According to a recent report published by Grand View Research, Inc., the global artificial intelligence (AI) in healthcare market is projected to reach a valuation of USD 187.69 billion by 2030, growing at a robust compound annual growth rate (CAGR) of 38.62% from 2025 to 2030. This rapid expansion highlights AI’s pivotal role as a transformative force within the healthcare ecosystem—shifting healthcare models from being reactive to becoming increasingly predictive, proactive, and preventive.

At the core of this transformation are clinical decision support systems (CDSS) powered by AI technologies. These systems provide healthcare professionals with real-time insights and predictive analytics, which improve clinical decision-making and help elevate the quality and efficiency of care, thereby enhancing overall patient outcomes. AI also enables deeper insights into disease mechanisms and individual patient pathologies, supporting the development of precision medicine and precision public health approaches.

In addition, the growing focus on life sciences research and development (R&D) presents a wealth of opportunities for AI adoption. One of AI’s core strengths lies in its ability to analyze and interpret vast volumes of multidimensional data. This capability not only accelerates hypothesis generation and drug discovery but also supports drug repurposing and in silico clinical trials, thereby significantly reducing the time and cost required to bring new therapies to market. As such, AI is driving innovation and operational efficiency across the global healthcare value chain.

AI-driven technologies are being applied across a wide array of healthcare domains. These include:

• Virtual assistants for patient interaction,

• Robot-assisted surgeries for enhanced precision,

• Claims and revenue cycle management,

• Cybersecurity solutions to protect sensitive data, and

• Patient monitoring and management platforms.

AI systems are typically trained using large and diverse datasets from patient health records. These datasets help fine-tune AI algorithms to facilitate early disease detection and accurate diagnoses, thereby enabling the timely initiation of treatments and interventions.

The growth of the AI in healthcare market is further supported by several external factors. These include government incentives and policy support, increased funding from public and private sectors, and rising venture capital investments in health tech. For example:

• In February 2024, Fabric, a U.S.-based health tech company, raised USD 60 million in Series A funding to enhance its conversational AI healthcare platform.

• In September 2023, Amazon announced a USD 4 billion investment in partnership with Anthropic, a move that aligns with its strategy to bolster AI capabilities in healthcare.

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AI in Healthcare Market Report Highlights

• Software Solutions Lead the Market: In 2024, the software solutions segment accounted for the largest revenue share at 46%. This dominance is due to the widespread deployment of AI software platforms among healthcare providers, insurance payers, and patients, all seeking to streamline operations and improve care delivery.

• Robot-Assisted Surgery Dominates Applications: The robot-assisted surgery application segment led the market in 2024, registering the highest revenue share and is expected to grow at the fastest CAGR from 2025 to 2030. Factors contributing to this growth include the rising volume of such surgeries and increased investments in AI-driven surgical technologies.

• Machine Learning is the Leading Technology: The machine learning (ML) technology segment held the largest market share in 2024, owing to continued improvements in ML algorithms and their wide applicability in diagnostics, imaging, genomics, and other healthcare functions. This trend is projected to continue as demand for ML-based solutions rises.

• Healthcare Payers to Grow Rapidly: Among end-users, the healthcare payers segment is expected to witness the fastest CAGR between 2025 and 2030, as insurance companies increasingly rely on AI for claims processing, fraud detection, risk prediction, and customer engagement.

• North America Leads Regional Markets: In 2024, North America emerged as the dominant regional market, commanding a share of over 54%. This leadership is driven by advanced healthcare IT infrastructure, a high level of technological readiness, the presence of leading AI and healthcare companies, a growing aging population, and the rising incidence of chronic diseases.

• Asia Pacific Poised for Significant Growth: The Asia Pacific region is anticipated to register notable growth during the forecast period, supported by ongoing healthcare digitization, increasing investments in AI startups, and a growing demand for accessible and efficient healthcare services across emerging economies.

AI In Healthcare Market Segmentation

Grand View Research, Inc. has segmented the global AI in healthcare market report based on component, application, technology, end use, and region:

AI In Healthcare Component Outlook (Revenue, USD Million, 2018 - 2030)

• Hardware

• Software Solutions

• Services

AI In Healthcare Application Outlook (Revenue, USD Million, 2018 - 2030)

• Robot Assisted Surgery

• Virtual Assistants

• Administrative Workflow Assistants

• Connected Medical devices

• Medical Imaging & Diagnostics

• Clinical Trials

• Fraud Detection

• Cybersecurity

• Dosage Error Reduction

• Precision medicine

• Drug discovery & development

• Lifestyle management & remote patient monitoring

• Wearables

• Others (Patient engagement, etc.)

AI In Healthcare Technology Outlook (Revenue, USD Million, 2018 - 2030)

• Machine Learning

• Natural Language Processing

• Context-Aware Computing'

• Computer Vision

AI In Healthcare End Use Outlook (Revenue, USD Million, 2018 - 2030)

• Healthcare providers (hospitals, outpatient facilities, and others)

• Healthcare payers

• Healthcare companies (Pharmaceutical, Biotechnology, Medical Devices)

• Patients

• Others

AI In Healthcare Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

• Europe

• Asia Pacific

• Latin America

• MEA

List of Key Players of Artificial Intelligence (AI) In Healthcare Market

• Microsoft

• IBM

• Google

• NVIDIA Corporation

• Intel Corporation

• Itrex Group

• GE Healthcare

• Medtronic

• Oracle

• Medidata

• Merck

• IQVIA

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