Healthcare Cloud Infrastructure Market Size To Hit USD 157.8 Bn By 2030

Published Date : 27 Jan 2023

The global healthcare cloud infrastructure market size accounted for USD 52.18 billion in 2022 and is expected to hit around USD 157.8 billion by 2030 with a noteworthy CAGR of 14.8% between 2022 to 2030.

Cloud computing is installed in healthcare organizations to store, manage and process healthcare-related data. It refers to executing remote servers accessed via the internet. It is different from setting up an on-site data center with servers. It offers benefits to both patients and physicians. It provides various uses, such as reduced costs, improved privacy, and facilitating better patient care. Cloud storage allows healthcare professionals and hospitals to store large volumes of data in a secure environment. Hospitals across the USA have adopted cloud-based healthcare solutions. It is meant to store and protect patient records.

The introduction of electronic medical records (EMR) is gaining popularity. It helps in keeping information about patient interactions. It helps to improve the quality, safety, and efficiency of medical services. It enhances the coordination of care and maintains patient privacy and security. Now, almost all hospitals have banned the practice of paper record-keeping. Electronic health records are updated electronically by physicians, nurses, and other healthcare providers. It streamlines the process of collaborative patient care. It makes it easier for doctors to share a patient’s medical records.

The widespread adoption of cloud-based data storage solutions has generated new avenues for “big data” applications to enhance patient outcomes. It lowers data management costs and offers flexibility via the pay-as-you-go cost structure associated with data storage. It is fully scalable and plays a significant role in enhancing patient safety.  

Growth Factors 

The growing trend of digitalization of healthcare drives the global healthcare cloud infrastructure market. The increasing integration of advanced AI/ML algorithms and cloud deployment of healthcare systems significantly contribute to market growth. The rising expenditure, overburdened systems, and inefficient facility management positively influence market growth. The demand for healthcare cloud infrastructure is witnessing a surge. The ability to integrate and streamline care facilities' workflows and drive their operational and functional outcome catalyze market growth. It offers various benefits, such as enhanced data management, security, and optimum care. All these factors are expected to boost the adoption of cloud infrastructure systems and propel market growth.

The demand for advanced cloud infrastructure and solutions increased due to the surging implementation of these systems. The escalating demand for resilient and scalable IT computing solutions and rapid technological advancements favors market growth. The pandemic raised the need for cloud infrastructure implementation. Healthcare organizations are adjusting to adopt these advanced solutions. Implementing these systems allows healthcare organizations to lower their IT spending and focus on remote working. The increasing access to advanced technological solutions and the high demand for cloud computing to reduce costs and improve flexibility, storage, and scalability are boosting the market growth.

The expanding IT infrastructure in developed countries strengthens market growth. The growing patient population and volume of patient information are accelerating product demand. The heavy public and private investments favor market growth. The rising demand for technological solutions, cost-effective healthcare services, growing government initiatives and incentives, and heavy investments to implement hospital cloud computing solutions are expected to drive the market. It helps to improve cost optimization and efficiently handle rising network traffic.

The companies are integrating a hybrid cloud model strategy. The demand for secure and scalable IT infrastructure in healthcare organizations is increasing. The hospitals are implementing advanced computing systems and solutions to streamline their workflow and digitally transform their businesses.  

Healthcare Cloud Infrastructure Market Report Scope

Report Coverage Details
Market Size in 2022 USD 52.18 Billion
Market Size by 2030 USD 157.8 Billion
Growth Rate from 2022 to 2030 CAGR of 14.8%
Base Year 2022
Forecast Period 2022 to 2030
Segments Covered By Component, By End User, By Deployment Model and By Pricing Model
Regions Covered  North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Report Highlights: 

Based on the component, services dominated the market. They accounted for the largest revenue share due to the increasing implementation of software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) in the hospital, clinical, and community settings. Many companies are implementing enhanced computing services and solutions. Hardware is expected to grow at the fastest CAGR due to the increasing demand for hardware platforms and the decreasing price of electronic devices.

By end-use, healthcare providers dominated the market due to the increasing implementation of healthcare cloud infrastructure in hospitals. It offers scalability, flexibility, and enhanced data management.

Regional snapshots 

Based on the region, North America dominated the market and held the largest revenue share. This is due to the increasing healthcare expenditure. The advancements in the IT infrastructure and the development of healthcare cloud infrastructure products and solutions are expected to contribute significantly to regional market growth.

In the Asia Pacific, the market is expected to witness a promising CAGR in the coming years due to innovative start-up companies specializing in healthcare cloud infrastructure. The developing healthcare IT infrastructure, advanced technological solutions, and public and private investors are anticipated to drive market growth across the region.

Market Dynamics:

Driver: Rising adoption of digital technologies

The increasing demand for digital technologies among healthcare professionals significantly contributes to market growth. In line with this, the rising patient population suffering from various diseases is raising the need for efficient data management tools. Healthcare cloud computing provides patient information through secured networks. It eliminates data privacy concerns. 

The growing acceptance of these technologies and the market players' collaboration strategy catalyze market growth. The shift of the healthcare industry toward an information-centric model creates a positive outlook for the market. The data automation and storage, and IoT support offered by cloud computing solutions accelerate its demand. The higher usage of digital platforms in healthcare organizations and government support propels market growth. The integration of cloud computing services in hospitals fuels market expansion. 

Opportunity: Surged preference and adoption for healthcare cloud computing 

The increasing preference and adoption of healthcare cloud computing solutions across healthcare organizations offer various market growth opportunities. The growing government initiatives that support data safety and integrity catalyze market growth. The favorable regulatory scenario and healthcare professionals' rapid adoption of cloud computing software strengthen market growth. The rising awareness regarding the availability of technologically advanced computing software in developed countries stimulates its demand. The ease of interoperability, telemedicine capabilities, and reduction of costs are a few benefits offered by it. Healthcare cloud computing is beneficial for both patients and healthcare professionals. The widespread usage of healthcare cloud computing solutions favors market growth.

Restraint: Data safety concerns associated with the cloud computing solutions

There are various data concerns in the cloud computing software which restrict the market growth. The data is not safe, which is a matter of concern. 

Challenge: IT infrastructural constraints in developing economies

The IT infrastructural constraints in developing countries challenge market growth. The cost issue is a problem in the adoption of these solutions. The maintenance and software update expenses are high. The shortage of internal IT expertise in the medical industry hampers the market growth. The implementation costs of healthcare IT solutions are very high. Thus, the high costs limit hospitals from investing in healthcare IT solutions across developing countries. 

Key Developments: 

  • In February 2022, Lyniate acquired SAP SE to bring technology and management consulting expertise to customers to help them adopt a hybrid cloud framework. 
  • In February 2022, IBM acquired Neudesic, LLC, to raise IBM's portfolio of hybrid multi-cloud services and foster the firm's hybrid cloud and AI strategy. 

Major Key Players:

  • Dell, Inc.
  • Hewlett Packard Enterprise Development LP
  • Microsoft
  • Oracle
  • IBM
  • Salesforce
  • Amazon

Market Segmentation:

By Component

  • Hardware
    • Network
    • Server
    • Storage
  • Services
    • SaaS
    • IaaS
    • PaaS

By End Use

  • Healthcare Providers
    • EHR/EMR
    • PACS and VNA
    • RIS
    • LIS
    • PIS
    • PHM Solutions
    • Telehealth Solutions
    • Other CIS
    • RCM Solutions
    • Financial Management Solutions
    • HIE Solutions
    • Supply Chain Management Solutions
    • Billing & Accounts Management Solutions
    • Other NCIS
    • Clinical Information Systems (CIS)
    • Non-clinical Information Systems (NCIS)
  • Healthcare Payers
    • Claims Management Solutions
    • Payment Management Solutions
    • Customer Relationship Management Solutions
    • Provider Network Management Solutions
    • Fraud Management Solutions

By Pricing Model

  • Pay-as-you-go
  • Spot Pricing

By Deployment Model

  • Private Cloud
  • Hybrid Cloud
  • Public Cloud

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