Healthcare Cloud Computing Market Size

Healthcare Cloud Computing Market Analysis

The Healthcare Cloud Computing Market size is estimated at USD 49.14 billion in 2024, and is expected to reach USD 83.93 billion by 2029, growing at a CAGR of 11.30% during the forecast period (2024-2029).

The COVID-19 pandemic is expected to have an overall positive effect on the market. The management of a vast amount of data has been one of the main problems the healthcare industry has faced, particularly in light of the increasing demands brought on by the pandemic. To collect, store, and analyze data to improve healthcare operations further, cloud technology has been and maybe a significant help in this area. Cloud-based solutions enable healthcare organizations to only pay for the resources they use by decentralizing the system. Cloud computing technologies enable healthcare organizations to track and map diseases and notify the public about areas where risk is present at a significantly cheaper cost and faster rate. For instance, as per the report of NHC of the people's republic of China, in November 2022, there were 1,794 new cases of COVID-19 reported in various areas of China. Hence, tracking and mapping the disease is made easy with cloud computing and is expected to positively impact the market over the coming years due to continuing booster vaccination and new COVID-19 cases.

The major factors bolstering the growth of the healthcare cloud computing market include increasing access to advanced technology, such as machine learning, the rise in the adoption of information technology in the healthcare sector, and the usage of the cloud for reducing cost and improving scalability, storage, and flexibility. Following the epidemic, which forced healthcare leaders to adapt and innovate in ways they had never done before, they are embracing the advantages of the cloud and software as a service (SaaS). Hence, there is an increase in the adoption of information technology advancements in cloud technologies for healthcare and life sciences, increasing the demand for cloud computing. For instance, as per the report published by Philips in June 2022, 66% of healthcare leaders expect to move their technology infrastructures to the cloud in 2022, which is set to rise to 96% by 2024.

Similarly, in March 2022, Microsoft Corp. expanded its healthcare cloud strategy with new solutions and capabilities across data, artificial intelligence, and clinician experiences. Thus, the increase in the adoption of technology and advancements in cloud computing in the healthcare sector increases the demand for healthcare cloud computing which drives the market growth over the forecast period. However, the factors such as data security and integrity issues and lack of interoperability and industry standards hinder the market's growth over the forecast period.