A cloud-based PACS solution is an online process to store patient data and digital images. In a cloud-based PACS, patient data files are automatically transferred and stored in the cloud at the time of their creation. Users can access the patient data anywhere, and anytime. The cloud based PACS is made from a model which uses house data for virtual storage.

PAC system vendor keeps all of the software and hardware at an offsite cloud location. Cloud-based PACS use dynamic provisioning which permits it to grow with the organization (hospitals, clinics, diagnostic centers, and others). Technicians, Physicians, and administrators can access a cloud-based PACS by simply logging in a protected PACS application over the internet. This allows healthcare officials and physicians to work distantly and permits for the easy and quick relocation of patient data during referrals.

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Factors such as increasing use of diagnostic imaging, and growing healthcare IT adoption are expected to fuel revenue growth of the cloud-based PACS segment. Further, diagnostic medical imaging use in a large integrated health system is growing at a faster pace. The factors responsible for this rise include rising demand by physicians and patients, favorable reimbursement, wider availability of technology, and improvements in the technology resulting in a lower threshold for using it.

Moreover, due to a rising awareness and concern for diseases among consumers, the adoption of diagnostic imaging is rapidly increasing, ensuing a generation of amplified imaging data for picture archiving and thus increasing the demand for PACS. This phenomenon is increasing the demand for storage of all formats of medical data and universalization of medical image archiving market.

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Currently, diagnostic centers, small hospitals, and clinics are increasingly focusing on their purchases of specialized PACS tools because of the more common use of advanced scanners and CT. New PACS products are now specially designed to keep in mind the changing requirements of small hospitals. Small hospitals are now increasingly adopting PACS as an advanced imaging technology and thus demand for PACS is growing in small hospitals.

Moreover, government initiatives encourage healthcare IT adoption. The benefits and importance of healthcare IT have been recognized with various governments across the globe and this is also driving technological advancements in the healthcare sector. The usage of PACS for a detailed and accurate evaluation of patient's health has improved as a result of these initiatives.

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With increasing government initiatives, the acceptance of connected healthcare solutions, such as PACS, electronic health record, PHR and RIS, have risen with the increase in requirements to improve the overall quality of healthcare services.However, declining penetration rate of PACS, high installation and operating cost for PACS, complexity of PACS technology and a lack of harmonization are the restraints hampering the growth of the global PACS market.

Cloud-based PACS segment is expected to be valued at US$ 1090.9 Mn by 2026 and is projected to register a CAGR of 7.1% over the forecast period. Imaging modalities is most demanding component for cloud-based PACS segment across the globe.

Hospitals segment is estimated to account for 28.9% value share of the global PACS market by 2016 end and is expected to register a CAGR of 6.3% over the forecast period. Cloud-based PACS segment finds its end-users in hospitals, clinic practices, diagnostic imaging, imaging centers and others primarily for storing, transferring and archiving patient data and images. Approximately 60% of the cloud-based PACS are used by large hospitals and diagnostic centers and organizations.