Healthcare Cloud Computing Market Size & Forecast

The Healthcare Cloud Computing Market is expected to reach $131.8 billion by 2031, at a CAGR of 18.4% from 2024 to 2031. The growth of this market can be attributed to several factors, the growing need for personalized medicines and the increasing adoption of analytics and IoT in the healthcare sector. Moreover, the increasing demand for healthcare cloud computing solutions for clinical research & drug development and the growing use of blockchain technology for managing electronic health records are expected to offer growth opportunities for the players operating in this market.

Healthcare Cloud Computing Market Growth Drivers

Increasing Adoption of Analytics and IoT in the Healthcare Sector Supporting Market Growth

Analytics and the Internet of Things (IoT) are integral components of healthcare cloud computing. These technologies are revolutionizing how healthcare data is collected, processed, and utilized. The technologies enable healthcare organizations to extract valuable insights from massive amounts of data generated by medical devices, wearables, and patient records, among other sources. IoT-enabled wearable devices and medical sensors continuously collect patient data such as heart rate, blood pressure, glucose levels, and activity patterns. This data is transmitted to the cloud, where it is analyzed to detect anomalies and trends, enabling timely interventions and personalized care plans.

Analytics involves the use of advanced algorithms and data processing techniques to derive meaningful insights from data. In healthcare, analytics tools are integrated with cloud computing platforms to analyze vast amounts of patient and clinical data. Healthcare organizations use predictive analytics to forecast disease outbreaks, patient readmissions, and treatment responses. This information aids in resource allocation and proactive patient management. Analytics tools analyze patient data, medical records, and research outcomes, enabling healthcare providers to make evidence-based decisions regarding diagnosis, treatment, and patient care plans. Thus, the increasing adoption of analytics and IoT technologies in the healthcare sector is driving the demand for healthcare cloud computing solutions, supporting the growth of this market.

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Growing Need for Personalized Medicines Driving the Demand for Healthcare Cloud Computing Solutions

Healthcare cloud computing solutions support a wide range of applications, including personalized medicines. Cloud platforms allow for the integration of diverse clinical data sources, including Electronic Health Records (EHRs), imaging data, lab results, and patient-reported outcomes. By aggregating this data in the cloud, healthcare providers can gain a comprehensive view of a patient's health status, leading to more personalized treatment decisions. Cloud-based systems facilitate data sharing among healthcare professionals, researchers, and patients, enabling interdisciplinary collaboration, accelerating research, and allowing experts from different fields to contribute their insights for the development of personalized treatment strategies. Thus, healthcare cloud computing empowers healthcare professionals to deliver personalized treatments by considering each patient's unique genetic and clinical characteristics. These benefits are driving the demand for healthcare cloud computing solutions in the field of personalized medicine, accelerating the growth of this market.

Healthcare Cloud Computing Market Trends

Telehealth and Telemedicine

Cloud-based telehealth and telemedicine are innovative healthcare delivery models that leverage cloud computing technology to provide medical services remotely. These models have gained much significance, especially in recent years, due to their ability to enhance access to healthcare, improve patient outcomes, and facilitate communication between patients and healthcare providers. Cloud computing provides the necessary infrastructure required to securely host telehealth and telemedicine applications and data, including servers, storage, networking, and computing resources. By using cloud platforms, patient records, medical images, test results, and other health data can be stored securely on the cloud. Cloud storage enables efficient data management, scalability, and accessibility for healthcare professionals. Thus, cloud-based telehealth and telemedicine are gaining significance in the healthcare cloud computing market, and this trend is expected to continue during the forecast period.

Wearable Medical Devices

Wearable medical devices, when integrated with cloud computing, offer numerous benefits for patients, healthcare providers, and researchers. These devices collect real-time health data, which is then transmitted to cloud platforms for analysis, storage, and accessibility. This integration facilitates better patient monitoring, data-driven decision-making, and advancements in healthcare research. Wearable medical devices, such as smartwatches, fitness trackers, and medical sensors, continuously collect various health-related data, including heart rate, blood pressure, temperature, activity levels, sleep patterns, and more. The collected data is wirelessly transmitted to cloud-based servers via secure communication channels, such as the Internet or mobile networks. Thus, the benefits offered by wearable medical devices are increasing their significance in the healthcare cloud computing market, and this trend is expected to grow rapidly in the coming years.

Healthcare Cloud Computing Market Opportunity

Increasing Demand for Healthcare Cloud Computing Solutions for Clinical Research & Drug Development

The increasing demand for healthcare cloud computing solutions in the clinical research and drug development sector is generating growth opportunities for market players. The emergence of new technologies, the need for efficient data management, and the growing complexity of research and development processes in the healthcare industry are driving the demand for advanced healthcare cloud computing solutions.

The major factors contributing to this demand are as follows:

• Data Storage and Management: Clinical research and drug development generate vast amounts of data, including patient records, genetic information, and clinical trial results. Cloud computing offers scalable and cost-effective solutions for storing and managing these large datasets, enabling researchers to access, analyze, and share data in real time from various locations. 
• Collaboration and Accessibility: Healthcare cloud computing enables seamless collaborations among researchers, scientists, clinicians, and other stakeholders involved in clinical research and drug development. Cloud platforms provide a centralized space where multiple users can access and work on data simultaneously, fostering greater communication and accelerating research.

These factors are driving the development and adoption of advanced healthcare cloud computing solutions, generating growth opportunities for the players operating in this market.

Healthcare Cloud Computing Market Analysis: Key Findings

By Offering: In 2024, the Solutions Segment to Dominate the Healthcare Cloud Computing Market

In 2024, the solutions segment is expected to account for the largest share of 92.0% of the global healthcare cloud computing market. The large market share of this segment is attributed to the growing need for clinical information systems to support and streamline clinical operations, improve patient care, and enhance overall efficiency, the rising adoption of non-clinical information systems for managing administrative, financial, and operational aspects of healthcare organizations, and efforts by companies to provide healthcare operation management solutions for claims processing, member management, provider networks, and payment processing.

However, the services segment is projected to register the highest CAGR during the forecast period due to the increasing need for professional services to adopt, implement, and optimize healthcare cloud computing solutions, the growing need for managed services such as data security and compliance, infrastructure scalability, cost optimization, data backup and recovery, and increasing need to offer partial or complete management of a client's cloud resources or infrastructure.

By Service Models: In 2024, the Software-as-a-Service Segment to Dominate the Healthcare Cloud Computing Market

In 2024, the software-as-a-service segment is expected to account for the largest share of 48.6% of the global healthcare cloud computing market. The large market share of this segment is attributed to the increasing need to improve healthcare business operations, increase productivity, data security, and privacy for healthcare data and the growing need for improved data management. Additionally, this segment is expected to register the highest CAGR during the forecast period.

By Deployment Mode: In 2024, the Public Cloud Segment to Dominate the Healthcare Cloud Computing Market

In 2024, the public cloud segment is expected to account for the largest share of 41.8% of the global healthcare cloud computing market. The large market share of this segment is attributed to the secure and reliable remote access to healthcare systems, benefits offered by public healthcare cloud systems such as cost-effectiveness, scalability, and flexibility, and efforts by market players to launch healthcare cloud computing services. Additionally, this segment is expected to register the highest CAGR during the forecast period.

Geographical Analysis

In 2024, North America Region to Dominate the Healthcare Cloud Computing Market

In 2024, North America is expected to account for the largest share of 37.4% of the global healthcare cloud computing market. North America healthcare cloud computing market is estimated to be worth USD 15.1 billion in 2024. North America’s large market share is attributed to the presence of prominent players offering advanced healthcare cloud computing solutions. Furthermore, the high adoption rate of digital technologies and advanced healthcare systems, the surge in demand for telemedicine and remote patient monitoring solutions, and the increasing proliferation of cloud based EHR systems are supporting the market growth.

However, the Asia-Pacific region is projected to register the highest CAGR during the forecast period. The growth of this region is driven by the exerting efforts by market players to launch healthcare cloud computing solutions, Government initiatives and policies that support the adoption of healthcare cloud computing solutions, and the growing popularity of telemedicine and telehealth platforms across the region.

Healthcare Cloud Computing Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the healthcare cloud computing market are Amazon Web Services, Inc. (U.S.) (a subsidiary of Amazon.com, Inc.), Microsoft Corporation (U.S.), IBM Corporation (U.S.), Google LLC (U.S.), Alibaba Group Holding Limited (China), Oracle Corporation (U.S.), IRON MOUNTAIN INCORPORATED (U.S.), AT & T Inc. (U.S.), NVIDIA Corporation (U.S.), GE HealthCare Technologies Inc. (a subsidiary of General Electric Company) (U.S.), OSP (U.S.), Zymr Inc. (U.S.), athenahealth, Inc. (U.S.), eClinicalWorks, LLC (U.S.), and e-Zest Solutions Inc. (U.S.).

Healthcare Cloud Computing Industry Overview: Latest Developments from Key Industry Players

• In July 2023, Amazon Web Services, Inc. (U.S.) launched AWS HealthScribe, a new HIPAA-eligible service that empowers healthcare software providers to build clinical applications that use speech recognition and generative AI to save clinicians time by generating clinical documentation.
• In May 2023, Google LLC (U.S.) launched the Target and Lead Identification Suite, an AI tool for life science researchers to better identify the function of amino acids and predict the structure of proteins; and the Multiomics Suite, for discovering and interpreting genomic data, and designing personalized genomic treatments.
• In April 2023, Oracle Corporation (U.S.) collaborated with Deloitte Touche Tohmatsu Limited (U.K.), a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax, and related services, to deliver better, more connected health systems.

Healthcare Cloud Computing Market Research Summary

Key questions answered in the healthcare cloud computing market report: