Global Healthcare Cloud Computing Market Size, Share & Trends Analysis Report By Application, By Service Model, By Deployment Model, By End User, By Regional Outlook and Forecast, 2024 - 2031

Global Healthcare Cloud Computing Market Size, Share & Trends Analysis Report By Application, By Service Model, By Deployment Model, By End User, By Regional Outlook and Forecast, 2024 - 2031

The Global Healthcare Cloud Computing Market size is expected to reach $142.7 billion by 2031, rising at a market growth of 17.0% CAGR during the forecast period.

Governments across the region are actively promoting digital health initiatives to modernize their healthcare systems and improve accessibility and quality of care. According to the National Library of Medicine, over 90% of hospitals in China had adopted EHRs by 2023. This widespread adoption generates massive amounts of health data, necessitating scalable and secure cloud computing infrastructure to manage and store this information. Hence, the Asia Pacific segment acquired 26% revenue share in the market in 2023. The adoption of cloud technology in this region has been driven by the increasing demand for digital health solutions, the rapid expansion of the economy, and the increasing investments in healthcare infrastructure. The rise of telemedicine, wearable health devices, and remote monitoring solutions in the region bolsters demand for cloud services.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February, 2024, Dell Technologies Inc. in collaboration with Ernst & Young Global Limited introduced the EY Edge Technologies Lab to enable businesses to harness the power of edge computing and AI for real-time data solutions. The Lab is designed to develop industry-specific use cases, enhancing speed, performance, security, and data management across various sectors. Additionally, In July, 2024, Amazon Web Services, Inc. came into partnership with GE HealthCare to develop AI models and applications for healthcare, aiming to enhance patient care through AWS's machine learning and generative AI technologies for improved data access, analysis, and personalized solutions.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunners in the Healthcare Cloud Computing Market. In May, 2024, Microsoft Corporation came into partnership with Topcon Healthcare to enhance healthcare through AI-powered solutions using the Harmony platform and Nuance Precision Imaging Network. Companies such as Dell Technologies, Inc., Oracle Corporation and Koninklijke Philips N.V. are some of the key innovators in the Healthcare Cloud Computing Market.

COVID-19 Impact Analysis

Initially, healthcare systems were overwhelmed by the sudden surge in patient volumes and the need for rapid response, leading to significant disruptions in IT operations. Many healthcare organizations, especially smaller clinics and hospitals, were unprepared for the transition to remote work and virtual care, causing delays in cloud adoption. Moreover, the crisis underscored the importance of data sharing and collaboration across healthcare systems, and cloud computing played a crucial role in enabling this. Thus, the pandemic had an overall positive impact on the market.

Market Growth Factors

Telehealth, which provides healthcare services remotely via digital platforms, grew dramatically during the COVID-19 pandemic. Patients and healthcare practitioners were pushed to use telemedicine as a secure and successful alternative because of the necessity of minimizing the number of in-person visits that take place in healthcare facilities and the deployment of social distancing techniques. This shift has continued post-pandemic as telehealth has improved access to care, especially in remote and underserved areas. Hence, as telemedicine and remote monitoring gain traction, the demand for robust cloud computing platforms capable of handling vast amounts of data will only continue to grow, further fueling the expansion of the healthcare cloud computing market.

As the number of IoT devices in healthcare grows, cloud computing becomes essential for managing the vast amounts of data they generate. The International Telecommunication Union (ITU) notes that the convergence of IoT and cloud computing is critical to successfully implementing e-health solutions. Cloud platforms enable healthcare providers to scale their data storage and processing capabilities without substantial investments in physical infrastructure. Thus, the continuous evolution and adoption of IoT in healthcare, supported by government initiatives and international organizations, are expected to further drive the growth of cloud computing in the healthcare sector.

Market Restraining Factors

While cloud computing can ultimately reduce operational expenses through scalability, flexibility, and reduced hardware costs, the upfront financial outlay is often prohibitive, particularly for smaller clinics and hospitals with limited budgets. Achieving interoperability often requires custom development work, which furthers the initial investment. These interoperability challenges are technical and operational, as healthcare providers must ensure patient data flows smoothly between cloud platforms and on-premise systems without disrupting care delivery. Thus, the high cost of this technology may impede their widespread adoption.

Deployment Model Outlook

Based on deployment model, the market is divided into public cloud, private cloud, and hybrid cloud. The hybrid cloud segment procured 21% revenue share in the market in 2023. By using hybrid cloud solutions, which include the benefits of both public and private clouds, healthcare organizations are able to protect sensitive data in a private cloud environment that is secure while also enjoying the scalability and cost-effectiveness of the public cloud for applications that are less vital.

Service Model Outlook

On the basis of service model, the market is classified into software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). The software as a service (SaaS) segment acquired 50% revenue share in the market in 2023. Cloud-based software applications, including electronic health records (EHRs), telehealth platforms, and patient management systems, have been widely adopted, which may be the reason for this. SaaS solutions offer healthcare organizations the flexibility to access applications through the cloud without complex on-premise infrastructure, reducing costs and improving efficiency.

Application Outlook

By application, the market is bifurcated into clinical information system (CIS) and non-clinical information system (NCIS). The non-clinical information system (NCIS) segment garnered 42% revenue share in the market in 2023. NCIS solutions focus on administrative and operational aspects of healthcare, including financial management, supply chain management, billing, patient scheduling, and human resource management. These systems are crucial in streamlining healthcare operations and improving efficiency, particularly in reducing overhead costs.

Clinical Information System (CIS) Outlook

The clinical information system (CIS) segment is further divided into electronic health records (EHR), picture archiving & communication system (PACS), radiology information system (RIS), and others (COPE, PIS, etc.). The electronic health records (EHR) segment procured 51% revenue share in the healthcare cloud computing market in 2023. EHR systems have become a fundamental component of contemporary healthcare, providing cloud-based solutions that enable healthcare providers to seamlessly store, access, and share patient data across a variety of departments and facilities.

End User Outlook

Based on end user, the market is segmented into healthcare providers and healthcare payers. The healthcare providers segment garnered 68% revenue share in the market in 2023. This segment includes hospitals, clinics, ambulatory care services, and other healthcare facilities that rely on cloud computing to manage patient records, streamline workflows, and enhance care delivery. The widespread adoption of electronic health records (EHRs), telemedicine platforms, and clinical information systems (CIS) by healthcare providers has driven the growth of this segment.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment procured 39% revenue share in the market in 2023. The region's leadership in cloud adoption can be attributed to the robust healthcare infrastructure, widespread use of electronic health records (EHRs), and significant investments in digital healthcare technologies. The United States, in particular, has been at the forefront of this growth, with government initiatives such as the Health Information Technology for Economic and Clinical Health (HITECH) Act and the widespread adoption of cloud-based solutions among healthcare providers.

Recent Strategies Deployed in the Market

• Sep-2024: NTT DATA is launching advanced technology solutions designed to revolutionize healthcare. By integrating smart solutions, private 5G, IoT, and robust, secure infrastructure, NTT DATA is creating cohesive digital ecosystems for a unified healthcare view. With 50 years of expertise, they are committed to advancing sustainable, patient-centered digital healthcare.
• Sep-2024: Siemens Healthineers will acquire Novartis's nuclear diagnostics imaging business to bolster its European PET scan capabilities. Enlitic is set to acquire Laitek to enhance its data migration services. PatientPay and ClearGage will merge to improve healthcare billing, and Check Point will acquire Cyberint to enhance AI-driven threat prevention.
• Sep-2024: Dell Services has introduced a cloud-based healthcare solution in India, designed to provide scalable, flexible, and integrated clinical and financial systems for healthcare providers. Aimed at midsized hospitals and clinic networks, this solution streamlines workflows, minimizes manual errors, and improves patient care.
• Sep-2024: Hewlett Packard Enterprise has unveiled HPE Private Cloud AI, featuring one-click deployment for generative AI applications, developed in collaboration with NVIDIA. This solution streamlines the creation and deployment of AI virtual assistants with customizable, low-code accelerators and supports multiple industries through the Unleash AI partner program.
• Jun-2024: Oracle has launched the Health Insurance Data Exchange Cloud Service to streamline and secure data exchange for health insurers. This cloud-native solution improves data processing, supports custom data mapping, and offers seamless integration with CMS and other partners, thereby reducing IT costs and enhancing operational efficiency.

List of Key Companies Profiled

• Dell Technologies, Inc.
• Hewlett Packard Enterprise Company
• Microsoft Corporation
• Oracle Corporation
• IBM Corporation
• Salesforce, Inc.
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Siemens Healthineers AG (Siemens AG)
• Koninklijke Philips N.V.
• NTT Data Corporation

Global Healthcare Cloud Computing Market Report Segmentation

By Application

• Clinical Information Systems (CIS)
• Electronic Health Records (EHR)
• Picture Archiving and Communication System (PACS)
• Radiology Information System (RIS)
• Others (COPE, PIS, etc.)
• Non-clinical Information Systems (NCIS)
• Revenue Cycle Management (RCM)
• Billings & Accounts Management Solution
• Others (SCM, HIE, etc.)

By Service Model

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

By Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

By End User

• Healthcare Providers
• Hospitals
• Diagnostic and Imaging Centers
• Pharmacies
• Ambulatory Centers
• Healthcare Payers
• Private Payers
• Public payers

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA