AI in Medical Diagnostics Global Market Opportunities and Strategies to 2033

This report describes and explains the AI in medical diagnostics market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AI in medical diagnostics market reached a value of nearly $1.39 billion in 2023, having grown at a compound annual growth rate (CAGR) of 32.10% since 2018. The market is expected to grow from $1.39 billion in 2023 to $7.77 billion in 2028 at a rate of 40.94%. The market is then expected to grow at a CAGR of 34.74% from 2028 and reach $34.52 billion in 2033.

Growth in the historic period resulted from the increase in demand for personalized medicine, rising adoption of cloud-based ai platforms, rising prevalence of chronic diseases and growing use of telemedicine services. Factors that negatively affected growth in the historic period include low healthcare access in developing countries and incompatible legacy health IT infrastructure.

Going forward, the increasing aging population worldwide, rising healthcare expenditure globally, favorable government initiatives and shortage of skilled healthcare professionals will drive the market. Factors that could hinder the growth of the AI in medical diagnostics market in the future include high procurement cost of AI systems.

The AI in medical diagnostics market is segmented by component into software, hardware and services. The software market was the largest segment of the AI in medical diagnostics market segmented by component, accounting for 59.26% or $828.44 million of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the AI in medical diagnostics market segmented by component, at a CAGR of 42.27% during 2023-2028.

The AI in medical diagnostics market is segmented by technology into natural language processing, computer vision, machine learning, context-aware computing and other technologies. The machine learning market was the largest segment of the AI in medical diagnostics market segmented by technology, accounting for 47.74% or $667.34 million of the total in 2023. Going forward, the machine learning segment is expected to be the fastest growing segment in the AI in medical diagnostics market segmented by technology, at a CAGR of 41.50% during 2023-2028.

The AI in medical diagnostics market is segmented by specialty into cardiology, oncology, pathology, radiology, chest and lung, neurology and other specialties. The neurology market was the largest segment of the AI in medical diagnostics market segmented by specialty, accounting for 25.84% or $361.2 million of the total in 2023. Going forward, the radiology segment is expected to be the fastest growing segment in the AI in medical diagnostics market segmented by specialty, at a CAGR of 44.98% during 2023-2028.

The AI in medical diagnostics market is segmented by application into computer-aided detection, computer-aided diagnosis, quantitative analysis tools, and clinical decision. The computer-aided detection market was the largest segment of the AI in medical diagnostics market segmented by application, accounting for 36.13% or $505.06 million of the total in 2023. Going forward, the computer-aided detection segment is expected to be the fastest growing segment in the AI in medical diagnostics market segmented by application, at a CAGR of 44.29% during 2023-2028.

The AI in medical diagnostics market is segmented by end user into hospitals, diagnostics imaging centers, diagnostics laboratories and other end users. The hospitals market was the largest segment of the AI in medical diagnostics market segmented by end user, accounting for 47.95% or $670.33 million of the total in 2023. Going forward, the hospitals segment is expected to be the fastest growing segment in AI in medical diagnostics market segmented by end user, at a CAGR of 42.91% during 2023-2028.

North America was the largest region in the AI in medical diagnostics market, accounting for 42.25% or $590.67 million of the total in 2023. It was followed by Western Europe, Asia-Pacific and then the other regions. Going forward, the fastest-growing regions in the AI in medical diagnostics market will be Asia-Pacific and the Middle East, where growth will be at CAGRs of 47.65% and 46.38% respectively. These will be followed by Eastern Europe and South America, where the markets are expected to grow at CAGRs of 41.58% and 41.51% respectively.

The global AI in medical diagnostics market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up 56.02% of the total market in 2022. Siemens Healthineers AG was the largest competitor with a 13.17% share of the market, followed by Merative L.P. with 12.81%, Tempus Labs with 5.01%, GE Healthcare Technologies Inc. with 4.89%, Koninklijke Philips N.V. with 4.16%, Ping An Healthcare And Technology Company Limited with 3.68%, Microsoft Corporation with 3.57%, Aidoc Medical Ltd with 3.50% PathAI, Inc. with 2.72% and HeartFlow Inc. with 2.50%.

The top opportunities in the AI in medical diagnostics market segmented by component will arise in the software segment, which will gain $4.0 billion of global annual sales by 2028. The top opportunities in the AI in medical diagnostics market segmented by technology will arise in the machine learning segment, which will gain $3.11 billion of global annual sales by 2028. The top opportunities in the AI in medical diagnostics market segmented by specialty will arise in the neurology segment, which will gain $1.79 billion of global annual sales by 2028. The top opportunities in the AI in medical diagnostics market segmented by application will arise in the computer-aided detection segment, which will gain $2.32 billion of global annual sales by 2028. The top opportunities in the AI in medical diagnostics market segmented by end user will arise in the hospitals segment, which will gain $3.32 billion of global annual sales by 2028. The AI in medical diagnostics market size will gain the most in the USA at $1.96 billion.

Market-trend-based strategies for the AI in medical diagnostics market include launch of advanced diagnostics tools for detecting accurate and clinically reliable information, advancements in medical imaging improving diagnostic accuracy, increasing investments to revolutionize decision-making with personalized ai insights, strategic partnerships and collaborations among major players and focus on developing innovative and advanced products to implement new capabilities.

Player-adopted strategies in the AI in medical diagnostics market include focus on strengthening business operations through the launch of new solutions and strengthening business capabilities through strategic partnerships and new product approvals.

To take advantage of the opportunities, the analyst recommends the AI in medical diagnostics companies to focus on advanced AI solutions for accurate medical diagnostics, focus on advancements in medical imaging for enhanced diagnostics, focus on personalized ai insights for data-driven decision making, focus on innovative product development for enhanced medical diagnostics, focus on software segment for growth, focus on computer vision segment, focus on radiology segment, expand in emerging markets, focus on collaborative partnerships for enhanced diagnostic capabilities, provide competitively priced offerings, focus on strategic pricing for market competitiveness, continue to use B2B promotions, focus on educational content for thought leadership, focus on targeted training and education initiatives and focus on tailored marketing strategies for end users.