AI in Medical Diagnostics Market (2025-2030)

Market insights:

AI in medical diagnostics is a rapidly evolving segment within the broader healthcare industry, spanning Healthcare IT (Healthtech), biotechnology, pharmaceuticals, and diagnostics.

It encompasses AI-driven technologies that enhance diagnostic accuracy, speed, and accessibility across multiple medical domains. Furthermore, AI-powered platforms are enabling real-time analysis of complex datasets, revolutionizing traditional diagnostic methods across the healthcare ecosystem.

Market trends:

There is growing adoption of AI-driven tools for analyzing medical images (such as CT scans and MRIs), patient data, and laboratory results.

These technologies are improving diagnostic outcomes by reducing human error and enabling more personalized treatment options

Market drivers:

India's AI in healthcare market is set to grow rapidly, driven by rising healthcare spending and increasing demand for quality medical care from its 1.4 Bn population.

In 2024, the Indian government allocated approximately INR 909.59 Bn for healthcare expenses, which includes INR 372.26 Bn for the National Health Mission (NHM). This reflects a significant increase from the previous year, emphasizing the government's commitment to enhancing healthcare infrastructure and services across the country.

Key deterrents to the growth of the market:

One of the primary challenges hindering the implementation of AI in India's diagnostic sector is the high degree of fragmentation. With an estimated 100,000 diagnostic laboratories operating across the country, the market is highly decentralized, comprising a mix of large national chains, regional players, standalone labs, and hospital-based diagnostic centers.

This fragmentation leads to intense competition and creates difficulties in achieving scalability and maintaining quality, particularly for smaller labs in Tier III cities.