Market for AI in Medical Diagnostics to Top $5 Billion by 2027

Artificial intelligence (AI) will continue to become a greater fixture within healthcare, as evidenced by the expected growth among medical diagnostics.

The market for AI in medical diagnostics is projected to surge 39.9% through 2027 to reach $5.5 billion, according to Markets and Markets Research Pvt. Ltd. data. Growth drivers include a rise in government initiatives to drive the adoption of AI-based technologies, high usage of AI solutions by radiologists to reduce workload, the generation of big data, available funding for AI-based startups, and the increasing number of cross-industry partnerships and collaborations. However, the lack of a trained AI workforce, ambiguity in regulations, and the reluctance among medical practitioners to adopt these solutions could restrain the market’s growth.
 
On the basis components, AI in medical diagnostics market is segmented into software and services. The services segment dominated the market in 2021, while the software segment is estimated to grow at a higher compound annual growth rate (CAGR). Software solutions provide medical practitioners a chance to gain a competitive edge despite the challenges of being short-staffed and facing increasing imaging scan volumes.
 
Based on application, AI in the medical diagnostics market is segmented into in-vivo and in-vitro diagnostics. The in-vivo diagnostics segment commanded the largest share of this market in 2021. The large share of this segment can be attributed to the increase in use of AI solutions by practitioners, as these solutions help reduce human errors and improve treatment efficacy.
 
Based on end users, the AI in the medical diagnostics market is segmented into hospitals, diagnostic imaging centers, diagnostic laboratories, and other end users. The hospitals segment commanded the largest share of this market in 2021. The large share of this segment can be attributed to the rising number of diagnostic imaging treatments in hospitals, the inclination of hospitals toward the automation and digitization of radiology treatment workflow, adoption of minimally invasive procedures in hospitals to improve the quality of patient care, and the growth in use of advanced imaging modalities to improve workflow efficiency.
 
The AI in medical diagnostics market is segmented into four main regional areas: North America, Europe, the Asia Pacific, and the Rest of the World. In 2021, North America accounted for the largest market share of this market. However, the Asia Pacific market is projected to register the highest CAGR (42.6%) through 2027. The high growth rate of the Asia Pacific market can primarily be attributed to the growth strategies adopted by key players in emerging markets, better medical diagnostics infrastructure, rising geriatric population, increasing prevalence of cancer, and the implementation of favourable government initiatives to adopt the AI technology.
 
Key market players include Microsoft, NVIDIA, IBM, Intel Corporation, Google Inc. (subsidiary, Alphabet Inc.), Siemens Healthineers, GE Healthcare, Digital Diagnostics Inc., Xilinx, InformAI LLC, HeartFlow Inc., Enlitic Inc., Day Zero Diagnostics Inc., Aidence, Butterfly Network Inc., Prognos Health, Nanox AI, Viz.ai Inc., Quibin, Qure.ai, Therapixel, Aidoc, Koninklijke Philips N.V., Lunit Inc., and EchoNous Inc.