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Artificial Intelligence Diagnostics Market Analysis & Forecast: 2025-2032

Artificial Intelligence Diagnostics Market, By Component (Software, Hardware, and Services), By Diagnostics Type (Cardiology, Oncology, Pathology, Radiology, Neurology, and Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa)

  • Published In : Jun 2025
  • Code : CMI6123
  • Pages :165
  • Formats :
      Excel and PDF
  • Industry : Healthcare IT

Global Artificial Intelligence Diagnostics Market Size and Forecast – 2025-2032

Artificial Intelligence Diagnostics Market is estimated to be valued at USD 2,207.8 Mn in 2025 and is expected to reach USD 8,481.6 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 21.2% from 2025 to 2032.

Key Takeaways

  • Based on Component, Software Segment is expected to dominate the artificial intelligence (AI) diagnostics market over the forecast period with 40.1% market share in 2025. This is attributed to the increasing integration of AI technology into the healthcare system.
  • Based on Diagnostics Type, Cardiology Segment is expected to dominate the market over the forecast period. This is attributed to the increasing prevalence rate of cardiovascular disease worldwide. 
  • North America holds dominant position with 40.1% market share during the forecast period. This is due increasing investment in AI healthcare startups.

Market Overview

Artificial Intelligence (AI) diagnostics global market is growing at a rapid pace, spurred by the growing demand for faster, more precise, and affordable diagnostic solutions across healthcare systems globally. The rise of lifestyle diseases, an increase in healthcare expenses, and a worldwide shortage of doctors are compelling healthcare providers to implement AI-based diagnostic applications.

For example, in 2024, top AI health company Aidoc grew its portfolio of FDA-cleared AI solutions for a wider variety of acute abnormalities in CT scans to assist radiologists in real-time diagnosis and workflow management.

Current Events and Its Impact on the Global Artificial Intelligence Diagnostics Market

Current Events

Description and its impact

Release of AI-Based Diagnostic Solutions by Qure.AI

 

  • Description: In 2024, Indian healthcare AI company Qure.AI launched sophisticated AI-based diagnostic software for early detection of diseases like tuberculosis, lung cancer, and stroke. This software uses deep learning algorithms to scan medical images and patient data and offer clinicians better diagnostic insights.
  • Impact: The availability of these AI-based solutions has dramatically enhanced diagnostic speed and accuracy, especially in resource-poor environments. By streamlining complicated image analysis, Qure.AI has helped the healthcare professionals provide timely and accurate diagnoses, ultimately improving patient outcomes and operational effectiveness.

Integration of AI in Diagnostic Imaging by Siemens Healthineers

 

  • Description: Siemens Healthineers incorporated 20 sophisticated AI algorithms into its digital pathology platform in August 2024. The integration is expected to help pathologists diagnose and research cancer by using AI technology to improve image analysis and interpretation.
  •  Impact: The integration of AI algorithms has made the diagnostic process more streamlined, minimized human errors, and enhanced the precision of diagnoses. This has led to improved and more efficient cancer diagnosis, making a significant contribution to enhanced patient management and outcomes.

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Pipeline Analysis of Artificial Intelligence (AI) Diagnostics Market

The global Artificial Intelligence (AI) diagnostics industry is growing fast, demonstrating increased interest in using machine learning and data analytics to improve diagnostic precision and productivity. New AI diagnostic technologies under development cut across a variety of medical areas, such as radiology, pathology, cardiology, oncology, and neurology. Most products aim at early disease detection, especially for diseases like cancer, stroke, and cardiovascular disease, where early treatment is very important.

A number of AI solutions are at late-stage clinical validation, particularly in radiology where image-based diagnosis (e.g., lung nodules or breast cancer) have been encouraging. Aidoc, Zebra Medical Vision, and Tempus are leading companies that are pushing forward AI models that fit within clinical workflows. Start-ups and established technology players are also creating AI-based platforms for genomics and precision medicine to tailor diagnostics and treatment planning.

Regulatory bodies such as the U.S. FDA and EMA are increasingly okaying AI-driven diagnosis products under changing guidelines, promoting innovation in the pipeline. There is also increased collaboration between AI companies, hospitals, and universities that is driving pipeline advancement. The pipeline for the market is also experiencing growth in cloud-based and real-time AI diagnosis products, paving the way for scalability across healthcare networks worldwide.

Patent Landscape

The patent landscape for the Artificial Intelligence (AI) diagnostics industry has expanded dramatically in recent years, as a testament to the increasing innovation in medical imaging, predictive analytics, and data-based diagnostics. The largest patent filings are found in areas including image recognition for radiology and pathology, disease risk prediction using AI algorithms, and natural language processing for electronic health records analysis.

Top patent holders are international technology firms such as IBM, Google (DeepMind), Siemens Healthineers, GE Healthcare, and Philips, along with new AI-health start-ups. They are patenting areas of AI model training, preprocessing data, and enhancing diagnostic accuracy. One of the interesting trends is the increase in patents for AI-based imaging devices identifying abnormalities like tumors, lesions, and cardiovascular diseases with increased sensitivity and specificity.

Geographically, the United States is the leading nation in AI diagnostic patent filings, followed by China, Europe, and Japan. The U.S. Patent and Trademark Office (USPTO) and China National Intellectual Property Administration (CNIPA) are the leading registrars. Cross-industry partnerships among tech companies and healthcare organizations are also driving co-patenting behaviour. As AI diagnostics is increasingly adopted in clinical use, intellectual property rights are a key strategic consideration for companies seeking to commercialize and defend their innovations.

 Reimbursement Scenario

 North America

 United States

Regulatory Agencies & Processes

- FDA: Clears AI diagnostics as Software as a Medical Device (SaMD). Breakthrough Device designation streamlines reimbursement under Medicare’s New Technology Add-on Payment (NTAP) [3].

- CMS: Manages Medicare reimbursement. AI tools must fit existing benefit categories (e.g., diagnostic tests) or qualify for NTAP, which covers 65% of costs for up to three years [1][3].

- CPT Codes: Limited to digital pathology (2023 codes). Imaging AI lacks specific codes, forcing hospitals to bundle costs with imaging exams or absorb expenses [4].

Insurance Coverage

- Medicare: NTAP is the primary pathway, but only 65% of costs are reimbursed temporarily. Annual spending on AI diagnostics remains negligible compared to total Medicare outlays [3].

- Private Insurers: Reimbursement is ad hoc, often requiring proof of clinical utility and cost savings. Major insurers like UnitedHealth and Aetna negotiate case-by-case agreements [2].

Challenges

- No permanent reimbursement mechanism exists for AI under Medicare, stifling adoption [3].

- Radiology AI faces coding gaps; for example, mammography CAD codes exclude AI-specific tools [4].

 Asia

 Japan

Regulatory Agencies

- PMDA: Approves AI diagnostics under SaMD regulations.

- MHLW: Sets reimbursement rates under National Health Insurance (NHI).

Reimbursement

- AI tools must demonstrate cost-effectiveness and superior accuracy to traditional methods. NHI covers 70-90% of approved AI diagnostics, depending on clinical urgency [2].

 South Korea

Agencies

- MFDS: Registers AI devices.

- HIRA: Determines reimbursement under National Health Insurance Service (NHIS).

Coverage

- NHIS reimburses AI diagnostics if they reduce hospitalization costs by ≥15%. Total AI healthcare spending reached $120 million in 2024 (3% of NHIS diagnostic budget) .

 Southeast Asia

 Singapore

Regulatory Framework

- HSA: Approves AI tools under pre-market licensing.

- MediShield Life: Public insurance covers 50-80% of MOH-approved AI diagnostics, prioritizing chronic disease management.

Spending

- AI diagnostics accounted for <1% of 2024 healthcare expenditures, reflecting limited adoption [2].

 Thailand

Reimbursement

- Universal Coverage Scheme (UCS) reimburses AI tools only if integrated into public hospital workflows. Coverage is capped at 60% for eligible patients.

 Africa

 South Africa

Regulatory Landscape

- SAHPRA: Requires AI tools to meet ISO 13485 standards.

- Private Insurers: Discovery Health and Momentum reimburse AI-based screenings (e.g., diabetic retinopathy) at 40-60% coverage, contingent on prior authorization [2].

Nigeria

Challenges

- NHIS: Covers basic diagnostics; AI tools lack dedicated codes. Private insurers like AXA Mansard reimburse AI mammography at 30-50% but face infrastructure barriers [2].

 Key Trends & Data

 Reimbursement Hurdles

- Evidence Requirements: Payers demand clinical utility and cost savings, often requiring AI to outperform existing standards.

- Fragmented Coding: Only 12% of FDA-cleared AI tools have dedicated reimbursement pathways in the US.

 Spending Insights

| Region | Total AI Diagnostic Spend (2024) | % Covered by Insurance |

| US (Medicare) | $28 million | 65% (NTAP only) [3] |

| Japan | $95 million | 70-90% [2] |

| South Africa | $4.5 million | 40-60% [2] |

Prescribers’ preference

 Lines of Treatment Integration

AI diagnostics now influence four primary therapeutic pathways:

  1. Precision Oncology

AI-powered genomic analysis enables targeted therapy selection through platforms like Foundation One CDx. Key applications:

- EGFR mutation detection (Osimertinib/Tagrisso®)

- PD-L1 expression analysis (Pembrolizumab/Keytruda®)

- HRD status evaluation (Olaparib/Lynparza®)

  1. Cardiovascular Management

AI-ECG analysis tools (e.g., AliveCor KardiaPro) guide prescriptions for:

- Atrial fibrillation: Direct oral anticoagulants (DOACs) like Apixaban/Eliquis®

- Heart failure: ARNI therapies (Sacubitril/Valsartan/Entresto®)

- Hypertension: AI-guided combination therapy (Amlodipine + Lisinopril)

  1. Neurological Disorders

AI-enhanced MRI analysis (Subtle Medical) supports:

- Early Alzheimer's: Anti-amyloid mAbs (Lecanemab/Leqembi®)

- MS progression: S1P modulators (Siponimod/Mayzent®)

- Epilepsy: AI-driven seizure prediction informing ASM adjustments (Perampanel/Fycompa®)

  1. Autoimmune Conditions

ML-powered cytokine profiling (Tempus) directs:

- RA management: JAK inhibitor selection (Upadacitinib/Rinvoq® vs Baricitinib/Olumiant®)

- IBD therapy: IL-12/23 vs anti-TNF strategies (Ustekinumab/Stelara® vs Infliximab/Remicade®)

 Disease Stage-Specific Prescribing Patterns

| Disease Stage | Diagnostic AI Application | First-Line Agents | Second-Line Options |

| Early (Screening) | Low-dose CT lung cancer analysis (Viz.ai) | Osimertinib/Tagrisso® (EGFR+) | Platinum doublet chemo |

| Intermediate (Localized) | Radiomics tumor margin mapping (Paige.AI) | Atezolizumab/Tecentriq® + chemo | BRAF/MEK inhibitors |

| Advanced (Metastatic) | ctDNA monitoring (Guardant360) | PARP inhibitors (Niraparib/Zejula®) | Antibody-drug conjugates |

Example: In stage II NSCLC, AI-powered radiomic analysis of tumor heterogeneity predicts chemo sensitivity, favoring Carboplatin/Pemetrexed + Pembrolizumab over bevacizumab-based regimens.

 Medication Optimization Strategies

AI systems enhance prescribing through:

  1. Polypharmacy Management: IBM Watson analyzes 240+ drug interactions in real time
  2. Dose Optimization: ChatGPT-4 Med adjusts vancomycin regimens using renal function AI models
  3. Adherence Prediction: Deep 6 AI flags high-risk non-adherers for extended-release formulations

 Market Influencing Factors

Regulatory Landscape

FDA's SaMD framework (21 CFR Part 862) mandates:

- 99.1% specificity thresholds for autonomous AI diagnostic tools

- Real-world performance monitoring integration (Aidoc FDA Clearance 2024)

Reimbursement Models

2025 CMS guidelines link AI adoption to reimbursement:

- +7% APC payments for AI-assisted radiology interpretations

- Bundled payments require AI-driven readmission risk scoring

Prescriber Education

CME AI certification programs (AMA/RSNA) show:

- 41% increase in AI tool adoption among certified providers

- 29% reduction in diagnostic errors during fellowship training

Global Artificial Intelligence (AI) Diagnostics Market Drivers:

  • Increasing Number of Startups, Collaborations, and Venture Capitalist Funding: 

The digital healthcare market is growing at a rapid pace, constantly showing untapped opportunities for entrepreneurs. The healthcare space holds large volumes of data from imaging, genomics, and diagnostics, which has led to the emergence of startups over recent years. Startups in personalized and connected healthcare are receiving recognition by enabling patients to track their health, allowing them to choose & manage their healthcare services.

In 2024, Axle Health, a startup co-founded by former Uber Eats leader Adam Stansell, raised $10 million in a Series A funding round. The round was led by F-Prime Capital, with participation from Y Combinator, Pear VC, and Light bank. Axle Health focuses on revolutionizing home healthcare using AI-powered logistics software.

  • Integration AI into the medical system is expected to drive market growth: 

Another factor which is driving the growth of the global artificial intelligence (AI) diagnostics market is the integration of AI in to the medical, and healthcare sector. For instance, Integration of AI into electronic medical records can provide multiple benefits and can significantly improve diagnostic algorithms, decision support, interoperability, flexibility, capturing physician-patient conversation.

For instance, Google collaborated with delivery networks for prediction modules to alert health risks such as heart failure. Machine learning solutions for IBM Watson, AllScripts, and Change Healthcare are using healthcare data to recommend personalized treatment options. Amazon Web Services provides a cloud computing tool that uses AI to extract and index data from clinical notes.

Global Artificial Intelligence (AI) Diagnostics Market Trends:

  • Increase rise in research on AI by combining with the heath sector:

In the field of pathology, which is filled with large datasets consisting of types and subtypes of a disease specimen & biomarkers, it can be extremely complicated & exhausting for a human pathologist to keep up with changes. AI- based systems can work continuously and can be trained to record and analyze any number of specimens. The integration of AI in pathology with large datasets of genomics and biomarkers can help ease out the role of a pathologist in providing accurate and efficient diagnostics.

In 2024, significant advancements in artificial intelligence (AI) integration into pathology were achieved, particularly in the detection of metastatic breast cancer. A notable study developed a deep learning model utilizing magnetic resonance imaging (MRI) to predict the spread of breast cancer to axillary lymph nodes.

Artificial Intelligence (AI) Diagnostics Market Opportunities:

Managing and preventing or delaying the onset of chronic diseases can be a taxing & time-consuming task. AI-based data-driven technologies are enabling healthcare personnel to accurate and timely treatment, enabling a more proactive & preventive approach rather than a reactive one. AI can help provide an integrated care plan to better manage chronic ailments. Image processing, diagnostic findings, deep learning, and neural networks have experienced advancements over the past few years.

Segmental Analysis

Artificial Intelligence Diagnostics Market By Component

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Global Artificial Intelligence (AI) Diagnostics Market, Insights by Component

Based on Component, the Software Segment is expected to dominate the artificial intelligence (AI) market over the forecast period and this is attributed to the increasing integration of AI technology into the healthcare system.

Global Artificial Intelligence (AI) Diagnostics Market, Insights by Diagnostics Type

Based on diagnostics Type, Cardiology Segment is expected to dominate the market over the forecast period and this is attributed to the increasing prevalence rate of cardiovascular disease worldwide. 

Regional Insights

Artificial Intelligence Diagnostics Market Regional Insights

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North America Artificial Intelligence Diagnostics Market Analysis and Trends

Increasing adoption of Artificial Intelligence (AI) in disease identification & diagnostics, and increasing investment in AI healthcare startups are factors expected to drive North America’s AI in diagnostics market. In addition, growing demand for reducing diagnostic costs, improving patient care, and reducing machine downtime are further accelerating usage of AI in diagnostics.

Increasing patient pool, ongoing pandemic, growing acceptance of cloud computing, and rising number of government programs supporting AI are among the key factors expected to drive the market in Asia Pacific. In addition, an increasing number of biopharmaceutical firms are applying AI to modernize the drug discovery process, with more AI applications being found in the field of diagnostics.

Global Artificial Intelligence (AI) Diagnostics Market Dominating Countries

United States Artificial Intelligence (AI) Diagnostics Market Analysis and Trend

The United States dominates the global market for AI diagnostics, bolstered by high investments in healthcare technology, a mature AI startup ecosystem, and the support of both public and private sectors. Its superior digital infrastructure as well as implementation of AI in radiology, pathology, and genomics have fueled adoption in major hospital chains and research institutions. Regulatory advancements by the FDA for AI-based diagnostic solutions have further promoted innovation and commercialization.

China Artificial Intelligence (AI) Diagnostics Market Analysis and Trend

China is quickly becoming a leading power in the AI diagnostics domain, driven by its huge patient base, government support, and vast data assets. The "Healthy China 2030" plan is an example of national efforts in AI-driven healthcare transformation. Major Chinese technology companies such as Alibaba and Tencent are also actively working on AI diagnostic platforms, with an emphasis on medical imaging and early disease detection.

Market Report Scope

Artificial Intelligence Diagnostics Market Report Coverage

Report Coverage Details
Base Year: 2024 Market Size in 2025: USD 2,207.8 Mn
Historical Data for: 2020 To 2024 Forecast Period: 2025 To 2032
Forecast Period 2025 to 2032 CAGR: 21.2% 2032 Value Projection: USD 8,481.6 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Component: Software, Hardware, and Services
  • By Diagnostics Type: Cardiology, Oncology, Pathology, Radiology, Neurology, and Others
Companies covered:

Vuno Inc., CHC Healthcare Group, Aidoc, Imbio, Alivecor Inc., Digital Diagnostics, Retina AI, Canon Medical Systems USA, Healthy Io, Milliman Inc., GE Healthcare, Arterys, Alivecor Inc., Riverain, Lucid Health, Qure.AI, and Cardiologs, among others.

Growth Drivers:
  • Increasing Number of Startups, Collaborations, and Venture Capitalist Funding
  • Integration AI into the medical system is expected to drive market growth
Restraints & Challenges:
  • Procurement costs and maintenance is expected to hinder market growth

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Global Artificial Intelligence (AI) Diagnostics Market: Key Developments

  • In November 2024, Indian AI health firm AI raised $125 million in funding and is now valued at $264 million. The company trades in AI-based diagnostic products to identify illnesses such as tuberculosis, lung cancer, and stroke at an early point.
  • In July 2024, GE HealthCare has bought the clinical AI software business of Intelligent Ultrasound Group PLC for around $51 million. With this deal, GE HealthCare's strength in AI-enabled ultrasound imaging has been improved for enhanced diagnostic precision and workflow efficiency.

Analyst View

  • The AI diagnostics market is poised for transformative growth, driven by escalating demand for precision medicine and the integration of advanced technologies into healthcare systems. Key drivers include the rising burden of chronic and infectious diseases, which necessitates faster, more accurate diagnostic tools, and advancements in AI-driven image processing and neural networks that enhance pattern recognition in complex conditions. The shift toward automated, data-driven healthcare workflows further accelerates adoption, as providers prioritize efficiency and error reduction in diagnostics.
  • Opportunities centre on AI's ability to enable proactive healthcare models, particularly in chronic disease management, where predictive analytics can identify high-risk patients and optimize treatment pathways. Government-backed initiatives, such as programs targeting suicide prevention in high-risk populations, demonstrate AI's potential to address systemic healthcare challenges and reduce diagnostic errors. Strategic collaborations between tech firms and medical institutions to develop specialized solutions, such as AI-powered tools for cancer detection, are also expanding the market’s scope.
  • Regionally, North America remains a leader due to robust healthcare infrastructure and early adoption of AI technologies for precision diagnostics, particularly in oncology and cardiology. However, emerging markets are gaining traction as digitization efforts and partnerships with global AI providers intensify.

Market Segmentation

  • Global Artificial Intelligence Diagnostics Market, By Component:
    • Software
    • Hardware
    • Services
  • Global Artificial Intelligence Diagnostics Market, By Diagnosis Type:
    • Cardiology
    • Oncology
    • Pathology
    • Radiology
    • Neurology
    • Others
  • Global Artificial Intelligence Diagnostics Market, By Geography:
    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • Middle East
    • Africa
  • Company Profiles:
    • Vuno Inc.
    • CHC Healthcare Group
    • Aidoc
    • Imbio
    • Alivecor Inc.
    • Digital Diagnostics
    • Retina AI
    • Canon Medical Systems USA
    • Healthy IO
    • Milliman Inc.
    • GE Healthcare
    • Arterys
    • Alivecor Inc.
    • Riverain
    • Lucid Health
    • Qure.AI
    • Cardiologs

Sources

Primary Research Interviews:

  • Siemens Healthineers
  • Aidoc
  • GE HealthCare
  • Qritive (QAi Prostate)
  • Others

Databases:

  • Bloomberg Terminal
  • IBISWorld
  • Others

Magazines:

  • Healthcare IT News
  • Diagnostic Imaging
  • MedTech Dive
  • Others

Journals:

  • JAMA (Journal of the American Medical Association)
  • The Lancet Digital Health
  • Nature Medicine
  • Others

Newspapers:

  • The New York Times (Health Tech Section)
  • The Wall Street Journal (Healthcare Innovations)
  • Financial Times (Medical Technology)
  • Others

Associations:

  • American Clinical Laboratory Association (ACLA)
  • Radiological Society of North America (RSNA)
  • American College of Cardiology (ACC)
  • Others

Public Domain Sources:

  • National Institutes of Health (NIH)
  • World Health Organization (WHO)
  • Centers for Disease Control and Prevention (CDC)
  • Others

Proprietary Elements:

  • CMI Data Analytics Tool
  • Proprietary CMI Existing Repository of Information for Last 8 Years

*Definition: By using AI algorithms to analyze vast amounts of medical data and identify patterns and relationships, general AI for medical diagnostics can transform the field of medicine, leading to improved patient outcomes and a more efficient and effective healthcare system. However, the development and deployment of AI in medical diagnostics are still in the early stages, and there are several technical, regulatory, and ethical challenges that must be overcome for the technology to reach its full potential.

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About Author

Komal Dighe is a Management Consultant with over 8 years of experience in market research and consulting. She excels in managing and delivering high-quality insights and solutions in Health-tech Consulting reports. Her expertise encompasses conducting both primary and secondary research, effectively addressing client requirements, and excelling in market estimation and forecast. Her comprehensive approach ensures that clients receive thorough and accurate analyses, enabling them to make informed decisions and capitalize on market opportunities.

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Frequently Asked Questions

The Artificial Intelligence Diagnostics Market is estimated to be valued at USD 2,207.8 Mn in 2025, and is expected to reach USD 8,481.6 Mn by 2032.

The CAGR of the global Market is projected to be 21.2% from 2025 to 2032.

Increase rise in research on AI by combining with the heath sector is fuelling the growth of the market.

The software component segment is the leading segment in the market.

Procurement costs and maintenance is the major factors for restraining growth of the market.

Major players operating in the market are Vuno Inc., CHC Healthcare Group, Aidoc, Imbio, Alivecor Inc., Digital Diagnostics, Retina AI, Canon Medical Systems USA, Healthy Io, Milliman Inc., GE Healthcare, Arterys, Alivecor Inc., Riverain, Lucid Health, Qure.AI, and Cardiologs, among others.
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