China’s artificial intelligence healthcare sector is poised for a year of stronger commercial prospects as AI accelerates the reshaping of the healthcare market with applications in diverse scenarios ranging from clinical applications, patient services, medical research, and operational management, according to market research.
Beijing-based data analytics firm Analysis noted in a recent research paper that the industrialization of China’s AI healthcare market is accelerating. The company said the value of the AI healthcare market will reach approximately 106 billion yuan ($15.21 billion) in 2024, and this growth was driven by innovative advances in AI technology and intelligent hardware.
According to the analysis, AI applications in high-value scenarios such as tumor screening and chronic disease management are expected to become the industry’s growth engine over the next three years.
Leading brokerage firm China Securities also highlighted the promising market and investment prospects for AI healthcare in a series of recently published market analyses.
In a research note, China Securities said that the development momentum, especially in the AI healthcare field, is due to policy support, citing the government’s national goal announced in April 2025 to develop more than 100 typical scenarios in which digital intelligence technology is applied to the pharmaceutical industry by 2027.
A notable example is the plan announced last month by the Beijing Municipal Health Commission, which aims to widely implement AI in medical institutions by 2027, a move that is expected to be emulated in other regions, according to research by China Securities.
Another brokerage, CITIC Securities, highlighted fundamental changes in the commercialization of AI healthcare in China in a January research report, with a clearer path forward this year as payment mechanisms for AI medical solutions are strengthened and payers are more clearly identified.
The report says government policies are stimulating market demand.
Guidelines released by the National Medical Security Agency last year incorporated AI-assisted diagnosis into the national pricing framework for pathology, allowing public health insurance to reimburse AI-assisted medical solutions directly. This move unlocks significant commercial potential for AI pathology, the report said.
The report noted that many regions in China, including Beijing, Shanghai, Zhejiang and Guangdong, are accelerating the application of AI healthcare, and government-supported pilot bases have already been established.
Additionally, CITIC Securities highlighted five potential investment frontiers, including AI-driven drug development, AI solutions for grassroots healthcare, medical data distribution and trading, AI-assisted pathology diagnosis, and expanding AI healthcare models into the consumer market.
Investments by large companies in healthcare AI models such as PANDA, an AI platform developed by Alibaba’s Damo Academy, and Ant Afu, an AI health management app for users, are strengthening the capabilities of these models and driving the deepening commercialization of AI healthcare.
Xinhua – China Daily
