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Artificial Intelligence in Healthcare Market

Introduction

According to a 2025 report on AI in healthcare market by Mordor Intelligence, the market is estimated at USD 39.92 billion in 2025 and is projected to reach USD 196.91 billion by 2030, growing at a CAGR of 37.60 percent during the forecast period.

The artificial intelligence in the healthcare market is witnessing rapid growth as hospitals, pharmaceutical companies, and healthcare providers increasingly adopt AI tools to improve patient care and operational efficiency. AI is used for a range of applications including diagnostics, imaging analysis, drug discovery, virtual assistants, and patient management.

Key Market Trends

AI in Diagnostics and Imaging

AI tools are widely used to analyze medical images such as X-rays, MRIs, and CT scans. Hospitals and diagnostic centers are adopting AI-powered imaging solutions to detect diseases like cancer, neurological conditions, and cardiovascular diseases with higher accuracy and speed. This reduces diagnostic errors and supports clinicians in providing timely treatment.

Use of AI in Drug Discovery and Development

Pharmaceutical companies are leveraging AI platforms to identify new drug candidates, analyze molecular structures, and predict drug responses. AI is helping reduce the time and cost involved in drug development by accelerating research, screening compounds efficiently, and supporting clinical trial processes.

Growth of Virtual Health Assistants and Chatbots

AI-based virtual assistants are being used in hospitals and clinics for appointment scheduling, medication reminders, answering patient queries, and post-discharge follow-ups. This trend is helping healthcare providers reduce administrative workloads and improve patient engagement and satisfaction.

Application of AI in Personalized Medicine

AI enables analysis of patient-specific data including genetic information, medical history, and lifestyle factors to recommend tailored treatment plans. This is supporting the growth of personalized medicine, especially in oncology, where targeted therapies are crucial for effective treatment outcomes.

Adoption of AI for Administrative Workflow Automation

Hospitals and healthcare providers are using AI to automate administrative tasks such as billing, claim processing, and patient data management. This trend is helping reduce operational costs, minimize errors in records, and improve workflow efficiency across departments.

Market Segmentation

By Technology

Machine Learning, Deep Learning, NLP, Computer Vision, Generative AI/Foundation Models, Reinforcement Learning, Others

These technologies form the backbone of AI healthcare tools. Machine learning and deep learning power predictive analytics and image interpretation, while NLP supports automated documentation and clinical decision support. Emerging technologies like generative AI and foundation models which are expanding at roughly 48% CAGR represent the fastest-growing tech area.

By Application

Robot‑assisted Surgery, Virtual Assistants, Precision & Personalized Medicine, Remote patient Monitoring, Fraud Detection, Others

AI is applied across care delivery and support systems. It’s used in robotic surgery, intelligent scheduling assistants, and automated billing workflows. Diagnostic imaging remains a dominant use case, with AI helping analyze scans and track disease progression. AI also supports clinical trials with data management, and aids in fraud detection and cybersecurity in patient records

By Offering

Hardware, Software, Services

Offerings in AI healthcare span physical devices, digital tools, and consultancy/support services. Software, which includes AI platforms and specialized applications, holds a significant market share given hospitals’ reliance on digital diagnostics, workflow optimization, and predictive analytics.

By End User

Hospitals & Healthcare Providers, Patients, Pharmaceutical & Biotechnology Companies, Healthcare Payers, Others

This segmentation captures the diverse customer base for AI solutions. Hospitals and providers make up the bulk of users for diagnostic or workflow tools. Patients benefit indirectly via virtual health apps or monitoring. Pharma and biotech firms use AI for drug discovery and trial enhancement. Payers leverage AI in claims processing, fraud detection, and cost management.

By Geography

North America, Europe, Asia‑Pacific, Middle East & Africa, South America

Geographic segmentation highlights regional differences: North America leads due to its healthcare infrastructure and investment capacity, while Asia‑Pacific is identified as the fastest-growing due to rising digital adoption and government-backed health tech initiatives

Key Players

• IBM Corporation A leading AI healthcare provider, IBM offers robust diagnostic and analytics solutions such as the Watson Health platform that assist hospitals and clinics in decision support, oncology, and imaging workflows.

• Google LLC (Alphabet) Through its Google Health and DeepMind divisions, Google is developing AI-enabled medical imaging tools and predictive health models. Its efforts include diabetic retinopathy detection and cardiology risk prediction, leveraging advanced AI algorithms.

• NVIDIA Corporation NVIDIA delivers critical AI infrastructure including GPUs and deep‑learning frameworks that support healthcare AI applications in diagnostics and image processing. Healthcare institutions rely on hardware acceleration for large‑scale AI deployment.

• Microsoft Corporation Microsoft provides AI services integrated into Azure and its healthcare cloud, supporting predictive insights, imaging analysis, and seamless EHR integration for clinician support

Conclusion

The AI in the healthcare market is experiencing strong growth, supported by the increasing demand for diagnostic accuracy, efficient hospital workflows, and personalized care solutions. The use of AI in diagnostics, imaging, drug discovery, and patient management is expected to rise further as hospitals and pharmaceutical companies seek cost-effective, data-driven decision-making tools.

North America will continue to lead in terms of market share, while Asia-Pacific will emerge as a key growth region due to its expanding healthcare infrastructure and government initiatives in digital health. Key players are focusing on enhancing their AI capabilities through continuous investment in research, partnerships with healthcare providers, and expanding AI applications in various medical fields.

Get more insights: https://www.mordorintelligence.com/industry-reports/artificial-intelligence-in-healthcare-market?utm_source=abnewswire

Industry Related Reports

Artificial Intelligence in Medicine Market: The Artificial Intelligence (AI) in Healthcare Market report is segmented by Application Type (Medical Administration and Support, Patient Management, Research and Development, Other Applications), by Type (Hardware, Software, Services), and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.

North America Artificial Intelligence in Healthcare Market: The Artificial Intelligence in Healthcare Market North America report segments the industry into by Technology (Natural Language Processing (NLP), and more), by Application (Robot-assisted Surgery, and more), by Offering (Hardware, Software, Services), by End User (Healthcare Payers, and more), and by Geography (United States, and more).

For More information: https://www.mordorintelligence.com/industry-reports/north-america-artificial-intelligence-in-healthcare-market?utm_source=abnewswire

AI In Medical Billing Market: The AI in Medical Billing Market report segments the industry into by Deployment (Cloud, On-Premises), by Applications (Automated Billing and Documentation, Claims Processing, Fraud Detection, Other Applications), by End Users (Hospitals and Clinics, Healthcare Payers, Ambulatory Surgical Centers, Other End Users), and by Geography (North America, Europe, Asia, Australia and New Zealand, Latin America, Middle East and Africa).

About Mordor Intelligence: Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

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