Artificial Intelligence in Diagnostics Market size is estimated at USD 1.3 billion in 2024 and is projected to reach USD 19.9 billion by the end of 2037, registering around 23% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of artificial intelligence in diagnostics is evaluated at USD 1.6 billion.
Artificial intelligence in diagnostics market is expanding rapidly, driven by high demand for more accurate, efficient, and timely diagnostic solutions. The ability of AI to process a large amount of data, identify patterns, and diagnose complex diseased conditions has placed them in high demand in diversified healthcare settings. For example, Qritive of QAi Prostate launched an AI-powered diagnosis tool for prostate cancer in March 2023. Such launches further illustrate how companies are shifting their focus to appreciate AI's role in increasing diagnostic accuracy and improving patient outcomes.
Governments around the world are acknowledging the role of AI in health diagnostics and introducing policies to support artificial intelligence in diagnostics market growth. For example, AI-driven predictive analytics reduced 5% off the rate of suicides among high-risk veterans assessed by the Department of Veterans Affairs. Government-initiated programs help to improve patient outcomes and overcome medical diagnosis errors, driving further AI-powered diagnostic innovations and extended market opportunities.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
23% |
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Base Year Market Size (2024) |
USD 1.3 billion |
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Forecast Year Market Size (2037) |
USD 19.9 billion |
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Regional Scope |
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Component (Software, Services, Hardware)
The software segment is anticipated to dominate the AI in diagnostics market, with a share of 58.6% in the forecast period. This is due to the rising demand for diagnostic software integrated with AI to strengthen the diagnostic workflow for the early detection and diagnosis of diseases. The key functions accompanying AI-driven software applications in medical imaging include lesion detection, radiology workflow management, and predictive analytics, which are highly critical in a modern clinical setting.
Software solutions are provided to streamline diagnostic processes and minimize human errors to enable informed decisions by clinicians. For example, Roche entered into a partnership with PathAI in February 2024 to co-develop AI-based pathology software that could be integrated with streamlined workflow processes for pathologists. This further illustrates how much diagnostics AI-based collaborations can rely on software, as it greatly contributes to improving clinical outcomes by bringing in the prospects of quicker and more accurate detection of diseases.
End use (Hospitals & clinics, Diagnostic laboratories, Imaging centers, Other End users)
The hospitals and clinics segment is likely to continue leading the artificial intelligence in diagnostics market and account for a 45.2% share throughout the forecast period. This growth is due to increased patient numbers and the higher acceptance of AI diagnostics in clinical settings, where the need for efficient and clear diagnostic tools is unprecedented. Siemens Healthineers announced a partnership with Ohio State Wexner Medical Center in January 2022 to provide advanced imaging technologies along with AI-powered diagnostic solutions. It further positioned hospitals as the key driver for AI adoption. The collaboration illustrates just how crucial a role this technology plays in major healthcare institutions in elevating diagnostic capabilities.
Our in-depth analysis of the AI in diagnostics market includes the following segments:
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Component |
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Application |
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End use |
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North America Market Analysis
The AI in diagnostics market in North America is projected to hold 41.5% of the revenue share during the forecast period owing to strong healthcare infrastructure with more technology-advanced adoptions. The increasing demand for precision diagnosis, mainly for chronic diseases such as cancer and cardiovascular conditions, drives the adoption of AI. AI-powered diagnostic tools result in better outcomes because the precision of the diagnosis allows for more personalized and targeted treatments. The robust investments in R&D in healthcare AI will further accelerate this artificial intelligence in diagnostics market growth and create opportunities for both large and small AI companies.
The adoption of AI in diagnostics in the U.S. is rising at a rapid pace due to the presence of established companies and advancements in technology. For example, in November 2022, Google partnered with iCAD to further commercialize mammography AI in support of its latest initiatives to advance the detection of breast cancer. This signals that more and more AI is being used in the early detection and diagnosis of critical diseases. The U.S. healthcare system places much emphasis on early diagnosis and preventive care, making it fertile ground for the implementation of AI technologies in diagnostics, hence positioning it to lead in the global artificial intelligence in diagnostics market.
Although Canada is witnessing relatively moderate growth than the U.S., the country is anticipated to present significant opportunities for the players in artificial intelligence in diagnostics market. In September 2023, the Mayo Clinic and GE HealthCare collaborated on the development of AI-powered diagnostic solutions—a demonstration of the country's focus on improving diagnostic accuracy and treatment outcomes. This deal is part of the broader strategy of Canada in enhancing the capability of its healthcare system through the use of AI to make diagnoses more efficient, reduce wait times, and improve patient outcomes for a wide range of conditions from cancer to cardiovascular diseases.
Asia Pacific Market Analysis
Asia Pacific artificial intelligence in diagnostics market is expected to record a CAGR of 22% during the forecast period due to rising healthcare needs and investments by governments of different countries in AI technology. The region hosts an increasing population, especially due to countries such as China and India, where the demand for effective healthcare solutions is increasing significantly. Therefore, various governments throughout the region are supporting or promoting the use of AI technologies to share the burden of healthcare, improve diagnosis, and provide more personalized care to patients. These factors, therefore, position Asia Pacific as one of the fastest-growing markets in AI diagnostics.
The AI in diagnostics companies in China are scaling new heights, in particular, on grounds of extensive government support for innovation in healthcare and the development of AI. In June 2024, the AI-powered patient management solution launched by Aidoc entered China, targeting better clinical workflows and patient care. This reflects China's aspiration to bring more AI into its healthcare to increase diagnostic precision and improve patient outcomes. The government is also actively supportive of AI initiatives for healthcare, driving the adoption across hospitals and diagnostic centers.
The demand for AI in diagnostics is anticipated to surge in India. A large population base, besides the increasing incidence rates of chronic diseases like diabetes and cancer, further contributes to an increased demand for more efficient diagnostic tools. The government's initiative to popularize AI in healthcare and increasing investments in healthcare infrastructure propels the artificial intelligence in diagnostics market growth. Although still in the pioneer stage of AI introduction, India has been trying to implement AI-based diagnostic instruments to improve diagnostic precision with less burden on human healthcare professionals.
The competition level in the artificial intelligence in diagnostics market is very intense, and it covers several key players who contribute to raising innovation and commercialization for diagnostic tools based on Artificial Intelligence. Key companies include Google, Siemens Healthineers, Bayer, and GE HealthCare, among many others. These firms are effectively utilizing various AI technologies to create diagnostic solutions that are highly efficient and vastly accurate. Moreover, these companies are into product development, partnerships, and mergers and acquisitions to maintain their positions within the market. Here are some leading players in the artificial intelligence in diagnostics market:
Author Credits: Radhika Pawar
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