Cloud Services in Medicine (Global Market)

2024

Global Medical Solutions SaaS Market Growth to $432.27 Billion

In 2024, costs in the global solutions market SaaS (software as a service) for medicine amounted to $432.27 billion. This industry is showing rapid growth, as stated in the Market Research Future review, which TAdviser was reviewed at the end of April 2025.

One of the key drivers of the market, the authors of the study name the desire of medical institutions to improve efficiency, reduce costs and improve patient care. SaaS cloud solutions offer a number of advantages over traditional on-premises software, including lower upfront costs, increased flexibility and scalability, automated updates, and enhanced security. Cloud technologies enable the development and implementation of digital systems for supporting clinical solutions, through which hospitals can improve the diagnosis and treatment of diseases.

Analysts note that the spread of Solutions SaaS for medicine is facilitated by the need for remote monitoring of patients. Such systems allow doctors to monitor the condition of people from a distance, using special electronic devices and sensors to transmit medical data. The method is widely used to monitor vital signs of patients with chronic diseases such as diabetes or heart failure. Modern wearable gadgets, such as fitness bracelets and smartwatches, are capable of tracking a wide range of parameters, including heart rate, blood pressure, blood glucose, stress levels, etc. Such data give the doctor the opportunity to see the full picture of symptoms in real time, which means that earlier to make proactive clinical decisions. SaaS suppliers health care offer a wide range of remote monitoring solutions.

Government initiatives aimed at implementing IT solutions in healthcare also stimulate the development of the SaaS direction. The industry is positively influenced by artificial intelligence, which helps automate routine manual operations and improve the efficiency of analyzing large amounts of medical information, including readings from personal wearable devices.

The study says that geographically, North America provides the most significant share of revenue, which is explained by the high level of development of health infrastructure and growing demand for cloud services: in 2023, the region accounted for 38.5% of global spending. This is followed by Europe with 26.2%, and the Asia-Pacific region closes the top three. The major players on a global scale are:

• Athenahealth;
• Allscripts;
• Epic Systems;
• Salesforce Health Cloud;
• SAP SE;
• Oracle Health;
• Philips Healthcare;
• GE HealthCare;
• Henry Schein One;
• Cerner;
• Siemens Healthineers;
• eClinicalWorks;
• McKesson;
• NextGen Healthcare.

In 2025, the cost of Solution SaaS for medicine worldwide is expected to be about $528.11 billion. In the future, the CAGR, according to Market Research Future analysts, will be at 22.17%. As a result, by 2034, costs could increase to $3.2 trillion. Moreover, the Asia-Pacific region will experience the highest growth rates during the forecast period with a CAGR of 24.2%. This is due to the active implementation of cloud medical solutions and an increase in health care costs in general.^[1]

The volume of the global market for cloud services for healthcare for the year reached $54.28 billion

At the end of 2024, the costs in the global market for cloud services for healthcare amounted to $54.28 billion. This segment demonstrates a steady positive trend, as stated in the Fortune Business Insights review, which TAdviser reviewed in mid-March 2025.

Analysts note that one of the drivers of the industry in question was the COVID-19 pandemic, which accelerated the transfer of workloads to the cloud infrastructure. Cloud computing technologies allow healthcare providers to access patient information from anywhere in the world, contributing to improved treatment outcomes and increased flexibility. Cloud platforms provide scalability and high efficiency while reducing initial hardware costs - institutions can grow resources, including storage capacity, as needed.

The development of telemedicine platforms and remote monitoring tools has a positive impact on the market. In addition, the cloud model helps to carry out uninterrupted communication of patient data between different health care providers. Cloud systems of electronic medical records are actively developing, which help reduce the number of duplicate tasks, reduce the risk of human error, and simplify the process of coordination and delivery of the best quality medical care. Physicians can access comprehensive and up-to-date patient information at any time.

Another driver of the industry named technological advances, including the introduction of artificial intelligence and machine learning. AI algorithms are able to analyze huge amounts of data to identify patterns and anomalies, which increases the accuracy of diagnostics. These tools can integrate and process information from a variety of sources, such as medical records, imaging data, etc. In addition, generative AI can predict patient outcomes by analyzing historical indicators and identifying risk factors. This allows medical institutions to use proactive patient care, which is especially important in chronic diseases. AI is able to form personalized treatment plans adapted to each person based on their medical history, genetic information and lifestyle.

But there are also deterrents - primarily security issues. The risk of data breaches and unauthorized access to patient information can slow the development of cloud-based healthcare solutions.

Depending on the deployment model, the market is divided into public, private, and hybrid clouds. In 2024, the first type of platforms provided the largest revenue thanks to flexibility and cost-effectiveness. Geographically, North America was leading with costs of about $21.85 billion. Three segments are distinguished by service type: Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS ). The main revenue - 50.6% in total - was provided by SaaS services. Significant players in the global industry are:

• Amazon Web Services (AWS);
• CareCloud;
• Siemens Healthcare Private Limited;
• Microsoft;
• Dell;
• IBM;
• Oracle;
• Google;
• Cleardata;
• Koninklijke Philips NV.

According to Fortune Business Insights, in the future, the CAGR in the market under consideration will be 17.6%. As a result, by 2032, costs on a global scale may increase to $197.45 billion.^[2]

2016

Spending on cloud services in healthcare reaches $4.9 billion

According to market research firm Market Research Outlet, spending on cloud computing in healthcare reached $4.9 billion in 2016. Most of these investments fell on North America - about $3.4 billion.

The dominance of this region was a consequence of the introduction of mandatory requirements for storing patient data in electronic format, the growth of IT investment in the medical sector and improvements in the healthcare infrastructure in North America as a whole.

The market for cloud services in medicine was estimated at $5 billion

As for the segments with the highest revenue, IaaS services took first place in 2016. If we talk about specific product categories, then image archiving and transmission (PACS) systems are leading here, which occupied 3/7 of the total market volume. According to analysts, PACS spending will increase by 29.8% annually between 2017 and 2024. These products are critical for making important medical decisions and delivering treatment, the study said.

Healthcare companies and institutions around the world are expected to spend a total of about $25.7 billion on IaaS, PaaS and SaaS solutions by 2024, and the market will grow at 23.4% per year.

Cloud services are in demand in the medical market as they offer infrastructure that allows hospitals, clinics, insurance companies and research organizations to improve their computing resources at low costs. The development of cloud technologies is due to the fact that institutions are increasingly paying attention to costs and improving the quality of medical services.^[3]

The Market Research Outlet report cites the names of the main providers of cloud services for healthcare needs:

• CareCloud;
• ClearDATA Networks;
• Oracle;
• Microsoft;
• Agfa Healthcare;
• IBM;
• Cisco;
• Intel;
• Carestream Health;
• Merge Healthcare.

Imaging Technology Spend $285.4 Million - Frost & Sullivan Data

In mid-January 2018, the analytical company Frost & Sullivan published the results of a study on the use of cloud technologies in medical imaging and concluded that in 2016 the market size was $285.4 million.

It is projected that by 2021, global cloud spending in imaging systems will be measured at $830.5 million, and the annual growth rate will average 23.8%.

The market for cloud services in medicine was estimated at $285 million

According to experts, the introduction of cloud technologies is due to the need for cost-effective and flexible software solutions.

The current situation will give development to not very large development companies that have taken up cloud technology at an early stage, and small companies working only in this area, "says Nadim Daher, chief researcher at Frost & Sullivan's medical imaging and image processing department. - Cloud technologies are increasingly part of the day-to-day activities of highly paid and valuable professionals, whereas they were previously used only as supporting IT systems and did not actually concern doctors or patients.

Developing cloud technologies using advanced image analysis, machine learning, interoperability standards, and blockchain services in healthcare is projected to open up new opportunities for all stakeholders in medical imaging in the coming years.

Introducing cloud platforms as a new service opens up new access to the market for developers of image processing and analysis applications and expands the promising user base, the report says.

As a result of innovations in image processing, which completely change the profile of activities, security control and financial risk, service providers and end users face new problems that become obstacles to market growth. Security concerns, a lack of benchmarks to determine cloud performance, and a reluctance by suppliers to move to a business cost model are hampering cloud platform adoption.

However, experts believe that in the end, cloud technologies will help healthcare move to a value-based model.^[4]

Notes