Artificial Intelligence in Healthcare Market Outlook:
Artificial Intelligence in Healthcare Market size was valued at USD 28.07 billion in 2025 and is likely to cross USD 543.83 billion by 2035, expanding at more than 34.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of artificial intelligence in healthcare is estimated at USD 36.79 billion.
The growth in the market is ascribed to the spiking number of elderly people with the need for assisted living and medical facilities. In this regard, in March 2024, NLM released a study cohort, mentioning the projected volume of 65 and over aged society worldwide to reach 1.5 billion by 2050. On the other hand, an OECD report predicted the required supply of new workers associated with older caregiving to become 13.5 million by 2040, presenting a needed increase of over 60%. The rising influx of large & complex healthcare data across the world and the introduction of human-aware AI systems have the potential to efficiently compensate for the shortage of workforce.
Additionally, the inflating demand for personalized medicines due to the enlarging patient pool of chronic illness is accelerating the adoption in the market. As per WHO calculations, 80.0% of the disease burden in developing countries originated from chronic problems in 2020. Another 2024 NLM article revealed that the global burden of this condition is poised to cost over USD 47.0 trillion by 2030. This replicated the surge for developing cost-effective tailored therapies to treat cancer, cardiovascular disease (CVD), diabetes, chronic kidney disease (CKD), and neurological conditions. In this cohort, generative AI showed new pathways of delivering more efficient workflow and scalable clinical trials, pushing pharmaceutical pioneers to invest in this sector.
