AI in Diagnostics Market

AI in Diagnostics Market Outlook (2024 to 2034)

Revenue from the global AI in diagnostics market is projected to reach US$ 1.85 billion in 2024 and thereafter increase swiftly at a CAGR of 23.1% to end up at US$ 14.76 billion by 2034.

Health issues are rising among people as the world goes through climate change and other environmental factors, people are getting concerned about their health thus leading to more people going to doctors for diagnosis and proper health checkups.

Medical diagnostics is a process through which doctors understand the condition of a patient's body and analyze whether the patient is suffering from any particular harmful disease. The analysis and results of these tests help doctors use the most suitable course of treatment for their patients to fight the diseases, contributing to the overall expansion of the AI in diagnostics market growth.

With the advent of AI, the methods and techniques to diagnose have helped doctors and patients to understand these diseases in a much faster way, leading to the steady employment of AI in multiple diagnoses around the healthcare industry. The field of medical diagnostics is getting revolutionized due to AI. Medical imaging data, including X-rays, MRIs, and ultrasounds are getting analyzed by AI algorithms to help doctors discover and diagnose diseases more accurately and at a much faster rate. This can assist healthcare professionals in making better judgments regarding patient care, leading to increasing AI in diagnostics market size.

• The market share of South Asia & Pacific is estimated to jump from 9.1% in 2024 to 14.9% by 2034, compared to the Middle East & Africa region, where the market share is forecasted to increase from 3.8% in 2024 to 5.5% by 2034. This is pushing more healthcare professionals and research centers to establish their study centers in South Asia & Pacific instead of the Middle East & Africa.
• The market in Eastern Europe is forecasted to expand faster compared to Western Europe. The market in Western Europe is estimated to expand at a CAGR of 16.6% through 2034, while Eastern Europe is analyzed to expand at a CAGR of 19.6% from 2024 to 2034.
• Coming to the North American region, Mexico is showing the light of hope for the health industry as the market is projected to expand at a CAGR of 27.7% from 2024 to 2034, which is even higher than the market in the United States.

Report Attribute	Detail
AI in Diagnostics Market Size (2024E)	US$ 1.85 Billion
Forecasted Market Value (2034F)	US$ 14.76 Billion
Global Market Growth Rate (2024 to 2034)	23.1% CAGR
East Asia Market Share (2024E)	12.9%
North America Market Growth Rate (2024 to 2034)	22% CAGR
Hardware Segment Value (2034F)	893.2 Million
Oncology Segment Value (2034F)	US$ 4.84 Billion
Key Companies Profiled	GE Healthcare; Imagen Technologies; Accenture; Deloitte; Cognizant; IBM Services; Infosys; Capgemini; Tata Consultancy Services (TCS); Wipro; Atos; DXC Technology; IBM Corporation; Google LLC; Microsoft Corporation; Butterfly Network; Zebra Medical Vision; Paige.AI; IDx Technologies; Prognos; Siemens Healthcare; Qure.ai.

What is Contributing to High Adoption of AI in Diagnostics around the World?

“Increasing Need for Storing and Managing Complex Medical Data”

The world is rapidly moving toward digitalization, and this is leading to more use of information technology everywhere including the healthcare business, big data (large and complicated data) is produced at many stages during the healthcare process. Big data in medical diagnostics include the information generated from clickstream and web and social media interactions, reading from medical devices such as sensors, ECGs, X-rays, and other billing records, and biometric data.

Acceptance of electronic health records and other high-resolution radiological pictures among healthcare professionals has increased at a faster pace. As a result, big data and analytics solutions are getting exponentially more and more complex and popular in the healthcare sector.

The adoption of bidirectional patient portals, which allows patients to upload data and photographs to their EMRs will also increase and is projected to boost the volume of data in medical diagnostics over the coming years. For this reason, hospitals and healthcare institutions are looking for the employment of AI systems to store and manage this complex data to make sure there are no human errors leading to any major accidents.

AI-based solutions are effectively managing this growing volume of data that is way too complicated for a human brain to process, allowing doctors to not only focus on more important work but also help the patient to easily store and save data for future diagnosis.

“Key Role of Imaging in Diagnosis and Enhancing Analytical Capabilities”

Imaging plays a vital role in diagnosing patients, utilizing various methods such as medical imaging, molecular imaging, and wearable devices that provide extensive data for AI systems. Artificial intelligence aids in interpreting this data, detecting small abnormalities, and diagnosing serious conditions like cancer, cardiovascular diseases, and neurological disorders. These advancements in AI are deepening its integration into the medical field. Additionally, AI algorithms' analytical capabilities enhance the precision of data acquisition, thereby improving overall diagnostic accuracy.

What is Weighing Down the AI/ML in Diagnostics Market?

“High Cost of AI Deployment and Inadequate Government Funding”

Even though AI represents the future, its deployment in the medical sector remains very costly. The high procurement costs and substantial capital requirements are preventing hospitals from upgrading to these advanced systems. Hospitals and other establishments struggle to secure the necessary investment to implement AI. Most costs associated with creating and adopting AI-based products are borne directly by patients due to inadequate government funding in these areas. This further increases costs and burdens patients, making it harder for them to afford even simple diagnoses, thus significantly limiting AI in diagnosis market growth.

Country-wise Evaluation

The world is increasingly embracing technological advancements, including machine learning and artificial intelligence, leading to the adoption of AI in the medical industry. Key contributors to this market include the United States, China, Canada, South Korea, the Middle East & Africa, and Japan. Among these regions, Europe and North America hold a higher AI in diagnostics market share compared to other regions.

How is the Market for Artificial Intelligence in Diagnostics Faring in the United States?

“High Trust in AI Significantly Contributing to Market Revenue”

Attribute	United States
Market Value (2024E)	US$ 661.5 Million
Growth Rate (2024 to 2034)	20.9% CAGR
Projected Value (2034F)	US$ 4.42 Billion

The United States has always led the race for technological improvements and innovations, and this holds true for AI as well. Every year, engineers introduce advancements in areas such as machine learning and natural language processing, which increase the accuracy and precision of analysis and research.

As a result, healthcare providers are increasingly trusting AI for diagnosis, significantly contributing to market revenue. Researchers in the United States are also focusing on expanding their systems internationally to gain a first-mover advantage.

Why is India a Favorite among Researchers and Patients Worldwide?

“Hospitals Employing AI Systems to Minimize Errors”

Attribute	India
Market Value (2024E)	US$ 88.6 Million
Growth Rate (2024 to 2034)	32.3% CAGR
Projected Value (2034F)	US$ 1.45 Billion

India has demonstrated one of the highest growth rates even during the pandemic, highlighting its potential for suppliers and manufacturers across various sectors globally. Particularly in the medical industry, India has consistently led in producing high-quality medicines and treatments. This is a key AI in diagnostics market trend.

The country's large population often results in significant work pressure for healthcare professionals, which can lead to errors. To address this, hospitals are increasingly employing AI systems to minimize errors and reduce work pressure, thereby contributing to the overall expansion of the market across the country.

Category-wise Insights

The medical imaging sector is diverse, encompassing various components such as software, hardware, and services. It serves multiple applications including cardiology, oncology, pathology, radiology, pulmonology, neurology, and obstetrics/gynecology.

Which Component is Most Widely Used by Hospitals?

“AI Software Facilitating Tumor Detection and Treatment Planning”

Attribute	Software
Segment Value (2024E)	US$ 1.57 Billion
Growth Rate (2024 to 2034)	23.7% CAGR
Projected Value (2034F)	US$ 13.18 Billion

AI software applications are being utilized extensively by doctors around the world for various purposes, with oncology standing out as a prominent area of use in comparison to other medical fields. The utilization of AI in oncology has proven to be particularly beneficial in tasks such as tumor detection, treatment planning, and prognosis prediction. The use of AI software has enabled medical professionals to analyze complex medical data more effectively, leading to improved decision-making and patient care.

What Advancements Have AI-Powered Systems Brought to Oncology?

“Improved Identification of Subtle Abnormalities and Development of Effective Treatment Plans”

Attribute	Oncology
Segment Value (2024E)	US$ 496.7 Million
Growth Rate (2024 to 2034)	25.6% CAGR
Projected Value (2034F)	US$ 4.84 Billion

Integration of AI in oncology has significantly enhanced the precision of diagnostics and treatment strategies, delivering a more personalized approach to patient care. AI-driven systems help healthcare professionals analyze imaging data, detect subtle abnormalities, and offer more accurate diagnoses. Additionally, AI software has been crucial in identifying early signs of cancer, supporting the creation of targeted and effective treatment plans, and is increasingly emerging as a prominent trend in the AI in diagnostics market.

Market Competition

Key players in the AI in diagnostics industry are focusing on introducing new products to increase their revenue. A few of these products include AI hearing aids.

• United States-based Mayo Clinic and GE HealthCare began working together on research and product development projects in September 2023 to better prepare professionals and aid in the diagnosis and treatment of medical disorders.
• The fourth generation of Intel Xeon Scalable processors, the Intel Xeon CPU Max Series and the Intel Data Center GPU Max Series, were introduced by Intel Corporation in January 2023.
• Google Cloud introduced Medical Imaging Suite in October 2022, a new industry solution that improves the usability, accessibility, and interoperability of imaging healthcare data. Google Cloud makes it possible for artificial intelligence (AI) to be developed for imaging, supporting quicker, more accurate image diagnosis, higher worker productivity, better patient outcomes, and enhanced access to treatment.
• Ohio State Wexner Medical Center and Siemens Healthineers (Germany) collaborated in January 2022 to offer state-of-the-art imaging and treatment technologies to Ohio State patient care, research institutions, and the surrounding areas. On the Outpatient Care West Campus, the partnership provides state-of-the-art radiation oncology and sophisticated imaging modalities.

Fact.MR provides detailed information about the price points of leading providers of AI diagnostic solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of AI in Diagnostics Market Research

• By Component :

  • Software
  • Hardware
  • Services

• By Application :

  • Cardiology
  • Oncology
  • Pathology
  • Radiology
  • Pulmonology
  • Neurology
  • Obstetrics/Gynecology

• By Modality :

  • MRIs
  • CT
  • X-rays
  • Ultrasound

• By Technology :

  • Machine Learning
  • Deep Learning
  • Natural Language Processing
  • Computer Vision
  • Predictive Analytics

• By End Use :

  • Hospitals
  • Diagnostics Imaging Centers
  • Diagnostics Laboratories

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa