The AI in diagnostics market is expanding rapidly as healthcare providers adopt advanced artificial intelligence tools to improve accuracy, speed, and efficiency in disease detection. AI systems are being used extensively in radiology, pathology, cardiology, oncology, and neurology to assist with imaging interpretation, predictive analytics, and data-driven diagnosis. Driven by a global shortage of specialists, rising chronic disease cases, and increased funding for AI adoption, this market is projected to grow at impressive rates worldwide. Major players such as Microsoft, NVIDIA, and Google are leading the effort to integrate AI capabilities into clinical workflows. As regulatory frameworks evolve and digital healthcare adoption increases, AI in diagnostics is expected to become a core component of modern medical practice.

According to Fortune Business Insights, the global AI in diagnostics market size was valued at USD 5.15 billion in 2024. The market is projected to grow from USD 7.03 billion in 2025 to USD 96.52 billion by 2032, exhibiting a CAGR of 45.4% during the forecast period. North America dominated the AI in diagnostics market with a market share of 51.46% in 2024.

Top Companies Leading the Innovation

Key Industry Development: December 2024

Siemens Healthineers AG and DeepHealth, Inc. announced a strategic partnership to integrate AI-powered informatics into ultrasound workflows—marking a significant step in enabling smarter imaging hardware. This collaboration exemplifies how legacy medical technology brands are adopting AI to enhance diagnostic accuracy and streamline clinical operations.

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Why the Market is Soaring: Drivers & Restraints

Main Drivers