Artificial Intelligence (AI) in Diagnostics - Market Insights, Competitive Landscape, and Market Forecast - 2032

Artificial Intelligence (AI) in Diagnostics Market by Component (Hardware/software, and Services), Application (Infectious Disease Diagnostics, Radiology, Oncology, Cardiology, and Others), Technology (Machine Learning, Natural Language Processing, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World) is expected to grow at a steady CAGR forecast till 2032 owing to the rising cases of infectious and chronic diseases, growing adoption of digital health & imaging technologies, increase in product development activities among the key market players across the globe.

The Artificial Intelligence (AI) in Diagnostics market was valued at USD 1.62 billion in 2024, growing at a CAGR of 22.31% during the forecast period from 2025 to 2032 to reach USD 8.08 billion by 2032. The rising prevalence of infectious and chronic diseases is driving the demand for early and accurate diagnosis, where AI plays a vital role by enhancing detection and supporting faster clinical decisions. Simultaneously, the growing adoption of digital health and imaging technologies provides a strong foundation for integrating AI tools into existing healthcare workflows, improving efficiency and accuracy.

Additionally, increased product development activities by key players across the globe fueled by advancements in machine learning and growing regulatory support are expanding the availability of AI-powered diagnostic solutions. Together, these factors are expected to significantly boost the global market for Artificial Intelligence (AI) in Diagnostics by enabling more precise, timely, and scalable healthcare delivery during the forecast period from 2025 to 2032.

Artificial Intelligence (AI) in Diagnostics Market Dynamics:

According to the data provided by the World Health Organization, in 2023, globally, an estimated 39.9 million people were living with HIV and approximately 1.3 million population acquired HIV. Additionally, as per the same source, in 2023, approximately 10.8 million people fell ill with tuberculosis (TB). Artificial Intelligence (AI) in Diagnostics is boosting the management of TB and HIV by enabling early detection and efficient monitoring.

In TB, AI analyzes chest X-rays and CT scans to identify infection patterns, reducing reliance on radiologists, especially in low-resource areas. For HIV, AI supports disease progression tracking, treatment prediction, and detection of co-infections. These capabilities streamline workflows, reduce diagnostic delays, and enhance large-scale screening efforts.

Moreover, the rising global incidence of cancer is a major factor driving the growth of Artificial Intelligence (AI) in Diagnostics market. Cancer diagnosis often involves complex imaging, pathology, and genomic data, making it an ideal application for artificial intelligence. According, to the data provided by the World Health Organization (2024), in 2022, globally, there were an estimated 20 million new cancer cases with lung cancer being the most commonly occurring cancer worldwide with 2.5 million new cases accounting for 12.4% of the total new cases. AI-powered diagnostic tools, particularly those using CT scans and X-rays, are capable of detecting subtle signs of lung cancer that might be missed by the human eye. AI algorithms analyze imaging data to identify nodules, masses, and irregularities in lung tissues, allowing for quicker and more accurate detection.

In addition, according to data provided by the British Heart Foundation (2025), globally, around 640 million people were living with heart and circulatory diseases across the world. These diseases require precise and timely detection, as early diagnosis can greatly improve outcomes and reduce mortality rates. AI tools are increasingly being integrated into the diagnostic workflow to analyze medical imaging (e.g., CT, MRI, echocardiograms) and interpret complex data with higher accuracy and efficiency than traditional methods thereby escalating the overall market of Artificial Intelligence (AI) in Diagnostics.

Furthermore, the growing adoption of digital health and imaging technologies is boosting the AI diagnostics market by improving the speed, accuracy, and accessibility of medical diagnoses. AI algorithms efficiently analyze complex imaging data from CT scans, MRIs, and X-rays, aiding early detection in fields like oncology, cardiology, and pulmonology. For instance, in December 2024, GE HealthCare's Sonic DL AI MRI algorithm, launched at the RSNA 2024 conference, accelerates scans by up to 86% while enhancing image resolution for brain, spine, orthopedic, and body imaging.

Together, the above-mentioned factors are expected to boost the overall market of Artificial Intelligence (AI) in Diagnostics.

Despite these promising growth factors, the Artificial Intelligence (AI) in Diagnostics market faces challenges such as data privacy & security. Additionally, AI algorithms require large, high-quality datasets to train effectively, and integrating with existing healthcare systems can be challenging which may hinder the future market of Artificial Intelligence (AI) in Diagnostics during the forecast period.

Artificial Intelligence (AI) in Diagnostics Market Segment Analysis:

Artificial Intelligence (AI) in Diagnostics Market by Component (Hardware/software, and Services), Application (Infectious Disease Diagnostics, Radiology, Oncology, Cardiology, and Others), Technology (Machine Learning, Natural Language Processing, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

In the component segment of the Artificial Intelligence (AI) in Diagnostics market, the software category is projected to capture a significant revenue share in 2024. Software solutions are playing a pivotal role in boosting the overall market of Artificial Intelligence (AI) in Diagnostics by significantly enhancing the capabilities of diagnostic tools, improving accuracy, and streamlining clinical workflows.
These software systems integrate AI algorithms with various medical devices, such as imaging machines (CT scans, MRIs, X-rays), laboratory testing equipment, and patient monitoring systems, enabling real-time analysis and interpretation of complex data. AI-powered diagnostic software can process large volumes of data rapidly, identifying patterns and anomalies that human clinicians might miss.

For instance, in imaging, AI software helps detect early signs of diseases such as cancer, cardiovascular conditions, and neurological disorders by analyzing medical images for subtle irregularities that may not be visible to the naked eye. In pathology, AI software assists in the classification and grading of tumors or detecting abnormalities in tissue samples, which aids in accurate diagnosis and treatment planning.

Moreover, software innovations are driving advancements in personalized medicine by analyzing patient data to predict disease progression, identify the most effective treatment plans, and monitor ongoing responses to treatment. This capability is particularly valuable in chronic disease management, such as in diabetes, heart disease, and oncology, where continuous monitoring is essential for adjusting treatments and preventing complications. The automation provided by AI software also helps reduce diagnostic errors, minimize human workload, and enhance the efficiency of healthcare professionals, allowing them to focus more on patient care rather than time-consuming manual tasks.

Furthermore, the integration of AI diagnostic software with electronic health records (EHRs) enables seamless data sharing across different healthcare systems, improving collaboration among specialists and ensuring more coordinated care. The growing availability of cloud-based AI diagnostic software solutions further supports scalability, making advanced diagnostic tools more accessible to healthcare providers, especially in underserved or resource-limited regions. As more software solutions are developed and validated, the AI diagnostics market is experiencing rapid growth.

Additionally, the increase in product development activities such as product launches and product approvals are further escalating the overall market. For instance, in July 2024, Tempus received FDA 510(k) clearance for its ECG-AF algorithm, an AI-based tool designed to identify patients at increased risk of atrial fibrillation (AFib). ECG-AF is the first of a suite of next-generation diagnostics that Tempus has designed to identify patients at risk for a variety of cardiovascular conditions.

Given these factors, the software segment is expected to witness robust growth during the forecast period, thereby driving the overall expansion of Artificial Intelligence (AI) in Diagnostics market.

North America is expected to dominate the overall Artificial Intelligence (AI) in Diagnostics market:

North America is projected to account for the largest share of Artificial Intelligence (AI) in Diagnostics market in 2024. This dominance can be attributed to several key factors, including the rising prevalence of chronic and infectious diseases, increased adoption of imagining technologies, robust research and development (R&D) efforts, a well-established healthcare infrastructure, and a favorable regulatory environment that supports product launches and approvals.

According to the data provided by the International Agency for Research on Cancer, in 2022, the estimated number of new cases of brain cancer was 24,940 and the projections were estimated to increase 31,278 cases by 2045. AI technologies, particularly those used in medical imaging like MRI and CT scans, play a crucial role in identifying brain tumors, pinpointing their exact location, and assessing their size and characteristics with high precision. AI algorithms can analyze complex brain scans faster and with greater accuracy than traditional methods, detecting even subtle signs of tumors that might be missed by human radiologists thereby escalating the need for Artificial Intelligence (AI) in Diagnostics across the region.

According to the data provided by the Government of Canada, in 2022, there were, 13,953 cases of syphilis were reported in Canada, marking an 11% increase from 2021. AI-powered diagnostic systems, such as those integrating machine learning with laboratory testing and imaging, can improve the speed and accuracy of syphilis detection. AI algorithms can analyze large datasets of medical images (such as syphilis-related lesions in oral, genital, or anal regions) and blood tests (like serologic tests), identifying subtle patterns or abnormalities that may be difficult to detect manually.

Additionally, the region benefits from ongoing advancements in Artificial Intelligence (AI) in Diagnostics -related R&D, product launches, and regulatory approvals. Such developments further accelerate market expansion. For instance, in October 2024, Owkin introduced MSIntuit® CRC v2, a next-generation AI diagnostic tool to improve colorectal cancer (CRC) detection.

In summary, the combination of a high disease burden, innovative R&D landscape, advanced healthcare infrastructure, and favorable regulatory policies makes North America a leading market for AI in Diagnostic market throughout the forecast period.

Artificial Intelligence (AI) in Diagnostics Key Players:

Some of the key market players operating in the Artificial Intelligence (AI) in Diagnostics market include Aidoc, Owkin, Inc., Siemens Healthineers, PathAI, Ibex, Owkin, Inc., Imagen Technologies, Aiforia, RADLogics, Terarecon, Inc., Prenosis, Inc., Ibex, Google LLC, GE HealthCare, DreaMed, Riverain Technologies, Terarecon, Inc., Aiforia, RADLogics, and others.

Recent Developmental Activities in the Artificial Intelligence (AI) in Diagnostics Market:

• In September 2024, Ibex Medical Analytics (Ibex), a leader in AI-powered cancer diagnostics, introduced the latest advancements in its innovative product platform, Ibex-AI. These new features, developed in collaboration with expert pathologists worldwide who actively use the platform in routine clinical practice, highlight Ibex's ongoing commitment to creating cutting-edge diagnostic tools tailored to the needs of healthcare professionals on the frontlines of patient care.
• In October 2023, Lucida Medical Ltd, announced that it received Class IIb CE certification for its AI-powered prostate cancer detection software, Prostate IntelligenceTM (PiTM) Leveraging advanced AI technology, PiTM analyzes MRI scans and is seamlessly integrated into the radiologist's workflow.
• In March 2023, Qritive launched its latest AI-driven innovation QAi Prostate, designed specifically for prostate cancer diagnosis. Utilizing cutting-edge machine learning algorithms, QAi Prostate analyzes whole slide images of prostate core needle biopsies with high precision.

Key Takeaways from the Artificial Intelligence (AI) in Diagnostics Market Report Study

• Market size analysis for current Artificial Intelligence (AI) in Diagnostics market size (2024), and market forecast for 8 years (2025 to 2032)
• Top key product/technology developments, mergers, acquisitions, partnerships, and joint ventures happened over the last 3 years.
• Key companies dominating the Artificial Intelligence (AI) in Diagnostics market.
• Various opportunities available for the other competitors in Artificial Intelligence (AI) in Diagnostics market space.
• What are the top-performing segments in 2024? How these segments will perform in 2032?
• Which are the top-performing regions and countries in the current Artificial Intelligence (AI) in Diagnostics market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for Artificial Intelligence (AI) in Diagnostics market growth in the coming future?

Target Audience Who Can be benefited from this Artificial Intelligence (AI) in Diagnostics Market Report Study

• Artificial Intelligence (AI) in Diagnostics product providers
• Research organizations and consulting companies
• Artificial Intelligence (AI) in Diagnostics-related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in Artificial Intelligence (AI) in Diagnostics
• Various end-users who want to know more about the Artificial Intelligence (AI) in Diagnostics market and the latest technological developments in the Artificial Intelligence (AI) in Diagnostics market.

Frequently Asked Questions for the Artificial Intelligence (AI) in Diagnostics Market:

1. What is Artificial Intelligence (AI) in Diagnostics?

• Artificial Intelligence (AI) in Diagnostics refers to the use of artificial intelligence technologies, such as machine learning and deep learning algorithms, to analyze medical data (such as images, lab results, or patient records) to assist in diagnosing diseases and conditions. AI can enhance diagnostic accuracy, speed, and efficiency by detecting patterns or abnormalities that might be overlooked by human clinicians. It is widely used in areas like medical imaging, pathology, genomics, and disease monitoring, helping healthcare professionals make more informed decisions and improve patient outcomes.

2. What is the market for Artificial Intelligence (AI) in Diagnostics?

• The Artificial Intelligence (AI) in Diagnostics market was valued at USD 1.62 billion in 2024, growing at a CAGR of 22.31% during the forecast period from 2025 to 2032 to reach USD 8.08 billion by 2032.

3. What are the drivers for the global Artificial Intelligence (AI) in Diagnostics market?

• The rising prevalence of infectious and chronic diseases is driving the demand for early and accurate diagnosis, where AI plays a vital role by enhancing detection and supporting faster clinical decisions. Simultaneously, the growing adoption of digital health and imaging technologies provides a strong foundation for integrating AI tools into existing healthcare workflows, improving efficiency and accuracy. Additionally, increased product development activities by key players across the globe - fueled by advancements in machine learning and growing regulatory support - are expanding the availability of AI-powered diagnostic solutions. Together, these factors are expected to significantly boost the global market for Artificial Intelligence (AI) in Diagnostics by enabling more precise, timely, and scalable healthcare delivery during the forecast period from 2025 to 2032.

4. Who are the key players operating in the global Artificial Intelligence (AI) in Diagnostics market?

• Some of the key market players operating in the Artificial Intelligence (AI) in Diagnostics market include Aidoc, Owkin, Inc., Siemens Healthineers, PathAI, Ibex, Owkin, Inc., Imagen Technologies, Aiforia, RADLogics, Terarecon, Inc., Prenosis, Inc., Ibex, Google LLC, GE HealthCare, DreaMed, Riverain Technologies, Terarecon, Inc., Aiforia, RADLogics, and others.

5. Which region has the highest share in the global Artificial Intelligence (AI) in Diagnostics market?

• North America is projected to account for the largest share of the Artificial Intelligence (AI) in Diagnostics market in 2024. This dominance can be attributed to several key factors, including the rising prevalence of chronic and infectious diseases, increased adoption of imagining technologies, robust research and development (R&D) efforts, a well-established healthcare infrastructure, and a favorable regulatory environment that supports product launches and approvals.

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