“Global Artificial Intelligence in Diagnostics Market to reach a market value of USD 5.80 Billion by 2031 growing at a CAGR of 21.3%”
The Global Artificial Intelligence in Diagnostics Market size is expected to reach $5.80 billion by 2031, rising at a market growth of 21.3% CAGR during the forecast period.
AI-powered diagnostic tools have significantly enhanced the accuracy and speed of detecting neurological conditions by analyzing brain scans, electroencephalograms (EEGs), and other medical imaging data. The ability of AI to identify subtle abnormalities in brain structures and predict disease progression has made it a crucial tool in neurological diagnostics. Additionally, the growing adoption of AI in neurosurgery planning and personalized treatment strategies has further fuelled the segment’s expansion. Thus, the neurology segment acquired 23% revenue share in the market in 2023. This is driven by the increasing prevalence of neurological disorders such as Alzheimer’s disease, Parkinson’s disease, and stroke.
The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In January, 2025, GE HealthCare Technologies, Inc. and Sutter Health form a seven-year strategic partnership to expand AI-powered imaging across California. The collaboration enhances diagnostic accuracy, patient access, and clinician efficiency while supporting workforce development and advancing service lines like cardiology, oncology, and neurosciences. Additionally, In January, 2025, DeepScribe and Flatiron Health partner to integrate AI-powered ambient documentation into OncoEMR®, automating oncology clinical notes for 4,200+ providers. The AI reduces administrative burden, enhances workflow efficiency, and improves patient care by structuring clinical data and capturing key medical insights.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunners in the Artificial Intelligence in Diagnostics Market. Companies such as NVIDIA Corporation and F. Hoffmann-La Roche Ltd. are some of the key innovators in Artificial Intelligence in Diagnostics Market. In March, 2024, Microsoft Corporation and NVIDIA expand collaboration to accelerate AI-driven healthcare innovation using Azure, DGX Cloud, and Clara. The partnership enhances medical imaging, drug discovery, and genomics, improving diagnostics and precision medicine while advancing clinical research through AI-powered cloud computing solutions.
AI-powered diagnostic tools are revolutionizing healthcare by significantly improving accuracy and efficiency in disease detection. Traditional diagnostic methods often rely on manual interpretations by medical professionals, which can lead to errors and inconsistencies. AI-driven solutions, on the other hand, leverage machine learning algorithms and deep learning techniques to analyze complex medical data, enabling earlier and more precise diagnosis. Hence, the rising adoption of AI-powered diagnostic tools for improved accuracy and efficiency drives the market's growth.
Additionally, Integrating AI with cloud-based healthcare platforms is transforming how diagnostic data is stored, analyzed, and shared. Cloud computing enables healthcare institutions to centralize patient data, making it accessible to medical professionals across different locations. Integrating AI into cloud-based systems enhances the ability to process large volumes of medical images, lab results, and patient histories in real-time. In conclusion, increasing integration of AI with cloud-based healthcare platforms
Despite AI's numerous advantages in diagnostics, its high implementation cost remains a significant barrier to adoption. Developing AI-powered diagnostic systems requires extensive investment in data infrastructure, machine learning models, and computing power. Healthcare providers, especially in developing regions, often struggle with budget constraints, making it difficult to afford these advanced solutions. The cost of acquiring AI diagnostic software, upgrading medical imaging equipment, and training staff further adds to the financial burden. In conclusion, AI-based diagnostic solutions' high initial investment and implementation costs are impeding the market's growth.
The pandemic rapidly increased the adoption of AI-driven diagnostic tools to support overwhelmed healthcare systems. Hospitals and clinics relied more on AI-powered imaging technologies for faster detection of COVID-19 through CT scans and X-rays. Governments and private sectors invested heavily in AI-based diagnostics to improve early disease detection and management. Thus, the COVID-19 pandemic had a positive impact on the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Free Valuable Insights: Global Artificial Intelligence in Diagnostics Market size to reach USD 5.80 Billion by 2031
On the basis of diagnosis, the market is classified into cardiology, oncology, pathology, radiology, chest & lung, neurology, and others. The cardiology segment held 11% revenue share in the market in 2023. This is fuelled by the rising burden of cardiovascular diseases (CVDs) globally. AI has revolutionized cardiology diagnostics by enabling early detection and risk assessment of heart conditions such as coronary artery disease, arrhythmias, and heart failure. AI-driven ECG analysis, echocardiography interpretation, and cardiac imaging have enhanced diagnostic accuracy while reducing the workload on cardiologists.
Based on component, the market is characterized into software, hardware, and services. The hardware segment procured 35% revenue share in the market in 2023. The increasing need for AI-powered GPUs (graphics processing units), TPUs (tensor processing units), and edge computing devices to support complex diagnostic algorithms has significantly contributed to the growth of this segment.
The Artificial Intelligence in Diagnostics Market is highly competitive, driven by rapid advancements in AI algorithms, increased healthcare digitalization, and growing demand for accurate, early disease detection. Competition is fueled by innovations in machine learning, deep learning, and cloud-based AI solutions. Key attributes influencing the market include precision, speed, scalability, and integration with existing healthcare systems. Regulatory approvals and data privacy concerns also shape competition. Companies focus on enhancing AI-powered diagnostics for multiple medical fields, ensuring efficiency, reliability, and cost-effectiveness.
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 20% revenue share in the market in 2023. This is driven by rapid technological advancements, growing healthcare expenditures, and increasing adoption of AI-driven healthcare solutions. Countries like China, Japan, India, and South Korea are witnessing a surge in AI-based diagnostics due to government initiatives promoting digital healthcare transformation.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 1.29 Billion |
| Market size forecast in 2031 | USD 5.80 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 21.3% from 2024 to 2031 |
| Number of Pages | 217 |
| Number of Tables | 303 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Diagnosis, Region |
| Country scope |
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| Companies Included | Siemens Healthineers AG (Siemens AG), Zebra Technologies Corporation, GE HealthCare Technologies, Inc., F. Hoffmann-La Roche Ltd., Microsoft Corporation, NVIDIA Corporation, IBM Corporation, DeepScribe Inc., AliveCor, Inc. and Digital Diagnostics, Inc. (3Derm Systems, Inc.) |
By Component
By Diagnosis
By Geography
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