Cloud Computing in Healthcare Market Set for Rapid Growth and Trend by 2025-2030

 

Market Overview

The global cloud computing in healthcare market is poised to register robust growth at an estimated rate of 16% over the next five years, driven by the rapid digital transformation of healthcare systems worldwide. Healthcare organizations are increasingly adopting cloud-based solutions to manage the growing volume of patient data, streamline clinical workflows, and enhance care delivery efficiency. The shift toward value-based care models and outcome-driven healthcare is further accelerating the need for flexible, scalable, and cost-effective IT infrastructure. Cloud computing enables healthcare providers to move away from capital-intensive, on-premises systems and adopt subscription-based or usage-based models, reducing operational burdens while improving system agility. Rising patient expectations for seamless, connected, and technology-enabled care experiences are also encouraging providers to invest in cloud platforms that support real-time data access and collaboration across care teams.

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The increasing adoption of electronic health records has emerged as one of the most influential drivers of cloud computing in healthcare. As regulatory mandates and quality improvement initiatives push healthcare organizations to digitize patient records, cloud-based EHR systems offer an efficient solution for secure data storage, interoperability, and remote accessibility. Additionally, the growing use of telemedicine and remote patient monitoring solutions is amplifying the need for reliable cloud infrastructure capable of handling continuous data streams from patients and connected medical devices. Advanced capabilities related to scalability, data storage, and computing power are making cloud solutions indispensable for healthcare providers seeking to future-proof their IT environments.

Report Overview
Cloud computing in healthcare refers to the deployment of computing services such as servers, storage, databases, networking, software, and analytics over the internet to support healthcare operations and clinical applications. Instead of relying on localized data centers or standalone systems, healthcare organizations can access cloud-hosted platforms that enable anytime, anywhere access to critical information. This model enhances collaboration among clinicians, administrators, and researchers by allowing secure data sharing across departments and geographic locations. Cloud computing also plays a vital role in supporting emerging technologies such as artificial intelligence, machine learning, and big data analytics, which require high computational capacity and flexible infrastructure.

By leveraging cloud-based systems, healthcare providers can significantly reduce infrastructure maintenance costs while improving system reliability and disaster recovery capabilities. Cloud platforms support seamless integration of electronic health records, imaging systems, laboratory data, and administrative applications into unified digital ecosystems. Furthermore, cloud computing facilitates the adoption of Internet of Things devices and wearable technologies that continuously capture patient health data, enabling proactive monitoring and early intervention. These capabilities collectively contribute to improved clinical outcomes, enhanced patient engagement, and more efficient healthcare delivery models.

Key Player Efforts for Adoption of Cloud Computing Through Funding
Major technology providers are actively supporting the adoption of cloud computing in healthcare through targeted funding initiatives and strategic investments. In June 2024, Amazon Web Services announced a $10 million grant aimed at accelerating cloud adoption by enabling healthcare organizations to implement cloud-based data sharing and AI-driven analytics. This initiative focuses on improving diagnostic speed and accuracy, particularly in the area of rare diseases, by fostering collaboration across research institutions and healthcare providers. By leveraging cloud infrastructure, healthcare teams can analyze large datasets more efficiently and develop personalized treatment approaches.

In January 2024, AWS expanded its Health Equity Initiative by adding $20 million in funding, bringing the total investment to $60 million. This initiative emphasizes the use of cloud-hosted solutions to improve healthcare access and outcomes for underserved and marginalized populations. By addressing challenges related to equitable diagnostics, social determinants of health, and climate-related health risks, AWS is positioning cloud computing as a key enabler of inclusive and sustainable healthcare systems. These funding efforts highlight the growing role of cloud technology in addressing systemic healthcare challenges while driving market adoption.

Switching from Legacy Systems as a Key Challenge
Despite the numerous advantages of cloud computing, transitioning from legacy healthcare systems remains a significant challenge for market growth. Many healthcare organizations still rely on outdated infrastructure that was not designed to integrate with modern cloud platforms. Migrating data from these systems involves complex processes, high upfront costs, and substantial planning to ensure continuity of operations. Data migration efforts must prioritize accuracy, security, and regulatory compliance, as errors or data loss can have serious implications for patient care and legal obligations.

The transition to cloud-based systems also requires extensive staff training and change management initiatives. Healthcare professionals and administrative staff may initially resist new technologies due to concerns about usability, workflow disruptions, or data security. Ensuring user adoption and minimizing downtime during migration are critical considerations for successful implementation. Although these challenges can slow adoption in the short term, organizations that overcome them often realize long-term benefits such as improved efficiency, enhanced data insights, and greater innovation capacity.

Inorganic Growth Strategies Strengthening Market Presence
Market players in the cloud computing in healthcare sector are increasingly focusing on inorganic growth strategies to strengthen their market position. Strategic partnerships and collaborations are being widely adopted to accelerate technology deployment and expand service offerings. In September 2024, Nova Scotia Health partnered with Google Cloud to implement AI-driven healthcare solutions using cloud infrastructure. By utilizing advanced capabilities such as natural language processing and healthcare-focused AI tools, this partnership aims to enhance clinical decision-making, reduce administrative burdens, and improve patient outcomes.

In July 2024, GE Healthcare entered into a collaboration with Amazon Web Services to develop generative AI models designed to optimize healthcare operations. This partnership leverages AWS cloud services, including Amazon Bedrock, to support advanced data analysis, diagnostics, and workflow optimization. Such collaborations demonstrate how cloud platforms are becoming central to innovation in healthcare delivery and operational efficiency.

In October 2023, AWS collaborated with the Indian government to develop digital health IDs and longitudinal health records stored on a centralized cloud platform. By integrating national health platforms with cloud infrastructure, this initiative aims to create a scalable, secure system for managing health data throughout an individual’s lifetime. These partnerships underscore the growing role of cloud computing in national and regional healthcare transformation initiatives.

Competitive Landscape Analysis
The global cloud computing in healthcare market features a mix of established technology leaders and specialized healthcare IT providers. Market participants are focusing on continuous innovation, strategic alliances, and geographic expansion to maintain competitiveness. New product development efforts are centered on enhancing data security, interoperability, and AI integration within cloud platforms. Companies are also tailoring solutions to meet region-specific regulatory requirements and healthcare delivery models. Expansion into emerging markets with growing digital health adoption represents a key growth strategy, supported by increasing healthcare investments and government-led digitalization programs.

Market Drivers
The rising adoption of electronic health records across healthcare systems is a major driver supporting cloud computing growth.
Advanced capabilities related to data storage, scalability, and computing power are enabling healthcare organizations to manage complex data environments efficiently.
The increasing use of artificial intelligence, big data analytics, medical wearables, and IoT devices is driving demand for robust cloud infrastructure.
The emergence of innovative payment models and the cost-effectiveness of cloud-based solutions are encouraging healthcare providers to transition away from legacy systems.
Growing interoperability requirements are pushing organizations to adopt cloud platforms that support seamless data exchange across care settings.

Attractive Opportunities
The integration of blockchain technology with cloud platforms offers opportunities to enhance data security, transparency, and trust.
Hybrid cloud solutions are gaining traction as healthcare organizations seek to balance flexibility with data control and regulatory compliance.
The growth potential of accountable care organization partnerships is creating new demand for cloud-based analytics and population health management tools.

Key Players

• Amazon Web Services, Inc.
• Microsoft
• Google LLC
• eClinicalWorks
• CareCloud, Inc.
• IBM Corporation
• Oracle
• Veradigm LLC
• Siemens Healthineers
• Koninklijke Philips N.V.

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About Medi-Tech Insights

Medi-Tech Insights is a healthcare-focused business research & insights firm. Our clients include Fortune 500 companies, blue-chip investors & hyper-growth start-ups. We have completed 100+ projects in Digital Health, Healthcare IT, Medical Technology, Medical Devices & Pharma Services in the areas of market assessments, due diligence, competitive intelligence, market sizing and forecasting, pricing analysis & go-to-market strategy. Our methodology includes rigorous secondary research combined with deep-dive interviews with industry-leading CXO, VPs, and key demand/supply side decision-makers.