Healthcare Cloud Computing Market To Hit USD ~233 Bn by 2032

Trishita Deb
Trishita Deb

Updated · Jun 6, 2024


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The global healthcare cloud computing market is expected to experience significant growth, reaching an estimated value of USD 233.1 billion by 2032, up from USD 41.4 billion in 2022, with a compound annual growth rate (CAGR) of 17.6% from 2023 to 2032. This strong growth is driven by factors such as the increasing adoption of cloud solutions in the healthcare sector, which enables efficient data storage, enhanced data security, and improved patient care through seamless data sharing and real-time analysis.

Key growth drivers include the growing demand for cost-effective and scalable cloud-based solutions, the expansion of telehealth services, and the increasing implementation of electronic health records (EHR) and clinical information systems (CIS). The COVID-19 pandemic has accelerated the adoption of cloud computing in healthcare, emphasizing the need for remote consultation, patient monitoring, and telemedicine applications. Recent developments such as Hackensack Meridian Health’s partnership with Google Cloud to enhance innovation and efficiency, and AWS introducing new healthcare AI products, highlight the ongoing technological advancements in the sector.

However, the market also faces challenges, particularly around data security and regulatory compliance. Healthcare organizations must address these concerns to safeguard sensitive patient information. Despite these challenges, the benefits of cloud computing, such as operational resilience, cost savings, and flexibility, continue to drive market growth.

The healthcare cloud computing sector has witnessed several significant mergers and acquisitions (M&A) and funding activities recently. In 2023, Thoma Bravo acquired NextGen Healthcare for USD 1.8 billion, bolstering its portfolio with clinical care software solutions including electronic health records (EHR) and telehealth. Another notable deal includes CVS Health’s acquisition of Oak Street Health for USD 10.6 billion, aimed at expanding its primary care services.

UnitedHealth Group also made a significant move by acquiring Amedisys, a home health and hospice provider, in a USD 3.3 billion transaction. Furthermore, TPG and AmerisourceBergen completed a USD 2.1 billion acquisition of OneOncology, a network of cancer care practices. These transactions reflect the ongoing consolidation in the healthcare sector, driven by the need for integrated digital health solutions and the strategic expansion of service offerings.

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Key Takeaways

  • The global healthcare cloud computing market is projected to reach approximately USD 201.1 billion by 2032, up from USD 41.4 billion in 2022. This represents a remarkable CAGR of 17.6% during the forecast period from 2023 to 2032.
  • According to an analytical study by HIMSS, over 83% of healthcare organizations are currently utilizing cloud services, showcasing the widespread adoption of cloud computing in the healthcare sector.
  • By 2022, Software as a Service (SaaS) accounted for the largest revenue share in the healthcare cloud computing market, attributed to its advantages such as enhanced security, rapid deployment, and lower total cost of ownership.
  • The private cloud segment holds the highest profitability in the global healthcare cloud computing market, offering secure storage of Protected Health Information (PHI) and protection against data breaches.
  • In 2022, the healthcare provider segment dominated the market, capturing over 62.0% revenue share, driven by increased connectivity to hospitals via cloud infrastructure and the demand for Software as a Service (SaaS) models.
  • North America accounted for 51% of the market share in 2022, owing to factors such as a growing geriatric population, rising healthcare costs, and high adoption of healthcare IT services.
  • The healthcare cloud computing market is propelled by the implementation of breakthrough technologies, high-speed internet availability, and the rising adoption of electronic health records.
  • Rising privacy and data security concerns, along with a shortage of skilled IT professionals, pose challenges to the global development of the healthcare cloud computing market.
  • The emergence of telecloud and the utilization of blockchain technology present opportunities for further expansion in the healthcare cloud computing market, particularly in delivering remote patient care and enhancing data security.
  • The increasing prevalence of diseases, government initiatives toward digitalization, and efforts to improve clinical infrastructure contribute to the positive market dynamics in the healthcare cloud computing sector.

Healthcare Cloud Computing Statistics

  • McKinsey’s research suggests that cloud computing in healthcare can generate up to USD 140 billion in economic value by 2030.
  • The healthcare industry’s spending on cloud services surged to USD 3.73 billion last year, and it is projected to reach USD 9.48 billion by 2020.
  • 70% of health IT professionals have already adopted cloud computing solutions, with another 20% intending to migrate within the next two years.
  • Cloud computing adoption is associated with a 30% reduction in patient no-show rates and a 25% decrease in patient wait time.
  • Cloud-based technologies enhance the patient experience by facilitating contactless patient intake, online appointment scheduling, and telehealth services.
  • Cloud computing facilitates real-time data analytics, allowing healthcare providers to process millions of requests in seconds.
  • Healthcare organizations leverage AI and ML technologies to enhance preventative care. ML models identify at-risk patients for proactive interventions.
  • Over 83% of healthcare organizations are already leveraging cloud services, emphasizing enhanced patient care, cost reduction, and regulatory compliance.
  • The US Department of Health and Human Services reported investigating 412 data breaches in 2018, underscoring the importance of robust security measures.
  • The adoption of hybrid cloud solutions is gaining traction, with 95% of healthcare organizations considering it ideal to mitigate cloud availability risks.
  • Despite promising benefits, security remains a key concern, with a record-breaking 725 cyberattacks reported in 2023.
  • Cloud-based EHR systems enable secure storage of comprehensive patient information, leading to streamlined workflows and improved care coordination, observed in 84% of companies post-migration.
  • Healthcare providers can significantly reduce medical record storage costs by using cloud services like Amazon S3 Deep Archive.
  • Cloud computing supports the shift towards value-based care models by enabling large dataset analysis and the development of necessary metrics.
  • The scarcity of skilled IT professionals has hindered cloud adoption, with 45.6% of respondents attributing slow adoption to a lack of qualified personnel.

Use Cases

  • Remote Patient Monitoring: Cloud computing enables the deployment of systems for supervising and managing patients’ health remotely. Using Internet of Medical Things (IoMT) devices like wearable biosensors, data is collected and sent to cloud servers where healthcare providers can monitor patients in real-time. This approach is particularly beneficial for chronic disease management and emergency response. An example includes cloud-based ECG monitoring systems that send data to cardiologists for real-time analysis and timely intervention.
  • Telemedicine Applications: Telemedicine leverages cloud computing to facilitate virtual consultations, remote surgeries, and real-time patient monitoring. This technology enables healthcare providers to deliver care to patients regardless of their location, reducing the need for in-person visits and improving access to healthcare services. Cloud platforms support video conferencing, real-time data sharing, and remote diagnostic tools, enhancing the overall efficiency of telemedicine services.
  • Big Data Analytics: Cloud computing supports big data analytics by providing the necessary computational power and storage to analyze large datasets. This capability is crucial for healthcare providers to identify patterns, predict outcomes, and personalize treatment plans. For instance, cloud platforms like Amazon Web Services (AWS) offer analytics services that healthcare organizations use to process and interpret vast amounts of patient data, improving decision-making and patient care.
  • E-prescription Management: E-prescription systems hosted on cloud platforms allow healthcare providers to manage and fulfill prescriptions electronically. This system streamlines the prescription process, reduces errors, and ensures that patients receive their medications promptly. Cloud-based e-prescription services can integrate with other healthcare systems, enhancing coordination between pharmacies, patients, and healthcare providers.
  • Disaster Recovery: Cloud computing offers robust disaster recovery solutions by maintaining backup copies of critical data and applications in the cloud. In the event of a system failure or disaster, healthcare organizations can quickly restore their operations using cloud-based backups, minimizing downtime and ensuring continuous patient care. This capability is cost-effective and scalable, making it an attractive option for healthcare providers.
  • Collaborative Patient Care: Cloud platforms facilitate real-time collaboration among healthcare professionals by allowing them to share and access patient data seamlessly. This collaboration is essential for multi-disciplinary care teams to coordinate treatment plans, consult with specialists, and provide comprehensive care to patients. Cloud computing ensures that all stakeholders have up-to-date information, improving the quality and efficiency of patient care.


In conclusion, the healthcare cloud computing market is poised for substantial growth, driven by technological advancements and the increasing need for efficient data management solutions in the healthcare industry. The integration of cloud-based applications is expected to revolutionize patient care, offering significant opportunities for healthcare providers and payers alike.

Trishita Deb

Trishita Deb

Trishita has more than 7 years of experience in market research and consulting industry. She has worked in various domains including healthcare, consumer goods, and materials. Her expertise lies majorly in healthcare and has worked on more than 400 healthcare reports throughout her career.