US Cloud Computing in Healthcare Market Research Report: By Application (Electronic Health Records, Telemedicine, Data Storage and Backup, Medical Imaging, Practice Management), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By Service Model (Infrastructure as a Service, Platform as a Service, Software as a Service) and By End Use (Hospitals, Clinics, Pharmaceutical Companies, Research Organizations) - Forecast to 2035

US Cloud Computing in Healthcare Market Overview:

As per MRFR analysis, the US Cloud Computing in Healthcare Market Size was estimated at 2.95 (USD Billion) in 2023. The US Cloud Computing in Healthcare Market Industry is expected to grow from 3.5(USD Billion) in 2024 to 13.85 (USD Billion) by 2035. The US Cloud Computing in Healthcare Market CAGR (growth rate) is expected to be around 13.32% during the forecast period (2025 - 2035).

Key US Cloud Computing in Healthcare Market Trends Highlighted

The US Cloud Computing in Healthcare Market is experiencing significant growth driven by the increasing adoption of electronic health records (EHR) and telehealth services. Healthcare organizations in the US recognize the need for secure and scalable solutions to handle vast amounts of patient data. This shift is primarily propelled by the growing demand for improved patient outcomes, enhanced data sharing capabilities, and the need for compliance with regulations such as HIPAA. The integration of cloud computing platforms facilitates efficient collaboration among healthcare providers and supports real-time data access for better decision-making.There are several opportunities to be explored in the US market. Innovations in artificial intelligence (AI) and machine learning (ML) can enhance analytics capabilities, enabling healthcare providers to gain insights from data that lead to more personalized patient care.

Additionally, small to mid-sized healthcare facilities are increasingly seeking cloud solutions to improve their operational efficiency without the significant upfront costs associated with traditional IT infrastructure. Recent trends indicate a strong focus on interoperability and data security within cloud computing solutions. With the rise in cyber threats, US healthcare organizations are prioritizing the implementation of advanced security measures to protect sensitive patient information stored in the cloud.Furthermore, there is a noticeable shift towards hybrid cloud solutions, which combine on-premise systems with cloud services, allowing for flexibility and control over sensitive data. The embracing of these technological advancements underscores a larger commitment to digital transformation in healthcare, making the US an active participant in shaping the future landscape of healthcare delivery.

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

US Cloud Computing in Healthcare Market Drivers

Increasing Adoption of Electronic Health Records (EHR)

The US Cloud Computing in Healthcare Market Industry is significantly driven by the increasing adoption of Electronic Health Records (EHR) across healthcare facilities. According to the Office of the National Coordinator for Health Information Technology, approximately 86% of office-based physicians in the United States are currently using EHR systems. The transition from paper-based to digital records is crucial for improving patient care and ensuring compliance with regulations such as the Health Insurance Portability and Accountability Act (HIPAA).Major players like Epic Systems and Cerner Corporation have been instrumental in this transition, offering cloud-based solutions that facilitate better data management and patient engagement. As demand for EHR solutions grows, the reliance on cloud computing in healthcare will expand, aligning with the projected compound annual growth rate of 13.32% for the market from 2025 to 2035.

Rise in Telehealth Services

The surge in telehealth services, particularly during and after the COVID-19 pandemic, has significantly contributed to the growth of the US Cloud Computing in Healthcare Market Industry. The Centers for Disease Control and Prevention reported that telehealth visits surged to 13.6% of all outpatient visits in 2020, up from 0.1% in 2019. This dramatic rise has compelled healthcare providers to adopt cloud-based solutions to support remote consultations and virtual care delivery.Organizations such as Teladoc Health have played a key role in shaping this sector, providing platforms that are reliant on cloud technology. As telehealth becomes a more permanent fixture in the healthcare ecosystem, the dependency on cloud computing services is expected to escalate.

Focus on Data Security and Compliance

With the increasing amount of sensitive healthcare data being stored and transmitted digitally, security and compliance issues have gained more focus in the US Cloud Computing in Healthcare Market Industry. The US healthcare sector experienced over 660 data breaches in 2020 alone, according to the U.S. Department of Health and Human Services. This alarming trend has led organizations to adopt cloud solutions that provide robust security features, such as encryption and secure access controls.Major cloud providers like Amazon Web Services and Microsoft Azure actively invest in security measures to comply with stringent health regulations. As concerns over data breaches and compliance continue to grow, healthcare providers are more likely to migrate their operations to secure cloud environments, driving market growth.

US Cloud Computing in Healthcare Market Segment Insights:

Cloud Computing in Healthcare Market Application Insights

The Application segment of the US Cloud Computing in Healthcare Market plays a pivotal role in transforming healthcare delivery and management through advanced digital solutions. Increasing demand for efficient healthcare services and the need for integrated patient data management have led to widespread adoption of cloud-based applications, significantly streamlining operations while enhancing patient outcomes. Electronic Health Records (EHR) systems dominate this segment, providing healthcare providers with essential tools to manage patient information securely.EHR solutions facilitate improved communication among healthcare professionals, leading to better-coordinated care, which ultimately elevates the overall patient experience. In the realm of Telemedicine, the rise in remote consultations has gained traction, especially post-pandemic, allowing patients to access healthcare services from the comfort of their homes. This accessibility not only improves convenience but also fills the gaps in service for patients in rural or underserved areas, showcasing its importance in a rapidly evolving healthcare landscape.Data Storage and Backup applications are crucial as they ensure the security and compliance of sensitive health data, supporting healthcare organizations in adhering to regulations like HIPAA.

These solutions are essential for protecting information against data breaches and loss, which is increasingly vital in a digital age characterized by heightened cybersecurity threats. Medical Imaging applications provide cutting-edge capabilities that enable healthcare professionals to store, access, and share imaging data seamlessly, enhancing diagnostic accuracy and reducing wait times for patients.Furthermore, Practice Management applications streamline administrative tasks, such as appointment scheduling, billing, and reporting, thereby allowing healthcare providers to concentrate on patient care rather than administrative burdens. The convergence of these applications and their impact on healthcare delivery showcases the dynamic nature of the US Cloud Computing in Healthcare Market. As the industry continues to embrace technological advancements, the Application segment is anticipated to drive significant growth, addressing the critical need for efficient, effective, and patient-centered healthcare solutions.Overall, the collective influence of these applications portrays a robust picture of an evolving market, poised for growth and innovation as healthcare entities increasingly look towards cloud computing solutions to improve their service offerings.

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

Cloud Computing in Healthcare Market Deployment Type Insights

The US Cloud Computing in Healthcare Market is seeing substantial progression, particularly within the Deployment Type segment, which consists of Public Cloud, Private Cloud, and Hybrid Cloud. Public Cloud solutions are gaining traction due to their cost-effectiveness and scalability, allowing healthcare organizations to efficiently manage vast amounts of data. In contrast, Private Cloud ensures enhanced security and compliance, catering to institutions that handle sensitive patient information, thus maintaining high standards of data protection.Hybrid Cloud continues to grow in importance by offering a balanced approach, merging the best of both Public and Private Clouds, allowing healthcare providers to maintain critical data in a secured environment while leveraging the resources of Public Cloud for less sensitive operations. The shift towards cloud solutions is driven by increasing regulatory requirements, and the need for operational agility and improved patient engagement. Furthermore, the ongoing digital transformation in the US healthcare industry enables innovative patient care solutions and supports data interoperability, thereby enhancing service delivery and healthcare outcomes.By leveraging these Deployment Types effectively, organizations can capitalize on significant opportunities for growth and operational efficiency, consistent with trends in the US economy promoting technological integration within healthcare systems.

Cloud Computing in Healthcare Market Service Model Insights

The Service Model segment of the US Cloud Computing in Healthcare Market is witnessing significant advancements, driven by the need for efficient healthcare delivery and improved patient outcomes. Infrastructure as a Service enables healthcare organizations to scale their IT infrastructures flexibly, thus supporting the management of increasing patient data and regulatory compliance. Platform as a Service provides developers with tools for building and deploying healthcare applications rapidly, which is crucial in a fast-evolving market where timely access to information can enhance patient care.Software as a Service dominates the market by offering scalable applications that enhance operational efficiencies and allow for real-time data sharing among healthcare providers. This segmentation reflects a growing trend towards cloud adoption in the healthcare sector, fueled by the rising demand for remote patient monitoring and telehealth services, along with stringent government regulations that necessitate secure and efficient data management. Additionally, the overall US Cloud Computing in Healthcare Market revenue is positively affected by innovations in technology, driving long-term sustainability and resilience in healthcare operations.

Cloud Computing in Healthcare Market End Use Insights

The US Cloud Computing in Healthcare Market is witnessing significant growth across various end use sectors, including Hospitals, Clinics, Pharmaceutical Companies, and Research Organizations. Hospitals are increasingly adopting cloud solutions to streamline operations, improve patient data management, and enhance service delivery, thereby contributing to the overall efficiency and quality of healthcare. Clinics also play a pivotal role as they leverage cloud technology for electronic health records, patient engagement, and telemedicine, which enhances accessibility for patients.Pharmaceutical Companies utilize cloud computing for drug development processes, data storage, and analytics, which aids in rapid research and innovation in drug formulation. Research Organizations benefit from cloud computing by utilizing scalable resources to handle vast datasets and perform advanced analytics, promoting collaboration among researchers. The robust demand from these sectors illustrates the growing trend of digital transformation in healthcare, driven by the need for enhanced patient care, regulatory compliance, and operational efficiency.The US Cloud Computing in Healthcare Market reflects a dynamic landscape where these end uses significantly influence market expansion and technological advancements.

US Cloud Computing in Healthcare Market Key Players and Competitive Insights:

The US Cloud Computing in Healthcare Market has been witnessing significant growth driven by the need for efficient healthcare delivery, data management, and innovative solutions to improve patient outcomes. The competitive landscape is characterized by a mix of established players, emerging startups, and technology providers catering to various healthcare segments. This rapidly evolving market is largely influenced by factors such as regulatory compliance, patient-centric care models, and the transition from traditional IT infrastructure to flexible cloud-based solutions. As healthcare organizations continue to adopt digital health technologies, the competition among cloud service providers intensifies, leading to the development of customized platforms, advanced analytics, and seamless integration capabilities that cater specifically to the healthcare sector.NantHealth has positioned itself as a key player within the US Cloud Computing in Healthcare Market, emphasizing its strong focus on personalized medicine and comprehensive healthcare solutions. The company leverages cloud technologies to offer services that enhance interoperability among healthcare systems, making it easier for providers to share vital patient information. With a strong commitment to precision medicine, NantHealth's platform empowers healthcare professionals with data-driven insights, allowing better decision-making and improved treatment pathways for patients.

The company's strategy also revolves around innovation, fostering collaborations with various stakeholders in the healthcare ecosystem to drive growth and maintain a competitive edge. NantHealth's technological capabilities ensure it remains relevant in a market that is increasingly reliant on digital tools and cloud solutions.Allscripts is recognized as a prominent entity in the US Cloud Computing in Healthcare Market, known for its robust healthcare information technology solutions that encompass electronic health records, data analytics, and care coordination tools. The company has established a vast market presence, catering to a diverse client base that includes hospitals, physician practices, and health systems. Allscripts' strengths lie in its integrated solutions that promote interoperability and streamline workflows, ultimately enhancing patient care. The company actively invests in research and development to refine its offerings and ensure adaptability within the continuously changing landscape of healthcare technology. Additionally, Allscripts has pursued strategic mergers and acquisitions to expand its market reach and fortify its service portfolio, demonstrating a proactive approach in addressing the complex needs of healthcare providers in an increasingly cloud-dependent industry.

Key Companies in the US Cloud Computing in Healthcare Market Include:

• NantHealth


• Allscripts


• Oracle


• Cerner


• IBM


• Amazon Web Services


• Veritas Technologies


• Microsoft


• Meditech


• McKesson


• Salesforce


• Google Cloud


• Athenahealth


• Epic Systems


• Philips Healthcare

US Cloud Computing in Healthcare Market Industry Developments

In recent months, the US Cloud Computing in Healthcare Market has experienced notable developments, with companies like Oracle, Amazon Web Services, and Microsoft continuing to enhance their cloud healthcare solutions. For instance, in September 2023, Oracle announced the launch of new capabilities within its cloud offerings aimed at improving patient data security and interoperability. Meanwhile, in October 2023, Amazon Web Services partnered with Cerner to further integrate cloud technologies into healthcare settings, streamlining EHR processes and data management. Additionally, Merger and acquisition activity has been significant; in August 2023, Salesforce announced its acquisition of a healthcare company to bolster its patient engagement solutions, demonstrating a strategic move to enhance its healthcare cloud footprint. The market remains robust, projected to reach a valuation of approximately $63 billion by 2025, driven by increasing demand for efficient healthcare data management and the rise of telehealth services over the past few years. Furthermore, advancements in AI and data analytics within platforms offered by Epic Systems and IBM are shaping the future landscape of cloud-based healthcare solutions, ensuring better patient outcomes and operational efficiencies. The US Cloud Computing in Healthcare market continues to be a focal area for innovation and investment.

US Cloud Computing in Healthcare Market Segmentation Insights

Cloud Computing in Healthcare Market Application Outlook

• Electronic Health Records


• Telemedicine


• Data Storage and Backup


• Medical Imaging


• Practice Management

Cloud Computing in Healthcare Market Deployment Type Outlook

• Public Cloud


• Private Cloud


• Hybrid Cloud

Cloud Computing in Healthcare Market Service Model Outlook

• Infrastructure as a Service


• Platform as a Service


• Software as a Service

Cloud Computing in Healthcare Market End Use Outlook

• Hospitals


• Clinics


• Pharmaceutical Companies


• Research Organizations

 

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	2.95(USD Billion)
MARKET SIZE 2024	3.5(USD Billion)
MARKET SIZE 2035	13.85(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.32% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	NantHealth, Allscripts, Oracle, Cerner, IBM, Amazon Web Services, Veritas Technologies, Microsoft, Meditech, McKesson, Salesforce, Google Cloud, Athenahealth, Epic Systems, Philips Healthcare
SEGMENTS COVERED	Application, Deployment Type, Service Model, End Use
KEY MARKET OPPORTUNITIES	Data interoperability solutions, Telehealth platform integration, Advanced analytics for patient care, Enhanced cybersecurity measures, Cloud-based electronic health records
KEY MARKET DYNAMICS	Regulatory compliance requirements, Cost efficiency and savings, Increased data security needs, Rising demand for telemedicine solutions, Integration with existing systems
COUNTRIES COVERED	US