Global Healthcare Cloud Computing Market 2025-2035

Healthcare Cloud Computing Market Size, Share & Trends Analysis Report by Deployment (Private Cloud, Hybrid Cloud, and Public Cloud), Service Model (Software-as-a-service, Platform-as-a-service, and Infrastructure-as-a-service), Application (Clinical Information Systems (CIS), and Non-clinical Information Systems (NCIS)) and End-User (Healthcare Providers, Insurance Companies, Pharmaceutical Companies, and Research Institutes) Forecast Period (2025-2035)

Industry Overview

Healthcare cloud computing market valued at $51.3 billion in 2024, is forecasted to grow at a 12.8% CAGR, reaching $190.4 billion in 2035. Healthcare cloud computing solutions are gaining widespread traction across the healthcare sector based on a growing region-level focus on developing digitized healthcare ecosystems, increasing deployment of cloud-based software by end-user organizations, and regulatory frameworks promoting digital record management and data transparency, among others. Further, the rising utilization of healthcare cloud solutions by virtual healthcare providers is projected to be a key contributor to healthcare cloud computing market expansion.

Market Dynamics

Increasing Deployment of Cloud-Based Software Solutions

The wide-scale deployment of cloud-based software solutions by healthcare organizations across the healthcare workflow is projected to drive market growth. This widespread deployment is majorly aided by the growing inclination of healthcare professionals and organizations to digitize workflow, rising focus on optimizing labor resources by organizations, and industry-level focus on developing data-focused patient management capabilities. Further, the industry-level emphasis on developing & incorporating capabilities such as automation tools for patient management and AI-powered medical imaging diagnostics tools is necessitating the use of cloud-based solutions for seamless operations. For instance, in June 2024, AGFA HealthCare secured a major contract with Alliance Medical to implement a cloud-based solution at 120 UK sites, on the AGFA HealthCare Enterprise Imaging Platform. This will underpin the Future Unified Diagnostic Information System for Alliance Medical and smooth the patient pathway.

Rising Demand for Virtual Healthcare is Driving Market Growth

The global virtual healthcare market has seen exponential growth within the last couple of years owing to increasing telemedicine services, developments of remote patient monitoring tools, and rising inclination from patients towards virtual consultation for basic health requirements. The industry-level shift has advocated the requirement for maintenance of robust infrastructure for data storage & accessibility needs, which can be economically achieved through the use of healthcare cloud computing solutions such as cloud-based EHR tools and telemedicine platforms, among others. Further, the market dynamics for the expansion of healthcare organization business footprint and rising consumer propensity to access more convenient healthcare solutions are expected to boost the healthcare cloud computing market. For instance, in April 2024, WELL Health Technologies Corp. partnered with Microsoft under a five-year agreement to drive further digital transformation in healthcare across North America and beyond. The partnership will see WELL bring Microsoft Cloud and AI capabilities into its platform for a more agile delivery of healthcare, the company added.

Market Segmentation

• Based on the deployment, the market is segmented into private cloud, hybrid cloud, and public cloud.
• Based on the service model, the market is segmented into software-as-a-service, platform-as-a-service, and infrastructure-as-a-service
• Based on the application, the market is segmented into clinical information systems (CIS), and non-clinical information systems (NCIS).
• Based on the end-user, the market is segmented into healthcare providers, insurance companies, pharmaceutical companies, and research institutes.

Public Cloud Segment to Lead the Market with the Largest Share

Under the deployment segment, public clouds dominate the market owing to the low cost of public cloud-based offerings, a wider level of scalability & flexibility options for end-user organizations, and accessibility to the latest & advanced industry tools at an economic cost. For instance, in July 2024, GE HealthCare entered into a partnership with Amazon Web Services (AWS) to jointly develop foundational models and generative AI applications. It will use AWS as the strategic cloud provider to enhance the diagnosis of diseases and provide better care for patients by strengthening future AI-enabled solutions.

Software-As-a-Service: A Key Segment in Market Growth

The software-as-a-service segment is projected to remain an important service model across the healthcare cloud computing market due to its low deployment costs for end-user organizations, increasing relevance of SaaS tools including EHRs and telemedicine platforms, lesser infrastructure requirements for incorporating SaaS services, and rising inclination by smaller health cloud computing startups to provide SaaS solutions for market entry & expansion. For instance, Evergreen AI launched a SaaS cloud version of TeraRecon's AI-enabled solutions, blending Intuition Advanced Visualization, Eureka Clinical AI, and CARAai in one platform.

Regional Outlook

The global healthcare cloud computing market is further divided by geography, including North America (the US and Canada), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America)

North America Dominates the Global Healthcare Cloud Computing Market

North America comprises the largest share of the global healthcare cloud computing market due to the presence of many major players, including Google, IBM, AWS, and Oracle, the stringent policies enacted such as the Health Insurance Portability and Accountability Act (HIPAA) that enforce the safe digital storage of healthcare records and the growing virtual healthcare market. Further, the regional markets have registered multiple partnerships from the industry players to develop next-gen product offerings that leverage healthcare cloud computing. For example, Servier and Google Cloud have extended their five-year partnership till January 2025 to unlock the power of AI and generative AI across the company's R&D, production, and distribution. It bolsters Servier's ramp to digital transformation while building up its cloud and data strategy toward innovations in therapy development solutions.

Asia-Pacific Region is the Fastest Growing Market

Asia-Pacific is projected to exhibit the fastest growth trajectory in the forecast period owing to the expanding healthcare sector, state-owned efforts to digitize healthcare ecosystems, growing investments in the cloud & data center industry, and the increasing presence of healthcare cloud computing solution providers in the region. For instance, Synapxe, Singapore's national health tech agency, developed a cloud-based analytics platform for the public healthcare sector, HEALIX. This will bring together data, thereby enabling collaborative AI model development that is better at taking care of patients and analytics done faster with tremendous cost savings.

Market Players Outlook

The major companies operating in the global healthcare cloud computing market include Amazon Web Services, Inc., IBM Corp., Google LLC, Microsoft Corp., and Oracle Corp., among others. Market players are leveraging partnerships, collaborations, mergers and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

• In October 2024, Google Cloud unveiled Vertex AI Search for Healthcare and new features for Healthcare Data Engine, now generally available to global allowlist customers. Vertex AI Search will let developers build assistive technologies to alleviate the healthcare workforce's burden from administrative activities. Healthcare Data Engine lets organizations create interoperable data platforms.
• In September 2024, Consensus Cloud Solutions, trading as CCSI, teamed up with Olah Healthcare Technology to migrate the latter's healthcare customers from faxing from an on-premises location to the cloud-based platform eFax corporate.
• In March 2023, the company Fujitsu launched a cloud-based application that collects and securely aggregates health data, which also converts medical records into the HL7 FHIR standard. Patients can store health data and use it for research purposes to support personalized medicine development and approval.

The Report Covers
• Market value data analysis of 2024 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global healthcare cloud computing market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.