WELLESLEY, Mass., Jan. 30, 2018 (GLOBE NEWSWIRE) -- The ability to provide services on demand with anytime/anywhere access is driving the adoption of cloud technology across the healthcare space. In a new report, Healthcare Cloud Computing: Global Markets to 2022, BCC Research estimates the global market for healthcare cloud computing to grow at a compound annual growth rate (CAGR) of 11.6% from 2017 through 2022 to reach $35.0 billion by 2022.

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Cloud-based solutions allow fast access from anywhere, better diagnostic quality and instant online access to patient images and reports. However, patient privacy and confidentiality remain significant concerns, so new strategies must be developed to limit security breaches. Even so, more than 80% of IT organizations in healthcare are using cloud computing despite such regulatory, security and privacy concerns. The challenge in the future is developing a security solution that finds the optimal tradeoff between security, usability and cost.

While hardware is vital to deliver cloud services, software is the key technology and will remain the largest market segment. Software provides the virtualization layer that enables multiple applications to leverage the same resources and allows those applications to access a common data model (CDM), while also offering customized end-user interfaces.

Research Highlights

• North America will continue to lead spending due to the combination of the large number of cloud suppliers and providers in the region, and the pressure to reduce healthcare costs and shift expenses away from traditional IT environments.
• Europe will increase spending for cloud technologies in healthcare from $4.8 billion in 2017 to $8.6 billion in 2022, at a 12.4% CAGR.
• Network technology as a segment is expected to reach $2.6 billion and $4.2 billion, respectively, in 2017 and 2022, equaling a CAGR of 10.1%. 

“Transitioning to a cloud-computing environment will be a daunting process, as many in healthcare systems still rely on handwritten notes and paper charts,” said Michael Sullivan, BCC Research Senior Editor for Information Technology. “Investing in cloud for healthcare providers represents a cultural change that will require time to realize, but even still, BCC Research expects a greater portion of total healthcare IT spending to migrate to cloud technologies.”

About BCC Research

BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.