Artificial Intelligence in Medical Diagnostics Market Growth Analysis | 2023-2029

Market Insights

The Global Artificial Intelligence in Medical Diagnostics Market is expected to grow from USD 0.97 billion in 2022 to USD 8.47 billion by 2029 at a CAGR of 36.3% during the forecast period.

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What is Artificial Intelligence in Medical Diagnostics?

Artificial Intelligence in medical diagnostics involves the use of machine learning algorithms to analyze large amounts of patient data, including medical images, lab results, and other diagnostic tests. These AI systems can quickly and accurately identify patterns and anomalies that may be missed by human experts, leading to earlier and more accurate diagnoses. AI can also help to personalize treatment plans by predicting patient outcomes based on their characteristics. Overall, the use of AI in medical diagnostics has the potential to improve patient outcomes, reduce healthcare costs, and increase the efficiency of healthcare delivery.

Market Dynamics

The field of medical diagnostics is witnessing rapid growth in the application of AI due to several factors such as increased government initiatives to promote the use of AI-based technologies, rising adoption of AI solutions by radiologists to alleviate their workload, the advent of big data, availability of funding for AI-based startups, and a growing number of cross-industry partnerships and collaborations.

However, the market growth is expected to be hindered by factors such as the scarcity of skilled AI professionals, regulatory ambiguity, and the reluctance of medical practitioners to embrace these solutions.

Drivers: High usage of big data

As healthcare increasingly adopts information systems, big data which encompasses large and complex data is generated throughout the care delivery process. In the medical diagnostics field, big data is derived from a variety of sources, including clickstream and web/social media interactions, readings from medical devices such as sensors, ECGs, and X-rays, healthcare claims and billing records, and biometric data.

In recent years, big data and analytical solutions have become more advanced and widely adopted, particularly with the growing use of EHRs, digitized laboratory slides, and high-resolution radiology images. Healthcare is among the top five big data industries in the US, and the volume of big data in medical diagnostics is anticipated to continue to grow, fueled in part by the use of bidirectional patient portals. These portals allow patients to upload data and images to their EMRs. The healthcare industry is therefore turning to AI-based solutions to efficiently manage the ever-increasing volume of complex medical diagnostic data.

Restraints: Reluctance to adopt AI-based technologies among medical practitioners

The growth of digital health has facilitated innovative treatment approaches for healthcare providers to assist their patients. By using AI technologies, doctors can diagnose and treat patients more effectively. Despite this, doctors have been hesitant to adopt these new technologies. Many medical practitioners believe that AI will eventually replace doctors and that human skills such as empathy and persuasion cannot be replicated by technology.

Additionally, there is a concern that patients may rely too heavily on AI and disregard in-person treatments, which could strain doctor-patient relationships. Furthermore, some healthcare professionals are skeptical about AI's ability to accurately diagnose patient conditions. Therefore, it is challenging to convince providers that AI-based solutions are cost-effective, efficient, and safe solutions that offer doctors convenience and better patient care.

However, more healthcare providers are beginning to recognize the potential benefits of AI-based solutions and the range of applications they offer. Therefore, it is possible that in the future, doctors and radiologists will be more receptive to using AI-based technologies in healthcare.

Segments Analysis

By Component Type

Artificial Intelligence in medical diagnostics market is categorized into two components: software and services. Software segment to grow at the highest rate over the forecast period.  The services segment held the majority of the market share, but the software segment is expected to experience a higher CAGR during the projected period. Software solutions offer healthcare providers a competitive advantage, particularly when faced with challenges such as staffing shortages and a growing volume of imaging scans.

By Application Type

Artificial Intelligence in medical diagnostics market is categorized based on applications into in vivo and in vitro diagnostics. In Vivo Diagnostic segment to hold the largest market share during the forecast period.  The In Vivo diagnostics segment held the largest share of the market.

This can be attributed to the increasing adoption of AI solutions by the medical and healthcare industries, as these solutions help to decrease human errors and improve the effectiveness of treatments.

By End User Type

Artificial Intelligence in medical diagnostics market is divided into end users, which include hospitals, diagnostic imaging centers, diagnostic laboratories, and other end users. The hospital segment is to grow with the highest CAGR during the forecast period. 

The hospitals segment held the largest share of the market. This can be attributed to several factors, including the increasing number of diagnostic imaging treatments performed in hospitals and the trend toward the automation and digitization of radiology patient workflow. Additionally, hospitals and healthcare facilities are adopting minimally invasive procedures to improve the quality of patient care and focus on patient-centric care, which is driving the adoption of advanced imaging modalities to improve workflow.

Regional Analysis

North America accounts for the largest share of the global market. North America held the largest market share of Artificial Intelligence in medical diagnostics market. However, during the forecast period, the Asia Pacific market is expected to register the highest CAGR of over 40%.

This high growth rate can be attributed to several factors, including the adoption of growth strategies by key players in emerging markets, the digitization of medical diagnostics infrastructure, the rise in the geriatric population, the increasing prevalence of cancer, and the implementation of favorable government initiatives to support the adoption of advanced technologies in healthcare.

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Key Players

The major players operating in the global artificial Intelligence in medical diagnostics market are:

• Google (Subsidiary of Alphabet, Inc.)
• IBM
• Microsoft
• NVIDIA
• Intel Corporation
• Siemens Healthineers
• GE Healthcare
• Digital Diagnostics, Inc (Formerly Known As Idx)
• Xilinx
• Informai LLC
• Heartflow, Inc
• Enlitic, Inc
• Aidence
• Nanox AI
• Butterfly Network, Inc.
• Day Zero Diagnostics, Inc
• Prognos Health
• Viz.AI, Inc
• Quibim
• Therapixel
• Aidoc
• Qure.Ai
• Koninklijke Philips N.V.
• Lunitinc
• Echonous Inc.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Recent Developments

• In February 2023, GE HealthCare acquired Caption Health, expanding ultrasound to support new users with FDA-cleared, AI-powered image guidance.

• In July 2022, Siemens Healthineers released functionalities powered by AI that accelerate and improve Magnetic Resonance Imaging (MRI).

• In July 2022, Quibim and Microsoft collaborated to develop virtual biopsies with AI.

• In June 2022, Ultima Genomics, Inc. unveiled a broad collaboration with NVIDIA that leverages AI-accelerated analysis across various stages of the DNA sequencing and analysis process.

• In March 2022, IBM and Genomics England entered into a new partnership to transform patient care. IBM is selected as a strategic technology partner for Genomics England over 18 months to support the rapid expansion and enable the consumption of cloud services and AI capabilities.