The cloud services have become a daily resource for various industries seeking information of various kinds. Healthcare industry is not an excuse to this, considering the increasing pressure of reducing healthcare costs and adoption of new electronic medical records systems. Increasing pressure on the medical institutes and constant research and development activities are some of the major drivers for the North America healthcare cloud computing market. The quick adaptability of this traditionally responsive market and need to strengthen the back-end operations are also contributing to the current scenario in the healthcare cloud market in North America.
Segmentation in Healthcare Cloud Computing
The North American healthcare cloud computing market is segmented on the basis of the applications of the cloud, deployment, pricing and service models, components, and significant regions within North America. The applications segment is majorly categorized into clinical information systems and non-clinical information systems. Following are the details of their sub-segments:
- Clinical: Picture archiving and communication systems, electronic medical records, computerized physician order entry, radiology information systems, pharmacy information systems, laboratory information systems, and others
- Non-Clinical: Automatic patient billing, revenue cycle management, claims management, payroll, cost accounting, and others
Apart from applications, the healthcare cloud computing market is also segmented into the following sub-segments:
- Pricing: Pay-as-you-go and spot pricing
- Components: Hardware, software, and services
- Deployment: Private, hybrid and public cloud
- Services: Payers and providers
- Service Models: Software-as-a-service, infrastructure-as-a-service & platform-as-a-service
- Geography: United States of America and Canada
Drivers and Future Prospects
Legislative reform of the PPACA, ICD 10 transition, proliferation of new payment models, requirement to demonstrate meaningful use, etc. are expected to be the strongest drivers for the North America healthcare cloud computing market. Great benefits provided by cloud computing is also expected to play vital role in the overall growth of the industry. These benefits include improved mobility and accessibility, cost control, improved storage technology, positive returns on investment, and scalability are some of the factors increasing deployment of healthcare cloud into various organizations. Investments from key players are also supporting the prevailing market conditions.
As a result of all these factors, the North America healthcare cloud computing market is estimated to grow at an impressive CAGR of over 29.8% from 2013 to 2018. During the forecasting period of the next four to five years, the market is projected to grow from $1.7 billion (which was estimated in the year 2013) to become worth more than $6.5 billion by the end of 2018. The United States of America is expected to dominate the North American market, with Canada showing positive growth prospects.