The global market for healthcare cloud computing is anticipated to reach USD 12.8 billion by 2020, driven by changing healthcare economics amid emerging financial realities and the ensuing need for smarter healthcare IT management solutions. The traditional model of public funding of healthcare is increasingly becoming obsolete and unaffordable as governments struggle to fund spiraling healthcare costs of their aging citizens. Confronted with the necessity of tackling soaring deficits, and alarming increase in healthcare expenditure, governments worldwide are legislating healthcare reforms. Key among these reforms is the migration from volume-based reimbursement to value-based reimbursement. The trend is exerting significant cost-cutting pressures on hospitals, thereby opening up opportunities for the use of disruptive IT technologies like the cloud.
Deficit-ridden European and US economies and the current imposition of strict austerity measures implemented by governments to reduce debt loads are taking a bite out of every sector of the economy including healthcare. U.S. represents the largest market worldwide. Asia-Pacific ranks as the fastest-growing market with a CAGR of 20.6 percent over the analysis period, according to Global Industry Analysts, Inc., led by factors such as rise in the number of cloud-ready Asian countries, focus on developing sustainable high-quality care delivery models, and the growing popularity of lean healthcare management.