AI In Healthcare Market Size To Reach $505.59 Billion By 2033

November 2025 | Report Format: Electronic (PDF)

AI In Healthcare Market Growth & Trends

The global AI in healthcare market size is expected to reach USD 505.59 billion by 2033, registering a CAGR of 38.81% from 2025 to 2033, according to a new report by Grand View Research, Inc. AI acts as a transformative force in healthcare systems, shifting them from reactive to proactive, predictive, and preventive models. Clinical decision support systems, fueled by artificial intelligence (AI), empower physicians and healthcare professionals with predictive and real-time analytics, enhancing decision-making and elevating care quality, ultimately resulting in improved patient outcomes. Furthermore, AI facilitates a comprehensive understanding of disease biology and patient pathology, advancing precision medicine and precision public health initiatives.

Furthermore, the growing field of life sciences R&D opens numerous opportunities for market growth, with AI's ability to process vast volumes of multidimensional data playing a crucial role. This capability accelerates the generation of novel hypotheses, expedites drug discovery and repurposing processes, and significantly reduces costs and time to market through the utilization of in silico methods. In essence, AI drives innovation and efficiency across the healthcare sector, revolutionizing healthcare delivery worldwide. AI-based technologies are implemented in various healthcare domains, including virtual assistants, robot-assisted surgeries, claims management, cybersecurity, and patient management.

AI algorithms are trained using patient health datasets to optimize disease diagnosis and early detection, enabling the initiation of timely treatment regimens. Supportive government initiatives, funding, a growing number of investments from private investors and venture capitalists, and the emergence of AI-specialized startups globally are key drivers of market growth. For instance, in February 2024, Fabric, a health tech company, raised USD 60 million in series A funding to expand its conversational AI-powered healthcare platform. In September 2023, Amazon announced a USD 4 billion investment in AI in partnership with Anthropic, representing a significant strategic move toward advancing the tech giant's healthcare aspirations.

The emergence of several startups in the AI healthcare market is another significant driver of industry growth. Their presence stimulates investment, encourages technological advancements, and expands the scope of AI applications in healthcare. The collective efforts of these startups fuel momentum in the AI healthcare market, driving greater innovation, efficiency, and effectiveness in delivering healthcare solutions. Notable startup companies in this space include Activate Health, Kahun, Likeminded, and Pharmarun, among others.

key Request a free sample copy or view report summary: AI In Healthcare Market Report

AI In Healthcare Market Report Highlights

Based on component, the software solution segment dominated the market with the largest revenue share of over 46% in 2024, and it is expected to grow significantly during the forecast period.
Based on application, the robot-assisted surgery segment dominated the market in 2024 with the largest revenue share of over 13%.
Based on end use, pharmaceutical and biotechnology companies dominated the market with the largest revenue share of over 30% in 2024.
Based on technology, the machine learning segment held the largest market share of over 35% in 2024.
North America AI in healthcare market accounted for the largest revenue share of over 54% in 2024.

AI In Healthcare Market Segmentation

Grand View Research has segmented the AI in healthcare market on the basis of on component, application, technology, end use, and region:

AI In Healthcare Component Outlook (Revenue, USD Million, 2021 - 2033)

Hardware
- Processor
  - MPU (memory protection unit)
  - FPGA (Field-programmable gate array)
  - GPU (Graphics processing unit)
  - ASIC (Application-specific integrated circuit)
- Memory
- Network
  - Adapter
  - Interconnect
  - Switch
Software Solutions
- AI platform
  - Application Program Interface (API)
  - Machine Learning Framework
- AI Solutions
  - On premise
  - Cloud based
Services
- Deployment & Integration
- Support & Maintenance
- Others (Consulting, Compliance management etc.)

AI In Healthcare Application Outlook (Revenue, USD Million, 2021 - 2033)

Robot Assisted Surgery
Virtual Assistants
Administrative Workflow Assistants
Connected Medical devices
Medical Imaging & Diagnostics
Clinical Trials
Fraud Detection
Cybersecurity
Dosage Error Reduction
Precision medicine
Drug discovery & development
Lifestyle management & remote patient monitoring
Wearables
Others (Patient engagement, etc.)

AI In Healthcare Technology Outlook (Revenue, USD Million, 2021 - 2033)

Machine Learning
- Deep learning
- Supervised
- Unsupervised
- Others (Reinforcement learning, Semi supervised)
Natural Language Processing
- Smart Assistance
- OCR (Optical Character Recognition)
- Auto Coding
- Text analytics
- Speech analytics
- Classification and categorization
Context-Aware Computing'
Computer Vision