AI In Oncology Market Size, Share & Trends Analysis Report By Component Type (Software Solutions, Hardware), By Cancer Type (Breast Cancer, Lung Cancer), By Treatment Type, By Region, And Segment Forecasts, 2024 - 2030

AI In Oncology Market Size & Trends

The global AI in oncology market size was estimated at USD 1.20 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 33.5% from 2024 to 2030. Growth of the market is attributed to increasing prevalence of cancer, technological advancement in cancer diagnostics and healthcare infrastructure, and an increasing demand for early and accurate diagnosis of cancer. The rising initiatives undertaken by public and private organizations to invest in research and development (R&D) for introduction of novel technologies are further anticipated to fuel growth of the market. For instance, in October 2022, Vara raised funding of USD 4.4 million for the introduction of an artificial intelligence-enabled breast cancer screening platform for millions of women.

The COVID-19 pandemic had a positive impact on the market as it significantly drove demand for utilization of AI in oncology as restrictions on movement were imposed globally in hospitals and homecare settings. Due to lockdown and travel restrictions, patients’ diagnosis, care, and treatment were some of the major challenges as a result of which need to develop products that can help in providing solutions in remote locations at an early stage significantly increased.Furthermore, due to a shortage of medical professionals, use of AI has grown even more in order to provide better results to patients.

Market Dynamics

One of the key factors responsible for the exponential growth of the overall market is the increasing prevalence of cancer globally. According to WHO, cancer is the leading cause of death worldwide accounting for the death of nearly one in every six individuals accounting for 10 million of the population globally. Majority of cancer deaths occur due to lung cancer which accounted for 2.21 million cases and 1.80 million deathsin 2020. Rising prevalence of cancer and shortages of healthcare professionals are propelling adoption of AI to meet rising demand for novel solutions to provide efficient and accurate diagnosis and treatment.

Technological advancements and incorporation of AI in applications such as classification, detection, segmentation, characterization, and monitoring are additionally fueling growth of the market. Government and private investment in the field of oncology for adoption of artificial intelligence is enhancing the diagnostic and therapeutic scenario of providing efficient oncological solutions. For instance, in March 2023, Qritive launched QAi Prostate, a novel tool powered with AI for diagnosis of prostate cancer. The product helps in accurate identification of prostatic adenocarcinoma regions as well as in classifying benign and malignant tumors in biopsy tissue samples.

The various growth strategies are implemented by market players to strengthen their business revenues further facilitating the global market growth. For instance, in November 2022, Exscientia entered into collaboration with The University of Texas MD Anderson Cancer Center for the advancement of novel small-molecule oncology therapies. Such collaborations and product launches are further driving the market growth.

However, stringent regulations associated with artificial intelligence enabled products and high costs and rising concerns over a replacement of human workforce are restraining the growth of the market. Although, increased adoption of AI specifically during the pandemic owing to shortages of medical professionals is expected to boost the market growth.

Component Type Insights

Based on component type, the software solutions segment dominated the market with a revenue share of 44.0% in 2023 and is anticipated to be the fastest growing segment over the forecast period owing to increasing use of software solutions for development of optimized oncological products and better outcomes associated with the use of these solutions. Key players operating in the market are also focusing on developing novel solutions to make the products accessible to the majority of the population. For instance, in March 2023, Illumina Inc. launched Connected Insights, a new software for enabling tertiary analysis to be used for oncology applications further expanding to rare diseases. The software is designed to streamline reporting and interpretation from a wide range of assay types. Moreover, software helps in improving workflow, saving time, and enhancing efficiency.

The segment is also anticipated to witness fastest growth over the forecast period owing to emerging entrepreneurial startups that provide innovative cancer treatment and prediction solutions. For instance, in December 2022, MedCognetics, Inc. received FDA approval for QmTRIAGE, an AI enabled platform for breast cancer screening that is expected to reduce cost and time of imaging and improve outcomes.

Cancer Type Insights

Based on cancer type, the others segment held the largest revenue share of 33.3% in 2023 and is anticipated to grow at a lucrative growth rate during the projected period. The dominance of this segment is attributed to increasing prevalence of breast cancer among the population. According to the American Society of Clinical Oncology in 2020, around 2,261,419 new cancer cases were diagnosed globally, and the majority of cases are seen in the U.S. with an estimated 297,790 new breast cancer cases in 2023. Growing cases amongst the population are propelling the need for introduction of technologically advanced products in the market, further propelling the growth of the overall market.

The brain tumor segment is expected to register the fastest growth rate throughout the forecast period. Incorporation of AI and advanced imaging technology aids in accurate diagnosis of brain tumors during surgery within 3 minutes. This technology also aids in distinguishing between tumors and healthy tissues. The use of various deep learning models also helped neurologists diagnose brain tumors further propelling segment growth. In February 2023, Hackensack Meridian Health entered into collaboration with Neosoma Inc. for the launch of artificial intelligence-powered brain cancer treatment. This collaboration aims to support the Neosoma method of tracking, data collection, and tracking and will include research, clinical data sharing, and strategic investment from Hackensack Meridian. Such initiatives fuel the use of AI in brain tumors.

Treatment Type Insights

Based on treatment type, the chemotherapy segment dominated the market with a revenue share of 35.4% in 2023. Chemotherapy is a commonly used cancer treatment procedure, according to the American Cancer Society an estimated 60% of patients with Stage 4 bladder cancer receive chemotherapy. AI integration in chemotherapy treatment aids healthcare professionals in developing a personalized digital profile of patients, allowing their dose to be tailored during treatment. Increased research activities for incorporating AI into chemotherapy accelerate segment growth. Moreover, incorporation of AI to provide tailored chemotherapy with reduced dosage and fewer side effects enhances the adoption of chemotherapy.

The immunotherapy segment is expected to grow at the fastest growth rate over the forecast period owing to the extensive positive results gathered from clinical studies showing high efficacy and increasing number of approvals of immunotherapy. For instance, in January 2023, a new AI based biomarker was launched that can help in predicting immunotherapy response for lung cancer patients. Furthermore, incorporating AI improves therapy's accuracy. According to a ScienceDirect article, AI can help identify major histocompatibility complex patterns associated with immunotherapy response by 91.66%. This is expected to have a positive impact on segment adoption.

Regional Insights

North America dominated the market with a revenue share of 57.7% in 2023 due to presence of well-developed digital infrastructure, favorable regulatory and reimbursement policies, and rising government initiatives to boost the adoption of AI technology in the healthcare industry. Rising prevalence of various cancers is propelling the need for development of advanced therapeutics and diagnostics which is further enabling growth of the regional market. In November 2021, Sanofi entered into collaboration with Owkin Inc. and invested USD 180 million in Owkin’s AI for advancement of the oncology pipeline. Furthermore, in February 2023, M2Gen entered into a partnership with Zephyr AI with an aim to advance drug and target discovery for precision oncology treatments.

Asia Pacific is expected to grow at the fastest growth rate over the projected period. The growth is attributed to rising adoption of digitalization in diagnostic laboratories and hospitals aided by growing geriatric population and an increasing prevalence of cancer among the population. For instance, according to Globocan in 2020, there were an estimated 19 million new cancer cases worldwide, with Asia-Pacific accounting for 9.7 million. Furthermore, key players are taking initiatives to improve cancer care in the region. In June 2022, GE Healthcare collaborated with National Cancer Centre Singapore with an aim to focus on artificial intelligence to improve cancer care. This collaboration aims to enhance the potential for treatment options for specific cancer types. Such initiatives are further responsible for regional growth of the market.

Key Companies & Market Share Insights

Key players are adopting new product development, partnership, and merger & acquisition strategies to increase their market share. Market players such as Azra AI; IBM; Siemens Healthcare GmbH; Intel Corporation; and others dominated the market. These key players have been developing novel technologies to cater to different end-use applications. For instance, in January 2023, Massive Bio announced the plans to adopt AI use in oncology with development and launch of drug matching product in 2023.

AI In Oncology Market Report Scope

Global AI in Oncology Market Report Segmentation

This report forecasts revenue growth and provides at global, regional, and country levels an analysis of the latest trends in each of the sub-segments from 2016 to 2030. For this report, Grand View Research has segmented the global AI in oncology market report based on component, cancer type, treatment type, and region:

• Component Type Outlook (Revenue, USD Million, 2016 - 2030)

  • Software Solutions

  • Hardware

  • Services

• Cancer Type Outlook (Revenue, USD Million, 2016 - 2030)

  • Breast Cancer

  • Lung Cancer

  • Prostate Cancer

  • Colorectal Cancer

  • Brain Tumor

  • Others

• Treatment Type Outlook (Revenue, USD Million, 2016 - 2030)

  • Chemotherapy

  • Radiotherapy

  • Immunotherapy

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait