Healthcare Cloud Computing Market

Healthcare Cloud Computing Market By Component (Software, Hardware, Services), By Deployment Model (Community Cloud, Public Cloud, Hybrid Cloud, Private Cloud), By Application (Clinical Information Systems (CIS), Non-clinical Information Systems (Non-CIS)), By Service Model (Platform as a Service (PaaS), Infrastructure as a Software (IaaS), Software as a Service (SaaS)), and By Region – Global Market Report (2024 to 2034)

Analysis of Healthcare Cloud Computing Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Healthcare Cloud Computing Market Outlook (2024 to 2034)

The global healthcare cloud computing market size is estimated at US$ 41.12 billion in 2024 and is projected to reach US$ 320.9 billion by the end of 2034, expanding at a noteworthy CAGR of 17.9% between 2024 and 2034.

Demand for integrated information systems and the expansion of the healthcare cloud computing market share are being influenced by the rising prevalence of chronic diseases and the widespread implementation of high-speed internet.

The market is expanding as a result of new payment structures, the affordability of the cloud, the increasing use of wearable technology, big data analytics, and the Internet of Things in the healthcare sector. Cloud orchestration describes how automated processes are arranged and coordinated to create a unified workflow or process. It has to do with overseeing how workloads in public and private cloud environments are connected.

Due to the technology's several advantages, such as its scalability, improved data storage, availability of dynamic health benefit plan designs, and flexibility, demand for cloud solutions in healthcare is rising.

Key Market Growth Drivers :

  • EHRs and other healthcare IT solutions are being used more often to store and manage patient data.
  • Cloud computing may be used for the storage and analysis of vast volumes of healthcare data due to the growing use of big data analytics and artificial intelligence (AI).
  • The growing adoption of cloud computing can help healthcare businesses adopt telehealth and enable remote patient monitoring.
  • Putting a greater emphasis on data security and privacy to prevent unauthorized access and investing more in security measures is another major market growth driver.
Report Attributes Details
Healthcare Cloud Computing Market Size (2024E) US$ 41.12 Billion
Forecasted Market Value (2034F) US$ 320.9 Billion
Global Market Growth Rate (2024 to 2034) 17.9% CAGR
North America Market Share (2034F) 29.1%
East Asia Market Growth Rate (2024 to 2034) 23.4% CAGR
Clinical Information System Segment Market Share (2034F) 24.3%
Private Cloud Segment Market Share (2024E) 54.6%
Key Companies Profiled
  • Dell Inc.
  • IBM Corporation
  • Koninklijke Philips NV
  • Amazon, Inc.
  • Oracle
  • Napier Healthcare Solutions Pte. Ltd.
  • Optum, Inc.
  • Carestream Health
  • ClearDATA
  • Cisco Systems Inc.

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Why is Deployment of Cloud Computing Solutions Surging in Healthcare?

“Edge Cloud Computing Expediting Data Collection and Analysis”

The introduction and use of edge computing have had a major impact on the exponential growth of the healthcare cloud computing market. The processing, storing, and management of data in the healthcare sector has undergone a paradigm shift because of edge computing. Edge computing provides real-time processing capabilities by bringing computing resources closer to the source of data generation, as opposed to traditional centralized data processing in far-off data centers.

The advent of edge computing is influencing the healthcare cloud computing market trends. By executing computer programs at the logical endpoint of the network, edge computing enhances cloud systems and expedites data collection and analysis for Internet of Things (IoT) devices used in healthcare. Edge computing is used by businesses such as BioLert to monitor epileptic patients, identify and notify epileptic episodes, and provide essential records for more effective treatment plans. The proximity benefit of edge computing between devices improves system performance as a whole.

“Focus on Developing Affordable and Effective Cloud-based Healthcare Solutions”

More and more cloud providers are entering the market. Prominent entities such as Amazon, Microsoft, IBM, and Google offer worldwide cloud computing solutions. Smaller companies provide specialized services. Considering the use of cloud computing in healthcare institutions, the market is projected to expand significantly throughout the projected period.

An ecosystem of competition is fostered by the existence of various cloud providers. This competition promotes creativity and propels the development of cloud-based healthcare solutions. These businesses are driven to create cutting-edge technologies, enhance the caliber of their services, and provide more effective and affordable solutions to satisfy the changing demands of healthcare organizations as they compete for healthcare cloud computing market share.

What is Restraining Demand Growth for Healthcare Cloud Computing to Some Extent?

“Limited Implementation Speed and Risk of Inefficient Resource Utilization”

Adoption and deployment of cloud technologies in healthcare businesses are slowed down by the lack of skilled cloud specialists. Healthcare providers may experience delays in the deployment of vital systems and services if there is an insufficient labor force proficient in the management, integration, and optimization of cloud technology.

Inadequate knowledge about cloud computing may lead to less satisfactory use of resources. In the healthcare sector, where safe and effective data management is critical, a shortage of skilled workers could result in wasteful use of cloud resources, which would impair both performance and cost-effectiveness.

“Rising Labor Costs in Healthcare and Risk of Security Lapses and Noncompliance”

Healthcare companies may see an increase in labor prices as a result of competition among a small pool of highly qualified workers. The need for certified cloud specialists may drive up wages and hiring costs, which can raise the total cost of putting in place and maintaining cloud solutions.

A thorough grasp of data security and privacy laws is necessary when utilizing cloud computing in the healthcare sector. The lack of skilled workers could make security lapses and industry-standard noncompliance more likely. Sensitive patient data may become susceptible to cyberattacks if cloud-based healthcare systems are not adequately secured.

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Country-wise Insights

The market in China is forecasted to be driven by the country's improving healthcare infrastructure and the increasing use of IT solutions in the medical industry. Strict regulatory compliance, quick adoption of cutting-edge technology, and an emphasis on enhancing healthcare delivery through data-driven insights define the United States healthcare cloud computing market.

Why are Healthcare Cloud Computing Providers Investing in China?

“Government Initiatives Supporting Digitalization of Healthcare”

Attribute China
Market Value (2024E) US$ 8.54 Billion
Growth Rate (2024 to 2034) 23.5% CAGR
Projected Value (2034F) US$ 70.6 Billion

The Asia Pacific market is projected to grow at a substantial pace, as China generates profitable prospects for cloud solution providers. A few of the causes driving the healthcare cloud computing market growth are the aging population, the burden of chronic illnesses, and the existence of programs encouraging the adoption of integrated health systems.

Market expansion in China is influenced by the government's initiatives. Various programs and regulations are modernizing healthcare infrastructure, driving digitalization, and integrating advanced technologies such as artificial intelligence and big data into healthcare services. This has sparked a notable digital revolution in China's healthcare sector, with the rising popularity of telemedicine, mobile health apps, and electronic health records (EHRs). The infrastructure and scalability that cloud computing provides for handling the massive amounts of data produced by these digital health services are essential for this transition.

Why is Demand for Healthcare Cloud Computing High in the United States?

“Supportive Regulatory Framework Prioritizing Patient Data Security and Privacy”

Attribute United States
Market Value (2024E) US$ 8.43 Billion
Growth Rate (2024 to 2034) 23.3% CAGR
Projected Value (2034F) US$ 68.63 Billion

The Health Insurance Portability and Accountability Act (HIPAA) is the basis of the United States' extensive regulatory system that governs healthcare data. Healthcare cloud providers are required to guarantee adherence to these regulations, which prioritize patient data security and privacy. Building confidence and accelerating the adoption of cloud technologies in the healthcare industry depends on this compliance.

The United States leads the world in cloud computing by combining cutting-edge technologies like artificial intelligence (AI), machine learning, big data analytics, and the Internet of Things (IoT) to handle everything from diagnosis to therapy. Personalized treatment, predictive analytics, and more effective data processing are made possible by these technologies.

Category-wise Insights

One essential use of cloud computing in healthcare is the clinical information system (CIS), which has revolutionized the way medical practitioners handle patient data and offer care.

A cloud computing infrastructure that is exclusively used by a company is known as a private cloud. It offers many of the same benefits as public clouds, like efficiency and scalability, but with more control over privacy, security, and adherence to laws governing health data.

Why Do Clinical Information Systems Account for Higher Sales?

“CIS Offering Data Centralization for Real-time Access to Patient Data”

Attribute Clinical Information System
Segment Value (2024E) US$ 9.74 Billion
Growth Rate (2024 to 2034) 18.9% CAGR
Projected Value (2034F) US$ 77.97 Billion

Cloud-based CIS centralizes patient data, including lab results, prescription information, medical histories, and more. No matter where they are, this setup provides healthcare providers with real-time access to patient data due to this centralization, which is projected to improve decision-making and care coordination.

Clinical information systems readily expand to accommodate healthcare organizations' expanding data requirements. Cloud computing allows for resource adjustments in response to changes in patient data volumes or a healthcare provider's service offerings, guaranteeing that the CIS can accommodate growing needs without sacrificing efficiency.

Will Private Cloud Deployment Mode Gaining Traction Going Forward?

“Private Clouds Ensuring Improved Data Security and Privacy for Tailored Compliance”

Attribute Private Cloud
Segment Value (2024E) US$ 22.45 Billion
Growth Rate (2024 to 2034) 5.1% CAGR
Projected Value (2034F) US$ 173.6 Billion

It is critical to safeguard sensitive patient data in the healthcare sector. Because private clouds are utilized only by one business, they provide a higher level of security than public clouds. This configuration offers more control over security and compliance procedures while reducing the risks involved in sharing resources on public clouds.

Healthcare establishments must adhere to strict regulations, including HIPAA in the United States, GDPR in Europe, and other regional data privacy laws. Private clouds can be customized to fulfill these particular compliance requirements, guaranteeing that all data processing complies with legal requirements.

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Competitive Landscape

The competitive landscape for the healthcare cloud computing industry is diverse and dynamic, characterized by the presence of both established technology giants and start-ups. Some companies specialize in healthcare cloud computing. These providers offer tailored solutions that address the specific needs and challenges of the healthcare sector, such as compliance with healthcare regulations, integration with EHRs, and support for clinical workflows.

  • In September 2022, IBM and Bharti Airtel, a major telecommunications carrier in India with about 358 million active users, announced their partnership to implement Airtel's edge computing platform in India, which would span 20 locations and 120 network data facilities.

Segmentation of Healthcare Cloud Computing Market Research

  • By Component :

    • Software
    • Hardware
    • Services
  • By Deployment Model :

    • Community Cloud
    • Public Cloud
    • Hybrid Cloud
    • Private Cloud
  • By Application :

    • Clinical Information Systems (CIS)
    • Non-clinical Information Systems (Non-CIS)
  • By Service Model :

    • Platform as a Service (PaaS)
    • Infrastructure as a Service (IaaS)
    • Software as a Service (SaaS)
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

What is the size of the healthcare cloud computing market in 2024?

The global healthcare cloud computing market is estimated at US$ 41.12 billion in 2024.

What are the projected sales of healthcare cloud computing solutions for 2034?

By 2034-end, worldwide sales of healthcare cloud computing solutions are forecasted to reach US$ 320.9 billion.

At what rate is the demand for healthcare cloud computing solutions forecasted to rise?

Demand for healthcare cloud computing solutions is projected to increase at 17.9% CAGR over the next 10 years.

What are the demand growth projections for healthcare cloud computing solutions in East Asia?

Demand for healthcare cloud computing solutions in East Asia is forecasted to increase at 23.4% CAGR from 2024 to 2034.

Which application of healthcare cloud computing has a favorable outlook?

Demand for clinical information systems is estimated to increase at a noteworthy CAGR of 18.9% from 2024 to 2034.

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