GVR Report cover AI In Healthcare Market Size, Share & Trends Report

AI In Healthcare Market Size, Share & Trends Analysis Report By Component (Software Solutions, Hardware, Services), By Application (Virtual Assistants, Connected Machines), By Region, And Segment Forecasts, 2024 - 2030

  • Report ID: GVR-3-68038-951-7
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2022
  • Industry: Healthcare

Market Size & Trends

The global AI in healthcare market size was estimated at USD 22.45 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 36.4% from 2024 to 2030. Growing datasets of patient health-related digital information, increasing demand for personalized medicine, and rising need to reduce care expenses are some major drivers of market growth. The rising global geriatric population, changing lifestyles, and increasing prevalence of chronic diseases have contributed to a growth in demand for diagnosing and improved understanding of diseases in their initial stages. Artificial Intelligence (AI) and machine learning (ML) algorithms are being widely adopted and integrated into healthcare systems to accurately predict diseases in their early stage based on historical health datasets.

U.S. AI In Healthcare market size and growth rate, 2023 - 2030

Furthermore, deep learning technologies, predictive analytics, content analytics, and natural language processing (NLP) tools are enabling care professionals to diagnose patient’s underlying health conditions at an earlier stage. The COVID-19 pandemic positively influenced the demand for AI technologies and unearthed the potential of these advanced technologies. Healthcare systems widely adopted these technologies in the rapid diagnosis and detection of different virus strains and utilized personalized information in improving the management of the outbreak. AI/ML algorithms were utilized in the diagnosis sector wherein these technologically driven modules were trained with datasets of chest CT images, symptoms, pathological findings, and exposure history to diagnose COVID-19-positive patients rapidly and accurately.

Market Dynamics

The growing shortage of healthcare workforce drove the adoption of AI/ML technologies. Therefore, AI algorithms can be trained to analyze patient health information, which further supports care providers in quickly diagnosing the condition and devising an accurate treatment regime. Supportive government initiatives, rising number of mergers and acquisitions and technological collaborations, and COVID-19 pandemic had a significant role in boosting the growth of the market and accelerating the adoption rate of AI in healthcare. AI/ML algorithms are being widely implemented in rapid and accurate diagnosis of medical conditions after the initial implementation in the detection of COVID-19 positive patients using personalized patient information and data consolidation.

As per an NCBI study in 2020, AI-based algorithms accurately detected 68% of COVID-19 positive cases in a dataset of 25 patients, which were diagnosed as negative cases by care professionals. The implementation of AI/ML technologies in enhancing patient care, reducing machine downtime, and minimizing care expenses are some of the driving forces of the market growth. Owing to the pandemic, AI-based technologies witnessed a significant boost in adoption and are set to experience a dramatic growth trajectory. Healthcare functions such as diagnostics, patient management, medication management, claims management, workflow management, integration of machines, and cybersecurity saw a remarkable surge in the integration of AI/ML technologies.

Growing penetration of AI technologies in healthcare applications led to key market participants focusing on product innovation and technological collaborations to expand their product portfolio and meet growing demands during the pandemic. For instance, in May 2020, MIT-IBM Watson AI Lab promoted the implementation of AI technologies in research projects studying the health and economic consequences of the pandemic. Similarly, Qventus introduced AI-based patient flow automation systems covering critical resource control, hospitalization duration optimization, COVID-19 scenario planner, and ICU capacity creation in its healthcare facilities.

The key market players are focusing on devising innovative product development strategies, partnership strategies, and mergers and acquisitions to expand their business footprint to cater to growing demand for early and accurate detection of diseases, curb rising care expenses, compensate for growing shortage of care providers, and deliver value-based care. For instance, in 2020 Aidoc and Imbio partnered to integrate AI technologies in medical image analysis for pulmonary embolism to improve detection and treatment regimes. Furthermore, growing number of startups specializing in AI-based technologies for the healthcare sector is witnessing recognition in the form of investments by private investors and venture capitalists. For instance, in 2019, Partners Healthcare collaborated with FUJIFILM Sonosite to develop AI-based ultrasound technology, improve the accessibility of this technology for the healthcare fraternity, and improve the quality of diagnostic care.

Component Insights

In 2023, the software solutions segment dominated the market with the largest revenue share of 40.5% owing to the rapidly growing adoption rate of AI-based software solutions amongst healthcare providers, payers, and patients. For instance, in September 2019, GE Healthcare partnered with five Chinese local software developers namely, 12Sigma Technologies, Biomind, Shukun Technology, Yizhun Medical AI, and YITU Technology to collaboratively work on developing the Edison AI platform and support the smooth digital transformation of GE Healthcare.

However, the software solutions segment is anticipated to grow lucratively from 2024 to 2030. This dramatic growth rate is attributable to rising penetration of AI-based technologies in several healthcare applications such as cybersecurity, clinical trials, virtual assistants, robot-assisted surgeries, telemedicine, dosage error reduction, and fraud detection. Moreover, a growing number of strategic initiatives such as partnerships and seed investments undertaken by key players are contributing to the growth potential. Key players in this segment are IBM Corporation, NVIDIA Corporation, Intel Corporation, and BioSymetrics.

Application Insights

Based on application, the robot-assisted surgery segment dominated the market in 2023 with the largest revenue share of 24.5% and it is anticipated to witness the fastest CAGR of 39.2% from 2024 to 2030. The increase in the number of robot-assisted surgeries and a rising investment in the development of new AI platforms are among a few key factors supporting the penetration of AI in robot-assisted surgeries. A study has stated that around 1,000 robot-assisted procedures were performed globally in 2000, while in 2018, this number greatly grew to over 1 million. Moreover, as per a study published in JAMA Network Open, robot-assisted surgeries amounted to 15.1% of overall general surgeries in 2018, which was a substantial increase from 1.8% in 2012.

Global AI In Healthcare market share and size, 2022

In addition, in August 2019, the Clinical Robotic Surgery Association was inaugurated in India, which focuses on providing training to young surgeons in the field of robotic surgery, which indicates the surging demand for robotic surgeries. The adoption of AI technology is expected to increase owing to lack of skilled surgeons.

Regional Insights

North America dominated the market in 2023 and held the largest revenue share of 57.7%, owing to advancements in healthcare IT infrastructure, growing care expenditures, widespread adoption of AI/ML technologies, favorable government initiatives, lucrative funding options, and presence of several key market players. Moreover, growing geriatric population, changing lifestyles, increasing prevalence of chronic disorders, growing demand for value-based care, and rising awareness levels towards the implementation of AI-based technologies are bolstering the market growth in North America.

AI in Healthcare Market Trends, by Region, 2023 - 2030

Moreover, the Asia Pacific region is anticipated to register the fastest CAGR of 40.1% over the forecast period. This growth rate is attributable to the rapid innovations and development in the IT infrastructure and entrepreneurship ventures specializing in AI-based technologies. Increasing investments by private investors, venture capitalists, and non-profit organizations to enhance clinical outcomes, improve data analysis and data security, and reduced costs are driving the adoption rates. Favorable government initiatives supporting and promoting healthcare organizations and care providers to readily adopt AI-based technologies are some of the key factors driving the growth of the Asia Pacific market.

Key Companies & Market Share Insights

Increasing investments in R&D, innovative product developments and launches, rising number of technological collaborations, and service differentiation are the key strategies, players are focusing on to gain a competitive edge in the market. Moreover, emergence of AI-based startups and recognition of the same is boosting the market growth.

Key AI In Healthcare Companies:

  • Nuance Communications, Inc.
  • IBM Corporation
  • Microsoft
  • NVIDIA Corporation
  • Intel Corporation
  • DeepMind Technologies Limited

Recent Developments

  • In January 2023, Amazon Web Services and Slalom, LLC entered a strategic collaboration agreement. Through this collaborative effort, the two companies would strategize and develop AI-powered solutions for healthcare, life science, entertainment, and financial services industries.

  • In March 2022, Microsoft announced the acquisition of Nuance Communications, a leader in ambient intelligence and conversational AI across various fields. The partnership will help to improve the product offerings to the patients by providing affordable, accessible, and effective healthcare solutions.

  • NVIDIA Corporation launched Nuance Precision Imaging Network, an AI-based cloud platform that delivers patient-specific insights and data from diagnostic imaging into existing administrative & clinical workflows across the healthcare systems.

AI in Healthcare Market Report Scope

                   Report Attribute


Market size value in 2024

USD 32.3 billion

Revenue forecast in 2030

USD 208.2 billion

Growth Rate

CAGR of 36.4% from 2024 to 2030

Base year for estimation


Historical data

2018 - 2022

Forecast period

2024 - 2030

Report updated

November 2023

Quantitative units

Revenue in USD million/billion and CAGR from 2024 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; UK; Germany; France; Italy; Spain; Russia; China; India; Japan; Australia; Singapore; South Korea; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE

Key companies profiled

Nuance Communications, Inc; IBM Corporation; Microsoft; NVIDIA Corporation; Intel Corporation; DeepMind Technologies Limited

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global AI in Healthcare Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research, Inc. has segmented the global AI in healthcare market report based on component, application, and region:

Global AI in Healthcare Market Report Segmentation

  • Component Outlook (Revenue, USD Million, 2018 - 2030)

    • Software Solutions

    • Hardware

    • Services

  • Application Outlook (Revenue, USD Million, 2018 - 2030)

    • Robot-Assisted Surgery

    • Virtual Assistants

    • Administrative Workflow Assistants

    • Connected Machines

    • Diagnosis

    • Clinical Trials

    • Fraud Detection

    • Cybersecurity

    • Dosage Error Reduction

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

      • France

      • Italy

      • Spain

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

      • Singapore

      • South Korea

    • Latin America

      • Brazil

      • Mexico

      • Argentin

    • MEA

      • South Africa

      • Saudi Arabia

      • UAE

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now

ESOMAR Certified Member Great Place to Work Certified

ESOMAR & Great Work to Place Certified

ISO 9001:2015 & 27001:2022 Certified

ISO 9001:2015 & 27001:2022 Certified

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.