The global AI in healthcare market was valued at USD 26.57 billion in 2024 and is projected to reach USD 187.69 billion by 2030, growing at a compound annual growth rate (CAGR) of 38.62% from 2025 to 2030. A significant driver of this market growth is the increasing demand for enhanced efficiency, accuracy, and improved patient outcomes in the healthcare sector.

According to a March 2024 study by Microsoft-IDC, 79% of healthcare organizations are currently utilizing AI technology. Furthermore, the return on investment (ROI) is achieved within 14 months, generating USD 3.20 for every USD 1 invested in AI. AI technologies are poised to transform numerous areas, including medical imaging analysis, predictive analytics, personalized treatment planning, and drug discovery, fundamentally changing traditional healthcare practices.

The rapid increase in healthcare data, derived from electronic health records, medical imaging scans, wearable devices, and genomic sequencing, presents substantial opportunities for AI-powered solutions to extract actionable insights and enhance clinical decision-making. Additionally, the growing shortage of healthcare workers is accelerating the adoption of AI and machine learning (ML) technologies. According to estimates from the World Economic Forum in May 2023, a global deficit of 10 million healthcare workers is expected by 2030. Consequently, AI algorithms can be trained to analyze patient health data, assisting care providers in making rapid diagnoses and treatment plans.

Key Market Trends & Insights

• North America led the global AI in healthcare market, capturing over 54% of the revenue share in 2024. This dominance is driven by advancements in healthcare IT infrastructure, increasing healthcare expenditures, widespread adoption of AI and machine learning (ML) technologies, supportive government initiatives, attractive funding opportunities, and the presence of several key market players.

• The AI in healthcare industry in the U.S. is poised for significant growth during the forecast period. This growth is fueled by the rising demand for efficient and personalized healthcare solutions, advancements in AI research and development—particularly in machine learning and natural language processing—and supportive regulatory initiatives.

• The software solution segment emerged as the market leader, accounting for over 46% of the revenue share in 2024, and is expected to experience the fastest CAGR during the forecast period. This growth is attributed to the increasing adoption of AI-based software solutions among healthcare providers, payers, and patients.

• In terms of application, the robot-assisted surgery segment dominated the market in 2024 with a revenue share exceeding 13%. The rise in robot-assisted surgeries, along with increased funding and investment in AI platform development, are key factors driving AI penetration in this area.

• Regarding technology, the machine learning segment held the largest market share of over 35% in 2024. The healthcare industry generates vast amounts of data, including electronic health records (EHRs), medical imaging, genomic data, and data from wearable devices.

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Market Size & Forecast

• 2024 Market Size: USD 26.57 Billion
• 2030 Projected Market Size: USD 187.69 Billion
• CAGR (2025-2030): 38.62%
• North America: Largest market in 2024

Key Companies & Market Share Insights

Market players are utilizing innovative product development strategies, partnerships, and mergers, and acquisitions to expand their presence in response to the increasing demand for early and accurate disease detection, cost containment, addressing the shortage of healthcare providers, and providing value-based care.

Key Players

• Microsoft
• IBM
• Google
• NVIDIA Corporation
• Intel Corporation
• Itrex Group
• GE Healthcare
• Medtronic
• Oracle
• Medidata
• Merck
• IQVIA

Conclusion

The AI in healthcare market is on a rapid growth trajectory, driven by the need for more efficient and accurate healthcare solutions and the increasing volume of healthcare data. As organizations continue to adopt AI technologies, the sector stands to benefit significantly, not only in enhancing patient care but also in addressing workforce shortages. The transformative potential of AI is set to redefine conventional healthcare practices, leading to improved outcomes and efficiencies across the board. 

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