Smart Hospitals to Invest over $11 billion in Cloud Computing and Data Analytics
December 8, 2017 | Frost & SullivanEstimated reading time: 2 minutes
By 2025, 10% of hospitals across the globe will become or will have started implementations to become smart hospitals. Frost & Sullivan’s market research, “Future of Smart Hospitals,” projects significant market growth and billions of dollars in revenues for four key segments, including:
- Pharmacy automation
- Mobile asset tracking
- Data analytics
- Cloud computing
Frost & Sullivan’s “Future of Smart Hospitals” research analyzes how smart hospitals operate, how they differ from digital hospitals, their regional growth, and roadmaps for hospitals wishing to transition. Case studies and current market dynamics are also discussed.
Frost & Sullivan forecasts the market opportunity totals approximately $11. billion, with the data analytics market for smart hospitals reaching revenues of $5.9 billion in 2018. The cloud computing market is expected to hit revenues of $5.1 billion.
There is currently ambiguity around the term “smart”. Transformational Health Industry Analyst Siddharth Shah says a true smart hospital acknowledges digitization as only the first step, and focuses on three major areas—operational efficiency, clinical excellence, and patient-centricity—with technological advances leveraged for these three areas to derive smart insights.
“Not every hospital needs to become smart in a single step. Instead, the approach they need to take is to implement smart solutions, one by one, and then allow newer solutions to integrate with existing ones in the journey toward becoming smart,” said Shah. “This allows hospitals to implement solutions with limited financial investments, reap rewards and ROI, and then implement the next solution.”
As for companies, some of the most advanced solution sets are being developed by GE Healthcare for patient flow, including its “Command Center” solution for the Johns Hopkins Hospital. Also noteworthy is the ThoughtWire Ambiant platform, which has customized features, such as the Code Blue events reduction solution developed for Hamilton Health Sciences in Canada. IBM is developing, and now marketing, the “SmartRoom” concept along with the University of Pittsburgh Medical Center. Omnicell has developed pharmacy automation solutions in use by several hospitals and health systems across the world.
In terms of regional readiness for the adoption of the smart hospital concept, North America leads, followed by Europe and Asia Pacific regarding technological sophistication, regulatory landscape, spending power, and end-user readiness. However, the hotspots for current smart hospitals are concentrated in the Asia Pacific region, including Dubai, South Korea, Singapore and Australia, some of which cater to the medical tourism industry as well. Canada and Finland are also hotspots.
“The two largest challenges obstructing hospitals from achieving the smart hospital vision are interoperability and cybersecurity. To truly achieve a 'smart' status by deriving intelligent insights, various devices, systems and networks in the hospital must 'talk' to one another in ways that are coherent and complete for a holistic analysis,” observed Shah. “Digitization brings in additional vulnerabilities in a hospital for hackers to target, making cybersecurity a challenge.”
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion
Suggested Items
I-Connect007’s Editor’s Choice: Five Must-Reads for the Week
07/04/2025 | Marcy LaRont, I-Connect007For our industry, we have seen several bullish market announcements over the past few weeks, including one this week by IDC on the massive growth in the global server market. We’re also closely watching global trade and nearshoring. One good example of successful nearshoring is Rehm Thermal Systems, which celebrates its 10th anniversary in Mexico and the official opening of its new building in Guadalajara.
Weather RADAR Market Set to Hit Valuation of US$ 816.19 Million by 2033
07/04/2025 | PRNewswireThe global weather RADAR market was valued at US$ 158.43 million in 2024 and is projected to reach US$ 816.19 million by 2033, growing at a CAGR of 21.42% during the forecast period 2025–2033.
Philippines PC Market Falls 12.2% in Q1 2025 as Education Demand Slows
07/04/2025 | IDCAccording to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Devices Tracker, Q1 2025, the Philippines' traditional PC Market (desktops, notebooks, and workstations) dropped by 12.2% YoY in Q1 2025 to 617 thousand units.
SMT007 Magazine July—What’s Your Competitive Sweet Spot?
07/01/2025 | I-Connect007 Editorial TeamAre you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche—what are their insights? In the July 2025 issue of SMT007 Magazine, we spotlight companies thriving by redefining or reinforcing their niche and offer insights to help you evaluate your own.
Global Dry Film Photoresist Market Set for Robust Growth with Expanding Semiconductor Ecosystem
06/24/2025 | PRNewswireIn 2024, the global market size of Dry Film Photoresist was estimated to be worth US$939 million and is forecast to reach approximately US$1191 million by 2031 with a CAGR of 3.5% during the forecast period 2025-2031.