The worldwide healthcare cloud computing market will grow at a 20.5% compound annual growth rate (CAGR) to reach $9.48 billion U.S. (8.56 billion euros) in revenues by 2020, according to a new report from research firm MarketsandMarkets.
The market will produce $3.73 billion U.S. (3.37 billion euros) in revenues in 2015, MarketsandMarkets said. By region, North America will account for the largest market share, followed by Europe and Asia. North America is also expected to grow at the highest CAGR until 2020, according to the firm.
Growth will be driven by factors such as the increasing need to control healthcare costs and enhance the quality of healthcare, reforms benefiting healthcare IT, the proliferation of new payment models, cost-efficiency of cloud technology, and the implementation of the Affordable Care Act in the U.S.
On the downside, the security of patient data in the cloud is a crucial issue that will likely restrain market growth, MarketsandMarkets said.