USD 12.6 billion
Report ID:
SQMIG35G2090 |
Region:
Global |
Published Date: June, 2025
Pages:
199
|Tables:
143
|Figures:
77
Global Artificial Intelligence (AI) in Healthcare Market size was valued at USD 20.0 billion in 2023 and is poised to grow from USD 27.46 billion in 2024 to USD 346.79 billion by 2032, growing at a CAGR of 37.3% during the forecast period (2025-2032).
The Artificial Intelligence in healthcare market has been rapidly growing due to the ever-rising demand for improved patient care and outcomes, operational efficiency, and cost-saving efficiencies. The massive increase of healthcare data and computing power, as well as the move toward value-based care, has led to a higher demand and usage of AI in healthcare. Applications of AI are being used with increased usage in applications including diagnostic imaging, clinical decision support, drug discovery, and patient monitoring. The rapid ability to analyze vast datasets and the accuracy of AI are enabling use cases that offer early detection of diseases, personalized treatment plans, and increased efficient administration use cases. Furthermore, continued spending by both private and government organizations are helping increase the speed of introducing AI into healthcare ecosystems.
While the market is heading in the right direction, the global artificial intelligence market has several restricting elements. There are multiple data privacy concerns, protocols and lack of interoperability with current system capabilities, and regulations related to effective adoption and implementation. Ethical considerations regarding significant changes in practice remain important for many healthcare providers and ongoing uncertainty in AI literacy among medical practitioners continues to hinder significant uptake. Cost and affordability of adopting AI algorithms; the infrastructure to develop the capability within smaller healthcare facilities is the last consideration. Nevertheless, we believe that the evolution of AI algorithms, regulatory reforms, and partnerships of technical and healthcare providers will slowly be able to address these limitations and affirm the promise of improving healthcare delivery throughout the globe in the long-term.
How is AI Transforming Clinical Documentation in Healthcare?
Artificial Intelligence (AI) is changing the game in clinical documentation, such that ambient listening technologies that use artificial intelligence are now able to more easily transcribe everything that is said during a clinician-patient encounter. Companies such as Microsoft and Ambience Healthcare and Abridge are developing ambient listening applications that use AI to transcribe clinical conversations and interactions in real-time to reduce the time clinicians spend on documentation. These technologies reduce documentation burdens and operationally alleviate physician burnout, while maximizing clinician engagement with patient care. Providers such as Stanford Health Care features or Mass General Brigham and University of Michigan Health have better outcomes overall that include less burnout, more focus on patient care, and quicker documentation because some ambient listening systems have also reduced out-of-hours charting time. Microsoft's up-and-coming Dragon Copilot intends to advance even more functionality with the ability to analyze clinician-doctor interactions, and ultimately improve clinician-patient communication.
As an example, Abridge, a start-up focusing on AI-powered medical documentation in healthcare, announces it has raised $250 million in a financing round led by Elad Gil and IVP, also with co-investors, Lightspeed Venture Partners, CVS Health Ventures, Redpoint Venture and NVentures. To illustrate how large this investment is, it is part of a larger trend and sign of confidence in AI startups which accounted for 46.4% overall of the $209 billion raised by U.S. startups in 2024. Abridge, headquartered in Pittsburgh and founded in 2018, automates clinical notes and professional records from clinical discussions, allowing doctors to concentrate on patient care while ensuring accurate documentation. Somesh Dash, General Partner at IVP, pointed out how much AI could streamline revenue cycle documentation.
How is AI Enhancing Patient Care Through Robotics?
Hospitals are beginning to deploy AI-powered robotics to engage in tasks like delivering medications and collecting items, which are often repetitive. For example, Diligent Robotics' Moxi robot is now in over 30 U.S. hospitals to help healthcare staff by taking over logistical tasks. This integration provides nurses and doctors additional time to care for patients and improves hospital overall efficiencies, ultimately offsetting the realities of shrinking labour availability and staff shortages. In February 2025, Diligent Robotics proudly announced that Moxi completed 1 million deliveries over its fleet, saving clinical staff 575,000 hours to care for patients.
Moxi's success illustrates the increasing role of humanoid robots in healthcare. Diligent Robotics has fit Moxi in currently existing health care workflows such as transporting supplies, moving laboratory specimens and working alongside staff when the facility is closed. The company claims that their robot improves operational efficiency and allows busy staffers to spend their time solely on patient care rather than doing routine transport work. Moxi can navigate complicated environments such as hospitals and has completed over 110,000 autonomous elevator rides. This shows the advanced capabilities of the robot in a real-world environment.
Market snapshot - (2025-2032)
Global Market Size
USD 12.6 billion
Largest Segment
Cloud Based Model
Fastest Growth
Cloud Based Model
Growth Rate
53.0% CAGR
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Global Artificial Intelligence (AI) in Healthcare Market is segmented by Component, Function, Deployment Model, Technology, End User, Application and region. Based on Component, the market is segmented into Hardware, Software Solutions and Services. Based on Function, the market is segmented into Diagnosis & Early Detection, Treatment Planning & Personalization, Patient Engagement & Remote Monitoring, Post-Treatment Surveillance & Survivorship Care, Pharmacy Management, Data Management & Analytics and Administrative. Based on Deployment Model, the market is segmented into On-Premises Model, Cloud Based Model and Hybrid Model. Based on Technology, the market is segmented into Machine Learning, Natural Language Processing (NlP), Context-Aware Computing, Generative Ai, Pattern & Image Recognition, Computer Vision and Image Analysis. Based on End User, the market is segmented into Healthcare Providers, Healthcare Payers, Patients and Others. Based on Application, the market is segmented into 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 and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Why is the Cloud-Based Deployment Model Leading the Market?
Cloud-based deployment models are the frontrunner in the AI in healthcare market. Companies prefer this format for improved scalability, lower fees, and ease of incorporating various health systems. Cloud deployment models enhance connectivity to real-time access to patient data, team collaboration, and data analytics to strengthen diagnostics, personalize treatment, and streamline the process of remote patient monitoring. In addition, cloud-based models allow users to easily improve applications by accepting updates, maintain patient data security with trusted vendors, and keep data in one place. With a reliance on telemedicine and digital health platforms expanding, so too does the need for more cloud-based solutions in developed and emerging economies.
The on-premises model is quickly becoming the fastest-growing form of deployment due mainly to increased concern about data privacy and regulations in healthcare. Organizations carrying sensitive patient data such as hospitals and clinics often pigeonhole themselves into the on-premises model to allow for total control and customization over their AI workflows. Organizations working in highly regulated national or regional jurisdictions that have stringent data protection laws would also favor an on-premises model so that they can be as compliant as possible and mitigate the risk of breaches. The increase in productivity for organizations from the on-premises model has also been greatly accelerated by the increasing investments in edge computing, and by private AI.
What Makes Machine Learning the Dominating Force in AI Healthcare?
Machine learning continues to be the key technology in AI healthcare applications because of its demonstrated usefulness in diagnostics, predictive analytics, and efficiencies in operations. Specifically, ML model methods are widely used for detection of disease, determining patient risk, and supporting treatment selection. They allow healthcare professionals to synthesize and analyze large quantities of data from various electronic health records (EHR), imaging studies, and genomic data with considerable accuracy. Machine learning is embedded in a variety of clinical and operational end users with ongoing developments in algorithms which have firmly established ML as a basic pillar of AI in current health systems.
Generative AI is rapidly advancing in healthcare - and it is poised to revolutionize the future of medical content generation, drug discovery and patient outreach. This is due partly to the ability to combine multiple modalities (e.g. text, video, audio and images). Generative AI reduces R&D and clinical workflows time by synthesizing medical images, automating written documentation, and simulating biological systems. Generative models will also help work on patient engagement - by enhancing conversational AI and creating personalized patient generated content. The growth of generative models has also introduced new ways to create synthetic datasets for training and testing, establishing a benchmark that will continue to facilitate generative AI practices in the growing AI healthcare ecosystem.
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Why is Demand for Artificial Intelligence (AI) in Healthcare Fueling Growth in North America?
North America is at the forefront of the AI in healthcare market fueled by an established healthcare system, an advantageous level of adoption of technology, and investments from the private and public sectors of the economy. The presence of many important AI healthcare startups, large amounts of R&D activity, and supportive government actions are continuing to move the region to the forefront of rapid growth. Furthermore, high levels of chronic disease prevalence and demand for cost-effective diagnostic tools that work impact the appeal of AI-driven options. Lots of established tech companies in the region have entered into partnerships with healthcare organizations leading to advancements in AI healthcare creating subdivision opportunities making North America the frontrunner of global growth.
U.S. Artificial Intelligence (AI) in Healthcare Market
The United States continues to be a primary contributor to the growth of AI in healthcare. Recently, GE HealthCare collaborated with Amazon Web Services to build AI applications that can improve diagnosis and clinical efficiency in patient care. Health care providers are using AI more and more for predictive analytics and to automate workflows. These transitions lead to improved operational efficiencies within facilities. Additionally, there is substantial funding in technology related to AI for drug discovery and personalized medicine, which is growing rapidly, making the US the innovator in healthcare AI.
Canada Artificial Intelligence (AI) in Healthcare Market
Canada is rapidly expanding in AI healthcare, including the partnership between WELL Health Technologies and Microsoft. They focus on cloud computing and AI in an effort to deliver digital healthcare. The Canadian government has also been supportive of AI research projects to further manage patient data and improve remote monitoring. Investments have surged in AI telemedicine platforms since the pandemic, providing accessible healthcare for remote communities.
What Factors are Supporting Growth in Europe Artificial Intelligence (AI) in Healthcare Market?
Europe's progress in AI healthcare is expanding the fastest globally, with government initiatives increasing, evidence of digitization in healthcare rising and a strong emphasis on personalized medicine. Countries across Europe are investing heavily in using AI in diagnostics, patient management, and medical imaging and analytics. Furthermore, Europe is one of the global leaders in ethical AI deployment plus data privacy regulations, increasing trust from the general populace and speeding up the adoption of healthcare AI. There are also increased collaboration between health institutions (ranging from hospitals to primary care) and AI developers, the availability of EU funding and support also accelerates healthcare AI development subsequently accelerating translation into health systems with the Countries across Europe rapidly integrating these agile health systems.
Germany Artificial Intelligence (AI) in Healthcare Market
Through strategic partnerships such as Philips’ contract with Vestre Viken Health Trust to augment AI into its radiology workflow, Germany is catalyzing growing engagement and use of AI in healthcare. By leveraging and enforcing AI in radiology workflows, they intend to simplify the diagnostic process and develop models so that radiologists can spend their time assessing complex cases, committing their thoughts to care to improve patient outcomes. Germany's established healthcare structure with a focus on innovation, research, and AI and data utilization positions it to ramp-up AI use in health settings - especially for medical imaging and data extraction and analysis - and makes it a crucial player in the expanding European AI healthcare ecosystem.
France Artificial Intelligence (AI) in Healthcare Market
France is currently moving ahead with plans to implement AI in its health care system, with a range of government policies in place that advocate for the use of AI in medical imaging, and in the analysis of patient data. National strategies have been established that focus on improving the efficiency of health care, as well as increasing possibilities for personalized options in treatment. Recently, AI platforms to predict and manage diseases have been launched, with numerous public/private endeavors established to drive along the road of health innovation and to enhance patient solutions for the future.
Italy Artificial Intelligence (AI) in Healthcare Market
Italy is expanding its AI healthcare sector through research and digital infrastructure development. The healthcare organizations are using AI to assist clinical decision-making, assist with diagnostic testing, and streamline operations. Several national projects are under consideration or being developed to increase digital transformation and promote access to AI technologies in healthcare delivery systems. Partnerships between tech companies and medical facilities are promoting innovation and allowing Italy to improve healthcare services and patient outcomes using AI applications and tools.
Why is Asia Pacific the Fastest-Growing Artificial Intelligence (AI) in Healthcare Market?
Asia Pacific is experiencing rapid AI adoption in healthcare due to the ever-increasing demands of healthcare, growing aging populations, and rapidly expanding digital infrastructure. Countries such as Japan, South Korea, and China, have put a priority on AI to improve medical diagnostics, robotic surgeries, and patient monitoring systems. In addition, supportive government initiatives and increased investments in AI development are accelerating research. The region provides a large patient base, and scaling up AI possibilities in healthcare can develop innovative technologies that can optimize access to healthcare and enhance patient outcomes.
Japan Artificial Intelligence (AI) in Healthcare Market
Japan is using artificial intelligence (AI) in its healthcare challenges associated with an aging population. AI technologies are being increasingly used in robotic surgery, medical imaging, patient monitoring, and other uses in an effort to enhance overall quality of care and efficiency. The Japanese government encourages innovation by funding projects and regulatory frameworks to ease the incorporation of AI in clinical settings. Japanese companies and healthcare organizations continue to partner in this AI development of solutions focused on senior care and chronic disease management.
South Korea Artificial Intelligence (AI) in Healthcare Market
South Korea is now home to a National Artificial Intelligence Committee to develop guidelines for AI policies that include AI in healthcare applications. The government's support for R&D in AI is intended to refine healthcare infrastructure and provide better quality of care. The expenditure involves AI capable diagnostic tools as well as telehealth systems, both to improve access to care and the quality of patient care. South Korea has ready access to the tech-savvy population and digital ecosystem to rapidly embrace the integration of AI into hospitals and clinics across the country.
China Artificial Intelligence (AI) in Healthcare Market
China is awash with AI in healthcare to enhance access and efficiency. AI-powered chatbots have become favored mental health services; smaller populations face even greater access restrictions, but they are perceived as difficult to penetrate again. The government is encouraging innovation, providing funding and regulatory support for AI, facilitating its rapid diffusion across activities like diagnostics, treatment planning, and healthcare operations. Its population numbers provide a valuable population for healthcare deployment and China's expanding healthcare infrastructure makes it a significant market for AI healthcare technologies.
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Artificial Intelligence (AI) in Healthcare Market Drivers
Surging Healthcare Data Volume & the Growing Demand for AI-Driven Analytics Fueling Market Growth
Predictive Analytics for Disease Prevention
Artificial Intelligence (AI) in Healthcare Market Restraints
Data Privacy & Security Concerns
Integration Challenges of AI in Healthcare Systems
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To stay competitive in the Artificial Intelligence (AI) in Healthcare market, companies are focusing on integrating AI-driven diagnostic tools, personalized treatment platforms, and telemedicine solutions. Collaborations between healthcare providers and technology firms enhance innovation and broaden service capabilities. Emphasizing compliance with data privacy regulations such as HIPAA and adopting culturally sensitive approaches ensures trust and adherence to legal standards. Additionally, the incorporation of wearable devices and real-time patient monitoring improves patient engagement and care quality. These strategic efforts enable market players to deliver timely, effective healthcare solutions and maintain a strong presence in the rapidly evolving AI healthcare landscape.
Top Player’s Company Profiles
Recent Developments in Artificial Intelligence (AI) in Healthcare
Emerging Trends Shaping the Future of Artificial Intelligence (AI) in Healthcare
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global Artificial Intelligence (AI) in Healthcare market is set for robust growth, propelled by rising demand for improved patient outcomes, operational efficiency, and cost-effective healthcare solutions. Key drivers include the surge in healthcare data, advancements in machine learning and generative AI, and widespread adoption of cloud-based deployment models. Regions like North America, Europe, and Asia-Pacific are leading market expansion due to strong government support, technological innovation, and increased investments. AI applications in clinical documentation, diagnostic imaging, robotics, and personalized medicine are transforming healthcare delivery. Despite growth, challenges such as data privacy concerns, interoperability issues, and high implementation costs remain. Leading companies focus on AI-driven diagnostics, automation, and collaborative healthcare models to enhance patient care and streamline operations globally.
Report Metric | Details |
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Market size value in Healthcare | USD 20.0 billion |
Market size value in 2032 | USD 346.79 billion |
Growth Rate | 37.3% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Artificial Intelligence (AI) in Healthcare Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) in Healthcare Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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