AI in Diagnostics Market

Artificial Intelligence in Diagnostics Market by Component (Hardware/software, and Services), Application (Infectious Disease Diagnostics, Radiology, Oncology, Cardiology, and Others), Technology (Machine Learning, Natural Language Processing, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World) is expected to grow at a steady CAGR forecast till 2032 owing to the rising cases of infectious and chronic diseases, growing adoption of digital health & imaging equioments, increase in product development activities among the key market players across the globe. 

The AI in Diagnostics market was valued at USD 1,623.20 million in 2024, growing at a CAGR of 22.31% during the forecast period from 2025 to 2032 to reach USD  8,081.97 million by 2032. The rising prevalence of infectious and chronic diseases is driving the demand for early and accurate diagnosis, where Artificial Intelligence plays a vital role by enhancing detection and supporting faster clinical decisions. Simultaneously, the growing adoption of digital health and imaging technologies provides a strong foundation for integrating AI tools into existing healthcare workflows, improving efficiency and accuracy. Additionally, increased product development activities by key Artificial Intelligence in Diagnostics companies across the globe fueled by advancements in machine learning and growing regulatory support are expanding the availability of AI-powered diagnostic solutions. Together, these factors are expected to significantly boost the global Artificial Intelligence in Diagnostics market by enabling more precise, timely, and scalable healthcare delivery during the forecast period from 2025 to 2032.

Artificial Intelligence in Diagnostics Market Dynamics

According to the data provided by the World Health Organization, in 2023, globally, an estimated 39.9 million people were living with HIV and approximately 1.3 million population acquired HIV. Additionally, as per the same source, in 2023, approximately 10.8 million people fell ill with tuberculosis (TB). AI in Diagnostics is boosting the management of TB and HIV by enabling early detection and efficient monitoring. In TB, AI analyzes chest X-rays and CT scans to identify infection patterns, reducing reliance on radiologists, especially in low-resource areas. For HIV, AI supports disease progression tracking, treatment prediction, and detection of co-infections. These capabilities streamline workflows, reduce diagnostic delays, and enhance large-scale screening efforts.

Moreover, the rising global incidence of cancer is a major factor driving the growth of AI in Diagnostics market. Cancer diagnosis often involves complex imaging, pathology, and genomic data, making it an ideal application for artificial intelligence. According, to the data provided by the World Health Organization (2024), in 2022, globally, there were an estimated 20 million new cancer cases with lung cancer being the most commonly occurring cancer worldwide with 2.5 million new cases accounting for 12.4% of the total new cases. AI-powered diagnostic tools, particularly those using CT scans and X-rays, are capable of detecting subtle signs of lung cancer that might be missed by the human eye. AI algorithms analyze imaging data to identify nodules, masses, and irregularities in lung tissues, allowing for quicker and more accurate detection.

In addition, according to data provided by the British Heart Foundation (2025), globally, around 640 million people were living with heart and circulatory diseases across the world. These diseases require precise and timely detection, as early diagnosis can greatly improve outcomes and reduce mortality rates. AI tools are increasingly being integrated into the diagnostic workflow to analyze medical imaging (e.g., CT, MRI, echocardiograms) and interpret complex data with higher accuracy and efficiency than traditional methods thereby escalating the overall Artificial Intelligence in Diagnostics market.

Furthermore, the growing adoption of digital health and imaging technologies is boosting the AI diagnostics market by improving the speed, accuracy, and accessibility of medical diagnoses. AI algorithms efficiently analyze complex imaging data from CT scans, MRIs, and X-rays, aiding early detection in fields like oncology, cardiology, and pulmonology. For instance, in December 2024, GE HealthCare's Sonic DL AI MRI algorithm, launched at the RSNA 2024 conference, accelerates scans by up to 86% while enhancing image resolution for brain imaging, spine, orthopedic, and body imaging. 

Together, the above-mentioned factors are expected to boost the overall Artificial Intelligence in Diagnostics market.

Despite these promising growth factors, the AI in Diagnostics market faces challenges such as data privacy & security. Additionally, AI algorithms require large, high-quality datasets to train effectively, and integrating with existing healthcare systems can be challenging which may hinder the future Artificial Intelligence in Diagnostics market during the forecast period.

AI in Diagnostics Market Segment Analysis

AI in Diagnostics Market by Component (Hardware/software, and Services), Application (Infectious Disease Diagnostics, Radiology, Oncology, Cardiology, and Others), Technology (Machine Learning, Natural Language Processing, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). 

In the component segment of the AI in Diagnostics market, the software category is projected to capture a significant revenue share in 2024. Software solutions are playing a pivotal role in boosting the overall Artificial Intelligence in Diagnostics market by significantly enhancing the capabilities of diagnostic tools, improving accuracy, and streamlining clinical workflows. 

These software systems integrate AI algorithms with various medical devices, such as imaging machines (CT scans, MRIs, X-rays), laboratory testing equipment, and patient monitoring systems, enabling real-time analysis and interpretation of complex data. AI-powered diagnostic software can process large volumes of data rapidly, identifying patterns and anomalies that human clinicians might miss. For instance, in imaging, AI software helps detect early signs of diseases such as cancer, cardiovascular conditions, and neurological disorders by analyzing medical images for subtle irregularities that may not be visible to the naked eye. In pathology, AI software assists in the classification and grading of tumors or detecting abnormalities in tissue samples, which aids in accurate diagnosis and treatment planning.

Moreover, software innovations are driving advancements in personalized medicine by analyzing patient data to predict disease progression, identify the most effective treatment plans, and monitor ongoing responses to treatment. This capability is particularly valuable in chronic disease management, such as in diabetes, heart disease, and oncology, where continuous monitoring is essential for adjusting treatments and preventing complications. The automation provided by AI software also helps reduce diagnostic errors, minimize human workload, and enhance the efficiency of healthcare professionals, allowing them to focus more on patient care rather than time-consuming manual tasks. Furthermore, the integration of AI diagnostic software with electronic health records (EHRs) enables seamless data sharing across different healthcare systems, improving collaboration among specialists and ensuring more coordinated care. The growing availability of cloud-based AI diagnostic software solutions further supports scalability, making advanced diagnostic tools more accessible to healthcare providers, especially in underserved or resource-limited regions. As more software solutions are developed and validated, the AI diagnostics market is experiencing rapid growth.

Additionally, the increase in product development activities such as product launches and product approvals are further escalating the overall AI in Diagnostics market. For instance, in July 2024, Tempus received FDA 510(k) clearance for its ECG-AF algorithm, an AI-based tool designed to identify patients at increased risk of atrial fibrillation (AFib). ECG-AF is the first of a suite of next-generation diagnostics that Tempus has designed to identify patients at risk for a variety of cardiovascular conditions. 

Given these factors, the software segment is expected to witness robust growth during the forecast period, thereby driving the overall expansion of AI in Diagnostics market.

North America is expected to dominate the overall AI in Diagnostics market:

North America is projected to account for the largest share of AI in Diagnostics market in 2024. This dominance can be attributed to several key factors, including the rising prevalence of chronic and infectious diseases, increased adoption of imagining technologies, robust research and development (R&D) efforts, a well-established healthcare infrastructure, and a favorable regulatory environment that supports product launches and approvals.

According to the data provided by the International Agency for Research on Cancer, in 2022, the estimated number of new cases of brain cancer was 24,940 and the projections were estimated to increase 31,278 cases by 2045. AI technologies, particularly those used in medical imaging like MRI and CT scans, play a crucial role in identifying brain tumors, pinpointing their exact location, and assessing their size and characteristics with high precision. AI algorithms can analyze complex brain scans faster and with greater accuracy than traditional methods, detecting even subtle signs of tumors that might be missed by human radiologists thereby escalating the need for AI in Diagnostics across the region.

According to the data provided by the Government of Canada, in 2022, there were, 13,953 cases of syphilis were reported in Canada, marking an 11% increase from 2021. AI-powered diagnostic systems, such as those integrating machine learning with laboratory testing and imaging, can improve the speed and accuracy of syphilis detection. AI algorithms can analyze large datasets of medical images (such as syphilis-related lesions in oral, genital, or anal regions) and blood tests (like serologic tests), identifying subtle patterns or abnormalities that may be difficult to detect manually.

Additionally, the region benefits from ongoing advancements in AI in Diagnostics -related R&D, product launches, and regulatory approvals. Such developments further accelerate market expansion. For instance, in October 2024, Owkin introduced MSIntuit® CRC v2, a next-generation AI diagnostic tool to improve colorectal cancer (CRC) detection. 

In summary, the combination of a high disease burden, innovative R&D landscape, advanced healthcare infrastructure, and favorable regulatory policies makes North America a leading market for AI in Diagnostic market throughout the forecast period.

AI in Diagnostics Companies:

Some of the key AI in Diagnostics companies operating in the market include Aidoc, Owkin, Inc., Siemens Healthineers, PathAI, Ibex, Owkin, Inc., Imagen Technologies, Aiforia, RADLogics, Terarecon, Inc., Prenosis, Inc., Ibex, Google LLC, GE HealthCare, DreaMed, Riverain Technologies, Terarecon, Inc., Aiforia, RADLogics, and others.

Recent Developmental Activities in the AI in Diagnostics Market:

• In April 2025, Roche announced that the U.S. Food and Drug Administration (FDA) granted Breakthrough Device Designation for its VENTANA® TROP2 (EPR20043) RxDx Device. This marks the first Breakthrough Device Designation granted for a computational pathology companion diagnostic (CDx) device.
• In April 2025, Avant Technologies, Inc. and its JV partner, Ainnova Tech, Inc., announced that the U.S. Food and Drug Administration (FDA) is reviewing their submission package for a pre-submission meeting regarding Avant's VisionAI platform technology. The technology aims to revolutionize early disease detection using artificial intelligence (AI).
• In April 2025, Proprio announced FDA 510(k) clearance for its Paradigm AI surgical guidance platform to include intraoperative measurements, enabling the first-ever real-time 3D, dynamic, and segmental anatomical viewing and measurement during surgery.
• In September 2024, Ibex Medical Analytics (Ibex), a leader in AI-powered cancer diagnostics, introduced the latest advancements in its innovative product platform, Ibex-AI. These new features, developed in collaboration with expert pathologists worldwide who actively use the platform in routine clinical practice, highlight Ibex's ongoing commitment to creating cutting-edge diagnostic tools tailored to the needs of healthcare professionals on the frontlines of patient care.
• In October 2023, Lucida Medical Ltd, announced that it received Class IIb CE certification for its AI-powered prostate cancer detection software, Prostate IntelligenceTM (PiTM) Leveraging advanced AI technology, PiTM analyzes MRI scans and is seamlessly integrated into the radiologist's workflow. 
• In March 2023, Qritive launched its latest AI-driven innovation QAi Prostate, designed specifically for prostate cancer diagnosis. Utilizing cutting-edge machine learning algorithms, QAi Prostate analyzes whole slide images of prostate core needle biopsies with high precision.

Key Takeaways from the AI in Diagnostics Market Report Study

• Market size analysis for current AI in Diagnostics market size (2024), and market forecast for 8 years (2025 to 2032)
• Top key product/technology developments, mergers, acquisitions, partnerships, and joint ventures happened over the last 3 years.
• Key Artificial Intelligence in Diagnostics companies dominating the AI in Diagnostics market.
• Various opportunities available for the other competitors in AI in Diagnostics market space.
• What are the top-performing segments in 2024? How these segments will perform in 2032?
• Which are the top-performing regions and countries in the current AI in Diagnostics market scenario?
• Which are the regions and countries where Artificial Intelligence in Diagnostics companies should have concentrated on opportunities for AI in Diagnostics market growth in the coming future?

Target Audience Who Can be benefited from this AI in Diagnostics Market Report Study

• AI in Diagnostics product providers
• Research organizations and consulting companies 
• AI in Diagnostics-related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in AI in Diagnostics   
• Various end-users who want to know more about the AI in Diagnostics market and the latest technological developments in the AI in Diagnostics market.