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    US Cloud Computing in Healthcare Market

    ID: MRFR/ICT/17175-HCR
    100 Pages
    Garvit Vyas
    October 2025

    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

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    US Cloud Computing in Healthcare Market Infographic
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    US Cloud Computing in Healthcare Market Summary

    As per MRFR analysis, the US cloud computing in healthcare market size was estimated at 11.5 USD Billion in 2024. The US cloud computing-in-healthcare market is projected to grow from 13.64 USD Billion in 2025 to 75.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 18.59% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US cloud computing-in-healthcare market is experiencing robust growth driven by technological advancements and evolving healthcare needs.

    • The largest segment in the US cloud computing-in-healthcare market is telehealth solutions, reflecting a shift towards remote healthcare delivery.
    • Data interoperability is becoming increasingly critical, facilitating seamless information exchange among healthcare providers.
    • There is a heightened focus on data security and compliance, as healthcare organizations prioritize patient privacy and regulatory adherence.
    • Rising demand for remote patient monitoring and cost efficiency are key drivers propelling market expansion.

    Market Size & Forecast

    2024 Market Size 11.5 (USD Billion)
    2035 Market Size 75.0 (USD Billion)

    Major Players

    Amazon Web Services (US), Microsoft (US), Google Cloud (US), IBM (US), Oracle (US), Salesforce (US), Cerner Corporation (US), Allscripts Healthcare Solutions (US), Philips (NL)

    US Cloud Computing in Healthcare Market Trends

    The cloud computing-in-healthcare market is currently experiencing a transformative phase, driven by the increasing demand for efficient data management and enhanced patient care. Healthcare providers are increasingly adopting cloud solutions to streamline operations, improve accessibility to patient records, and facilitate telehealth services. This shift appears to be influenced by the need for real-time data sharing among healthcare professionals, which is essential for informed decision-making. Furthermore, the integration of advanced technologies such as artificial intelligence and machine learning into cloud platforms is likely to enhance predictive analytics, thereby improving patient outcomes and operational efficiency. In addition, regulatory compliance and data security remain paramount concerns within the cloud computing-in-healthcare market. Organizations are focusing on ensuring that their cloud solutions adhere to stringent regulations, such as HIPAA, to protect sensitive patient information. This emphasis on security may drive the development of more robust cloud infrastructures that prioritize data protection while maintaining flexibility and scalability. As the landscape evolves, it seems that the cloud computing-in-healthcare market will continue to expand, offering innovative solutions that cater to the unique needs of healthcare providers and patients alike.

    Increased Adoption of Telehealth Solutions

    The cloud computing-in-healthcare market is witnessing a notable rise in telehealth services, which leverage cloud technologies to provide remote consultations and monitoring. This trend indicates a shift towards more accessible healthcare, allowing patients to receive care from the comfort of their homes. As healthcare providers increasingly recognize the benefits of telehealth, the demand for cloud-based platforms that support these services is likely to grow.

    Enhanced Data Interoperability

    A critical trend in the cloud computing-in-healthcare market is the push for improved data interoperability among various healthcare systems. This development suggests that organizations are prioritizing seamless data exchange to enhance care coordination and patient outcomes. Cloud solutions that facilitate interoperability may become essential tools for healthcare providers aiming to optimize their operations and deliver integrated care.

    Focus on Data Security and Compliance

    As the cloud computing-in-healthcare market evolves, there is a heightened focus on data security and regulatory compliance. Healthcare organizations are increasingly investing in cloud solutions that not only meet compliance standards but also offer advanced security features. This trend indicates a growing awareness of the importance of safeguarding sensitive patient information while utilizing cloud technologies.

    US Cloud Computing in Healthcare Market Drivers

    Cost Efficiency and Scalability

    Cost efficiency remains a pivotal driver in the cloud computing-in-healthcare market. Healthcare organizations are increasingly recognizing the financial benefits associated with cloud solutions, which can reduce IT infrastructure costs by up to 30%. The scalability offered by cloud computing allows healthcare providers to adjust their resources based on demand, ensuring that they can accommodate fluctuating patient volumes without incurring unnecessary expenses. This flexibility is particularly advantageous for smaller practices that may struggle with high upfront costs associated with traditional IT systems. Furthermore, the pay-as-you-go model prevalent in cloud services enables healthcare organizations to allocate their budgets more effectively, thereby enhancing their operational efficiency. As financial pressures continue to mount, the cloud computing-in-healthcare market is likely to see sustained growth driven by these cost-saving advantages.

    Regulatory Compliance and Data Governance

    Regulatory compliance is a critical driver influencing the cloud computing-in-healthcare market. Healthcare organizations are required to adhere to stringent regulations such as HIPAA, which mandates the protection of patient data. Cloud service providers are increasingly offering solutions that ensure compliance with these regulations, thereby alleviating concerns for healthcare organizations. The market for cloud computing in healthcare is projected to grow as organizations seek to leverage cloud solutions that incorporate robust data governance frameworks. This focus on compliance not only mitigates risks associated with data breaches but also enhances patient trust in digital health solutions. As regulatory landscapes evolve, the cloud computing-in-healthcare market is likely to expand, driven by the need for secure and compliant data management practices.

    Rising Demand for Remote Patient Monitoring

    The cloud computing-in-healthcare market is experiencing a notable surge in demand for remote patient monitoring solutions. This trend is driven by the increasing prevalence of chronic diseases and the need for continuous patient engagement. According to recent data, approximately 60% of healthcare providers in the US are adopting remote monitoring technologies to enhance patient care. These solutions enable healthcare professionals to track patient health metrics in real-time, facilitating timely interventions. The integration of cloud computing allows for seamless data storage and analysis, which is crucial for effective patient management. As healthcare organizations seek to improve patient outcomes while reducing costs, the reliance on cloud-based remote monitoring systems is likely to grow, further propelling the cloud computing-in-healthcare market forward.

    Enhanced Collaboration Among Healthcare Stakeholders

    Enhanced collaboration among healthcare stakeholders is emerging as a significant driver in the cloud computing-in-healthcare market. The ability to share patient data securely and efficiently among various healthcare entities fosters a more integrated approach to patient care. Cloud computing facilitates real-time data sharing, enabling healthcare providers, insurers, and patients to collaborate effectively. This interconnectedness is essential for coordinated care, particularly for patients with complex health needs. Recent surveys indicate that over 70% of healthcare professionals believe that improved collaboration through cloud solutions can lead to better patient outcomes. As the healthcare landscape continues to evolve towards value-based care, the demand for collaborative cloud-based platforms is expected to rise, further propelling the growth of the cloud computing-in-healthcare market.

    Integration of Artificial Intelligence and Machine Learning

    The integration of artificial intelligence (AI) and machine learning (ML) technologies into the cloud computing-in-healthcare market is transforming the way healthcare providers deliver services. AI and ML algorithms can analyze vast amounts of healthcare data, leading to improved diagnostic accuracy and personalized treatment plans. Recent studies indicate that AI applications in healthcare could potentially reduce diagnostic errors by up to 50%. By leveraging cloud computing, healthcare organizations can access advanced analytics tools without the need for extensive on-premises infrastructure. This capability not only enhances clinical decision-making but also streamlines administrative processes, allowing healthcare professionals to focus more on patient care. As the demand for data-driven insights continues to rise, the cloud computing-in-healthcare market is poised for significant advancements through the adoption of AI and ML technologies.

    Market Segment Insights

    By Application: Electronic Health Records (Largest) vs. Telemedicine (Fastest-Growing)

    In the US cloud computing-in-healthcare market, Electronic Health Records (EHR) dominate with a significant share, reflecting the strong demand for comprehensive patient data management. Telemedicine follows closely, gaining traction due to its adaptability and increasing acceptance among healthcare providers and patients. Growth trends indicate a robust rise in Telemedicine, driven by advances in technology and changing patient preferences for remote care. The market is also seeing enhanced investments in EHR systems, as organizations prioritize efficiency and data accessibility. This dual momentum suggests a competitive landscape where established solutions and innovative services coexist, catering to diverse healthcare needs.

    EHR (Dominant) vs. Telemedicine (Emerging)

    Electronic Health Records (EHR) serve as a cornerstone for healthcare providers, allowing for the streamlined management of patient information and care coordination. This dominant position is supported by regulatory mandates and the push for interoperability. On the other hand, Telemedicine is emerging rapidly, propelled by the need for accessible healthcare solutions and advancements in digital communication. It offers flexibility and convenience, particularly for non-emergency consultations. While EHR systems are deeply integrated into daily operations, Telemedicine is carving out its niche by enhancing patient engagement and extending care beyond traditional settings. Together, these segments reflect the evolving landscape of healthcare technology.

    By Deployment Type: Public Cloud (Largest) vs. Hybrid Cloud (Fastest-Growing)

    The distribution of market share in the deployment type segment reveals that Public Cloud solutions hold a significant majority in the US cloud computing-in-healthcare market. They are preferred for their scalability, lower upfront costs, and ease of integration with existing systems. Private Cloud solutions, while still important, are gaining traction among organizations that prioritize security and compliance, which have traditionally been the strongholds of the Private options. In contrast, Hybrid Cloud is quickly becoming a favored choice for those looking to balance flexibility with control and is capturing the interest of many healthcare entities seeking a middle ground. Growth trends indicate a robust movement toward Hybrid Cloud deployment, which is shaping up to be the fastest-growing segment in the market. This surge is driven by the increasing need for healthcare organizations to manage sensitive data while also enjoying the benefits of cloud technology. Factors such as regulatory compliance, the demand for advanced data analytics, and the integration of AI and machine learning into healthcare operations are propelling the growth of Hybrid Cloud solutions. Public Cloud will likely maintain its advantage due to its cost-effectiveness, but Hybrid Cloud's adaptability is proving indispensable in a rapidly evolving industry.

    Public Cloud (Dominant) vs. Hybrid Cloud (Emerging)

    Public Cloud has established itself as the dominant force in the deployment type segment due to its broad appeal and inherent advantages. It offers a flexible and cost-effective solution that allows healthcare organizations to rapidly scale operations without significant upfront investments. The variety of services available in Public Clouds, including storage, processing power, and advanced analytics, make it an attractive option for many. Hybrid Cloud is emerging as a powerful alternative, particularly for entities that require tailored solutions to comply with strict data regulations. This deployment type provides the necessary infrastructure that merges the best of both Public and Private Clouds, thereby enabling organizations to operate more efficiently while maintaining necessary oversight and control of sensitive healthcare information.

    By Service Model: Software as a Service (Largest) vs. Infrastructure as a Service (Fastest-Growing)

    The service model segment of the US cloud computing-in-healthcare market is characterized by distinct contributions across its tiers. Software as a Service (SaaS) emerges as the largest segment, driven by its extensive adoption in healthcare applications, facilitating everything from patient management to telehealth solutions. In contrast, Infrastructure as a Service (IaaS) is gaining momentum due to its flexibility and scalability, which are essential for healthcare providers grappling with fluctuating demands and regulatory requirements. As the healthcare sector increasingly embraces digital transformation, the service model segment is expected to expand dramatically. The rising demand for efficient, scalable solutions and the integration of advanced technologies like AI and machine learning are propelling IaaS to become the fastest-growing segment. SaaS continues to dominate, driven by its established presence and the continuous need for innovative health solutions that improve patient outcomes and operational efficiency.

    Software as a Service (Dominant) vs. Infrastructure as a Service (Emerging)

    Software as a Service (SaaS) holds a dominant position in the US cloud computing-in-healthcare market, characterized by an extensive range of applications tailored for healthcare professionals. This model allows users to access software via the internet, eliminating the need for complex installations and maintenance. SaaS solutions enhance collaboration, improve access to patient information, and streamline workflows, making them invaluable in clinical settings. Conversely, Infrastructure as a Service (IaaS) is emerging as a competitive option, offering healthcare entities the ability to scale their IT resources according to demand. With the growing focus on data storage and processing capabilities, IaaS is set to meet the needs of healthcare organizations looking for customizable infrastructure solutions, thus driving its rapid growth.

    By End Use: Hospitals (Largest) vs. Clinics (Fastest-Growing)

    In the US cloud computing-in-healthcare market, Hospitals dominate the end-use segment, capturing the largest market share. This is primarily due to their extensive need for data management, patient records, and operational efficiency, making them critical users of cloud solutions. Clinics, while smaller in market share compared to hospitals, are experiencing a rapid increase in adoption rates, driven by their growing demand for telehealth services and patient-centered care models. The growth trends in this segment indicate a significant shift towards digitalization. As healthcare providers, including clinics, seek to enhance patient engagement and streamline operations, the adoption of cloud computing solutions is expected to accelerate. Factors such as regulatory support, improved interoperability, and the rising need for data analytics in healthcare decision-making are also acting as key drivers, particularly for clinics that require adaptable solutions to manage patient data effectively.

    Hospitals: Dominant vs. Clinics: Emerging

    Hospitals represent the dominant segment within the US cloud computing-in-healthcare market, leveraging cloud technologies to enhance patient care, streamline administrative processes, and ensure compliance with healthcare regulations. The substantial investment in IT infrastructure allows hospitals to achieve greater scalability and enhance the quality of medical services. On the other hand, clinics are emerging as a significant player owing to their increasing reliance on cloud computing. The shift towards telehealth services and the need for effective patient management systems are driving clinics to adopt cloud solutions rapidly. This trend not only improves operational efficiency but also enhances patient satisfaction, positioning clinics as agile participants in a rapidly evolving healthcare landscape.

    Get more detailed insights about US Cloud Computing in Healthcare Market

    Key Players and Competitive Insights

    The cloud computing-in-healthcare market is characterized by a dynamic competitive landscape, driven by the increasing demand for digital transformation and enhanced patient care solutions. Major players such as Amazon Web Services (US), Microsoft (US), and Google Cloud (US) are at the forefront, leveraging their technological prowess to innovate and expand their service offerings. Amazon Web Services (US) focuses on providing scalable cloud solutions tailored for healthcare providers, emphasizing data security and compliance. Microsoft (US) positions itself through strategic partnerships and a robust ecosystem, enhancing its Azure platform to support healthcare analytics and AI-driven insights. Google Cloud (US) aims to differentiate itself by integrating advanced machine learning capabilities into its healthcare solutions, thereby enhancing operational efficiencies and patient outcomes. Collectively, these strategies foster a competitive environment that prioritizes innovation and responsiveness to market needs.

    Key business tactics within this market include localized service offerings and supply chain optimization, which are essential for meeting the specific regulatory requirements of the healthcare sector. The competitive structure appears moderately fragmented, with a mix of established tech giants and specialized healthcare IT firms. This fragmentation allows for diverse service offerings, yet the influence of key players remains substantial, as they set industry standards and drive technological advancements.

    In October 2025, Amazon Web Services (US) announced a partnership with a leading healthcare provider to implement a cloud-based electronic health record (EHR) system. This strategic move is significant as it not only enhances AWS's footprint in the healthcare sector but also underscores the growing trend of integrating cloud solutions with EHR systems, which are critical for improving patient data management and interoperability.

    In September 2025, Microsoft (US) launched a new initiative aimed at integrating AI capabilities into its healthcare cloud services. This initiative is pivotal as it aligns with the increasing demand for data-driven decision-making in healthcare, potentially transforming how providers analyze patient data and deliver personalized care. By enhancing its AI offerings, Microsoft positions itself as a leader in the healthcare cloud space, catering to the evolving needs of healthcare organizations.

    In August 2025, Google Cloud (US) expanded its partnership with a prominent health technology company to enhance telehealth services through its cloud platform. This expansion is indicative of the growing importance of telehealth solutions, particularly in improving access to care. By leveraging its cloud infrastructure, Google Cloud (US) aims to facilitate seamless communication and data sharing between patients and providers, thereby enhancing the overall patient experience.

    As of November 2025, current trends in the cloud computing-in-healthcare market include a strong emphasis on digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to pool resources and expertise to deliver comprehensive solutions. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technological advancements, and supply chain reliability. This shift suggests that companies that prioritize these elements will be better positioned to thrive in an increasingly complex and demanding market.

    Key Companies in the US Cloud Computing in Healthcare Market market include

    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.

    Future Outlook

    US Cloud Computing in Healthcare Market Future Outlook

    The cloud computing-in-healthcare market is projected to grow at an 18.59% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing demand for data management solutions.

    New opportunities lie in:

    • Development of AI-driven patient management systems
    • Expansion of telehealth platforms with integrated cloud solutions
    • Creation of secure data exchange networks for healthcare providers

    By 2035, the market is expected to achieve substantial growth, enhancing healthcare delivery and operational efficiency.

    Market Segmentation

    US Cloud Computing in Healthcare Market End Use Outlook

    • Hospitals
    • Clinics
    • Pharmaceutical Companies
    • Research Organizations

    US Cloud Computing in Healthcare Market Application Outlook

    • Electronic Health Records
    • Telemedicine
    • Data Storage and Backup
    • Medical Imaging
    • Practice Management

    US Cloud Computing in Healthcare Market Service Model Outlook

    • Infrastructure as a Service
    • Platform as a Service
    • Software as a Service

    US Cloud Computing in Healthcare Market Deployment Type Outlook

    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

    Report Scope

    MARKET SIZE 202411.5(USD Billion)
    MARKET SIZE 202513.64(USD Billion)
    MARKET SIZE 203575.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)18.59% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies Profiled["Amazon Web Services (US)", "Microsoft (US)", "Google Cloud (US)", "IBM (US)", "Oracle (US)", "Salesforce (US)", "Cerner Corporation (US)", "Allscripts Healthcare Solutions (US)", "Philips (NL)"]
    Segments CoveredApplication, Deployment Type, Service Model, End Use
    Key Market OpportunitiesIntegration of artificial intelligence and machine learning enhances patient care and operational efficiency in cloud computing-in-healthcare market.
    Key Market DynamicsGrowing adoption of cloud solutions in healthcare driven by regulatory compliance and demand for data security.
    Countries CoveredUS

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    FAQs

    What is the expected market size of the US Cloud Computing in Healthcare Market in 2024?

    The US Cloud Computing in Healthcare Market is expected to be valued at 3.5 billion USD in 2024.

    What is the projected market value of the US Cloud Computing in Healthcare Market by 2035?

    By 2035, the market is anticipated to reach a valuation of 13.85 billion USD.

    What is the expected CAGR for the US Cloud Computing in Healthcare Market from 2025 to 2035?

    The market is projected to exhibit a compound annual growth rate (CAGR) of 13.32% between 2025 and 2035.

    Which application segment holds the highest market value in 2024?

    The Electronic Health Records segment is valued at 0.886 billion USD in 2024, making it the highest market value segment.

    What is the projected growth of the Telemedicine segment by 2035?

    The Telemedicine segment is expected to grow to a market value of 2.811 billion USD by 2035.

    Who are the key players in the US Cloud Computing in Healthcare Market?

    Major players include Oracle, IBM, Amazon Web Services, Cerner, and Microsoft, amongst others.

    What is the projected market value for Data Storage and Backup in 2035?

    Data Storage and Backup is expected to have a market value of 2.315 billion USD by 2035.

    How much is the Medical Imaging segment valued at in 2024?

    The Medical Imaging segment is valued at 0.548 billion USD in 2024.

    What is the expected market value for the Practice Management segment in 2035?

    The Practice Management segment is projected to reach 3.101 billion USD by 2035.

    What are the key growth drivers for the US Cloud Computing in Healthcare Market?

    Key growth drivers include the increasing need for data security, efficiency in healthcare delivery, and rising adoption of telehealth solutions.

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