthcare cloud computing market in the healthcare industry will exhibit an exponential rate of growth at 21.3% CAGR in the next three to four years. The market which stood at US$1.82 billion in 2011, is expected to reach US$6.79 billion by the end of 2018.

The global healthcare industry is quickly adopting digital platforms to become data driven and more patient-centered. The evolving tenets of data accessibility combined with varying degrees of economic development in the world are currently driving cloud development and utilization within healthcare.

“Healthcare organizations until recently were facing trouble with managing and optimizing their complex IT systems. The increasing adoption of cloud computing to a large extent is attributed to the need of providing faster and more flexible healthcare delivery to patients and physicians. In order to achieve this, the healthcare industry seeks latest mobile and easy access systems, in compliance with regulatory standards. Deployment of cloud computing in healthcare organizations helps them to manage their complex processes and data securely, and reduce the overall expenditure.” – Transparency Market Research

The global healthcare computing market is highly competitive, with major competitors not exceeding 5 – 10 percent of the market share. With the United States’ growing biopharmaceutical industries, we can expect growing competition in the future.