Healthcare Cloud Spending Will Be Twice the Size of Financial Firms

Industry cloud spending across four major industry groups (finance, manufacturing, healthcare, and the public sector) will total $22.5 billion globally in 2018, according to IDC. Of the four industry groups, healthcare providers will account for 48% of total spending on industry cloud.

The finance industry and the public sector will spend $4.5 billion and $4.3 billion respectively, while the manufacturing industry is estimated to spend close to $3 billion on industry cloud deployment in 2018. Looking at 2019, IDC forecasts that the four combined industries will increase spending by 24.3%, a rate similar to 2018. Both the finance industry and the public sector are expected to grow below average at 23.4% and 19.4% respectively, while the healthcare and manufacturing industries will increase their spending on industry cloud solutions by 26.1%.

According to IDC's vendor estimates, SAP was found to be the top industry cloud player in 2017 among the 50 vendors tracked in the finance industry while Veeva Systems came out first among the 40 vendors covered in the manufacturing industry cloud market. Lockheed Martin earned top billing with $1.4 billion in revenues in the public sector industry cloud market. The only other vendor with over $1 billion in industry cloud business in 2017 was athenaHealth, which took in $1.2 billion in revenue.

For 2018, the United States will be the only region spending more than $1 billion on industry cloud for each of the four industries covered in the tracker. By 2019, Western Europe will join for the first time as an annual $1 billion region for industry cloud in the finance market. China is forecast to cross the $500 million mark for all four industries combined in 2019. There, the finance industry will account for half the overall market while the strongest growth will be exhibited by the manufacturing industry.