AI In Healthcare Market to Hit USD 701.79 Billion by 2034

The global AI in healthcare market size is expected to be hit around 701.79 billion by 2034, increasing from USD 37.09 billion in 2025, representing a healthy CAGR of 38.64% from 2025 to 2034.

The AI in healthcare market is increasing due to its capability to enhance precision and speed in diagnosis, targeted treatment plans, and increase operational effectiveness, which ultimately leads to better patient results and reduces costs. It offers various benefits such as early identification, quick diagnostics, and an efficient therapy plan, lower time and expenses for the patient and hospital, while getting quicker care. AI-driven technology streamlines medical care operations, enhancing patient care efficacy by automating administrative actions, enhancing workflow management, and optimizing resource allocation.

·         For Instance, In November 2025, InterSystems, a creative data technology provider powering more than 1 billion health records worldwide, announced the launch of InterSystems HealthShare AI Assistant, a new generative AI capability designed to assist clinicians, case managers, and administrators in accessing and understanding patient information faster and more intuitively.

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AI In Healthcare Market Highlights:

⬥︎ Based on component, the software solution segment dominated the market with the largest revenue share of over 47% in 2024

⬥︎ Based on application, the robot-assisted surgery segment dominated the market in 2024 with the largest revenue share of over 14%.

⬥︎ Based on technology, the machine learning segment held the largest market share of over 36% in 2024.

⬥︎ Based on end use, healthcare companies dominated the market with the largest revenue share of over 31% in 2024.

⬥︎ North America AI in the healthcare industry dominated the global market and accounted for the largest revenue share of over 55% in 2024.

Market Overview and Industry Potential

AI-driven technology is a significant and disruptive area of computer science, with the latent to essentially transform the practice of treatment and the delivery of medical care. AI-driven technology is used to diagnose diseases, create advanced personalized treatment plans, and assist physicians with decision-making. It transforms targeted medicine, optimizes drug dosages, improves population health management, establishes policies, offers virtual health assistants, supports mental health care, enhances patient education, and influences patient-doctor trust.

⬥︎For Instance, In May 2025, Danaher Corporation, a global science and technology innovator, announced the launch of a partnership with AstraZeneca to develop and commercialize novel diagnostic tools and tests intended to help clinicians better determine which patients would most benefit from precision medicine treatments.

Recent advancement in AI-driven technology has the potential to revolutionize various aspects of medical care, allowing a future that is more personalized, exact, prognostic, and portable. An incremental adoption of novel technologies or radical adoption of these technological innovations, but the impact of such technologies and the digital renaissance they bring needs health systems to reflect how greatest they adapt to the shifting landscape of healthcare.

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Report Scope of AI In Healthcare Market

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The Integration of AI-driven Technology in Surgery: Market’s Largest Potential

The incorporation of robotics and artificial intelligence (AI) in surgery shows a transformative development in advanced healthcare, confirming enhanced precision, effectiveness, and patient outcomes. AI-driven robotic surgeries demonstrated a 25% reduction in operational time and a 30% in intraoperative challenges compared to physical treatment. Surgical precision was enhanced by 40%, reflected in improved targeting accuracy during tumor resections and implant locations. Also lowers the patient recovery times by an average of 15%, with lower postoperative pain scores, which drives the growth of the market.

⬥︎For Instance, In October 2025, Accenture acquired Decho, a UK-based technology and AI consultancy that helps organizations reinvent through the design, delivery, and scaling of Palantir solutions. The acquisition further strengthens Accenture’s strategic advisory and advanced engineering capabilities for Palantir solutions for clients across the health, government, defense, and commercial sectors in the UK and beyond.

By Regional Insight

North America dominated the AI in healthcare market in 2024, due to the presence of a convergence of an advanced healthcare infrastructure, significant spending in research and development (R&D), strong regulatory support, and the presence of major technology organizations. Increasing government initiatives, such as the U.S. FDA's actions to make a clear regulatory pathway for AI-driven medical tools, offer a helpful environment for novelty and commercialization, which drives the growth of the market.

⬥︎ For Instance, In August 2025, Nerveblox, an AI software solution by SmartAlpha, designed to assist physicians in using ultrasound while administering regional anesthesia to perform a procedure commonly known as ‘nerve block’, has received U.S. Food and Drug Administration (FDA) 510(k) clearance. This clearance opens the door for SmartAlpha to launch its technology to the U.S. healthcare market at a time when AI’s role in medicine is more relevant than ever.

In the U.S., billions of dollars are spent by private venture capital and public funding channelled into AI-driven research and development (R&D) and medical care start-ups. This economic support speeds up innovation and the development of advanced solutions. Major U.S. technology organizations such as Google (Alphabet Inc.), Microsoft, and NVIDIA, along with a dynamic startup ecosystem, are profoundly invested in emerging and deploying AI-driven solutions for medical care applications.

⬥︎ For Instance, In October 2025, Qualtrics to invest $6.75 billion in the Press Ganey Forsta acquisition to advance AI-powered experience management. Accelerating adoption of AI capabilities, with deep healthcare expertise as the leading edge, advances Qualtrics’ ability to help companies create value and deliver better outcomes across all industries

Why is Asia Pacific the Fastest Growing in the AI In Healthcare Market?

APAC is the fastest-growing region in the market, as the Asia Pacific region is a hub of over 60% of the global population and is suffering a rapidly aging demographic shift and an increasingly significant burden of long-term diseases. Governments in the region have prioritized AI-based development in medical care through substantial funding, supportive strategies, and national strategies.

AI In Healthcare Market Segmentation Analysis:

By Component Analysis:

The software solutions segment dominates in the AI in Healthcare Market, as AI-driven technology supports health care organizations in enhancing safety and quality. AI-driven technology is altering the world of medical care, where it's being used to diagnose, create targeted treatment plans, and detect patient survival rates. AI-driven technology offers rapid and more precise diagnoses by analysing complex datasets and healthcare images, lowering human error.

On the other hand, the services segment is expected to grow significantly during the forecast period, as implementing AI-driven technology in administrative procedures significantly lowers expensive errors. AI-driven systems reliably outperform manual efforts in compliance, accuracy, and accountability. These services, automating procedures and enhancing diagnostic precision, lead to fewer billing mistakes, denied claims, and needless healthcare interventions.

By Application Analysis:

The medical imaging and diagnostics segment dominated the market in 2024, as AI-driven technology serves as a second reader for radiologists, offering a dependable cross-check for noticing anomalies in healthcare images. It also handles large amounts of data and extracts concealed data from the scans, which are invisible to the human eye. AI-driven healthcare imaging analysis can better visualize a heart with the coloration of cardiac chambers on grayscale echocardiography images.

On the other hand, the lifestyle management and remote patient monitoring segment is expected to grow at the fastest CAGR in the market during the forecast period, as AI-driven devices analyze medical healthcare, lab outcomes, and patient records rapidly than traditional processes. AI-driven imaging systems identify primary signs of heart disease, cancer, or nervous disorders with a level of accuracy that rivals experienced radiologists. AI-driven systems process massive volumes of data, including patient genetics, medical history, and lifestyle data, to create tailored treatment approaches.

By Technology Analysis:

The machine learning segment dominated the market in 2024, as machine learning technologies can be used by healthcare organizations to enhance the effectiveness of medical care, which could lead to significant savings. It has the latent to transform patient results, improve the quality of care, streamline healthcare delivery, and, more significantly, make healthcare accessible and affordable.

On the other hand, the computer vision segment is expected to grow at the fastest CAGR in the market during the forecast period, as CV monitors objects with an increasing focus and a more inclusive range of view than human eyes, enabling it to perceive more targets concurrently. It is used to identify diseases like diabetes, cancer, and cardiovascular disease by analysing healthcare images and patient records.

By End User Analysis:

The healthcare providers segment dominated the market in 2024, as AI-driven chatbots support in lowering the workload on medical care providers, allowing them to focus on more complex cases that need their expertise. AI-driven algorithms create particular recommendations for specific patients, considering factors such as health conditions, past healthcare and medication history, and social preferences, enabling medical care professionals to optimize healthcare selections and dosages.

On the other hand, the patient segment is expected to grow at the fastest CAGR in the market during the forecast period, as AI-based technology for enhanced diagnostic precision and speed, specific treatment plans, access to computer-generated health support, and remote monitoring of their health conditions.

Some of The Prominent Players in The AI in healthcare market Include:

• Microsoft

• IBM

• Google

• NVIDIA Corporation

• Intel Corporation

• Itrex Group

• GE Healthcare

• Medtronic

• Oracle

• Medidata

• Merck

• IQVIA

What is Going Around the Globe?

🔹In June 2025, IQVIA, a leading global provider of clinical research services, commercial insights, and healthcare intelligence to the life sciences and healthcare industries, unveils AI agents at GTC Paris. IQVIA’s new custom-built AI agents using NVIDIA technology are designed to enhance workflows and accelerate insights for life sciences. These live applications of agentic architectures illustrate how IQVIA AI and deep domain expertise are transforming business processes and patient outcomes

🔹In September 2025, Oracle Health launched the Oracle AI Center of Excellence for Healthcare to help organizations take advantage of the rapid advances in AI.

🔹In October 2025, the American Medical Association (AMA) announced the launch of its Center for Digital Health and AI, a new endeavor created to put physicians at the center of shaping, guiding, and implementing technologies transforming medicine.

🔹In June 2025, the U.S. Food and Drug Administration (FDA) launched Elsa, a generative Artificial Intelligence (AI) tool designed to help employees, from scientific reviewers to investigators, work more efficiently. This innovative tool modernizes agency functions and leverages AI capabilities to better serve the American people.

🔹In November 2025, MedEvolve, Inc., a pioneer in AI-powered revenue cycle automation and analytics, today announced its acquisition by Emergence, an enterprise backed by The Pritzker Organization.

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