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    US Applied AI in Healthcare Market

    ID: MRFR/ICT/13475-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US Applied AI in Healthcare Market Research Report: By Offering (Hardware, Software, Services) - Forecast to 2035

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    US Applied AI in Healthcare Market Summary

    The US Applied AI in Healthcare market is poised for substantial growth, expanding from 6.88 USD Billion in 2024 to 165.6 USD Billion by 2035.

    Key Market Trends & Highlights

    US Applied AI in Healthcare Key Trends and Highlights

    • The market is projected to grow at a compound annual growth rate (CAGR) of 33.53% from 2025 to 2035.
    • By 2035, the market is expected to reach a valuation of 165.6 USD Billion, indicating a robust upward trajectory.
    • In 2024, the market valuation stands at 6.88 USD Billion, highlighting the current investment landscape.
    • Growing adoption of AI technologies due to increasing demand for efficient healthcare solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 6.88 (USD Billion)
    2035 Market Size 165.6 (USD Billion)
    CAGR (2025-2035) 33.53%

    Major Players

    Alphabet, Medtronic, CureMetrix, Olify, IBM, Microsoft, Health Catalyst, Siemens Healthineers, Philips, GE Healthcare, Zebra Medical Vision, NVIDIA, Amazon, Epic Systems

    US Applied AI in Healthcare Market Trends

    The US Applied AI in Healthcare Market is experiencing significant transformations driven by advances in technology and regulatory support. One key market driver is the increasing demand for efficient healthcare solutions, mainly due to rising patient expectations and a growing volume of patient data. This push for enhanced patient care is prompting healthcare providers to adopt AI technologies for better diagnostics, personalized treatment plans, and improved operational efficiency. Furthermore, there is a continuous effort from the US government to promote innovation in healthcare through initiatives that support digital health technologies.

    Recent trends show a growing collaboration between healthcare organizations and technology companies, focusing on developing AI systems that improve health outcomes and efficiency. Additionally, there is a noticeable shift towards using AI for administrative tasks, such as billing and appointment scheduling, allowing healthcare professionals to focus more on patient care. Overall, the US Applied AI in Healthcare Market is set on a path of rapid evolution, with numerous opportunities for growth and improvements in healthcare delivery.

    Market Segment Insights

    Applied AI in Healthcare Market Offering Insights

    The US Applied AI in Healthcare Market is experiencing significant growth, particularly in the Offering segment, which comprises Hardware, Software, and Services. This segment plays a critical role in driving innovation across the healthcare landscape. Hardware, encompassing the physical devices and platforms that enable the efficient implementation of AI technologies, is becoming increasingly sophisticated, supporting applications ranging from diagnostics to robotic surgeries. Software solutions are at the heart of this transformation by providing algorithms and machine learning capabilities that analyze vast amounts of data, enhancing decision-making processes.

    Services, including implementation, maintenance, and training, are essential in ensuring that healthcare providers can integrate AI solutions effectively into their workflows. The ongoing digital transformation in the US healthcare system, propelled by increasing demands for efficiency and accuracy, has created favorable conditions for the expansion of the Offering segment. Rising investments in Research and Development (R&D) and collaboration between technology firms and healthcare institutions are further fueling advancements in this sector.

    As the healthcare industry continues to navigate challenges such as rising costs and the need for personalized patient care, the Offering segment of applied AI is positioned to deliver targeted solutions that enhance patient outcomes and streamline operations. The robust market growth is also supported by favorable government initiatives aimed at promoting technological advancements in healthcare. Overall, the Offering segment is pivotal for the US Applied AI in Healthcare Market, with each category contributing uniquely to the overall advancement of healthcare technology and patient care enhancement.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Get more detailed insights about US Applied AI in Healthcare Market Research Report - Forecast till 2035

    Key Players and Competitive Insights

    The competitive landscape of the US Applied AI in Healthcare Market is rapidly evolving, marked by innovative solutions aimed at enhancing patient care and operational efficiencies. As healthcare providers increasingly adopt advanced technologies, the integration of artificial intelligence has become a focal point for organizations seeking to optimize clinical workflows, improve diagnostic accuracy, and personalize treatment plans. There is a notable surge in investment and development within this sector, driven by the potential for AI to transform data management and patient interaction.

    Various players are attempting to carve out a share of this lucrative market by developing unique algorithms, machine learning applications, and data analytics tools tailored for healthcare applications. The interplay between established corporations and emerging startups is creating a dynamic environment where collaboration, partnerships, and competition are critical to maintain a competitive edge.

    Alphabet has made notable strides within the US Applied AI in Healthcare Market, capitalizing on its robust technological infrastructure and vast data resources. The company's strengths lie in its extensive research capabilities and its commitment to innovation, providing it with a significant advantage in the healthcare AI sector. Alphabet’s focus on machine learning applications enhances clinical workflows by enabling healthcare providers to utilize predictive analytics and automated systems tailored for patient care.

    The organization aims to redefine healthcare delivery by leveraging its established AI expertise, working in collaboration with healthcare providers to create solutions that facilitate early diagnosis and efficient treatment plans. The company's market presence is bolstered by its partnerships with various hospitals and health organizations, allowing it to effectively translate advanced technology into practical healthcare applications. Alphabet's strategic investment in AI technologies is setting a benchmark for how healthcare data can be analyzed and optimized for improved outcomes.

    Medtronic, a leader in medical technologies, also plays a critical role in the US Applied AI in Healthcare Market by integrating AI-driven solutions within its broad portfolio of products and services. The company focuses on essential areas including diabetes management, cardiac health, and surgical interventions, utilizing AI to enhance device performance and patient safety. Medtronic’s strengths lie in its commitment to innovation and the seamless integration of AI technology within its existing medical devices, which allows for real-time monitoring and data analysis. This capability is particularly advantageous in managing chronic conditions, as it facilitates proactive care through smart algorithmic adjustments.

    Medtronic has achieved significant market presence through strategic mergers and acquisitions that expand its technological capabilities and product offerings in AI. By continually pursuing advancements in machine learning and data integration, Medtronic is well-positioned to address complex healthcare challenges, improving treatment outcomes and reinforcing its competitive position in the market. The combination of innovative product development and collaborations within the healthcare ecosystem strengthens Medtronic's stature as a key player in the US Applied AI in Healthcare Market.

    Key Companies in the US Applied AI in Healthcare Market market include

    Industry Developments

    Recent developments in the US Applied AI in Healthcare Market have highlighted significant advancements and investments. In October 2023, Alphabet announced partnerships aimed at leveraging AI for predictive analytics in patient care, demonstrating its commitment to enhancing healthcare delivery. Meanwhile, in September 2023, Medtronic unveiled a new AI-driven algorithm designed to optimize management for diabetes patients, emphasizing the integration of technology in chronic disease management. Additionally, in August 2023, Amazon made headlines by enhancing its health technology services through AI, focusing on telehealth solutions.

    The market has witnessed notable mergers and acquisitions, with IBM acquiring a healthcare AI startup in July 2023 to bolster its capabilities in data analysis and patient insights. Furthermore, Microsoft has expanded its healthcare initiatives by collaborating with various providers to develop AI solutions aimed at streamlining operations and improving patient outcomes. Over the past couple of years, investments from companies like Health Catalyst and Siemens Healthineers have significantly contributed to the growth of AI applications in diagnostics.

    This surge in activity reflects a broader trend of increased adoption of AI technologies across healthcare institutions in the US, reinforcing the potential for transformative impacts on patient care and operational efficiencies.

    Market Segmentation

    Outlook

    • Hardware
    • Software
    • Services

    Applied AI in Healthcare Market Offering Outlook

    • Hardware
    • Software
    • Services

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 5.01(USD Billion)
    MARKET SIZE 2024 6.88(USD Billion)
    MARKET SIZE 2035 165.55(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 33.524% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Alphabet, Medtronic, CureMetrix, Olify, IBM, Microsoft, Health Catalyst, Siemens Healthineers, Philips, GE Healthcare, Zebra Medical Vision, NVIDIA, Amazon, Epic Systems
    SEGMENTS COVERED Offering
    KEY MARKET OPPORTUNITIES Predictive analytics for patient outcomes, AI-driven diagnostic tools, Automated administrative tasks, Personalized treatment plans, Remote patient monitoring solutions
    KEY MARKET DYNAMICS Regulatory compliance, Data privacy concerns, Rapid technological advancements, Increasing healthcare costs, Demand for personalized medicine
    COUNTRIES COVERED US

    FAQs

    What is the projected market size of the US Applied AI in Healthcare Market in 2024?

    The projected market size for the US Applied AI in Healthcare Market in 2024 is estimated to be 6.88 billion USD.

    How much is the US Applied AI in Healthcare Market expected to grow by 2035?

    By 2035, the US Applied AI in Healthcare Market is expected to reach a valuation of 165.55 billion USD.

    What is the anticipated compound annual growth rate (CAGR) for the US Applied AI in Healthcare Market from 2025 to 2035?

    The anticipated CAGR for the US Applied AI in Healthcare Market from 2025 to 2035 is 33.524 percent.

    What will be the market value for Hardware in the US Applied AI in Healthcare Market in 2035?

    The market value for Hardware in the US Applied AI in Healthcare Market is forecasted to be 35.0 billion USD in 2035.

    What is the expected market size for Software in the US Applied AI in Healthcare Market by 2035?

    The expected market size for Software in the US Applied AI in Healthcare Market is projected to reach 100.0 billion USD by 2035.

    How significant is the Services offering in the US Applied AI in Healthcare Market for the year 2024?

    The Services offering in the US Applied AI in Healthcare Market is valued at 2.38 billion USD for the year 2024.

    Which companies are considered major players in the US Applied AI in Healthcare Market?

    Major players in the US Applied AI in Healthcare Market include Alphabet, Medtronic, IBM, Microsoft, and Siemens Healthineers.

    What market share do Software offerings hold in the US Applied AI in Healthcare Market compared to other offerings in 2024?

    In 2024, Software offerings hold a significant share valued at 3.0 billion USD within the US Applied AI in Healthcare Market.

    What are the major growth drivers for the US Applied AI in Healthcare Market going forward?

    Major growth drivers include increased adoption of AI technologies, demand for improved healthcare services, and advancements in machine learning.

    How do technological advancements affect the US Applied AI in Healthcare Market?

    Technological advancements are rapidly driving growth in the US Applied AI in Healthcare Market, enhancing efficiency and outcomes across the sector.

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