Artificial Intelligence in Diagnostics Market Size, Share, and Trends 2025 to 2034

The global artificial intelligence in diagnostics market size was accounted for USD 1.61 billion in 2024, grew to USD 1.94 billion in 2025 and is predicted to surpass around USD 10.28 billion by 2034, representing a healthy CAGR of 20.37% between 2025 and 2034. The North America artificial intelligence in diagnostics market size was calculated at USD 930 million in 2024 and is expected to grow at a fastest CAGR of 20.51% during the forecast year.

  • Last Updated : 26 Dec 2024
  • Report Code : 1114
  • Category : Healthcare

Artificial Intelligence in Diagnostics Market Size and Forecast 2025 to 2034

The global artificial intelligence in diagnostics market size was estimated at USD 1.61 billion in 2024 and is anticipated to reach around USD 10.28 billion by 2034, expanding at a CAGR of 20.37% from 2025 to 2034.. The rising adoption of AI in diagnostics market is owing to the high precision and improved outcomes provided by the AI tools for patients.

Artificial Intelligence in Diagnostics Market Size 2025 to 2034

Artificial Intelligence in Diagnostics Market Key Takeaways

  • North America dominated the market with a revenue share of 58% in 2024.
  • On the basis of components, the software segment accounted for 46% of revenue share in 2024.
  • Based on diagnosis type, the neurology diagnosis segment has captured a revenue share of more than 25% in 2024. 

U.S. Artificial Intelligence in Diagnostics Market Size and Growth 2025 to 2034

The U.S. artificial intelligence in diagnostics market size was evaluated at USD 653.66 million in 2024 and is predicted to be worth around USD 4239.73 million by 2034, rising at a CAGR of 20.63% from 2025 to 2034

U.S. Artificial Intelligence in Diagnostics Market Size 2025 To 2034

North America dominated the market with a revenue share of 58% in 2024. With the presence of key market players and cutting-edge advancements in technologies integrated with AI-powered tools has expanded the market growth in this region. The rise in investments in R&D, support from government initiatives and increased fundings from private and public organizations for producing AI-enhanced diagnostic tools is strengthening the industries in the region.

Asia Pacific is anticipated to be the fastest growing region in the artificial intelligence in diagnostics market over the forecast period. The rising prevalence of chronic and non-communicable diseases is creating the demand for AI-powered diagnostic tools in the region. With the increasing adoptions of diagnostic tools paired with AI and machine learning platforms by the industries and the healthcare professionals in this region to provide accurate results and enhancing efficiency of diagnosing patients is fuelling the market growth. Moreover, the increasing investments in R&D, the strategic collaborations among companies and the rise in clinical stage development programs in developing countries is expected to boost the market growth of this region in the imminent years.

Artificial Intelligence in Diagnostics Market Share, By Region, 2024 (%)

Market Overview

Medical diagnosis refers to the process of determining a disease or condition that matches with an individual’s symptoms and signs. The diagnostic procedures can be of different types such as laboratory tests (blood, urine), imaging tests (PET, CT scan, MRI), endoscopy. The process of diagnosing and determining the results of these tests can be complicated and may lead to misdiagnosis.  

In today’s AI-driven world, the use of deep learning algorithms and AI tools in diagnostics can improve the accuracy, speed and efficiency for diagnosing patients with minimal errors. The introduction of AI and machine learning tools in diagnostics is transforming the healthcare industry by supporting the doctors in advanced disease diagnosis and providing personalized treatments to patients with better judgements and quick results.

The application of AI tools in diagnostics is assisting in analysing medical images for examining disease progression, predicting patient outcomes, processing and storing of patient data which includes electronic health records (EHRs), identifying patterns and anomalies in patient data and symptom checkers for providing potential diagnosis. The advances in digital biomarkers technology which uses real-time monitoring systems for early disease diagnosis and prediction has also enhanced the AI in diagnostics market growth.

Artificial Intelligence in Diagnostics Market Growth Factors

  • Government initiatives: The rising awareness and adoption of AI-based technologies by various governments for advancing diagnostic procedures, precision medicine and improving patient life outcomes.
  • Big data adoption: The development of advanced information systems with the help of cloud computing and AI integrated tool for storing large datasets, EHRs and demographic trends for upgrading AI systems to provide accurate results in disease diagnosis as well as disease prognosis.
  • Use of digital biomarkers: The increased use of digital biomarkers (DBMs) by individuals, patients and healthcare providers which are integrated with AI platforms is helping to improve diagnosis, monitoring and progression of diseases along with point-of-care testing.

Market Scope

Report Coverage Details
Market Size in 2024 USD 1.61 billion
Market Size in 2025 USD 1.94 billion
Market Size by 2034 USD 10.28 billion
Growth Rate from 2025 to 2034 CAGR of 20.37%
Largest Market North America
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered By Component Type, and By Diagnosis Type
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics

Driver

Increased demand for AI-driven diagnostic techniques

The high speed accuracy and efficiency with minimal errors offered by utilizing AI-driven tools in medical diagnostics procedures is gaining popularity among the patients and healthcare providers. These tools are aiding in monitoring disease progression, real-time analysis and disease prognosis thereby driving the market growth.

Restraint

High developmental and conservation costs

The installation of AI and machine learning tools in industrial and healthcare settings followed by the timely upgrades and maintenance costs is steep and not affordable owing to the low investments and capital of small and mid-sized organisations which is expected to hamper the market growth. Also the lack of interest of government bodies in increasing expenditure for introducing and developing AI-driven tools is costing the private consumers.

Opportunity

Rising investments and technological advancements:

The rise in investments and fundings by public and private sectors as well as the collaborations among industries, research institutions and academia for advancing the applications of AI tools in diagnostic procedures is expected to create opportunities for growth in the market during the forecast period.

Component Insights

Many corporations are designing software solutions for different healthcare applications which in turn encouraging the development of the software segment. Budding acceptance of AI-driven healthcare operational support and healthcare informatics solutions by means of healthcare service suppliers and hospitals is projected to enhance the growth of services during years to come.

The snowballing requirement for cloud-based and AI-powered augmented diagnostic solutions that aid in enhancing diagnostic precision during inferring medical images of a patient is flourishing the growth of the segment. Besides, the introduction of cutting-edge AI software in diagnostics comprising a combination of numerous data sources like CT, MRI, proteomics, genomics and patient data that helps in effectively detecting sickness and evaluating its development is also projected to push the growth of the market.

Based on component, the software segment dominated the market in 2024. The need for development of sophisticated software platforms for diagnostic applications with the integration of machine learning and AI tools is boosting the market growth. With the empowerment of diagnostic innovations through AI-powered algorithms and tools for various applications such as image analysis, predictive analytics, natural language processing (NLP), in digital biomarkers and telemedicine integration is uplifting the development of cutting edge software platforms. For instance, NVIDIA, a leading global corporation in AI technology has enhanced diagnostic accuracy in medical imaging by identifying patterns overlooked by the human eye with its AI-powered systems.

Diagnosis Type Insights

AI has the prospective to substitute plentiful of the routine characterization, detection, and quantification jobs presently accomplished by radiologist with the help of cognitive capability also complete the data mining of medical records (electronic) in the procedure. Among different types of diagnostics segment neurology held a market share of more than 23% in 2019. Further, radiology is anticipated to be the fastest progressing type on account of growing improvement of AI-based software existing for diagnostic imaging. The neurology amounts for greatest number of regulatory approvals occupying for about 18% of the total AI-based medical diagnostics platform.

The neurology segment is dominating the market in the diagnosis type segment. The failed attempts in developing a potential cure and treatments for neurological disorders is promoting the use of AI-driven tools for enhancing diagnostic procedures, disease prognosis, progression monitoring and providing personalized treatment plans. The integration of AI with diagnostics for developing treatments for neurological diseases is expanding the market growth of this segment. For instance, in Dec 2023, Quibim a company using best-in-class imaging softwares through AI techniques is enhancing brain MRI analysis by launching its propreitary QP-Brain which is an AI-powered tool providing a better understanding of brain atrophy and lesions through calculable evaluations for enhanced detection.

The radiology segment is expected to be the fastest growing segment by diagnosis type. The integration of AI tools in radiology has enhanced diagnostics with improved efficiency and accuracy making them popular among radiologists. From detecting abnormalities, improve image quality, supporting early treatment, real-time diagnosis and streamlining workflows with help of AI tools in radiology is boosting the market growth of this segment.

Key Companies & Market Share Insights

Reinforcing tactical collaborations and partnerships amongst several health facilities and AI solution suppliers is another aspect confidently purring market growth. For occurrence, in August 2019, Boston based Partners HealthCare partnered with FUJIFILM SonoSite, Inc. in order to implement artificial intelligence to portable ultrasound technology beneficial for point-of-care testing. In this co-operation, the datasets, clinical expertise, and IT infrastructure of Partners HealthCare is planned to practice with portable ultrasound technology of FUJIFILM in order to develop AI-powered devices.

Lately, artificial intelligence research division of the Google started its Google Deep mind Health project. This project comprises data mining of medical records to offer improved and quick health services. Improvement of such technically progressed data solutions and software and are projected to accelerate the growth of the market across the globe. Nevertheless, high capital constraint may generate affordability concerns and hinder the growth of the industry to some extent.

Latest Announcements by Industry Leaders

  • In August 2024, Skanray, a leading MedTech company announced Tata Elxsi as a strategic partner for advanced surgical imaging and software platform development. With Skanray’s expertise in medical devices, core component technology systems and applications combined with Tata Elxsi’s dominion in medical imaging, software platform development and digital proficiency in cloud, AI and analytics will change the terrain for medical technology with advanced and affordable diagnostics.

 Artificial Intelligence in Diagnostics Market Companies

Recent Developments

  • In Dec 2024, Lunit, a leading provider for AI-driven solution in cancer diagnostics and therapeutics declared the Go-Live of its collaboration with BreastScreen New South Wales (BSNSW) which is the world’s first AI integrated technology program for cancer screening.
  • In July 2024, Microsoft Corp., announced the collaborations with a leading academic medical systems Mass General Brigham and the University of Wisconsin School of Medicine and Public Health for transforming medical imaging for improved health outcomes with integration of Microsoft Azure AI platform in radiology applications.
  • In Sep 2024, Indian startup Qure.AI received $65 million from investors in a funding led by Lightspeed Venture Partners and 360 ONE Asset Management. The funds will be used by the startup for developing products powered with AI for disease detection.
  • In March 2024, Microsoft announced its collaboration with NVIDIA to bring together the universal, secure and advanced computing abilities of Microsoft Azure with NVIDIA DGX Cloud and the NVIDIA Clara chain of computing platforms, software to accelerate the innovation and improvise patient care by helping healthcare and life sciences organizations. With use of their cutting-edge AI and advanced computing platforms combined with capacity of the cloud, they aim to enhance medical image-based diagnostic technology.

Segments Covered in the Report

By Component

  • Hardware
  • Software
  • Services

By Diagnosis Type

  • Radiology
  • Pathology
  • Cardiology
  • Oncology
  • Neurology
  • Chest and Lung
  • Others

By Regional Outlook

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Middle East & Africa
  • Latin America

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Frequently Asked Questions

The artificial intelligence in diagnostics market is expected to grow at a CAGR of 20.37% over forecast period 2025 to 2034.

The artificial intelligence in diagnostics market size was valued at USD 1.61 billion in 2024.

The introduction of AI platform is estimated to lift the clinical diagnosis growth by scaling up healthcare services across the globe. It is projected to deliver improved patient safety, outcome scrutiny, and data assortment. Progressions in data analytics is considered to upsurge the growth in the healthcare artificial intelligence industry during upcoming years.

North America led the Ai in diagnostics market with substantial share of revenue more than 58% in 2024. This is credited to escalating implementation of healthcare IT solutions in diagnosis, huge subsidy for improvement of AI-based diagnosis software and existence of well-organized healthcare sector.

However, Asia Pacific is considered to be most potential regional market for healthcare AI business. Healthcare AI in Asia Pacific is backed by expansions in biotechnology and pharmaceutical industry and rising R&D expenditure.

Different players contending in the market arena include Siemens Healthcare GmbH, GE Healthcare, Aidoc, Imagen Technologies, AliveCor, Zebra Medical, Vision, Vuno Inc., IDx Technologies Inc., Neural Analytics, Riverain Technologies and others.

Software appeared as the prominent segment in the AI diagnostics market with a share of more than 46% in 2023.

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