AI in Diagnostics Market Forecast: Adoption Across Radiology, Pathology & Cardiology
AI in Diagnostics Market Forecast: Adoption Across Radiology, Pathology & Cardiology
AI in diagnostics market is rapidly growing as healthcare providers adopt advanced technologies to improve diagnostic accuracy, speed, and efficiency. Artificial intelligence helps analyze medical images, laboratory data, and patient records, assisting clinicians in detecting diseases such as cancer, neurological disorders, cardiovascular conditions, and infectious diseases at an earlier stage.
According to Fortune Business Insights, the AI in diagnostics market was valued at USD 5.15 billion in 2024. The market is projected to grow from USD 7.03 billion in 2025 to USD 96.52 billion by 2032, exhibiting a CAGR of 45.4% during the forecast period. In 2024, North America dominated the AI in diagnostics market with a market share of 51.46%.
Amazon.com, Inc. (U.S.)
Microsoft Corporation (U.S.)
NVIDIA Corporation (U.S.)
Google (U.S.)
Siemens Healthcare Private Limited (Germany)
Aidoc (Israel)
PathAI, Inc. (U.S.)
Digital Diagnostics Inc. (U.S.)
Tempus AI (U.S.)
Qure.ai (U.S.)
In December 2024, Siemens Healthineers AG and DeepHealth, Inc. announced a strategic partnership. Their collaboration integrates AI-powered health informatics into ultrasound systems—enhancing real-time interpretation and workflow efficiency in imaging.
The main growth drivers include:
Chronic disease prevalence: Diseases like cancer, cardiovascular disorders, and neurological conditions are on the rise, favoring early‑stage detection via AI-enabled tools for better clinical outcomes.
Healthcare workforce shortage: A 2021 UK report highlighted a 33–40% shortfall in radiologists—making AI crucial to fill diagnostic gaps.
Efficiency gains: AI drastically reduces diagnostic delays, improves accuracy, and alleviates clinician workloads through automation and deep‑learning image analysisÂ
Restraints include:
Physician reluctance: Concerns over job displacement and mistrust in AI's reliability continue to hamper adoption.
Regulatory and privacy hurdles: Robust regulations like HIPAA and GDPR demand stringent data protection and transparency—creating compliance challenges .
Two key growth paths stand out:
Untapped medical specialties: AI is expanding beyond radiology into ophthalmology, infectious diseases, and autoimmune conditions. Lumibird’s May 2024 launch of the C.DIAG dry eye AI diagnostic aids exemplifies this trend .
Funding acceleration: Venture capital and public health investment are accelerating AI deployment. In October 2024, Ataraxis AI secured $4 million for precision diagnostic tool development.
Key trends include:
Strategic funding for widespread deployment: Governments and healthcare bodies are increasingly allocating funds—such as the UK NHS’s $26.8 million AI radiology initiative.
Cross-sector collaborations: Partnerships, like Rad AI with Google Cloud and Bayer with Google, underscore the industry’s shift towards co-created cloud-based AI diagnostic dashboards.
The solutions/software segment dominates, powered by increasing demand for AI platforms that handle imaging, natural language interpretation, and ML analytics. Strategic alliances—such as Rad AI with Google and Bayer with Google Cloud—are accelerating this growth.
Machine Learning: ML leads the market, powered by imaging pattern recognition and predictive models—such as iHridAI’s HarmonyCVI cardiac MRI tool .
NLP: Emerging strong by extracting insights from unstructured data like clinical notes and records.
Others: Includes computer vision, robotics, and new AI tools steadily gaining traction.
Oncology: The largest specialty segment, due to increasing cancer incidence. Onc.AI’s 2025 FDA Breakthrough Designation for its CT‑based metastatic lung cancer tool illustrates this focus.
Neurology: Rapid growth from tools like Philips and icometrix’s MRI brain scan analyzer targeting Alzheimer’s and MS diagnosis.
Pathology: Gaining pace with innovations like PathAI’s AIM‑MASH steato‑hepatitis diagnostic assay.
Others: Including cardiology, dermatology, and more.
Diagnostics & Imaging Centers: Lead adoption due to high demand and workflow pressures. In July 2024, iCAD integrated AI breast diagnostics at Windsong Radiology .
Hospitals & Clinics: Rapidly adopting AI via major initiatives like Microsoft’s 2024 collaboration with Mass General Brigham.
Others: Includes academic and research centers.
Dominates the market—valued at USD 2.65 billion in 2024—thanks to advanced healthcare infrastructure, R&D investment, and robust AI solutions.
Second largest region. In October 2023, UK NHS funded AI deployment across 64 trusts for faster X‑ray & CT diagnosis.
Expected to grow the fastest, driven by chronic disease burden, physician shortages, and AI integration in hospitals. In India’s Hyderabad, Continental Hospitals adopted AI for early breast, lung, and pancreatic cancer detection in March 2025.
Market leaders like Microsoft, Google, and NVIDIA dominate through strategic alliances and cutting-edge AI offerings tailored to diagnostics. In March 2024, Microsoft and NVIDIA partnered to integrate AI into clinical imaging tools—accelerating development of precision medicine platforms.
Specialized innovators such as Aidoc, PathAI, Siemens, and Digital Diagnostics continue to advance AI's applied potential across various diagnostic domains through collaborations and targeted launches.
Explore the full research report with detailed insights and TOC:https://www.fortunebusinessinsights.com/ai-in-medical-diagnostics-market-111351Â
The outlook remains highly optimistic. Continued innovation in AI algorithms, expanded funding, and growing integration with telehealth and wearable diagnostics promise to scale adoption.
Next-generation advancements—such as explainable AI (XAI), federated machine learning, and improved data interoperability—will be essential to build trust, enhance regulatory compliance, and address ethical concerns around data usage and bias.
As healthcare moves toward personalized, data-driven treatment pathways, AI-based diagnostic platforms are positioned to become indispensable tools across medical ecosystems globally.
In summary, the AI in diagnostics market is shaping the future of healthcare—propelled by an astonishing CAGR of 45.4%, across a broadening landscape that includes oncology, neurology, pathology, and more. With substantial backing from government agencies and private investors, the drive toward smarter, faster, and more accurate diagnostics continues—ushering an AI-powered era where human expertise and machine intelligence converge for better patient care.
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