The global Artificial Intelligence (AI) in healthcare market is projected to reach USD 110.61 billion by 2030 from USD 21.66 billion in 2025, at a CAGR of 38.6% during the forecast period. The market is expected to grow due to the growing investments & funding by public-private organizations, the fast proliferation of AI in the healthcare industry, and the rising focus on developing human-aware AI systems. The market has experienced growth due to increasing demand for enhanced services due to an unequal ratio between the healthcare workforce and patient numbers. However, inadequate IT infrastructure and unwillingness to adopt AI-based healthcare solutions in emerging economies are estimated to pose a challenge to market growth.
Scope of the Report
Years Considered for the Study
2024-2030
Base Year
2024
Forecast Period
2024-2030
Units Considered
Value (USD billion)
Segments
Offering, Function, Application, Deployment, Tools, End User
Regions covered
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
By deployment, the cloud-based segment is expected to register the highest growth during the forecast period.
The AI in healthcare market is categorized into three deployment models: on-premise, cloud-based, and hybrid models. The cloud-based models segment holds the largest share due to the scalability, cost-effectiveness, and accessibility of these models. Cloud-based models facilitate real-time data processing and collaboration. They allow for seamless integration, secure data storage, and rapid deployment, making them particularly suitable for healthcare providers and payers. They provide faster, more reliable care while maintaining high-quality standards. Cloud-based AI solutions are becoming increasingly popular due to their cost-effectiveness, scalability, and support for remote access. These solutions enable seamless integration and real-time analytics. The growing adoption of telehealth and advancements in healthcare IT infrastructure further drive the demand for cloud-based models.
By end user, the hospitals & clinics segment dominated the market in the Artificial Intelligence (AI) in healthcare market for healthcare providers in 2024.
By end user, Artificial Intelligence (AI) in healthcare market is segmented into hospitals & clinics, ambulatory surgical centers, home healthcare agencies & assisted living facilities, diagnostic & imaging centers, pharmacies, and other healthcare providers. The hospitals & clinics segment accounted for the largest share of the Artificial Intelligence (AI) in healthcare market. This is attributed to the increasing demand for personalized medicines, precise diagnostics & surgical planning, growth in minimally-invasive procedures, and the requirement for interoperability with existing systems. AI-based healthcare solutions enhance diagnostic accuracy, streamline operations, and personalize care in hospitals and clinics. They automate administrative tasks, predict patient outcomes, and enable faster decision-making with real-time data analysis. AI also supports remote monitoring, optimizes resources, and reduces costs by minimizing unnecessary treatments. AI improves patient engagement through virtual assistants and enhances security by detecting fraud, making healthcare more efficient, accessible, and cost-effective.
Asia Pacific is expected to register the highest growth during the forecast period.
The Artificial Intelligence (AI) in healthcare market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia Pacific region is expected to register the highest growth during the forecast period. The Asia Pacific (APAC) region is experiencing substantial growth in the adoption of AI technologies within the healthcare sector, driven by a combination of demographic shifts, technological advancements, and increased investments in innovation. The rising elderly population in the Asia Pacific is a key factor, with the proportion of individuals aged 65 years and above increasing significantly. According to the UN's World Population Aging 2020 report, the global population in this age group is expected to double from 727 million in 2020 to 1.5 billion by 2050, with Eastern and Southeastern Asia contributing a large share of this growth.
The break-down of primary participants is as mentioned below:
By Company Type - Tier 1: 32%, Tier 2: 44%, and Tier 3: 24%
By Designation - Directors: 30%, Manager: 34%, and Others: 36%
By Region - North America: 40%, Europe: 28%, Asia Pacific: 20%, Latin America: 7% and Middle East & Africa: 5%
Key Players
The prominent players operating in the Artificial Intelligence (AI) in healthcare market include Koninklijke Philips N.V. (Netherlands), Microsoft Corporation (US), Siemens Healthineers AG (Germany), NVIDIA Corporation (US), Epic Systems Corporation (US), GE Healthcare (US), Medtronic (US), Oracle (US), Veradigm LLC (US), Merative (IBM) (US), Google (US), Cognizant (US), Johnson & Johnson (US), Amazon Web Services, Inc. (US), SOPHiA GENETICS (US), Riverian Technologies (US), Terarecon (ConcertAI) (US), Solventum Corporation (US), Tempus (US), Viz.ai (US). These companies adopted strategies such as product launches, product updates, expansions, partnerships, collaborations, mergers, and acquisitions to strengthen their market presence in the Artificial Intelligence (AI) in healthcare market.
Research Coverage
The report analyzes the Artificial Intelligence (AI) in healthcare market and aims to estimate the market size and future growth potential of various market segments based on offering, solution type, imaging modality, application, end user, and region. The report also analyzes factors (such as drivers, opportunities, and challenges) affecting market growth. It evaluates the opportunities and challenges in the market stakeholders. The report also studies micro markets with respect to their growth trends, prospects, and contributions to the total Artificial Intelligence (AI) in healthcare market. The report forecasts the revenue of the market segments with respect to five major regions. The report also provides a competitive analysis of the key players in this market, along with their company profiles, product offerings, recent developments, and key market strategies.
Reasons to Buy the Report
This report will enrich established firms as well as new entrants/smaller firms to gauge the pulse of the market, which, in turn, would help them garner a higher market share. Firms purchasing the report could use one or a combination of the following strategies to strengthen their positions in the market.
This report provides insights on:
Analysis of key drivers (exponential growth in data volume and complexity due to surging adoption of digital technologies, significant cost pressure on healthcare service providers with increasing prevalence of chronic diseases, rapid proliferation of AI in healthcare sector, growing need for improvised healthcare services, growing need for early detection and diagnosis, restraints (reluctance among medical practitioners to adopt AI-based technologies, shortage of skilled AI professionals handling AI-powered solutions, lack of standardized frameworks for AI and ML technologies), opportunities (increasing use of AI-powered solutions in elderly care, increasing focus on developing human-aware AI systems, strategic partnerships and collaborations among healthcare companies and AI technology providers), challenges (inaccurate predictions due to scarcity of high-quality healthcare data, concerns regarding data privacy, lack of interoperability between AI solutions offered by different vendors) are factors contributing the growth of the Artificial Intelligence (AI) in healthcare market
Product Development/Innovation: Detailed insights into upcoming trends, research & development activities, and software launches in the Artificial Intelligence (AI) in healthcare market
Market Development: Comprehensive information on the lucrative emerging markets, type of solution, component, deployment model, industry, and region
Market Diversification: Exhaustive information about software portfolios, growing geographies, recent developments, and investments in the Artificial Intelligence (AI) in healthcare market
Competitive Assessment: In-depth assessment of market shares, growth strategies, product offerings, company evaluation quadrant, and capabilities of leading players in the global Artificial Intelligence (AI) in healthcare market, such as Koninklijke Philips N.V. (Netherlands), Microsoft Corporation (US), Siemens Healthineers AG (Germany), NVIDIA Corporation (US), Epic Systems Corporation (US)
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 STUDY SCOPE
1.3.1 MARKETS COVERED
1.3.2 INCLUSIONS & EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 STAKEHOLDERS
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY DATA
2.1.1.1 Key data from secondary sources
2.1.2 PRIMARY DATA
2.1.2.1 Key industry insights
2.2 MARKET SIZE ESTIMATION
2.3 DATA TRIANGULATION
2.4 MARKET SHARE ESTIMATION
2.5 STUDY ASSUMPTIONS
2.6 LIMITATIONS
2.6.1 METHODOLOGY-RELATED LIMITATIONS
2.6.2 SCOPE-RELATED LIMITATIONS
2.7 RISK ASSESSMENT
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 AI IN HEALTHCARE MARKET OVERVIEW
4.2 ASIA PACIFIC: AI IN HEALTHCARE, BY OFFERING AND COUNTRY
4.3 AI IN HEALTHCARE MARKET: GEOGRAPHIC GROWTH OPPORTUNITIES
4.4 AI IN HEALTHCARE MARKET: REGIONAL MIX
4.5 AI IN HEALTHCARE: DEVELOPED VS. EMERGING MARKETS
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Increase in need for early detection and diagnosis
5.2.1.2 Exponential growth in data volume and complexity due to surging adoption of digital technologies
5.2.1.3 Significant cost pressure on healthcare service providers with increasing prevalence of chronic diseases
5.2.1.4 Rapid proliferation of AI in healthcare sector
5.2.1.5 Growth in need for improvised healthcare services
5.2.2 RESTRAINTS
5.2.2.1 Reluctance among medical practitioners to adopt AI-based technologies
5.2.2.2 Shortage of skilled AI professionals handling AI-powered solutions
5.2.2.3 Lack of standardized frameworks for AI and ML technologies
5.2.3 OPPORTUNITIES
5.2.3.1 Increasing use of AI-powered solutions in elderly care
5.2.3.2 Increase in focus on developing human-aware AI systems
5.2.3.3 Strategic partnerships and collaborations among healthcare companies and AI technology providers
5.2.4 CHALLENGES
5.2.4.1 Inaccurate predictions due to scarcity of high-quality healthcare data
5.2.4.2 Concerns regarding data privacy
5.2.4.3 Lack of interoperability between AI solutions offered by different vendors
5.6.1 INDICATIVE PRICING OF AI IN HEALTHCARE SOFTWARE, BY DEPLOYMENT MODEL (QUALITATIVE)
5.6.2 INDICATIVE PRICING OF AI IN HEALTHCARE SOFTWARE, BY REGION (QUALITATIVE)
5.7 VALUE CHAIN ANALYSIS
5.8 ECOSYSTEM ANALYSIS
5.9 PATENT ANALYSIS
5.9.1 INSIGHTS: JURISDICTION AND TOP APPLICANT ANALYSIS
5.10 KEY CONFERENCES & EVENTS
5.11 CASE STUDY ANALYSIS
5.11.1 BIOBEAT LAUNCHED HOME-BASED REMOTE PATIENT MONITORING KIT DURING PEAK WAVE OF COVID-19
5.11.2 MICROSOFT COLLABORATED WITH CLEVELAND CLINIC TO APPLY PREDICTIVE AND ADVANCED ANALYTICS TO IDENTIFY POTENTIAL AT-RISK PATIENTS UNDER ICU CARE
5.11.3 TGEN COLLABORATED WITH INTEL CORPORATION AND DELL TECHNOLOGIES TO ASSIST PHYSICIANS AND RESEARCHERS IN ACCELERATING DIAGNOSIS AND TREATMENT AT LOWER COSTS
5.11.4 GE HEALTHCARE IMPROVED PATIENT OUTCOMES BY REDUCING WORKFLOW PROCESSING TIME USING MEDICAL IMAGING DATA
5.12 REGULATORY LANDSCAPE
5.12.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS
5.12.2 REGULATORY FRAMEWORK
5.12.2.1 North America
5.12.2.2 Europe
5.12.2.3 Asia Pacific
5.12.2.4 Middle East & Africa
5.12.2.5 Latin America
5.13 PORTER'S FIVE FORCES ANALYSIS
5.13.1 THREAT OF NEW ENTRANTS
5.13.2 THREAT OF SUBSTITUTES
5.13.3 BARGAINING POWER OF SUPPLIERS
5.13.4 BARGAINING POWER OF BUYERS
5.13.5 INTENSITY OF COMPETITIVE RIVALRY
5.14 KEY STAKEHOLDERS & BUYING CRITERIA
5.14.1 KEY STAKEHOLDERS IN BUYING PROCESS
5.14.2 BUYING CRITERIA
5.15 END-USER ANALYSIS
5.15.1 UNMET NEEDS
5.15.2 END-USER EXPECTATIONS
5.16 AI IN HEALTHCARE BUSINESS MODELS
5.16.1 SOFTWARE-AS-A-SERVICE (SAAS) MODEL
5.16.2 LICENSING MODEL
5.16.3 REVENUE SHARING/OUTCOME-BASED MODEL
5.16.4 FREEMIUM MODEL
5.16.5 AI-AS-A-SERVICE (AIAAS) MODEL
5.16.6 PARTNERSHIP/REVENUE-SHARING MODEL
5.16.7 HYBRID MODELS
5.16.8 PAY-PER-USE MODELS
5.17 INVESTMENT & FUNDING SCENARIO
5.18 IMPACT OF GENERATIVE AI ON AI IN HEALTHCARE MARKET
5.18.1 INTRODUCTION
5.18.2 MARKET POTENTIAL OF GEN AI IN HEALTHCARE
5.18.2.1 Key use cases of Gen AI
5.18.3 CASE STUDIES OF AI/GENERATIVE AI IMPLEMENTATION
5.18.3.1 Eka Care leveraging generative AI for improved health outcomes
5.18.4 INTERCONNECTED AND ADJACENT ECOSYSTEMS
5.18.4.1 AI in healthcare IT
5.18.4.2 AI in medical diagnostics
5.18.4.3 AI in oncology
5.18.4.4 AI in clinical trials
5.18.4.5 AI in drug discovery
5.18.5 USER READINESS & IMPACT ASSESSMENT
5.18.5.1 User readiness
5.18.5.1.1 Healthcare providers
5.18.5.1.2 Healthcare payers
5.18.5.1.3 Patients
5.18.5.2 Impact assessment
5.18.5.2.1 User A: Healthcare providers
5.18.5.2.1.1 Implementation
5.18.5.2.1.2 Impact
5.18.5.2.2 User B: Healthcare payers
5.18.5.2.2.1 Implementation
5.18.5.2.2.2 Impact
5.18.5.2.3 User C: Patients
5.18.5.2.3.1 Implementation
5.18.5.2.3.2 Impact
6 IMPACT OF 2025 US TARIFF - OVERVIEW
6.1 INTRODUCTION
6.2 KEY TARIFF RATES
6.3 PRICE IMPACT ANALYSIS
6.4 IMPACT ON COUNTRY/REGION
6.4.1 US
6.4.2 EUROPE
6.4.3 ASIA PACIFIC
6.5 IMPACT ON END-USE INDUSTRIES
7 AI IN HEALTHCARE MARKET, BY OFFERING
7.1 INTRODUCTION
7.2 INTEGRATED SOLUTIONS
7.2.1 RISE IN WORKFORCE CHALLENGES AND COST PRESSURES TO DRIVE ADOPTION
7.3 NICHE/POINT SOLUTIONS
7.3.1 TARGETED AI SOLUTIONS TRANSFORMING PRECISION CARE AND EFFICIENCY IN HEALTHCARE TO BOOST MARKET
7.4 AI TECHNOLOGIES
7.4.1 ABILITY OF CORE AI TECHNOLOGIES TO DRIVE PRECISION, EFFICIENCY, AND INNOVATION TO SUPPORT MARKET GROWTH
7.5 SERVICES
7.5.1 NEED TO EMPOWER NON-CLINICAL HEALTHCARE OPERATIONS TO FUEL MARKET GROWTH
8 AI IN HEALTHCARE MARKET, BY FUNCTION
8.1 INTRODUCTION
8.2 DIAGNOSIS & EARLY DETECTION
8.2.1 PRE-SCREENING
8.2.1.1 Early detection, better outcomes, and cost-effective care associated with pre-screening to boost market
8.2.2 IVD
8.2.2.1 IVD market, by technology
8.2.2.1.1 Immunoassays
8.2.2.1.1.1 Increase in focus on earlier disease detection & personalized treatment planning to drive market
8.2.2.1.2 Clinical chemistry
8.2.2.1.2.1 Increased demand for precision and personalized medicine and efficient healthcare systems to drive market
8.2.2.1.3 Molecular diagnostics
8.2.2.1.3.1 Improved disease detection, personalized treatments, and enhanced outcomes to fuel growth
8.2.2.2 IVD market, by application
8.2.2.2.1 Image analysis & interpretation
8.2.2.2.1.1 Advantages such as enhanced diagnostic accuracy, faster detection, and improved patient outcomes to support growth
8.2.2.2.2 Biomarker discovery & analysis
8.2.2.2.2.1 Ability of AI-based biomarker discovery to enhance disease detection, prognosis, and personalized treatment to drive adoption