India AI in Healthcare Market Size, Share, Trends, Growth and Forecast 2032

India AI in Healthcare Industry Prospective:

The India AI in healthcare market size was worth around USD 0.83 billion in 2023 and is predicted to grow to around USD 17.75 billion by 2032 with a compound annual growth rate (CAGR) of roughly 40.50% between 2024 and 2032.

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India AI in Healthcare Market: Overview

Artificial Intelligence (AI) in healthcare in the India market is an emerging sector of the regional healthcare economy. AI is a highly sophisticated technology that promotes the use of machines and computers to mimic or simulate human problem-solving capabilities and intelligence. AI systems are equipped to handle large and complex sets of data or input and deliver usable output. Advanced Artificial Intelligence systems can make decisions simulating humans. They can recognize patterns and provide judgment based on input information. AI in healthcare in India is steadily evolving. It has tremendous growth potential since India’s healthcare sector is witnessing higher investments and expenditures. Additionally, the Indian regional authorities are seeking measures to put the country’s healthcare infrastructure on the global map. The growing demand for preventive medicine and more efficient treatment programs are expected to act as growth drivers for Indian AI in the healthcare industry. In addition to this, advancements in international partnerships will further promote knowledge transfer and innovation. However, ethical dilemmas associated with the use of AI in healthcare and the high cost of AI technology may limit the industry’s expansion trend.

Key Insights:

• As per the analysis shared by our research analyst, the India AI in healthcare market is estimated to grow annually at a CAGR of around 40.50% over the forecast period (2024-2032)
• In terms of revenue, the India AI in healthcare market size was valued at around USD 0.83 billion in 2023 and is projected to reach USD 17.75 billion, by 2032.
• The India AI in healthcare market is projected to grow at a significant rate due to the growing healthcare expenditure in the country.
• Based on the service type, the hospital segment is growing at a high rate and will continue to dominate the market as per industry projections.
• Based on the treatment type, the diagnostic segment is anticipated to command the largest regional market share.
• Based on region, Maharashtra is projected to dominate the regional market during the forecast period.

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India AI in Healthcare Market: Growth Drivers

Growing healthcare expenditure in the country to promote market growth rate

India AI in healthcare market is expected to achieve higher growth momentum during the forecast period due to a rise in regional healthcare expenditure. The Indian population currently stands at over 1.4 billion. In addition to this, the demand for quality medical care has been on the rise over the years. The growing investments in healthcare and the emergence of several public healthcare initiatives by private companies or the government have helped improve overall regional healthcare expenditure. In 2022, the Indian government spent nearly INR 844 billion on health expenses. Around INR 274.5 billion were related to the National Health Mission. On the other hand, the general public has higher access to several medical reimbursement or health insurance policies. The Government of India has launched the Ayushman Bharat PM-JAY health assurance scheme. It is currently the world’s largest healthcare-related initiative. It aims to cover around 12 crore poor families across the region. As per the Ayushman Bharat PM-JAY, health cover of INR 5 lakh per family per year will be provided for secondary and tertiary care hospitalization.

Surge in investments to promote research on AI in healthcare will encourage more market players

India has registered several new investments targeting extensive research on integrating artificial intelligence and healthcare. These investments are backed by government or technology giants. In April 2024, Premji Invest, the family office of former Wipro head Ajim Premji, announced its plans to invest in companies developing AI with several end-user applications. In 2024, the Indian government announced the launch of the India AI Mission. The initiative is drafted to assist companies working on deep-tech such as AI. The government has earmarked nearly INR 2000 crore for supporting research & development (R&D) in deep tech start-ups. Such large-scale investments in AI will have a positive impact on India AI in healthcare market.

India AI in Healthcare Market: Restraints

Ethical considerations when integrating AI and healthcare will limit the industry’s growth rate

The India AI in healthcare industry is projected to be restricted due to ethical concerns over integrating machine-based decisions and patient healthcare. AI systems are designed to make judgments replicating human decisions. However, current and existing guidelines regarding the extent of AI use in medical care are vague and require more refinement. In addition to this, the AI sector in medical care in India is in the initial phase of development. More exhaustive efforts are required to help the market reach its true potential.

India AI in Healthcare Market: Opportunities

Leading hospitals and healthcare companies offering AI-based healthcare will encourage additional players

The India AI in healthcare market will reap benefits in the future due to the current AI-supportive medical environment in the country. Several leading healthcare groups and hospitals have launched Artificial Intelligence-driven services. Such measures are likely to promote and encourage additional players to invest in AI for medical services. In April 2024, Fortis Healthcare, a leading Indian healthcare company, announced the launch of a new AI-powered application. The program called Adayu Mindfulness is expected to help people suffering from mental medical problems. In March 2024, myBenefits.ai announced the launch of its AI platform. The tool is designed specifically for the healthcare sector. It provides assistance in transforming post-surgical patient care while also providing other forms of digital services. In January 2024, Apollo Cancer Center launched the country’s first Artificial Intelligence Precision Oncology Centre (POC) in Bengaluru city. The facility will provide real-time and highly accurate insights, treatment protocol, and cancer-risk assessment.

India AI in Healthcare Market: Challenges

High cost of investments, skilled human resource shortage, and limited supporting infrastructure to challenge market expansion

India AI in healthcare industry faces multiple challenges inhibiting large-scale adoption of AI in the regional medical care sector. For instance, developing functional and effective AI for healthcare is cost-intensive. Additionally, the country faces a shortage in terms of the supply of skilled human resources. India also needs more investments to upgrade infrastructure for full-scale integration of Artificial Intelligence in the healthcare industry.

India AI in Healthcare Market: Segmentation

The India AI in healthcare market is segmented based on service type, treatment type, and region

Based on the service type, the regional market is divided into hospitals, ambulatory service providers, clinics, and specialty centers. In 2023, the highest growth was observed in the hospitals segment. Major hospital chains in India are actively investing in research & development of AI that could help deliver optimal medical care. As per market research, medical professionals can reduce human error by over 85% with the use of Artificial Intelligence. The promising advantages of the technology are likely to fuel further investments.

Based on the treatment type, the India AI in the healthcare industry was segmented into therapeutic, diagnostic, surgical, nutritional, palliative, preventive, and interventional. In 2023, the highest demand was registered in the diagnostic segment. AI can aid the diagnosis of medical conditions at early stages thus effectively assisting in limiting the condition’s progress. However, the average cost of developing an Artificial Intelligence system can range between USD 20,000 to USD 1,000,000.

India AI in Healthcare Market: Report Scope

India AI in Healthcare Market: Regional Analysis

Maharashtra state of India to emerge as a leading region during the forecast period

The India AI in healthcare market is expected to be led by Maharashtra state during the forecast period. The state is consistently ranked as one of the leading regions with excellent healthcare infrastructure. In 2023-2024, the state’s total public health budget was around INR 17,327 crore. Additionally, the Mumbai city in Maharashtra along with other adjacent places are widely popular for hosting some of the country’s most advanced healthcare facilities. In May 2024, reports suggested that government hospitals in Maharashtra are investing in introducing advanced treatment and diagnostic services to deliver improved care. In April 2024, Maharashtra Governor inaugurated the much-anticipated Mid Term Annual Conference on Artificial Intelligence in Health Services and Medical Education in Mumbai. The conference will promote investments toward AI in the regional medical care sector. In February 2024, technology giant Google announced a partnership with the Maharashtra government for collaboration aiming at Artificial Intelligence-led growth. Other regions in the country such as Delhi, Bengaluru, and Kerala are expected to help the region gain higher growth traction over the forecast period. Generative AI is at the forefront of the adoption of Artificial Intelligence.

India AI in Healthcare Market: Competitive Analysis

The India AI in healthcare market is led by players like:

• PharmEasy
• HealthifyMe
• Aindra Systems
• HealthKart
• SigTuple
• Innovaccer
• Predible Health
• Niramai
• AIG Hospitals
• Tricog Health
• StaTwig
• Netmeds
• Mfine
• 1mg
• Qure.ai

The India AI in healthcare market is segmented as follows:

By Service Type

• Hospitals
• Ambulatory Service Providers
• Clinics
• Specialty Centers

By Treatment Type

• Therapeutic
• Diagnostic
• Surgical
• Nutritional
• Palliative
• Preventive
• Interventional

By Region

India

• North India
• West and Central India
• South India
• East India