Worldwide Spending on Industry Cloud by Healthcare Providers Will Be More Than Twice the Size of Financial Firms’ Industry Cloud Spending in 2018, According to IDC
Jun. 14, 2018
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Jun 14, 2018--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 a new Worldwide Semiannual Industry Cloud Tracker from International Data Corporation ( 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.
* Note: All figures are forecast estimates.
"More and more leaders within major industries are using the same cloud services delivery models as companies like Amazon, Google, Facebook, and others – to deliver new and innovative digital services to their customers. IDC's latest Industry Cloud Tracker data shows that this new type of digital services revenue stream is already reaching significant scale in four of the biggest industries on the planet, growing at roughly four times the growth of the S&P 500's overall revenue growth. As strategic crossroads for digital innovation in each industry, industry clouds will drive even greater growth and industry transformation over the next five years," said Frank Gens, Senior Vice President & Chief Analyst at IDC.
Zachary Rabel, Senior Research Analyst, Cloud, SaaS, and Industry Cloud research at IDC, added, "As it continues to develop, the industry cloud market is expected to sustain its double-digit growth for the next five to ten years. Industry clouds continue to arise every year, digitally transforming industries, encouraging industry collaboration, and driving industry innovation; while, to meet market needs, software vendors shift to portfolio verticalization, designing industry-tailored solutions. From a vertical perspective, healthcare leads the way, but manufacturing, healthcare, and the public sector each represent expanding markets. Due to the market's acceleration, IDC believes the industry cloud market is among the largest vertical growth opportunities for both technology vendors and professional services firms through 2025."
For the 2H 2017 release, IDC Worldwide Semiannual Industry Cloud Tracker looks at four major industries (Finance, Manufacturing, Healthcare Providers and Public Sector) with almost 300 vendors being profiled. In the next release, the tracker will expand its scope to include vendor share and forecast data for the Retail/Wholesale industry.
About IDC Trackers IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.
For more information about IDC's Worldwide Semiannual Industry Cloud Tracker, please contact Kathy Nagamine at 650-350-6423 or email@example.com.
About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group ( IDG ), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.
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