Artificial Intelligence (AI) in Healthcare Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Artificial Intelligence in Healthcare Market in 2025 is assessed at USD 67.72 billion. The global market size was around USD 49.71 billion in 2024 and is likely to expand at a CAGR of more than 45.3%, surpassing USD 6.4 trillion revenue by 2037. Asia Pacific is set to accumulate USD 2.5 trillion, owing to an aging population, a vast pharma sector, and supportive government initiatives.
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.
Artificial Intelligence (AI) in Healthcare Sector: Growth Drivers and Challenges
Growth Drivers
- Skyrocketing utilization of AI in pharmaceuticals: The penetration of AI in drug development has significantly reduced the amount of required capital and time. This is pushing pharma giants to adopt advanced solutions from the market. On this note, a study published in ScienceDirect in January 2025 estimated that the pharmaceutical industry's investment in AI to attain USD 60.0 billion by 2030. Furthermore, the increased R&D productivity in the precision medicine industry as a result of using these technologies to accelerate the pace of drug safety profile evaluation and design new formulations is boosting growth in this field.
- Growing acceptance among medical settings: Considering the concerning shortage of healthcare professionals, many clinical facilities are now implementing AI in patient care. Specifically, the boost in telemedicine and remote monitoring after the pandemic struck is influencing more medical authorities to invest in the market. For instance, in March 2025, the Emory University Hospital Midtown deployed and tested both virtual and AI assistance to train nurses in caring for patients and preventing falls. This initiative enhanced the capabilities of the institution in the early detection of patient deterioration or emergencies.
Challenges
- Concerns regarding data privacy: The increasing adoption of AI in every sector encompasses a high risk of data breaching. All AI platforms are mandated to comply with laws implemented by governments and regulatory authorities. However, many vendors are not sufficiently secured to share and process large-scale data. Thus, the stringent regulations to protect sensitive patient health information, such as HIPPA, may hinder commercialization in the market.
- Requirement for higher initial investment: Despite the motive being overall cost-reduction of medical services and essentials, integrating or installing AI-powered advanced infrastructure requires significant capital. As a result, organizations and institutions from underserved regions may face economic disparity in streamlining AI systems. This restricts wide adoption and shrinks exposure in the market.
AI in Healthcare Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
45.3% |
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Base Year Market Size (2024) |
USD 49.71 billion |
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Forecast Year Market Size (2037) |
USD 6.4 trillion |
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Regional Scope |
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Artificial Intelligence (AI) in Healthcare Segmentation
Application (Virtual Assistance, Drug Discovery, Medical Imaging, Electrocardiography, Medical Research, Personalized Medicine)
Based on applications, the virtual assistance segment is poised to observe massive captivity in the Ai in healthcare market with a share of 35% over the assessed period. The segment’s growth is attributable to the heavy utilization of telehealth services for medical consulting. As the global geriatric population magnifies, the need for remote monitoring and long-term care heightens. Particularly, this trend of online consultation was boosted during and after the COVID-19 pandemic. On this note, Research Nester reported that the virtual healthcare delivery industry is predicted to reach USD 19.5 billion by 2025 and USD 381.0 billion by 2037. This testifies to this segment’s predominant emphasis on greater business opportunities and higher revenue generation.
End user (Clinics, Diagnostic Labs, Hospitals)
In terms of end user, the hospitals segment is expected to capture a considerable share in the artificial intelligence (AI) in healthcare market by 2037. The growing patient burden and admission rates are pushing hospitals to adopt advanced technologies to offer better care. For instance, in March 2025, Singapore General Hospital partnered with Siemens Healthineers to escalate the deployment of innovative solutions such as AI-driven diagnostics and digital health solutions. Additionally, continuous investments from both public and private authorities to strengthen healthcare infrastructure and improve access to advanced care are acting as a financial cushion for this segment.
Our in-depth analysis of the global Ai in healthcare market includes the following segments:
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Technology |
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Offering |
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Application |
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End user |
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Customize this ReportArtificial Intelligence (AI) in Healthcare Industry - Regional Synopsis
APAC Market Forecast 
Asia Pacific is predicted to dominate the AI in healthcare market with a share of 39% throughout the analyzed timeframe. The region has become an emerging landscape for global leaders due to several growth factors, such as the rapidly aging population, large pharmaceutical industry, and government initiatives. The efforts from research-oriented medical institutions are also propelling expansion in this sector. For instance, in September 2024, Nanyang Technological University, Singapore and the National Healthcare Group (NHG) collaboratively constructed a center of excellence to establish innovative AI technologies and their practical applications in medicine.
India is propagating the market with broader scope of application and increasing economic contribution. The country is meticulously engaging resources to retain its progression in pharmacology, medical device production, and infrastructural upgradation. This is influencing associated organizations to integrate advanced technologies for enhanced outcomes, fueling adoption in this sector. This is testified by the IBEF report, which estimates the financial output of AI in healthcare to range between USD 25.0 billion and USD 30.0 billion by 2025.
North America Market Forecast 
North America is also claiming a significant share in the artificial intelligence (AI) in healthcare market by the end of 2037. The region is home to several MedTech pioneers, such as NVIDIA Corporation, Google LLC, Salesforce, and others, which indicates its significance in global revenue generation. The enlarging geriatric population, medical expenditure, and telemedicine industry in this region are embarking on increased AI implementation in various medical disciplines. On this note, Research Nester concluded North America to be the dominating landscape in the virtual healthcare delivery industry by 2037, with the largest share of 46.0%. Another robust survey of 800 respondents revealed an 86.0% penetration of AI in medical organizations across the U.S.: Medscape & HIMSS AI Adoption by Health Systems Report 2024.
The U.S. is leveraging its regional proprietorship with a surge in personal caregiving for older citizens, where an NLM article projected the 85-and-older and 65-and-older population to surpass 19.0 million and 75.0 million, respectively, by 2050. On the other hand, in 2024, the number of assisted living communities in this country crossed 30,600: American Health Care Association. This highlights the need for workforce cultivation to cope with the demand for dedicated caregivers and monitoring systems. The market is helping the nation to solidify a strong network of service-providing channels, fostering profitable business opportunities.
Companies Dominating the Artificial Intelligence (AI) in Healthcare Landscape
- NVIDIA Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Philips International B.V.
- Micron Technology, Inc.
- Siemens Healthcare GmbH
- Crunchbase Inc.
- Genger.io, Inc.
- Welltok, Inc.
- Google LLC
- Medtronic plc
- General Electric Company
- R1 RCM
- Palantir Technologies Inc.
- Authenticx
- Kyndryl Holdings, Inc.
Key players in the AI in healthcare market are forming strategic partnerships to accelerate their global operations. They are supporting healthcare settings to equip their infrastructure with efficient workflow and sufficient workforce. For instance, in February 2025, Salesforce introduced a new library of pre-built agent skills and actions, Agentforce for Health, to boost operational capacity. These beneficial features are attracting both organizations and patients to invest in such advanced technologies. Thus, many AI pioneers are now joining this transformation cohort with innovative solutions, increasing engagement in this field. On this note, in January 2025, AWS partnered with General Catalyst to participate in this merchandise with AI expertise and transformative investments. Such key players are:
In the News
- In March 2025, R1 RCM announced its partnership with Palantir Technologies to advance in healthcare finance. The newly formed team set their aim at bolstering the financial output of this sector by up to 50.0% by exploring and utilizing the untapped potential of artificial intelligence (AI).
- In March 2025, Authenticx added a new functionality with an MoE (Mixture of Experts) machine learning technique to its automated quality management solution. The company incorporated the power of generative AI to enhance contact center quality assurance and management in healthcare.
- In March 2025, Kyndryl collaborated with Microsoft to launch new Dragon Copilot solutions for the healthcare industry. The partnership is intended to help the company enable generative AI-powered ambient listening voice recognition to automate clinical documentation and improve administrative efficiency.
Author Credits: Radhika Pawar
- Report ID: 1429
- Published Date: Apr 23, 2025
- Report Format: PDF, PPT
