Cloud Computing in Healthcare Market Analysis

Cloud Computing in Healthcare Market Overview

Global Cloud Computing in Healthcare Market Size was valued at USD 39.1 Billion in 2022. The Cloud Computing in Healthcare market industry is projected to grow from USD 46.2 Billion in 2023 to USD 177.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.30% during the forecast period (2023 - 2032). Data storage and management, data security and compliance, cost savings, interoperability, telehealth and remote monitoring are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud Computing in Healthcare Market Trends

Growing data storage and management is driving the market growth

Scalability is one of the key benefits of cloud-based data management and storage in the healthcare industry. Significant swings in data volumes occur frequently in the healthcare industry, frequently as a result of factors like patient admissions, diagnostic procedures, or research activity. Cloud-based solutions give users the freedom to quickly scale up or down in response to these changes. For instance, cloud infrastructure might easily expand to meet these extraordinary demands during a pandemic when the need for data processing and storage rose owing to an increase in patient data, telemedicine consultations, and research initiatives. With less need to overprovision expensive on-premises infrastructure, this elasticity guarantees that healthcare providers always have the storage space they require.

A major upfront investment is needed for physical servers, data centers, and IT staff for maintenance and upgrades with traditional data storage. The pay-as-you-go model of cloud computing, on the other hand, enables healthcare organizations to switch from capital-intensive expenditures to predictable operational costs. Healthcare organizations wishing to allocate resources to other crucial areas, including patient care and research, or facing budget constraints may find this cost-effectiveness particularly appealing.

Health insurance portability and accountability act (HIPAA) in the US is one of the strictest privacy and security regulations that applies to healthcare data, making it some of the most sensitive and regulated information. To protect patient data, cloud providers actively invest in cutting-edge security measures, data encryption, and access limits. Additionally, they provide compliance certifications and audit trails, which make it easier to comply with regulatory standards. Healthcare firms can improve their security posture and ensure compliance with intricate healthcare standards by entrusting their data to reliable cloud providers. Thus, driving the Cloud Computing in Healthcare market revenue.

Cloud Computing in Healthcare Market Segment Insights

Cloud Computing in Healthcare Products Insights

The global Cloud Computing in Healthcare market segmentation, based on products, includes healthcare provider solutions and healthcare payer solutions. The healthcare provider solutions segment dominated the market in 2022. The delivery of healthcare and patient care depend heavily on electronic health records (EHRs). Cloud computing offers an effective platform for EHR deployment and management as many healthcare providers switch from paper-based records to EHR systems. The scalability, affordability, and accessibility of cloud-based EHR solutions enable healthcare practitioners to improve clinical workflows and expedite patient data management.

Cloud Computing in Healthcare Component Insights

The global Cloud Computing in Healthcare market segmentation, based on component, includes services and software. The services segment dominated the market in 2022. Moving healthcare apps and data to the cloud can be difficult for large healthcare systems with legacy systems. The relocation process may be planned, carried out, and managed with the least amount of disruption to corporate operations thanks to cloud migration services. They help companies choose the optimal migration method (lift and shift, re-architecture, re-platforming), as well as how to use cloud resources as efficiently and affordably as possible.

Cloud Computing in Healthcare Deployment model Insights

The global Cloud Computing in Healthcare market segmentation, based on deployment model, includes private cloud, hybrid cloud and public cloud. The public cloud segment dominated the market in 2022. Globally dispersed data centers are used by public cloud service providers. Without the need to set up physical data centers in every country, this global infrastructure enables healthcare firms to broaden their services and contact patients and partners in different geographic locations. This feature helps healthcare organizations around the world collaborate and supports the global expansion of healthcare services.

Cloud Computing in Healthcare Pricing Model Insights

The global Cloud Computing in Healthcare market segmentation, based on pricing model, includes pay-as-you-go and spot pricing. The pay-as-you-go segment dominated the market in 2022. To enhance patient care and outcomes, the healthcare sector increasingly relies on data analytics and research. The processing capacity needed for advanced analytics and AI applications is provided by pay-as-you-go cloud services. Without making significant upfront costs, healthcare organizations can use these resources to perform research, build prediction models, and obtain insights from their data.

Cloud Computing in Healthcare Service Model Insights

The global Cloud Computing in Healthcare market segmentation, based on service model, includes software-as-a-service, platform-as-a-service and infrastructure-as-a-service. The software-as-a-service segment dominated the market in 2022. SaaS providers handle software updates, maintenance, and security patches, relieving healthcare IT staff from the burden of these tasks. This ensures that healthcare organizations are always using the latest, most secure versions of their software, reducing the risk of vulnerabilities and downtime.

Figure 1: Global Cloud Computing in Healthcare Market, by Service Model, 2022 & 2032 (USD Billion) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud Computing in Healthcare End User Insights

The global Cloud Computing in Healthcare market segmentation, based on end user, includes healthcare providers and healthcare payers. The healthcare providers category generated the most income in 2022. Healthcare providers deal with vast amounts of patient data, including electronic health records (EHRs), medical images, and treatment histories. Cloud computing offers a centralized and efficient way to manage and store this data. Healthcare providers can access patient information securely from anywhere, improving the speed and accuracy of diagnosis and treatment.

Cloud Computing in Healthcare Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Cloud Computing in Healthcare Market dominated this market in 2022 (45.80%). The stringent legal framework is preventing cloud computing from being widely used in healthcare in North America, particularly in the United States. Healthcare providers must adhere to HIPAA (Health Insurance Portability and Accountability Act) regulations. To comply with these strict standards, cloud companies in North America make significant investments in compliance measures such secure data storage and encryption. For instance, a top cloud service provider like Amazon Web Services (AWS) provides solutions like AWS HIPAA Compliance that let healthcare firms safely store and handle sensitive patient data. Further, the U.S. Cloud Computing in Healthcare market held the largest market share, and the Canada Cloud Computing in Healthcare market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GLOBAL CLOUD COMPUTING IN HEALTHCARE MARKET SHARE BY REGION 2022 (USD Billion)  

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Cloud Computing in Healthcare market accounts for the second-largest market share. In Europe, data privacy is a dominating reason for cloud adoption in healthcare, driven by the General Data Protection Regulation (GDPR). Healthcare organizations must adhere to strict data protection standards, and cloud providers offer GDPR-compliant services to facilitate compliance. For example, Microsoft Azure offers GDPR-specific resources and tools to help European healthcare organizations meet data protection requirements. Further, the German Cloud Computing in Healthcare market held the largest market share, and the UK Cloud Computing in Healthcare market was the fastest growing market in the European region.

The Asia-Pacific Cloud Computing in Healthcare Market is expected to grow at the fastest CAGR from 2023 to 2032. Digital transformation is the factor driving the fastest CAGR in cloud adoption in healthcare in the Asia-Pacific region. By implementing electronic health records (EHRs), telemedicine, and other digital health initiatives, many nations in the region are placing a high priority on modernizing their healthcare systems. For instance, the National Health Stack (NHS) effort in India, which depends on cloud computing for scalability and accessibility, aspires to build a digital healthcare infrastructure, including EHRs. Healthcare delivery is changing as a result of the emphasis on digital transformation, and cloud computing is a key facilitator of these activities. Moreover, China’s Cloud Computing in Healthcare market held the largest market share, and the Indian Cloud Computing in Healthcare market was the fastest growing market in the Asia-Pacific region.

Cloud Computing in Healthcare Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Cloud Computing in Healthcare market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cloud Computing in Healthcare industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Cloud Computing in Healthcare industry to benefit clients and increase the market sector. In recent years, the Cloud Computing in Healthcare industry has offered some of the most significant advantages to medicine. Major players in the Cloud Computing in Healthcare market, including Amazon Web Services, Inc. (US), Microsoft Corporation (US), International Business Machines Corporation (US), athenahealth. Inc. (US), CareCloud, Inc. (US), Siemens Healthineers AG (Germany), eClinicalWorks (US), Koninklijke Philips N.V. (Netherlands), and Allscripts Healthcare Solutions, Inc. (US) and others, are attempting to increase market demand by investing in research and development operations.

A part of Amazon.com, Inc. called Amazon Web Services (AWS) offers cloud computing services. In addition to computing, storage, databases, networking, analytics, mobile, developer tools, augmented reality, virtual reality, robotics, game tech, machine learning, management tools, content delivery, media services, customer engagement, app streaming, and security, identity, and compliance, the company offers a wide range of cloud infrastructure services. Automotive, digital marketing, telecommunications, education, government, retail, financial services, media and entertainment, gaming, CPG, health and life sciences, oil and gas, power and utilities, and non-profit organizations are just a few of the industries that AWS provides products and services to. Along with the US, UK, Australia, China, France, Germany, India, Brazil, Canada, Ireland, Japan, Korea, and Singapore, the firm also does business in these other countries. The US headquarters of AWS are in Seattle, Washington.

Software-related services from Microsoft Corp. (Microsoft) include development, licensing, and support. The company provides a wide variety of operating systems, video games, cross-device productivity tools, desktop and server management tools, and server applications. Additionally, training and certification services are provided. Additionally, it creates, produces, and markets hardware items including PCs, tablets, game consoles, and other cutting-edge gadgets. The company offers a wide range of services, including consultancy, cloud-based solutions, and solution support. In order to fully automate all Microsoft Cloud services, the corporation is also developing platforms and solutions that make use of artificial intelligence. Through original equipment manufacturers, distributors, resellers, online marketplaces, Microsoft shops, and other partner channels, Microsoft markets, distributes, and sells its products. The company conducts business internationally. The headquarters of Microsoft are located in Redmond, Washington, a US city.

Key Companies in the Cloud Computing in Healthcare market include

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  Amazon Web Services, Inc. (US)

  
  


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  Microsoft Corporation (US)

  
  


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  International Business Machines Corporation (US)

  
  


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  Athenahealth. Inc. (US)

  
  


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  CareCloud, Inc. (US)

  
  


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  Siemens Healthineers AG (Germany)

  
  


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  eClinicalWorks (US)

  
  


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  Koninklijke Philips N.V. (Netherlands)

  
  


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  Allscripts Healthcare Solutions, Inc. (US)

  
  

Cloud Computing in Healthcare Industry Developments

January 2023: According to Amazon Web Services, a division of Amazon.com, Inc., AWS in Melbourne, the second Amazon Web Services infrastructure area in Australia, has officially opened. More alternatives will be available for organizations, educational institutions, the government, companies, startups, and developers to host their apps and offer end-user services from Australian AWS data centers.

October 2022: To help healthcare organizations nurture a more connected patient experience, Oracle provided industry-specific supply chain solutions for the healthcare industry. By optimizing planning, improving accessibility throughout the supply chain, and automating procedures, the most recent sector-specific solutions that are a part of Oracle Fusion Cloud SCM meet the unique needs of healthcare organizations and help them to provide better care to patients.

Cloud Computing in Healthcare Market Segmentation

Cloud Computing in Healthcare Products Outlook

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  Healthcare Provider Solutions

  
  


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  Healthcare Payer Solutions

  
  

Cloud Computing in Healthcare Component Outlook

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  Services

  
  


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  Software

  
  

Cloud Computing in Healthcare Deployment Model Outlook

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  Private cloud

  
  


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  Hybrid cloud

  
  


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  Public cloud

  
  

Cloud Computing in Healthcare Pricing Model Outlook

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  Pay-as-you-go

  
  


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  Spot pricing

  
  

Cloud Computing in Healthcare Service Model Outlook

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  Software-as-a-service

  
  


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  Platform-as-a-service

  
  


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  Infrastructure-as-a-service

  
  

Cloud Computing in Healthcare End User Outlook

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  Healthcare providers

  
  


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  Healthcare payers

  
  

Cloud Computing in Healthcare Regional Outlook

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  North America

  
  

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  U.S.

  
  


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  Canada

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Italy

  
  


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  Spain

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America