Global AI in Healthcare Market Size, Share, Growth & Trend Analysis Report, 2032

Summary
Market Landscape
Methodology
Table of Content

Global AI in Healthcare Market Size, Share, Growth & Trend Analysis Report, By Platform (Hardware, Software & Services), By Application (Robot-Assisted Surgery, Virtual Nursing Assistant, Administrative Workflow Assistance, Clinical Trials, Diagnostics, and Others), By Region (Asia Pacific, Europe, North America, Latin America and Middle East & Africa) and Forecasts 2024-2032

The Global Artificial Intelligence (AI) In Healthcare Market was valued at USD XX billion in 2024 and is anticipated to reach USD XX billion by 2032, reflecting a compound annual growth rate (CAGR) of over 25% during the forecast period from 2025 to 2032.

Industry Trends

In recent years, artificial intelligence (AI) has been rapidly revolutionizing the global healthcare sector, introducing ground-breaking tools for diagnosis, treatment, and patient care. As demand continues to rise, providers are prioritizing technological advancements to improve the diagnosis and treatment of various clinical conditions.

The growth of AI in healthcare is being propelled by investments from private and government entities, alongside progress in medicine, research, innovation, and technology. Despite these advancements, certain challenges hinder the widespread adoption of AI in healthcare.

A notable barrier is the shortage of skilled specialists, which results in delays in development, errors, and increased healthcare costs. To address these gaps, healthcare providers increasingly rely on tech companies for AI expertise, intensifying competition among these companies to meet the rising demand.

Industry Expert’s Opinion

Michelle Donelan, U.K. secretary of state for science, innovation and technology

“AI will revolutionize the way we live, including our healthcare system. That’s why we’re backing the UK’s fantastic innovators to save lives by boosting the front line of our NHS and tackling the major health challenges of our time.”

Prof. Dr. Mihaela van der Schaar, John Humphrey Plummer Professor of Machine Learning, Artificial Intelligence and Medicine at the University of Cambridge

“AI should augment and empower healthcare professionals and patients, creating a human-machine partnership.”

TT Consultants’ Perspective

The rising adoption of artificial intelligence in healthcare is evident through compelling statistics, demonstrating impressive outcomes, increasing trust among medical professionals, and a surge in investor interest in AI-driven healthcare innovations.

The outlook for the AI in Healthcare Market is highly promising, with substantial advancements likely on the horizon. However, the market's growth is constrained by a persistent shortage of skilled specialists and inefficiencies in collaboration between public and private sectors. Addressing these challenges will be pivotal to unlocking the full potential of AI in transforming healthcare.

Market Segmentation

1. By Platform (Hardware, Software & Services)

The software & services segment is expected to record the highest CAGR of XX% during the forecast period, driven by the increasing adoption of AI-powered software solutions among healthcare providers, and patients.

The hardware segment is also projected to experience substantial growth between 2024 and 2032. This growth is attributed to the expanding use of AI technologies across various healthcare applications, including clinical trials, virtual assistants, robot-assisted surgeries, dosage error reduction, and fraud detection.

2. By Application (Robot-Assisted Surgery, Virtual Nursing Assistant, Administrative Workflow Assistance, Clinical Trials, Diagnostics, and Others)

In 2024, the robot-assisted surgery segment captured the largest market share with XX%, driven by significant technological advancements.

Going ahead, the preliminary diagnostics segment is anticipated to experience notable growth during the forecast period, achieving a substantial CAGR. The growing adoption of AI-driven diagnostic tools, owing to their proven effectiveness, has fueled demand for AI-based pathology solutions.

3. By Region (North America, Europe, Asia Pacific, Latin America, Middle East Africa)

North America, valued at USD XX billion in 2024, is expected to maintain its dominance in the global AI in healthcare market throughout the forecast period. This growth is driven by the increasing adoption of AI-based medical devices and the efforts of key players to secure regulatory approvals.

Europe is projected to hold the second-largest share of the AI in the healthcare market. Meanwhile, the Asia Pacific region is anticipated to experience the highest CAGR, with notable growth in developing nations such as China, Japan, and India.

Competitive Scenario

Key competitors operating in the market include, Amazon, Microsoft Corporation, NVIDIA Corporation, Alphabet, Insilico Medicine, International Business Machine, IQVIA, Itrex Group, Koninklijke Philips N.V., Persistent Systems, Siemens, Healthineers, Sophia Genetics among others.

Players operating in the market are adopting strategies, such as mergers & acquisitions, product launches, and technological advancements, thereby strengthening their position in the global market.

Recent Developments and Strategic Activities:

In October 2024, Nvidia announced a partnership with Aidoc Medical to develop an innovative framework designed to foster and guide AI adoption in the healthcare industry. Named the Blueprint for Resilient Integration and Deployment of Guided Excellence (BRIDGE), this framework will offer organizations practical guidelines for effectively integrating AI services into clinical workflows to enhance patient outcomes.
In July 2024, Microsoft teamed up with Mass General Brigham and the University of Wisconsin–Madison to advance AI models for medical imaging. Covering over 23,000 conditions, this collaboration aims to improve radiologist efficiency and enhance patient care.
In January 2024, Siemens and Amazon Web Services (AWS) joined forces to make generative AI more accessible in software development. By integrating Amazon Bedrock into Siemens' Mendix low-code platform, the collaboration seeks to enable domain experts across various industries to easily create and enhance applications using advanced generative AI technology.
In November 2023, Koninklijke Philips N.V. partnered with Vestre Viken Health Trust in Norway to implement its AI Manager platform, enhancing radiology workflows. The AI-powered bone fracture application improved diagnostic efficiency by enabling radiologists to focus on complex cases. Covering 30 hospitals and serving approximately 3.8 million people, this initiative represented Philips' largest AI deployment in Europe, leading to better patient care and faster diagnostic processes.
In November 2023, Koninklijke Philips N.V. secured a second round of funding, amounting to USD 60 million, from the Bill & Melinda Gates Foundation. This funding aims to accelerate innovation, and the global adoption of AI algorithms integrated into the Lumify Handheld Ultrasound.
In June 2023, ReproCell, IBM, and the Hartree National Centre for Digital Innovation (HNCDI) collaborated to launch Pharmacology-AI, an advanced service utilizing AI and machine learning to optimize drug discovery. This platform simplifies big data analysis by identifying critical inter-individual differences in drug responses. It is expected to assist pharmaceutical companies in designing more effective and cost-efficient clinical trials, facilitating the early development of new drugs.