The global artificial intelligence in healthcare market was valued at USD 21.06 Billion in 2025, driven by an increasing demand for automation and efficiency in healthcare, advancements in AI technology, a growing need for improved diagnostic accuracy, and rising investments in AI solutions across the globe. The market is anticipated to grow at a CAGR of 39.10% during the forecast period of 2026-2035 to achieve a value of USD 571.12 Billion by 2035.
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AI-powered tools and platforms can automate repetitive tasks, streamline workflows, and improve overall operational efficiency in healthcare settings, leading to faster and more accurate results.
Developments in AI algorithms, machine learning, and deep learning are enabling more sophisticated applications in areas like medical imaging, drug discovery, and personalized treatment.
AI algorithms can analyze medical images and patient data with greater speed and precision than humans, leading to earlier and more accurate disease detection and diagnosis.
Compound Annual Growth Rate
39.1%
Value in USD Billion
2026-2035
*this image is indicative*
Artificial intelligence (AI) is rapidly transforming the healthcare industry, offering solutions for diagnosis, treatment, and overall patient care. AI-powered tools are being used to analyze medical images, predict patient outcomes, personalize treatment plans, and automate administrative tasks, ultimately aiming to improve efficiency, reduce costs, and enhance patient experiences. AI algorithms can analyze medical images like X-rays, CT scans, and MRIs with high accuracy, assisting in the early detection of diseases like cancer, often more effectively than traditional methods. AI-powered tools can identify subtle patterns and anomalies that might be missed by the human eye, leading to faster and more accurate diagnoses.
Accelerated Regulatory Approvals and Supportive Government Initiatives
A major driver for the global AI in healthcare market is accelerated regulatory approvals and supportive government initiatives, demonstrated by the FDA’s authorization of 950 AI/ML-enabled medical devices in August, 2024, primarily for radio applications. In addition, the U.S Artificial Intelligence Initiative Act and the EU AI Act are establishing standardized guidelines to ensure safety and interoperability, bringing down adoption barriers. This regulatory momentum when combined with public funding for AI integration in hospitals has increased adoption.
The key trends in the market include advancements in AI technology and improved diagnostic accuracy:
Advancements in AI Technology to Boost Market Growth
Technological developments in AI, machine learning, and deep learning have transformed healthcare by making advanced applications in medical imaging, drug discovery, and personalized treatment possible. AI tools from tech giants like Nvidia, Amazon, and Google have spiked diagnostic accuracy and accelerated workflows in imaging and clinical documentation. In pharmaceutical development, startups like SandboxAQ generated massive synthetic protein-binding datasets for streamlining discovery while companies like Insilico Medicine and XtalPi utilize deep learning platforms for designing novel compounds, with a few progressing into clinical trials. Research reviews underline GNNs and neural networks for virtual screening and patient stratification, in consequence, improving trial design and precision medicine.
Improved Diagnostic Accuracy to Boost Artificial Intelligence in Healthcare Market Demand
AI algorithms are revolutionizing disease detection by assessing medical images and patient data rapidly and with higher precision, outpacing human clinicians. A convolutional neural network (CNN) examined lung CT scans with 96 % sensitivity and while diminishing expert review time from 3 minutes to less than 36 seconds. Additionally, Northwestern Medicine’s AI enhanced radiologist productivity by 40% in real-time imaging workflows. Transformer‑based models that combine X‑rays and clinical data have led to more accurate diagnoses across various disease states. There is widespread AI deployment in radiology with two‑thirds of U.S. departments using FDA‑approved tools to hasten diagnoses in high-risk cases like tumors and strokes with the intent to improve patient outcomes.
Integrated AI Solutions Leads the Offering Segment
Integrated AI solutions lead the healthcare market as they seamlessly integrate diagnostics, imaging, clinical decision support, and administrative workflows into unified platforms. Reports show the software solutions segment, especially integrated offerings, held a considerable share in 2023 and is projected to drive industry growth through 2032. Collaborations like Microsoft‑NVIDIA and GE‑Mass General Brigham embed AI deep into end‑to‑end care, uniting imaging, EHR, and telehealth tools. Research on multimodal frameworks which involve incorporating imaging, text, and structured data, reveals improved diagnostic accuracy by 6–33% when compared to single-use AI. Hospital systems are increasingly embracing, “smart hospital” platforms for enhancing efficiency and outcomes.
North America’s mature and advanced healthcare system with highly developed state of the art infrastructure, many hospitals and clinics explain its market leadership. Such infrastructure is necessary for building a strong foundation for the adoption and integration of AI technologies. Both public and private sectors in North America invest substantially in AI research and development within the healthcare industry. Such investments cover many distinct areas, like AI-powered diagnostic tools, personalized medicine, and predictive analytics.
The key features of the market report comprise patent analysis, grants analysis, funding and investment analysis, and strategic initiatives by the leading players. The major companies in the market are as follows:
Koninklijke Philips N.V., commonly known as Philips, is a Dutch multinational health technology company headquartered in Amsterdam. It was founded in 1891 in Eindhoven and has evolved into a leading provider of health technology solutions. Philips focuses on improving people's health and well-being through innovations in diagnosis and treatment, connected care, and personal health.
Microsoft Corporation is a multinational technology company focused on developing and supporting software, services, devices, and solutions. Founded in 1975, it's known for its Windows operating system, Office suite, and cloud services like Azure. Microsoft operates in over 190 countries with a diverse range of products and services spanning productivity, business processes, cloud computing, and personal computing.
NVIDIA Corporation is an American multinational technology company known for its pioneering work in accelerated computing, particularly with its invention of the GPU. Founded in 1993, NVIDIA is headquartered in Santa Clara, California, and is a leading supplier of graphics processing units, system on a chip units (SoCs), and artificial intelligence hardware and software.
Siemens Healthineers AG is a global medical technology company focused on providing diagnostic and therapeutic solutions to healthcare providers. It operates through four segments: Imaging, Diagnostics, Varian, and Advanced Therapies. The company is known for its innovations in areas like magnetic resonance imaging, computed tomography, X-ray systems, laboratory diagnostics, and cancer care technologies.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other leading players in the market include GE Healthcare, Epic Systems Corporation, Oracle, Veradigm LLC, Medtronic plc, and Google, among others.
The market report offers a detailed analysis of the market based on the following segments:
Market Breakup by Offerings
Market Breakup by Function
Market Breakup by Application
Market Breakup by Deployment Mode
Market Breakup by Technology
Market Breakup by End User
Market Breakup by Region
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| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Application |
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| Breakup by Deployment Mode |
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| Breakup by Technology |
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| Breakup by End User |
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