Explainable Artificial Intelligence for Diagnostics Market Report 2026

The explainable artificial intelligence for diagnostics market size has grown exponentially in recent years. It will grow from $1.69 billion in 2025 to $2.12 billion in 2026 at a compound annual growth rate (CAGR) of 25.9%. The growth in the historic period can be attributed to increasing adoption of ai-based diagnostic tools, expansion of digital health infrastructure, growth in medical imaging data volumes, rising demand for clinical decision support systems, early regulatory frameworks for ai in healthcare.

The explainable artificial intelligence for diagnostics market size is expected to see exponential growth in the next few years. It will grow to $5.28 billion in 2030 at a compound annual growth rate (CAGR) of 25.6%. The growth in the forecast period can be attributed to increasing regulatory mandates for transparent ai models, rising investments in trustworthy ai platforms, expansion of explainable ai applications beyond imaging, growing clinician demand for interpretable outputs, increased integration of ai with electronic health records. Major trends in the forecast period include increasing adoption of interpretable ai diagnostic models, rising integration of explainability layers in clinical ai tools, growing focus on regulatory-compliant ai systems, expansion of ai use in multi-modal diagnostics, enhanced emphasis on clinical trust and transparency.

The growing demand for personalized medicine is expected to drive the growth of the explainable artificial intelligence (AI) for diagnostics market in the coming years. Personalized medicine is a healthcare approach that tailors prevention, diagnosis, and treatment to an individual’s genetic profile, lifestyle, and environment. Its adoption is increasing due to advances in genomic data and sequencing technologies, which enable more accurate, targeted, and effective treatments for individual patients. Explainable AI in diagnostics supports personalized medicine by providing transparent, interpretable insights into patient-specific data, guiding tailored treatment decisions. For example, in February 2024, the US-based Personalized Medicine Coalition reported that the FDA approved 16 new personalized treatments for rare disease patients in 2023, up from six in 2022. These approvals included seven cancer drugs and three treatments for other diseases and conditions. Thus, the rising demand for personalized medicine is fueling the growth of the explainable AI for diagnostics market.

Key players in the explainable AI for diagnostics market are developing advanced solutions, such as AI-powered HER2 scoring algorithms, to improve diagnostic accuracy, support transparent decision-making, and enable personalized cancer treatment. An AI-powered HER2 scoring algorithm is a machine learning system that analyzes medical images, such as breast cancer tissue samples, to automatically assess HER2 protein expression levels, providing accurate, consistent, and interpretable results for diagnosis and treatment guidance. For instance, in July 2023, PathAI Inc., a US-based AI digital pathology company, launched AIM-HER2 Breast Cancer to enhance HER2 status detection in breast cancer patients. The tool delivers automated, reproducible HER2 scoring with explainable AI heatmaps that highlight key tissue features, increasing diagnostic confidence and transparency. It analyzes entire biopsy slides without manual region selection, streamlining pathologists’ workflow, particularly in borderline cases, and improving accuracy, efficiency, and trust in HER2 scoring for clinical labs and biopharma research.

In July 2025, Mindpeak GmbH, a Germany-based AI digital pathology company providing explainable AI for diagnostics, partnered with Techcyte Inc. to advance automated pathology workflows and enhance diagnostic accuracy and transparency. This collaboration integrates Mindpeak’s explainable AI tools into Techcyte’s Fusion platform, enabling scalable AI-driven workflows that improve cancer diagnostics and patient care worldwide. Techcyte Inc. is a US-based cloud-based digital pathology company offering an AI-driven pathology platform.

Major companies operating in the explainable artificial intelligence for diagnostics market are Fujitsu Limited, Koninklijke Philips N.V., Tempus AI, Owkin Inc., PathAI Inc., Aidoc Medical Ltd., Viz.ai Inc., Qure.ai Technologies Private Limited, Paige.AI Inc., Digital Diagnostics Inc., Enlitic, Aignostics GmbH, Proscia Inc., Corti ApS, Fiddler AI Inc., Riverain Technologies LLC, Arthur AI Inc., InData Labs, Ibex Medical Analytics Ltd., Mindpeak GmbH, Therapixel SAS.

North America was the largest region in the explainable artificial intelligence for diagnostics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the explainable artificial intelligence for diagnostics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the explainable artificial intelligence for diagnostics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs are affecting the explainable artificial intelligence for diagnostics market by increasing costs of imported computing hardware, advanced imaging devices, sensors, and data processing infrastructure required for AI deployment. Hospitals and diagnostic laboratories in North America and Europe are most impacted due to reliance on imported high-performance computing systems, while Asia-Pacific faces cost pressures on hardware sourcing. These tariffs are increasing implementation costs and delaying system upgrades. However, they are also driving local hardware manufacturing, regional AI software development, and increased adoption of cloud-based explainable AI solutions.

The explainable artificial intelligence for diagnostics market research report is one of a series of new reports that provides explainable artificial intelligence for diagnostics market statistics, including explainable artificial intelligence for diagnostics industry global market size, regional shares, competitors with a explainable artificial intelligence for diagnostics market share, detailed explainable artificial intelligence for diagnostics market segments, market trends and opportunities, and any further data you may need to thrive in the explainable artificial intelligence for diagnostics industry. This explainable artificial intelligence for diagnostics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Explainable artificial intelligence (AI) for diagnostics is the use of AI in healthcare that produces transparent and understandable results, enabling clinicians and patients to see how diagnostic decisions are reached. Its primary purpose is to improve trust, accountability, and accuracy in AI-driven medical assessments by making algorithms interpretable.

The key components of explainable AI for diagnostics include software, hardware, and services. Software consists of programs, instructions, or data that operate computers and perform specific tasks, and can be deployed either on-premises or via the cloud. Applications include medical imaging, pathology, genomics, risk assessment, treatment recommendations, and more. The main end-users of these solutions are hospitals, diagnostic laboratories, research institutes, clinics, and other healthcare providers.

The explainable artificial intelligence for diagnostics market includes revenues earned by entities by providing services such as data annotation and preparation services, cloud-based AI diagnostics-as-a-service (DaaS), AI-powered diagnostic consulting services, ongoing model monitoring, updates, and maintenance services, and patient-centric explainability reporting services. The market value includes the value of related goods sold by the service provider or included within the service offering. The explainable artificial intelligence for diagnostics market also includes sales of medical imaging devices, digital pathology scanners, molecular diagnostic analyzers, and point-of-care testing devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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