Artificial Intelligence (AI) in Diagnostics Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Artificial Intelligence in Diagnostics Market in 2025 is assessed at USD 1.55 billion. The global market size was worth over USD 1.31 billion in 2024 and is poised to grow at a CAGR of around 22.8%, reaching USD 18.92 billion revenue by 2037. North America is expected to record USD 7.85 billion by 2037, attributed to the increasing demand for precision diagnosis, mainly for chronic diseases such as cancer and cardiovascular conditions, driving AI adoption.
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.
Artificial Intelligence (AI) in Diagnostics Market: Growth Drivers and Challenges
Growth Drivers
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Growing need for early diagnosis: The increasing need for early-stage diagnosis of diseases and the growing prevalence of several chronic ailments have increased the demand for AI in diagnostics. AI enhances the speed and precision of diagnosis, offering critical advantages in disease prevention and management. Bayer's launch of Calantic digital solutions in June 2022 is a response to this trend, as it supports radiologists in handling their growing workload with simplified lesion detection. AI integrated into early diagnostics helps clinicians arrive at more informed conclusions which further drives the adoption of AI in diagnostics.
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Technology development in AI algorithms: AI systems continue to evolve and expand their capabilities for more precise image analysis and diagnostics. For instance, the release of Google Cloud's Medical Imaging Suite in October 2022 improved healthcare data access and interoperability, bringing faster and more accurate image diagnosis, hence improving patient outcomes. Such launches and advancements are shifting the way medical data is processed and analyzed, leading to more concrete diagnostic results.
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Increasing investments in healthcare AI: Private and public sector investments in the segment of healthcare AI have gained tremendous momentum, hence fueling innovation in diagnostic machinery. In January 2023, Intel Corporation introduced 4th Gen Intel Xeon Scalable processors for enhanced performance of data centers by strengthening AI-powered diagnostics within healthcare systems. Increased funding by companies opens opportunities to explore new uses of AI in diagnostic settings, driving artificial intelligence in diagnostics market growth.
Challenges
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Regulatory and ethical challenges: The adoption of AI in medical diagnostics is strictly regulated, focusing on the protection of personal information in regard to ethical use by patients. The Secretary of Health and Human Services (HHS) launched a new executive order on AI that requires the development of frameworks on responsible AI deployment, assures nondiscrimination laws are followed, and that the electronic health record is more open. It becomes a challenge for companies seeking to scale their AI solutions in healthcare to navigate these regulations.
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Lack of skilled workforce: AI in diagnostics requires a certain level of expertise, which is currently lacking in the industry. This has slowed down the adoption speed of AI technologies in specific geographies. For instance, a World Health Organization report argued that there is a growing gap pertaining to skilled professionals who can manage AI technologies, which is eventually impacting its wide adoption. Addressing the issue of the competency gap would go a long way in global expansion for AI-enabled diagnostic tools in healthcare.
AI in Diagnostics Market: Key Insights
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
22.8% |
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Base Year Market Size (2024) |
USD 1.31 billion |
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Forecast Year Market Size (2037) |
USD 18.92 billion |
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Regional Scope |
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Artificial Intelligence in Diagnostics Segmentation
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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Vishnu Nair
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Artificial Intelligence in Diagnostics Industry - Regional Scope
North America Market Analysis
North America industry is estimated to account for largest revenue share of 41.5% by 2037. 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 region is anticipated to observe substantial growth through 2037 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.
Companies Dominating the Artificial Intelligence in Diagnostics Landscape
- IBM Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Imagen Technologies
- NVIDIA Corporation
- PathAI
- Aidoc
- AliveCor Inc.
- Digital Diagnostics, Inc.
- Enlitic
- RADLogics
- Riverain Technologies
- Siemens Healthineers
- Sophia Genetics
- Tempus
- Vuno, Inc.
- Zebra Medical Vision, Inc.
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:
Recent Developments
- In June 2024, AliveCor secured U.S. FDA clearance for its KAI 12L AI technology and the Kardia 12L ECG System, paving the way for its commercial launch. This cutting-edge technology is set to improve the company's market position, enhancing its sales potential in the near future. The AI-powered system is designed to provide more accurate heart health diagnostics, offering a significant advancement in cardiac care. This approval underscores AliveCor's leadership in AI-driven diagnostic tools.
- In May 2023, Metropolis Healthcare Limited introduced a state-of-the-art testing platform using Component Resolved Diagnostics (CRD) to detect allergies in India. This 4th generation technology leverages artificial intelligence to help clinicians make more informed decisions regarding treatment options. The AI integration offers deeper insights, aiding in the optimization of allergy treatment plans. This development marks a significant step forward in allergy diagnostics, enhancing precision and improving patient outcomes.
- Report ID: 6488
- Published Date: Apr 23, 2025
- Report Format: PDF, PPT
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