AI in Diagnostics Market Size to Soar USD 12.65 Bn by 2034

AI in Diagnostics Market Size, Companies and Regional Growth

The global AI in diagnostics market was estimated at US$ 1.12 billion in 2023 and is projected to grow to US$ 12.65 billion by 2034, rising at a compound annual growth rate (CAGR) of 24.64% from 2024 to 2034. The demand for AI in diagnostic testing has increased significantly due to the various benefits AI provides. One of the major benefits is reduced human error, which improves overall diagnostic results that can be used by professionals to develop appropriate treatment options.

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Major Key Insights of the AI in Diagnostics Market

• North America dominated the market share by 53% in 2023.
• Asia Pacific is expected to grow at the fastest rate during the forecast period.
• By component, the software segment held the largest share of the AI in diagnostics market in 2023 and is expected to showcase the fastest CAGR during the forecast period.
• By diagnosis, the neurology segment accounted for the dominant share of the market in 2023.
• By diagnosis, the radiology segment is expected to grow at the fastest rate during the predicted period.

AI in Diagnostics Market Trends

• Technological Advancements: Leveraging AI in the healthcare sector has governed several benefits including enhanced efficiency and reduced manual errors, which augments market growth.
• Rising Incidences of Chronic Disorders: The rising incidences of chronic disorders necessitate early and advanced diagnosis and identification of chronic disorders.
• Burgeoning Medical Device Sector: The burgeoning medical sector due to increasing investments & collaborations favors market growth.
• Growing Research and Development: The growing research and development activities for the early diagnosis of chronic disorders also drive the market.

AI in Diagnostics Market: Accuracy & Efficiency

Artificial intelligence (AI) has become a significant part of healthcare and is being used in almost all sectors, including diagnostics. The integration of AI has increased the growth and development of the healthcare industry. In diagnostic testing, AI is used to analyze medical images (CT scans, X-rays, ultrasounds, MRIs, and DXAs), large patient data, vital signs (pulse rate, body temperature, blood pressure, and respiration rate), medical history, and laboratory test results. AI provides several advantages in diagnostics, such as accuracy, efficiency, reduced human errors, and cost savings. Healthcare professionals can make more informed decisions and develop personalized treatment options. The AI in the diagnostics market is growing due to reduced healthcare costs, reduced healthcare burden on professionals, and enhanced patient satisfaction.

For instance,

• In September 2024, in order to extend and enhance its products that utilize artificial intelligence to assist in identifying illnesses, the Indian firm Qure.AI secured $65 million from investors led by Lightspeed Venture Partners and 360 ONE Asset Management.
• In February 2024, the novel AI cancer early detection method from the All India Institute of Medical Science was announced. Under the Ministry of Electronics and Information Technology, the AI system was developed in collaboration with the Centre for Development of Advanced Computing in Pune. It is powered by deep learning models that enable it to analyze complicated medical data with "unprecedented accuracy and efficiency." It was trained on 500,000 radiological and histological pictures from 1,500 patients of the two most frequent cancer types, ovarian and breast.

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Automation Drives the AI in Diagnostics Market

In healthcare diagnostics, automation is needed to perform repetitive tasks, reduce turnaround times, and reduce errors that can occur due to human interaction. Automation is also valuable in reducing the workload of healthcare professionals, which leads to work satisfaction and better patient care. Using AI in automation has made diagnostics even more efficient. ‘Smart Labs’ integrated with AI are capable of functioning 24/7 with minimal human supervision, thereby providing real-time results. In the future, AI-based robot technologies will become capable of performing intelligent operations. There is also a shortage of healthcare professionals, which increases work pressure on professionals working in hospitals, laboratories, and other healthcare settings. AI-enabled automation can also help overcome this issue. Automation can be highly valuable during disease outbreaks or pandemics. It can speed up data analysis, medical imaging, testing, and other tasks.

For instance,

• In March 2024, Abbott announced the release of GLP Systems Track, a cutting-edge automation solution designed to meet the demands of high-volume laboratories. It seeks to provide greater flexibility, assisting labs in maximizing productivity and efficiency in order to satisfy this expanding demand.

Lack of Medical Experts Restraint the Market

There is a growing demand for professionals in diagnostics centers and laboratories due to the rising population, infectious diseases, and chronic conditions. Apart from this, a lot of professionals lack the skills to operate AI-integrated hardware and software. Due to this, the healthcare sector lacks medical experts for diagnosis and testing, causing restraint to the AI in diagnostics market. It is essential to fulfill the demand and train diagnostic professionals to handle machines and software with advanced technologies. Medical universities, hospitals, and governments can take the initiative, develop courses, and provide timely training for enhancing skills and knowledge.

Improving Preventive Care Creates Opportunity

Preventive care has become a really necessary step for improving health. Growing infectious diseases and chronic conditions have increased the burden on healthcare resources and professionals. It is estimated that the healthcare cost will rise up to US$ 176 billion without effective interventions, which is going to increase the demand for preventive care in the future. With the help of AI in diagnostics, this can be reduced as AI can play a significant role in preventive care. Preventive care involves analyzing medical records, medical history, lifestyle, genetics, and other aspects to identify future health risks. However, it is a very time-consuming and tedious process. Healthcare workers are prone to errors when analyzing such a large amount of data, which can lead to misinterpretation. The use of AI can mitigate all these challenges and help in analyzing health risks with data analytics in less time with more accuracy and efficiency.

For instance,

• In April 2023, Apollo Hospitals introduced "ProHealth," a first-of-its-kind preventative health profile program powered by artificial intelligence (AI). Apollo's 'ProHealth' program is powered by a predictive algorithm that determines a person's current state of health, forecasts possible health hazards, and customizes each health check.

The Software Segment Dominated the Market in 2023

By component, the software segment held the largest share of the AI in diagnostics market in 2023 and is expected to showcase the fastest CAGR during the forecast period. Leveraging AI in diagnostic software has become a common practice. Medical diagnostic software is a digital platform used in precision and high-speed diagnosis. Advanced software comes with AI automation that is able to assess large amounts of data. Customized software has also been developed to improve diagnosis and decision-making. Recently, there has been a growth in the number of organizations that specifically develop diagnostics and other healthcare-related software.

For instance,

• In May 2024, the flagship product of Bengaluru-based healthcare technology firm iHridAI, HarmonyCVI, will be designed to provide comprehensive and precise cardiovascular examinations. The company's goal is to provide internationally benchmarked and feasible technological solutions for healthcare diagnostics. A complete software solution for speedy diagnosis and insights, HarmonyCVI combines artificial intelligence (AI) and machine learning (ML) to help radiologists and cardiologists analyze cardiac MRI data more effectively.

The Neurology Segment Held the Largest Share

By diagnosis, the neurology segment accounted for the dominant share of the AI in diagnostics market in 2023. Artificial intelligence (AI) systems are capable of analyzing MRI and CT images to find minute anomalies that might point to illnesses like brain tumors, strokes, or neurodegenerative disorders. These algorithms can frequently spot subtleties and patterns that human radiologists would overlook, which expedites the diagnosis and start of therapy. AI models are able to forecast the course of diseases such as multiple sclerosis, Parkinson's disease, and Alzheimer's disease. AI is able to recognize early indicators of the course of a disease and tailor treatment regimens in response by evaluating patient longitudinal data.

For instance,

• In February 2024, in order to improve neurology treatment for patients at #ECR2024, Philips and Synthetic MR are collaborating to provide innovative AI-based quantitative brain imaging in MR.
• In January 2024, Chief Technology Officer of Siemens Healthineers Peter Schardt officially launched the state-of-the-art lab. The collaborative laboratory will develop open-source AI-based tools to accurately automate the segmentation of anomalous outcomes in neuroimaging data, with a focus on the reliable detection of neurological disorders and the examination of their treatment impact at a population level.

The Radiology Segment is the Fastest Growing

By diagnosis, the radiology segment is expected to grow at the fastest rate in the AI in diagnostics market during the predicted period. The field of radiology has a lot of promise for artificial intelligence, which is already beginning to transform healthcare in many ways. These include simplifying data interpretation through advanced AI algorithms and enhancing the diagnostic process, as well as bridging the gap between the number of radiologists and the demands of ever-increasing, extremely complex data. AI is a useful technology that has enormous promise for the healthcare sector when paired with the human skills of radiologists and physicians.

For instance,

• In April 2024, through the development of artificial intelligence (AI) technologies, a relationship between Bayer and Google Cloud was disclosed, which is expected to benefit radiologists and ultimately enhance patient care. Under the terms of the collaboration, Bayer will leverage Google Cloud's technology, in particular its generative AI (gen AI) capabilities, to extend its innovation platform and expedite the development and deployment of AI-driven healthcare applications, with a specific emphasis on radiology.

Innovation Drives the North America Market

By region, North America dominated the AI in diagnostics market share by 53% in 2023. North America excels in various aspects of healthcare, including pharmaceuticals, biotechnology, healthcare systems, research and development, and innovation. North America is also leading in technological advancements, giving healthcare a boost. AI and machine learning are an integral part of technological advancements. North America Also faces challenges associated with a growing number of cancer patients, chronic conditions, and infectious diseases. These health issues need proper diagnosis and analysis, which drives the market’s growth in this region.

The U.S. dominated the AI diagnostics market in North America due to growing technological advancements and investments in the healthcare industry. The United States has a number of machine learning (ML) technologies that can help with diagnosis. Benefits from this include improved access to treatment, especially for underprivileged communities, earlier illness identification, and more consistent analysis of medical data. The majority of the ML-based technologies that the GAO (Government Accountability Office) identified for five specific diseases are dependent on data from imaging tests like magnetic resonance imaging (MRI) or X-rays. The diseases include certain cancers, diabetic retinopathy, Alzheimer's disease, heart disease, and COVID-19. In order to mitigate these issues or improve the advantages of machine learning diagnostic technology, GAO created three policy recommendations.

Government Investments Drive Asia Pacific’s Market

By region, Asia Pacific is expected to grow at the fastest rate during the forecast period. AI technology is being used more often in the Asia Pacific area to diagnose and identify ailments as a result of the growing number of elderly people living there and the rising incidence of diseases like cancer and stroke. The rise of the AI in diagnostics market in the area is also largely driven by rising investment in AI healthcare businesses. Additionally, increased financial support for the use of AI technology and the creation of AI tools in healthcare from the public and commercial sectors in emerging nations.

Both governmental and private initiatives are contributing to the growth of AI-based diagnostics solutions. Regional industry growth is boosted by investment, visibility, and startups. Regional AI in diagnostics market expansion is also impacted by startup incubators and private funding. The Asia-Pacific market is also anticipated to be driven by the expanding patient pool, pandemic, cloud computing, and government AI initiatives. AI is now being employed by biopharmaceutical businesses to modernize drug research and diagnostics.

For instance,

• In August 2024, leading diagnostics business Healthians is the first in the market to offer a solution like this, having just introduced an AI-driven video analysis function in India. The cutting-edge application will aid users in comprehending their health reports by offering lucid explanations and valuable insights into their test findings.

Top Companies in the AI in Diagnostics Market

• Siemens Healthineers
• GE Healthcare
• Niramai
• Imagen Technologies
• AliveCor Inc.
• Digital Diagnostics, Inc.
• Paige
• Vuno, Inc.
• Google Health
• Riverain Technologies
• Philip Healthcare
• IBM Watson Healthcare
• Qure AI
• Zebra Medical Vision, Inc.
• Neural Analytics
• Predible Health
• Aidoc

GE Healthcare in the AI in Diagnostics Market

Innovation by Paige in the AI in Diagnostics Market

Latest Announcement by Industry Leaders

Prashant Warier, Co-Founder and CEO of Qure.ai believes that AI in healthcare is still in its infancy, but the potential is vast. He commented that AI brings consistency to the patient’s X-ray or other imaging data reports. He shared that the company will integrate multiple data points to create more holistic AI models. He envisioned that the shift would enable doctors to make more informed decisions by considering a patient’s full medical history with diagnostic imaging.

Recent Developments in the AI in Diagnostics Market

• In August 2024, Bisam Pharmaceuticals introduced "Quick Vitals," the first health monitoring app in the world driven by AI and deep learning technology, in an attempt to improve digital health. The debut ceremony, which took place at Hyderabad's Hotel Avasa, was a critical turning point in the field of technology and healthcare.
• In May 2024, an extensive partnership between Quest Diagnostics, a pioneer in DX services, and PathAI, a worldwide supplier of AI-driven pathology technology, was unveiled with the goal of quickening the adoption of digital and AI pathology advancements to enhance the accuracy, speed, and efficiency of cancer and other disease diagnosis.
• In November 2023, the $30 million financing was obtained by the AI-enabled imaging business Aidoc in order to construct a complete AI imaging model and a new product category based on that model.
• In August 2022, Artificial Intelligence-powered diagnostics startup Digital Diagnostics secured a total of $130 million in investment after announcing the closing of a $75 million Series B round headed by KRR. The round included participation from biotech-focused 8VC and healthcare-focused Optum Ventures.

Segments Covered in the Report

By Component

• Software
• Hardware
• Services

By Diagnosis

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

By Region

• North America
  • U.S.
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait