AI in Medical Diagnostics Market Size was valued at USD 2.1 Billion in 2023. The Global AI in medical diagnostics market industry is projected to grow from USD 2.9 Billion in 2024 to USD 29.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 39.00% during the forecast period (2024 - 2032). The use of Al in medical diagnostics is expanding quickly due to a number of market drivers, including increased government initiatives to support the use of Al-based technologies, the rise in radiologists adopting Al solutions to reduce their workload, the introduction of big data, the availability of funding for Al-based startups, and an increasing number of cross-industry partnerships and collaborations.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The aging global population predisposes people to chronic conditions such as cancer, diabetes, cardiovascular disease, and respiratory disease, driving the demand for AI in the medical diagnostics market CAGR. The main risk factors for the high prevalence of chronic diseases in developed and developing countries are a sedentary lifestyle, a healthy diet, tobacco, and alcohol abuse. For accurate diagnosis, early detection and prompt response are critical in the fight against many diseases. Intelligence (AI) helps in image interpretation, pattern recognition, and large-scale dataset analysis in medical research. AI in medical research makes the cohort diagnosis of complex medical diseases more efficient, accurate, and faster and helps to improve a person’s overall health; the WHO 2023 report states that chronic diseases kill 41 million people worldwide each year. 77% related deaths in low and middle-income countries. Every year, heart disease kills 17.9 million people and is the leading cause of death. Cancer ranks second with 9.3 million deaths. In addition, diabetes and chronic respiratory problems cause about 2.1 million and 2 million deaths, respectively.
Both public and private companies are heavily investing in AI-based medical diagnostics due to the growing need for AI-based healthcare solutions, such as appliances and tools for accurate medical diagnosis. This is because AI-based medical diagnostics offer fast analysis and great efficiency in accurately diagnosing diseases. AI-driven diagnostic tools are being developed by publicly traded firms, including tech giants like Google, Microsoft, and IBM, by utilizing their financial strength and technological know-how and by dedicating substantial resources like hardware and software based on artificial intelligence. Additionally, a large number of startups and private organizations supported by the government and other major players in the industry are concentrating on developing AI technology for medical diagnostics in order to enhance patient outcomes. The pattern shows how AI is beginning to be recognized as having the ability to completely transform diagnostics and increase the accuracy of diagnosing complicated medical diseases. For instance, the innovative medtech business VitruvianMD raised an astounding USD 1.25 million in a seed extension II investment round in August 2023. The Nebula Fund, 27four's social impact venture capital fund, supplied the cash, which is anticipated to aid in VitruvianMD's growth and represents a major accomplishment for the company. VitruvianMD combines sophisticated artificial intelligence (AI) with biomedical engineering to deliver state-of-the-art diagnostic solutions.
Healthcare products powered by AI and machine learning are subject to US FDA regulations as medical devices and are referred to as "Software as a Medical Device (SaMD)" in the US. Software for medical applications (SaMD) is software that functions independently of hardware medical devices and is designed to be utilized for one or more medical applications. All of the main nations' regulatory agencies are working to draft legislation that would weigh the advantages and disadvantages of utilizing AI for medical diagnosis. It is expected that such laws and the focus on creating wholesome ecosystems for companies offering AI-based diagnostics will aid in the market's growth. For instance, in June 2023, the UK government's National Health Service (NHS) received a GBP 21 million AI diagnostic fund to incorporate AI imaging and decision support tools for quick identification of illnesses like cancer, strokes, and heart issues. The global market for AI in medical diagnostics is experiencing significant growth because of these government initiatives. Thus, driving the AI in medical diagnostics market revenue.
The AI in Medical Diagnostics Market segmentation, based on component, includes Software, Hardware, and Services. In 2023, the software segment dominated the market. This is because more and more IT companies are offering software-based AI solutions, which are needed to get correct results faster in medical research and because of new software and new AI algorithms that have been rapidly developed, as well as radiology, neurology, ophthalmology that, gynecology and cardiology, etc. This sector is expanding due to the widespread use of A-based software across disciplines.
The AI in Medical Diagnostics Market segmentation, based on application, includes In Vivo Diagnostics and In Vitro Diagnostics. The in vivo diagnostics category generated the most income in 2023 due to the increased incidence of perinatal complications and chronic infectious diseases. Because AI is highly effective in the diagnosis of many neurological diseases, including brain tumors and malignancies, in addition to providing a significant contribution to the application of physical examination in neurological disease, AI is also a major source of information.
The AI in Medical Diagnostics Market segmentation, based on end user, includes Hospitals, Diagnostic Imaging Centers, Diagnostic Laboratories, and Others. The hospitals category generated the most income in 2023. This is because hospitals are using more diagnostic imaging treatments as routine procedures, more advanced imaging techniques are being adopted to improve efficiency, hospitals are getting used to digitizing and digitizing radiology patient workflows work in a functional way, minimally invasive approaches are becoming increasingly popular and improving patient care
Figure 1: AI in Medical Diagnostics Market, by End User, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. North American AI in the medical diagnostics market will dominate this market. The region's demand and market growth are primarily due to widespread, well-established healthcare IT infrastructure, continuous technological advancements, the emergence of many new advanced healthcare-based start-ups, high levels of digital literacy, and many beneficial government policies, for many other reasons.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.
Figure 2: AI in Medical Diagnostics Market Share By Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe AI in medical diagnostics market accounts for the second-largest market share. This is because of the region's high R&D expenditures, the rapid uptake of cutting-edge technology, the presence of international players, and their attempts to develop cutting-edge medical diagnostics technologies. Furthermore, the growing incidence of chronic illnesses is fueling the European AI in medical diagnostics market's expansion. Further, German AI in medical diagnostics market held the largest market share, and UK AI in medical diagnostics market was the fastest growing market in the European region.
The Asia-Pacific AI in Medical Diagnostics Market is expected to grow at the fastest CAGR from 2024 to 2032 because of the rising rates of lifestyle-related illnesses among the expanding Asia-Pacific population, as well as the developments in technology in nations like South Korea and Japan. Furthermore, rising healthcare sector investment from nations like China and India is projected to support AI in medical diagnostics market expansion. Moreover, China’s AI in medical diagnostics market held the largest market share, and the Indian AI in medical diagnostics market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the AI in medical diagnostics market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, AI in medical diagnostics industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global AI in medical diagnostics industry to benefit clients and increase the market sector. In recent years, the AI in medical diagnostics industry has offered some of the most significant advantages to medicine. Major players in the AI in medical diagnostics market are attempting to increase market demand by investing in research and development operations, including Siemens Healthineers, Vuno, Inc., Nanox Imaging LTD (Zebra Medical Vision, Inc.), Riverain Technologies, Aidoc, AliveCor Inc., Neural Analytics, Digital Diagnostics, Inc., Imagen Technologies, GE Healthcare, Enlitic, and InformAI.
AliveCor is a medical device and artificial intelligence business that creates ECG hardware and software that work with consumer mobile devices to allow for remote cardiac rhythm monitoring and the identification of irregular cardiac rhythms or arrhythmias. The American company AliveCor was established in 2011 and has its main office in Mountain View, California. The U.S. FDA approved AliveCor, Inc.'s product, the next-generation interpretative ECG algorithm Karida AI V2, in November 2020. The corporation can now prepare a product marketing strategy for the US market thanks to this permission.
A business that provides artificial intelligence (AI) is called Vuno Inc. Through its diagnostic and quantification-aiding software, it is a medical platform that physicians and people use to analyze medical data. Vuno Med-DeepBrain, an AI-based medical device for quantitative brain analysis, Vuno Med-fundus, a supporting solution for the fundus of the eye, and Chest X-Ray, a diagnostic supporting solution for bone age assessment, are all offered by the company. By striking a distribution deal with CHC Healthcare Group in February 2021, Vuno increased the scope of its business offerings in Taiwanese markets. Vuno will now be able to promote and distribute its AI solutions in Taiwan.
January 2024: A large language model (LLM)-based research AI system for diagnostic medical reasoning and discussions was introduced by Google DeepMind Research as AMIE (Articulate Medical Intelligence Explorer). Its goal is to talk with a doctor about possible diagnosis and to get the patient's medical history. Several real-world datasets were used to construct AMIE.
September 2023: The US-based Mayo Clinic and the US-based GE Healthcare have partnered to advance research and development initiatives that will better prepare doctors to diagnose and treat patients.
October 2022: Google Cloud introduced the "Medical Imaging Suite." This innovation improves the usability, accessibility, and interoperability of imaging healthcare data. Google Cloud's AI progress has made it possible to precisely diagnose images, improving patient outcomes.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.1 Billion |
| Market Size 2024 | USD 2.9 Billion |
| Market Size 2032 | USD 29.2 Billion |
| Compound Annual Growth Rate (CAGR) | 39.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Application, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea |
| Key Companies Profiled | Siemens Healthineers, Vuno, Inc., Nanox Imaging LTD (Zebra Medical Vision, Inc.), Riverain Technologies, Aidoc, AliveCor Inc., Neural Analytics, Digital Diagnostics, Inc., Imagen Technologies, GE Healthcare, Enlitic, and InformAI. |
| Key Market Opportunities | · Expanding alliances & partnerships across industries |
| Key Market Dynamics | · Growing need for Al-based solutions to lessen radiologists' workloads · Growing governmental efforts to promote technologies based on Al |
Frequently Asked Questions (FAQ) :
The AI in Medical Diagnostics Market size was valued at USD 2.1 Billion in 2023.
The global market is projected to grow at a CAGR of 39.00% during the forecast period, 2024-2032.
North America had the largest share in the global market.
The key players in the market are Siemens Healthineers, Vuno, Inc., Nanox Imaging LTD (Zebra Medical Vision, Inc.), Riverain Technologies, Aidoc, AliveCor Inc., Neural Analytics, Digital Diagnostics, Inc., Imagen Technologies, GE Healthcare, Enlitic, and InformAI, among others.
The software category dominated the market in 2023.
The hospitals category had the largest share in the global market.
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Assistant Manager He holds an experience of about 7+ years in market research and business consulting, working under the spectrum of life sciences and healthcare domains. rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. his expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. in addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives
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