Healthcare Cloud Infrastructure Market size was over USD 58.7 billion in 2024 and is estimated to reach USD 374.5 billion by the end of 2037, expanding at a CAGR of 16.7% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of healthcare cloud infrastructure is estimated at USD 68.5 billion. The growth is driven by the surge in collecting data volume for healthcare facilities. The collected data is further utilized to improve the spectrum of medical services. Many pharmaceutical companies also choose cloud services to collect patient feedback in drug development. In March 2024, Microsoft collaborated with NVIDIA to elevate the research and innovation in health and life sciences through cloud computing technology.
The rise in EHRs and telehealth services is also growing the demand in the healthcare cloud infrastructure market. Health organizations are adopting cloud solutions for efficient data management and storage. Hospitals and other large healthcare institutions are seeking secure cloud services to comply with regulatory laws. Leading tech companies are developing technologies to supply as per HIPPA-compliance conditions. In April 2021, IBM introduced Trestle to help highly regulated industries, including healthcare. The open-source tool can accommodate auto-compliance with regulations during development. Such innovative cloud solutions are helping developers save time while minimizing the risk of noncompliance.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
16.7% |
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Base Year Market Size (2024) |
USD 58.7 billion |
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Forecast Year Market Size (2037) |
USD 374.5 billion |
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Regional Scope |
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Component (Service, Hardware)
In terms of components, the service segment is projected to dominate healthcare cloud infrastructure market share of over 76.7% by 2037. Diverse applications and scalability are some of the major reasons behind the rapid adoption of cloud services. The effectiveness of these offerings including IaaS, PaaS, and SaaS is propelling the demand. The secure and efficient solutions enable medical organizations to improve patient care and streamline operations. In November 2023, ServiceNow collaborated with AWS with a five-year SCA to develop a conjugated Software‑as‑a‑Service (SaaS). The service is dedicated to developing AI-driven custom applications for industries such as healthcare.
End Use (Healthcare Providers, Healthcare Payers)
Based on end use, the healthcare providers segment is garnering greater growth opportunities in the healthcare cloud infrastructure market. Enlarging demand for the HER, patient management, and data storage solutions is emphasizing the industry. The increased range of medical facilities inspires providers to develop more convenient and affordable cloud tools. Enhanced patient care and improved operational efficiency are driving the focus of organizations to implement cloud technologies. Many tech companies are combining industry expertise to upgrade their existing data management solutions. For instance, in April 2021, Microsoft acquired Nuance in a transaction of USD 19.7 billion to extend cloud and AI capabilities for EHRs.
Our in-depth analysis of the global market includes the following segments:
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Component |
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End use |
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North America Market Analysis
North America in healthcare cloud infrastructure market is likely to hold more than 39.8% revenue share by 2037. The massive growth is propelled by the efforts of global leaders, originated in this region. The well-established medical facilities demand continuous advancement in data management. Cloud services offer an efficient solution to introduce new technologies to improve healthcare outcomes. For instance, in June 2024, Cognizant partnered with Google Cloud to launch the first set of Healthcare Large Language Models (LLM). The solution is based on the genAI including the Vertex AI platform and Gemini, aiming to improve administrative experience.
The U.S. is leading to dominate the landscape of the healthcare cloud infrastructure market by the end of 2037. Being home to the industry leaders such as Microsoft, Google, IBM, and others, the country shows great investment opportunities. Companies are also focusing on R&D to enhance cybersecurity. In April 2024, IBM acquired HashiCorp, Inc. to create an end-to-end encrypted cloud platform for healthcare providers. Through this acquisition worth USD 6.4 billion, IBM aims to deliver hybrid and multi-cloud offerings, creating future cloud opportunities. Leaders are also partnering to stand out in the global cost competitiveness of this sector. In July 2024, Humana and Google Cloud expanded their partnership to a multi-year agreement to develop a cost-effective healthcare platform for the members.
Canada is also augmenting with regulatory support to participate in the regional growth of the healthcare cloud infrastructure market. Regulations such as PHIPA and PIPEDA are shaping the standards to produce solutions with data security. The cloud service providers are partnering with research facilities to support R&D for life sciences. In September 2024, CanPath collaborated with AWS to supply regional data for the researchers of OICR. The research facility will utilize a grant worth USD 6.2 million from Genome Canada. CanPath, Lifebit, and AWS will build a secure cloud-based platform, the Trusted Research Environment. Such applications in data sharing, hosting, and analyzing inflate the demand for cloud computing tools.
APAC Market Statistics
Asia Pacific healthcare cloud infrastructure market is estimated to witness significant growth in upcoming years due to increasing demand for telehealth services. The cost reduction benefit of cloud services breaks the economic barriers. Further, making world-class healthcare accessible to every patient. In July 2024, Australia government announced an investment of USD 20 million to commercialize digital health research projects. Such initiatives inspire future developments in cloud services. According to the Australia economic strategy for Southeast Asia by 2040, 75% of the value of healthcare in Asia will be attributed to digitalization. The share will consist of investment opportunities for the EHRs, cloud services, AI, and others.
India is predicted to obtain lucrative growth in the healthcare cloud infrastructure market by 2037. Government programs such as the National Digital Health Mission are promoting digitalization in the medical industry. The integration of digital solutions is further boosting cloud adoption. In September 2023, Apollo Hospital collaborated with Google Cloud to build an AI-powered clinical decision support system for doctors. The developed Clinical Intelligence Engine offers assistance through collective data from Apollo and LLM from Google.
China is expected to generate record-high revenue in the healthcare cloud infrastructure market. The post-pandemic landscape of this country has fostered a zero-visit culture in medical services, surging the need for cloud computing services. According to a report published by NIH, in February 2024, the market size of the medical cloud computing industry reached USD 66.9 billion in 2022. It is estimated to hold USD 150 billion by the end of 2025 due to the impact of the COVID-19 pandemic. The survey further revealed that around 63% of hospitals in China were using cloud services till 2022.
The focus is shifting towards the development of a secure network for the transition in medical data management. Leaders are now enhancing data security in the healthcare cloud infrastructure market through end-to-end encryption and multi-factor authentication. In April 2024, Google Cloud launched Next Gen Firewall Enterprise to offer robust network security. The seamless security controls help operators to save sensitive health-related data from cyber threats. They are also upgrading cloud services to comply with safety regulations such as HIPPA and NIST. These innovations are helping companies gain consumer trust, leveraging future investment opportunities in this sector. Such key players include:
Author Credits: Radhika Pawar
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