Cloud Computing in Healthcare Market - Global Industry Size, Share, Trends, Opportunity and Forecast, Segmented By Application (Clinical Information Systems (PACS, RIS, LIS, EHR/EMR, Others), Non-Clinical Infor-mation Systems (APB, RCM, HIE, Financial Management Solutions, Others)), By Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), By Service Type (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS)), By End Users (Healthcare Providers, Healthcare Payers) and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 65.06 Billion
CAGR (2026-2031)	15.93%
Fastest Growing Segment	Clinical Information Systems
Largest Market	North America
Market Size (2031)	USD 157.94 Billion

Market Overview

The Global Cloud Computing in Healthcare Market will grow from USD 65.06 Billion in 2025 to USD 157.94 Billion by 2031 at a 15.93% CAGR. Cloud computing in healthcare is defined as the on-demand delivery of IT resources, including servers, storage, databases, and software applications, via the internet to facilitate clinical and administrative efficiency. The market is primarily supported by the imperative to reduce operational costs and the growing requirement for interoperability, which allows seamless data exchange between disparate medical systems. Furthermore, the industry-wide shift toward value-based care necessitates scalable infrastructure capable of processing vast datasets for real-time patient analytics and remote monitoring.

However, stringent data privacy regulations and security concerns regarding the protection of sensitive health information remain a significant challenge that could impede market expansion. The complexity of adhering to compliance standards often delays the migration of critical workloads to the cloud. Despite these obstacles, investment in foundational technology continues to rise. According to the College of Healthcare Information Management Executives, in 2024, 88 percent of healthcare providers designated digital infrastructure as a high-priority investment area, underscoring the sector's reliance on robust platforms to support modernization.

Key Market Drivers

The rapid expansion of telehealth and remote patient monitoring services has necessitated robust cloud-based platforms to support real-time virtual consultations and continuous data transmission. Cloud infrastructure enables providers to scale these digital services rapidly, ensuring connectivity between patients and clinicians regardless of geographical barriers. This shift is evidenced by the surging patient adoption of virtual care; according to HealthArc, October 2024, in the 'Key Remote Patient Monitoring Statistics' article, the number of patients favoring remote patient monitoring systems rose to 30 million in 2024. To support these operations, organizations prioritize environments offering superior uptime. According to CDW, in 2024, 63 percent of healthcare IT leaders identified greater reliability and disaster recovery capabilities as the primary benefit of public cloud adoption, reinforcing the market's trajectory toward flexible, cloud-native solutions.

The growing integration of big data analytics and artificial intelligence (AI) is further driving demand for high-performance cloud computing. Modern healthcare generates massive volumes of unstructured data that on-premise centers often struggle to process efficiently. Cloud platforms provide the computational power necessary to train machine learning models and deploy applications that enhance diagnostic accuracy. This technological imperative is reflected in strategic investment priorities across the sector. According to Royal Philips, June 2024, in the 'Future Health Index 2024' report, 85 percent of healthcare leaders are currently investing in or planning to invest in generative AI technologies, signaling a widespread commitment to leveraging cloud-enabled intelligence for improved patient outcomes.

Download Free Sample Report

Key Market Challenges

Stringent data privacy regulations and security concerns regarding sensitive health information constitute a primary barrier to the expansion of the global healthcare cloud computing market. Healthcare organizations handle highly confidential patient data, making them prime targets for cybercriminals. Consequently, the industry is subject to rigorous regulatory frameworks that mandate strict data protection standards. The complexity of ensuring that cloud environments meet these compliance requirements often leads to prolonged evaluation periods and hesitation in migrating critical workloads from on-premise data centers to cloud-based infrastructure.

This apprehension is intensified by the financial and reputational risks associated with potential data breaches in third-party environments. Rather than rapidly adopting new cloud services, many providers prioritize fortifying existing defenses, which diverts capital away from market expansion. The impact of these vulnerabilities on the sector is evident in recent operational disruptions. According to the American Hospital Association, in 2024, 94 percent of hospitals reported a financial impact resulting from cyberattacks on third-party healthcare technology platforms. Such statistics reinforce the cautious approach taken by healthcare stakeholders, directly slowing the rate of cloud adoption across the industry.

Key Market Trends

The widespread adoption of hybrid and multi-cloud architectures is fundamentally altering data management strategies to address sovereignty and compliance. This approach allows institutions to retain sensitive patient records within private, localized infrastructure while leveraging the scalability of public clouds for non-sensitive workloads, thereby mitigating risks associated with data residency laws. The acceleration of this deployment model is quantifiable; according to Nutanix, April 2024, in the 'Enterprise Cloud Index Report: Healthcare Industry Findings', healthcare's adoption of the hybrid multicloud model grew by 10 percentage points, from 6 percent in 2023 to 16 percent in 2024. This shift highlights a deliberate move toward flexible IT environments that ensure regulatory adherence without sacrificing innovation.

Concurrently, the implementation of FHIR-compliant interoperability frameworks is becoming the standard for seamless data exchange across cloud platforms. This technical evolution moves beyond simple digitization to ensure that disparate electronic health records and third-party applications can communicate effectively, breaking down long-standing information silos. Major technology stakeholders are aggressively integrating these standards to support this ecosystem. According to Firely, July 2024, in the 'State of FHIR Survey', 79 percent of respondents identified EHR vendors as adopters of the FHIR standard, marking a significant rise in industry commitment. This trend confirms that cloud infrastructure is increasingly functioning as a unified fabric for real-time, standardized health data transmission.

Segmental Insights

The Clinical Information Systems segment is currently the fastest-growing category within the Global Cloud Computing in Healthcare Market. This rapid expansion is primarily driven by the widespread adoption of telehealth and the critical need for real-time patient data accessibility across diverse care settings. Healthcare providers are increasingly migrating to scalable cloud environments to manage the massive data volumes generated by electronic health records and diagnostic imaging. Furthermore, strict mandates for data interoperability from regulatory bodies, such as the Office of the National Coordinator for Health Information Technology, are catalyzing this shift away from legacy on-premise infrastructure. Consequently, cloud-based clinical solutions are becoming indispensable for modern, collaborative medical workflows.

Regional Insights

North America holds a dominant position in the global cloud computing in healthcare market, driven by the widespread integration of healthcare information technology and supportive government mandates. The enforcement of the Health Information Technology for Economic and Clinical Health (HITECH) Act has significantly advanced the adoption of electronic health records and infrastructure modernization. Additionally, adherence to the Health Insurance Portability and Accountability Act (HIPAA) provides a robust framework for data privacy, encouraging healthcare providers to utilize secure cloud solutions. These regulatory factors, alongside established digital infrastructure, sustain the regional market leadership.

Recent Developments

• In January 2025, Amazon Web Services (AWS) entered a strategic partnership with venture capital firm General Catalyst to accelerate the development of artificial intelligence-powered solutions for the healthcare industry. The collaboration aimed to leverage the cloud provider's infrastructure and generative AI services, such as Amazon Bedrock, to address critical challenges like interoperability, patient engagement, and clinical efficiency. General Catalyst’s portfolio companies integrated these cloud-native capabilities to create scalable tools for health systems. The initiative focused on embedding advanced AI throughout the care journey to improve patient outcomes and operational workflows globally, utilizing specialized models for diverse health data processing.
• In October 2024, Microsoft unveiled a suite of new capabilities for the Microsoft Cloud for Healthcare, designed to enhance data integration and AI adoption within medical organizations. The company launched healthcare-specific artificial intelligence models in Azure AI Studio, enabling the analysis of diverse data types including medical imaging, genomics, and clinical records. Additionally, new features were introduced in Microsoft Fabric to streamline healthcare data solutions. These innovations allowed providers to build and deploy tailored AI applications rapidly, aiming to reduce administrative burdens for clinicians and improve the overall quality of patient care through robust cloud infrastructure.
• In October 2024, Oracle announced the development of a next-generation electronic health record (EHR) platform, built entirely on Oracle Cloud Infrastructure (OCI), with a scheduled release for 2025. The platform was designed to embed artificial intelligence across clinical workflows, featuring tools for voice-activated navigation and automated documentation to support medical professionals. By leveraging the high performance and security of its cloud infrastructure, the company aimed to transform traditional record-keeping systems into dynamic assets that provided real-time insights. This strategic move intended to eliminate data silos and enhance patient engagement by integrating clinical, claims, and pharmacy data into a unified cloud environment.
• In March 2024, Google Cloud launched Vertex AI Search for Healthcare, a generative AI-powered tool specifically engineered to help healthcare workers quickly retrieve accurate information from fragmented medical records. Introduced at the HIMSS24 global health conference, this solution integrated with the company’s Healthcare Data Engine and MedLM models to enable medically tuned search capabilities across electronic health records and clinical notes. The technology empowered clinicians to ask natural language questions and receive grounded, factual responses, thereby alleviating administrative workloads. This development underscored the company's commitment to utilizing cloud-based generative AI to solve complex data interoperability challenges in the healthcare sector.

Key Market Players

• Amazon Web Services
• Microsoft Corporation
• Google LLC
• IBM Corporation
• Oracle Corporation
• Salesforce Inc.
• Siemens Healthineers AG
• Koninklijke Philips N.V.
• Dell Technologies
• athenahealth Inc.

By Application	By Deployment Type	By Service Type	By End Users	By Region
Clinical Information Systems (PACS, RIS, LIS, EHR/EMR, Others) Non-Clinical Infor-mation Systems (APB, RCM, HIE, Financial Management Solutions, Others)	Public Cloud Private Cloud Hybrid Cloud	Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS)	Healthcare Providers Healthcare Payers	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cloud Computing in Healthcare Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cloud Computing in Healthcare Market, By Application:

• Clinical Information Systems (PACS, RIS, LIS, EHR/EMR, Others)
• Non-Clinical Infor-mation Systems (APB, RCM, HIE, Financial Management Solutions, Others)

• Cloud Computing in Healthcare Market, By Deployment Type:

• Public Cloud
• Private Cloud
• Hybrid Cloud

• Cloud Computing in Healthcare Market, By Service Type:

• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

• Cloud Computing in Healthcare Market, By End Users:

• Healthcare Providers
• Healthcare Payers

• Cloud Computing in Healthcare Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE