Key factors include growing data volumes, technological advances in AI, shortages of healthcare workers, and rising rates of chronic disease. Diagnostic, personalized medicine and cloud computing AI applications increase global healthcare efficiency.
AI in the healthcare market
AI in the healthcare market
Dublin, October 6, 2025 (Globe Newswire) – “AI | Forecast 2025-2033 for Healthcare Market Reports with Technology, Applications, End Users, Country and Company Analytics” has been added. ResearchAndMarkets.com Provided.
AI in the healthcare market is expected to reach USD 41.956 billion by 2033 from USD 25.74 billion in 2024, with a CAGR of 36.36% from 2025 to 2033. AI-assisted diagnostics, cloud computing, and tailored treatments all increase efficiency and enable global healthcare systems to accept them more widely.
The application of machine learning, natural language processing, computer vision, and other AI technologies to evaluate complex medical data and enhance clinical outcomes is known as artificial intelligence (AI) in healthcare. Helps in imaging, personalized treatment, drug discovery, diagnosis, and management automation. Clinicians may better understand vast datasets, identify diseases early, and optimize treatment routes with the help of AI-driven tools. Additionally, robotic systems, AI chatbots, and virtual nurses reduce clinician workloads while improving patient engagement. AI provides scalable, data-driven solutions for improving accuracy, efficiency, and accessibility in a variety of medical domains, including cardiac disease, radiology, oncology, and mental health, as health systems deal with increasing demand.
The AI market in healthcare is growing due to many important factors. Healthcare workers use AI tools to meet the increasing availability of medical data and the demand for faster and more accurate diagnosis. These technologies increase patient surveillance and care delivery, automate administrative tasks, and enhance clinical decision-making. Deployment has become more scalable and effective thanks to the development of cloud computing and AI algorithms. Furthermore, the need for AI-based solutions to customize treatment regimens for each patient is driven by an emphasis on customized healthcare. AI is becoming an important component of modern healthcare infrastructure as systems aim to reduce costs, enhance results and manage resource limitations.
Rapid development of AI and cloud infrastructures enables smarter, faster, and more scalable solutions, completely changing the way healthcare is delivered. Large medical datasets may be processed by AI algorithms to manage hospital procedures, automate diagnosis, and find anomalies. Cloud computing systems such as Google Cloud, AWS, and Microsoft Azure provide the processing power needed for sophisticated AI applications in a variety of healthcare contexts. Agent of Care was introduced by Innovaccer in February 2025 with a virtual assistant equipped with AI to automate administrative duties such as scheduling and documentation. These developments demonstrate a major shift towards intelligent, connected health ecosystems by enabling healthcare systems to deliver accurate, personalized and rapid care while reducing operational burdens.
AI enables personalized medicine by assessing clinical, lifestyle, and genomic data to customize the treatment of each patient. Machine learning algorithms can identify disease risk, predict treatment outcomes, and recommend the best drug combinations. This trend is particularly prominent in the fields of rare disease management, mental health and oncology. Piex AI revealed the device AI necklace planned for mental health monitoring in January 2025. It uses patented sensing technology to provide personalized cognitive and emotional insights. This development demonstrates how AI can extend beyond clinics to wearable technology, allowing for individual, real-time intervention. AI plays a key role in converting one size health care into precision medicine, as people want more personalized treatments.
Remote patient monitoring allows you to monitor your health from the comfort of your own home, eliminating the need for regular field trips to medical facilities. Patient satisfaction increases as a result of travel, waiting rooms and other healthcare-related nuisances. It improves access to healthcare, helps patients communicate with healthcare professionals and get the best care wherever they are, especially for those living in rural and underdeveloped areas. For example, the McareWatch 241 is a virtual patient monitoring smartwatch introduced in July 2024 by Australian company Mcare Digital and Georgia-based Internet of Things (IOT) startup Kore. The clock features include geofence alarms, pedometers, call functions, GPS tracking, reminders, heart rate monitors, speed dials, fall detection, non-movement detection, mobile apps and web dashboards. By including an SOS button, users can request emergency assistance.
Healthcare AI relies primarily on private patient information, including genetic profiles, imaging, and electronic health records. This creates serious data privacy issues, particularly in light of laws such as the GDPR (EU) and HIPAA (US). Serious harm, legal consequences, and reduced patient confidence can result from inappropriate data processing or violations. Strong access restrictions, encryption, anonymization, and secure data sharing are all requirements for your healthcare business. Additionally, third-party AI providers must adhere to strict compliance guidelines. Managing innovation while maintaining patient privacy and ethical data use is one of the biggest obstacles to the long-term and sustainable use of AI in healthcare.
There is a significant investment in infrastructure, data integration, qualified staff, and ongoing model training to implement AI solutions in the healthcare industry. Adopting AI-specific software, secure cloud services, and compatible EHR systems by hospitals and clinics will increase operating and capital costs. Furthermore, AI models require large, high quality datasets and constant maintenance costs to continue to function well. For small and rural healthcare providers, these financial and technical requirements may be especially taxable. Early hiring can be discouraged by potential returns. Expanding access to AI in healthcare depends on reducing costs through collaboration, government grants, and scalable cloud-based solutions.
Recent developments in AI in the healthcare market:
To improve diagnostic accuracy and optimize operation, Wipro GE Healthcare introduced the Versana Premier R3 ultrasound system in March 2025. The technology is produced under the “Make in India” initiative and will help clinicians manage the non-infectious burden of India by maintaining the increasing burden of non-infectious diseases in India and providing flexible scands.
In February 2025, Amgen announced that it would invest USD 200 million in the Biotechnology Innovation Centre in Hyderabad. The centre will advance drug development and discovery by focusing on AI-driven healthcare innovation. By 2025, the initiative hopes to increase India's contribution to global biopharmaceutical innovation and create 2,000 new jobs.
In January 2025, Medmitra AI obtained 3 crawls with seed money to improve healthcare by implementing solutions powered by AI. By addressing patient care inefficiencies, enhancing diagnosis and integrating multimodal data, startups seek to enhance clinical decision-making. It focuses on chronic care and general medicine in India.
November 2024: Boston Consulting Group is Amazon Web Services, Inc.
Upstage and Amazon Web Services, Inc. partnered in June 2024. This deployment has enhanced collaboration between the two businesses with the aim of leveraging the latest secure cloud technologies and services to enable clients to take advantage of new generation AI capabilities.
Google (Alphabet Inc.) introduced a new generation AI tool in October 2023.
Important attributes
Report attributes
detail
Number of pages
200
Forecast period
2024-2033
Estimated Market Value (USD) for 2024
$25.74 billion
Forecast Market Value (USD) by 2033
$41.956 billion
Combined annual growth rate
36.3%
Covered areas
global
Important topics covered
1. Introduction
2. Research and methodology
3. executive summary
4. Market dynamics 4.1 Growth Driver 4.2 Issues
5. Global AI in the healthcare market 5.1 Past market trends 5.2 Market Forecast
6. Market share analysis 6.1 By providing 6.2 Technology 6.3 By application 6.4 By end users 6.5 By country
7. Provided by 7.1 Hardware 7.2 Software 7.3 Services
10. End User 10.1 Healthcare providers 10.2 Pharmaceutical and Biotechnology Companies 10.3 Patients 10.4Other
11. country 11.1 North America 11.2 Europe 11.3 Asia-Pacific 11.4 Latin America 11.5 Middle East and Africa
12. Value Chain Analysis
13. Porter's Five Force Analysis 13.1 Buyer's Negotiation Power 13.2 Supplier negotiation ability 13.3 Level of competition 13.4 Threat of new entrants 13.5 The Threat of Alternatives
15. Pricing Benchmark Analysis 15.1 Amazon Web Services Inc. 15.2 General Vision Inc. 15.3 Google Inc. 15.4 Intel Corporation 15.5 Medtronic 15.6 Micron Technology Inc. 15.7 Microsoft Corporation 15.8 Next IT Corporation 15.9 Nvidia Corporation 15.10 Siemens Healthcare
16. Key Player Analysis 16.1 Amazon Web Services Inc. 16.2 General Vision Inc. 16.3 Google Inc. 16.4 Intel Corporation 16.5 Medtronic 16.6 Micron Technology Inc. 16.7 Microsoft Corporation 16.8 Next IT Corporation 16.9 Nvidia Corporation 16.10 Siemens Healthcare
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