Telemedicine and EHR expansion drives $167b healthcare cloud market outlook

Private cloud dominates due to strong data security needs.

The global healthcare cloud computing market is projected to grow from $73.85b in 2026 to $166.96b by 2031, according to MarketsandMarkets.

Growth is driven by rising adoption of electronic health records, e-prescribing, telemedicine, and mobile health technologies. India recorded 282 million telemedicine consultations from April 2023 to November 2025.

Public-private partnerships are also accelerating digital transformation in the sector. In September 2024, Amazon Web Services partnered with the National Health Authority to strengthen the Ayushman Bharat digital health ecosystem.

The collaboration uses cloud infrastructure to support scalable and secure management of patient data and claims processing.

Private cloud solutions held a substantial share of the market in 2025, largely due to their ability to securely store sensitive patient information. Healthcare providers continue to favor private clouds amid strict data protection regulations.

Meanwhile, the services segment accounted for the largest market share in 2025. The complexity of healthcare IT systems and the need for integration and interoperability have increased demand for services such as consulting, implementation, technical support, and training.