AI Healthcare Market to Reach $629B by 2032, Driven by 51.87% CAGR

The global artificial intelligence in healthcare market was valued at USD 22.23 billion in 2024 and is projected to skyrocket to USD 629.09 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 51.87% from 2025 to 2032, according to Data Bridge Market Research.

• Diagnostic & Imaging Advances: Growing use of AI-powered medical imaging and diagnostic tools is a primary growth catalyst. Algorithms now detect tumors, fractures, and pathologies faster and more accurately than traditional methods.

• Personalized Medicine & Drug Discovery: AI models increasingly support precision treatment planning and streamline drug research pipelines.

• Operational Efficiency: Adoption of administrative workflow automation, virtual nursing assistants, and fraud detection solutions enhances hospital efficiency.

• Digital Transformation & Data Analytics: The boom of big data (EHR, imaging, wearables) and the growth of cloud computing, machine learning platforms and NLP tools support market acceleration.

1. Data Bridge Market Research: USD 22.23 B (2024) to USD 629.09 B (2032); 51.87% CAGR

2. Grand View Research: USD 26.57 B (2024) with a 38.6% CAGR to 2030.^[1]

3. Fortune Business Insights: USD 29.01 B (2024), rising to USD 504.17 B (2032); 44.0% CAGR

4. Global Market Insights: USD 18.7 B (2023) with 37.1% CAGR to 2032

5. Markets and Markets: USD 14.92 B (2024) growing to USD 110.6 B (2030); 38.6% CAGR

By Component

• Software leads with 46%+ share, driven by demand for analytics, imaging platforms, NLP, and predictive tools.

• Hardware growth follows due to AI-enabled diagnostic devices.

• Services segment (implementation, support, consulting) is expanding rapidly.

By Application

• Medical Imaging & Diagnostics remain dominant, valued at USD 7.4 B in 2023.

• Other use cases include robot-assisted surgery, virtual nursing, workflow automation, fraud detection, clinical trials, and precision medicine.

By End User

• Hospitals and Providers hold ~45% market share in 2023, reflecting focus on patient care efficiency.

• Pharma/Biotech Firms heavily invest in drug discovery AI.

• Payers and cross-industry players also contribute to AI system adoption.

1. North America dominates, with nearly 50% market share in 2024, backed by advanced infrastructure and regulatory support.

2. Asia-Pacific, notably India and China, among fastest-growing due to rising investments and healthcare digitization

1. High investment costs, data security, and navigating regulatory frameworks remain key barriers.

2. Healthcare professional adoption resistance requires adequate training and changes management

Across multiple authoritative forecasts from USD 365 B to USD 674 B by 2032–2034 AI in healthcare is on an explosive upwards trajectory, with mid-to-high 40s CAGR. The surge is driven by medical imaging, diagnostics, clinical automation, drug R&D, and the rise of data-centric health systems.

References:

1. AI In Healthcare Market Size, Share, And Trends Analysis Report By Component (Hardware, Services), By Application, By End Use, By Technology, By Region (North America, Europe, APAC, Latin America, MEA), And Segment Forecasts, 2025 - 2030

(Input from various sources)

(Rehash/Sakshi Thakar/MSM)