Cloud Computing in Pharmaceutical Industry Market Size, Share & Trends Analysis Report ByService Type (Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS)), By Deployment Mode (Public cloud, Private cloud, Hybrid cloud), By Application (PMS (Production Management System), EMR (Electronic Medical Record), Online Sales, Other) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Cloud Computing in Pharmaceutical market size is projected to reach USD 17.3 Billion by 2023, from USD 59.0 Billion in 2032, and is anticipated to register a CAGR of 14.6% between 2024 and 2032.

Cloud computing within the pharmaceutical sector formally adopts the use of virtualized and easily expanded computing resources in the form of online storage, processing, and applications. Pharmaceutical companies can improve data management, collaboration processes, and operational efficiencies, thanks to the paradigm shift in information technology. Why cloud computing is revolutionary technology changing the way pharmaceutical companies store, process, and analyze huge quantities of data produced in the drug development lifecycle.

In the pharmaceutical industry, the main benefit of cloud computing is centralization and consolidation of data. Businesses can securely store and retrieve vast datasets, including genetic information, clinical trial results, and patient records, using cloud-based solutions. Information sharing in traditional infrastructures may have been hampered by silos, but this affordably centralized approach breaks down those barriers and promotes research collaboration amongst clinicians and other stakeholders.

Scalability is another key consideration that is driving the adoption of cloud computing within the pharmaceutical industry. Due to the growing volumes of data from such sources as genomics, real-world evidence, and wearables, the industry can flexibly scale up or down its computing resources according to demand. This flexibility enables pharmaceutical companies to promptly respond to new commercial opportunities and changes through accelerated research and development activities while optimizing costs.

Market Dynamics

Regional Analysis

North America is a prominent region in the global cloud computing in pharmaceutical industry market with the region witnessing steady advancements and innovations in the pharmaceutical industry. The increasing adoption of Information Technology in the pharmaceutical industry is also pegged to be a key driver for the North America market. Government support for incorporation of IT in the pharmaceutical sector, coupled with high healthcare expenditure in the region, is expected to further fuel market growth in North America. In addition, greater longevity in humans, growth of geriatric population, which consumes three times as many drugs as the young population, and growing demand in developing regions are among the key factors expected to create noteworthy opportunities for market growth.

Europe is one of the most promising regions in the global cloud computing in pharmaceutical industry market. Many pharmaceutical companies around the globe have been increasingly adopting cloud computing software; for instance, GSK deploys all email and collaboration technology in the Microsoft Cloud. Growing awareness regarding the benefits of going green and factors such as flexibility and scalability, coupled with reduced prices, are expected to contribute to the market’s growth momentum in Europe.

The Asia Pacific cloud computing in pharmaceutical industry market has been witnessing rapid growth with the high prevalence of chronic diseases alongside technological advancements and product innovation. Development of Asia Pacific’s pharmaceutical industry and demographic shift in emerging countries such as India and China are slated to create lucrative opportunities for market growth in the coming years.

The LAMEA region is projected to register a healthy growth rate in the cloud computing in pharma industry market during the forecast period. The growth of cloud infrastructure in countries such as Qatar and Saudi Arabia has gained momentum, which has been providing impetus to the market growth in the region.

Segmental Analysis

The global cloud computing in pharmaceutical industry market has been segmented on the basis of service type, deployment model, and application.

On the basis of service type, the market has been segmented into Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS). Among these, Software-as-a-Service (SaaS) is projected to grow at the highest rate during the forecast period–2026, as SaaS allows for a ‘plug-in and play’ solution where companies can use the services they require at any location and on any device.

By deployment type, the market has been segmented into private cloud, public cloud, and hybrid cloud. The hybrid cloud segment is anticipated to grow with the highest CAGR, as it gives companies the option to store core confidential data and applications on a private cloud and leverage the power of the public cloud when necessary.

By application, the cloud computing in pharmaceutical industry market has been segmented into PMS (Production Management System), EMR, Online Sales, and Others. PMS application is anticipated to register the fast growth, as these systems ensure quality and meet FDA, GMP and ISO requirements with fully-integrated processes and e-signatures.

Impact of covid-19

The pandemic had caused a lockdown in almost all the countries across the world backed up by strict government regulations such as social distancing and quarantine. A severe effect of the lockdown was observed on the economy of various countries which further canceled certain construction projects temporarily or permanently.

Further, immediate long-term effects were seen in the supply chain and the deployment of smart solutions required in the smart buildings. However, the ease offered and the multiple benefits of the smart building solutions are anticipated to increase the deployments during the time.

Recent Developments