Healthcare Data Storage Market to reach USD 15.48 Bn by 2032

The global healthcare data storage market, valued at

USD 5.13 billion

in 2025, is on a trajectory of rapid expansion. Projections indicate

USD 15.48 billion

valuation by 2032, at a CAGR of

17.1%

during the forecast period. The rising health care data primarily is a result of the wide adoption of Electronic Health Records (EHRs), greater usage of wearables and remote patient monitoring devices, and higher usage of medical image data produced by advanced technologies such as MRI and PET scans. Additionally, the trend toward patient-centered care, emphasizing value-based practices, is accelerating the demand for more sophisticated storage technologies.

Key Takeaways

:

Rise in the adoption of cloud-based and hybrid storage solution by healthcare organizations over traditional on-premises data storage models is a dominant driving force among the others.

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The healthcare data storage market is witnessing steady growth due to the rising adoption of digital healthcare solutions, such as Electronic Health Records (EHRs) and telemedicine platforms. These technologies have become integral to modern healthcare delivery by enabling efficient patient data management, improved communication, and better continuity of care across providers.

The transition toward digital health has been significantly accelerated in recent years, with healthcare institutions and insurers increasingly embracing EHRs to streamline workflows and enhance clinical decision-making. For instance, in 2022, a survey conducted by Munich Re Life US reported a 38% increase in the adoption of EHRs among U.S. life insurance carriers for use in accelerated underwriting. The survey also revealed that over 90% of companies were either actively using or evaluating EHR systems, indicating a broader industry shift toward digital data integration.

Cloud-based storage models are also becoming a transformative force within the healthcare data ecosystem, offering scalable, flexible solutions that eliminate the need for costly and complex on-premise infrastructure. Cloud storage enables enhanced accessibility, supports real-time data sharing, and simplifies integration with other health IT systems. As a result, providers benefit from improved security, better compliance with data privacy regulations such as HIPAA, and more efficient management of large volumes of patient data.

For example, in 2022, Community Health Network adopted Microsoft Cloud for Healthcare and Dynamics 365 to improve patient communication and streamline clinical insights. By 2024, the organization transitioned to Azure Databricks, enabling unified analysis of clinical and operational data to support predictive analytics and optimize workforce management. These developments highlight how cloud adoption is reshaping the way healthcare organizations handle and leverage data.

As healthcare organizations continue to prioritize digital transformation, the adoption of cloud-based storage solutions is rapidly growing. Cloud storage offers cost-effective, scalable, and flexible data management options compared to traditional on-premise storage systems, making it a popular choice for healthcare providers looking to streamline their data infrastructure. For instance, in India, Microsoft announced a US$ 3 billion investment in January 2025 to expand AI and cloud computing infrastructure, including new data centers in Pune, Chennai, and Mumbai. This initiative supports the growth of India’s AI ecosystem and fosters collaborations with healthcare providers like Apollo Hospitals to advance cloud-based healthcare solutions. ​

With rising concerns around data breaches and regulatory pressures like HIPAA, healthcare organizations are increasingly opting for storage solutions with advanced encryption, multi-factor authentication, and compliance features. These security-focused trends ensure that sensitive patient data is protected, further driving the adoption of secure, reliable healthcare data storage solutions.

In December 2024, the U.S. Department of Health and Human Services (HHS) proposed updates to the HIPAA Security Rule, aiming to enhance the protection of electronic protected health information (ePHI). The proposed changes include mandatory encryption of ePHI, implementation of MFA for all systems accessing ePHI, and comprehensive risk analysis practices. These measures are designed to bolster data security and ensure healthcare organizations are better equipped to handle cyber threats

With the growing preference for cloud storage due to its scalability, flexibility, and cost-efficiency, healthcare organizations are increasingly adopting cloud-based solutions. This presents a significant opportunity for service providers to offer customized storage solutions tailored to healthcare-specific needs such as data security, regulatory compliance, and disaster recovery.

Major technology companies are making substantial investments in healthcare cloud infrastructure. For instance, in September 2024, Nova Scotia Health partnered with Google Cloud to implement AI-driven solutions via cloud infrastructure to improve patient care and streamline administrative workflows. Similarly, GE Healthcare collaborated with Amazon Web Services (AWS) to develop generative AI models aimed at enhancing operational efficiency and clinical outcomes in healthcare.

The use of AI and big data analytics in healthcare is opening up major opportunities to enhance data storage solutions. With healthcare organizations increasingly dependent on data to inform insights in patient care, predictive analytics, and operational effectiveness, there is an increasing requirement for sophisticated storage solutions that can handle large data sets and facilitate real-time analytics.

In April 2025, Ascertain, a 2022-founded healthcare startup, raised US$ 10 million in Series A to build AI-based solutions that would decrease administrative hassles in healthcare settings. The AI agents aid clinicians in activities like clinical documentation, prior authorization, and compliance management. By automating them, Ascertain is striving to increase operational efficiency and reduce clinician burnout, leading to a more efficient and streamlined healthcare system.

The expansion of personalized medicine and genomics is leading to a surge in the generation of genomic data, requiring secure and scalable storage solutions. A publication in bioRxiv titled "Genomics in healthcare stated that over 60 million individuals are estimated to have their genomes sequenced in a healthcare context by 2025. This increase is attributed to the decreasing cost of genome sequencing and the integration of genome testing into public healthcare systems. Healthcare data storage providers have the opportunity to cater to this growing need by offering solutions that ensure data security, compliance, and efficient data management.

"The healthcare data storage market is growing strongly, driven by the rising amount of healthcare data and the rapid adoption of digital health solutions," says Ms. Manisha Vibhute, a senior analyst. "Growing adoption of electronic health records (EHRs), medical imaging, wearable technologies, and remote monitoring is producing a data explosion, necessitating sophisticated and scalable storage solutions. The shift toward cloud-based models of storage, fueled by their flexibility, scalability, and economics, is transforming the way healthcare organizations store and manage patient information. Moreover, the convergence of AI and big data analytics is creating new opportunities for real-time data analysis and predictive insights.

As healthcare providers remain focused on data security and compliance, the market is experiencing a high demand for secure, HIPAA-compliant storage solutions. With increasing regulatory pressures and the advent of personalized medicine accelerating genomic data growth, the demand for secure and efficient storage systems is likely to increase significantly. Technological developments, coupled with growing investments in cloud infrastructure, are poised to drive the ongoing growth of this market, promising favorable long-term growth prospects for market participants."

Key players in the healthcare data storage market include: