by The artificial intelligence in diagnostics market size was calculated at USD 1.61 billion in 2024 and is projected to reach around USD 10.28 billion by 2034 with a CAGR of 20.37%.
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Key Insights
- In 2024, North America led the market, holding a 58% revenue share.
- The software segment contributed 46% of the total revenue for the year.
- The neurology diagnosis segment accounted for over 25% of the revenue share in 2024.
Market Dynamics
Market Drivers
The growing demand for faster and more reliable diagnostic solutions is a major driver of the artificial intelligence in diagnostics market. AI algorithms can process vast amounts of medical data in real time, enabling quicker and more accurate diagnoses.
The increasing reliance on AI in radiology, pathology, and genomics further supports market growth. Additionally, the global shortage of skilled healthcare professionals makes AI-based diagnostics a valuable tool for reducing workload and improving efficiency.
Market Opportunities
The rise of telemedicine and remote diagnostics opens new opportunities for AI-driven solutions. AI-powered diagnostics can help bridge the gap in regions with limited access to healthcare specialists. The ongoing development of cloud-based AI platforms allows for seamless data sharing and collaboration among medical professionals.
Additionally, AI’s ability to enhance drug discovery and treatment recommendations presents significant potential for future growth.
Market Challenges
One of the key challenges in AI-driven diagnostics is ensuring compliance with evolving regulatory standards. Many AI models require continuous updates to remain effective, which can complicate regulatory approvals.
Ethical concerns related to data security, patient confidentiality, and algorithm transparency also pose significant hurdles. Moreover, integrating AI with existing healthcare systems requires significant investment and technological upgrades.
Regional Insights
North America dominates the market due to early adoption of AI in healthcare, strong funding for AI research, and a well-established digital health ecosystem. Europe is also a key player, with increasing government initiatives supporting AI innovation in healthcare.
The Asia-Pacific region is experiencing rapid market expansion due to growing healthcare digitization and increasing AI adoption in diagnostics across hospitals and research centers.
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 |
Artificial Intelligence in Diagnostics Market Companies
- Siemens Healthcare GmbH
- GE Healthcare
- Aidoc
- Imagen Technologies
- AliveCor
- Zebra Medical Vision
- Vuno Inc.
- IDx Technologies Inc.
- Neural Analytics
- Riverain Technologies
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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