AI-Based Disease Diagnosis Market Size, Share, Trends, Growth 2032

AI-Based Disease Diagnosis Industry Prospective:

The global AI-based disease diagnosis market size was worth around USD 4,316.81 million in 2023 and is predicted to grow to around USD 8,983.53 million by 2032 with a compound annual growth rate (CAGR) of roughly 19.20% between 2024 and 2032.

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AI-Based Disease Diagnosis Market: Overview

Artificial Intelligence (AI)-based disease diagnosis refers to the use of AI technology during the stage of disease diagnosis in the healthcare industry. Investments and demand for AI in healthcare across all sectors have been growing rapidly. The trend is driven by several advantages offered by AI technology.

In recent times, Artificial Intelligence has gained global attention. The technology deals with leveraging a set of advanced technologies that allow machines to replicate human intelligence. AI enables machines to perform several progressive tasks including predicting diseases, analyzing medical images, and detecting conditions. Technology can help medical professionals deliver more efficient care due to easy and accurate diagnosis of conditions.

Moreover, AI in disease diagnosis can promote personalized medical care which is currently gaining traction in the global healthcare sector. During the forecast period, the industry for AI-based disease diagnosis is expected to gain significant growth momentum due to the burgeoning pressure on the traditional healthcare infrastructure. However, the high cost of developing and deploying the technology could impact the market growth rate as per industry research.

Key Insights:

• As per the analysis shared by our research analyst, the global AI-based disease diagnosis market is estimated to grow annually at a CAGR of around 19.20% over the forecast period (2024-2032)
• In terms of revenue, the global AI-based disease diagnosis market size was valued at around USD 4,316.81 million in 2023 and is projected to reach USD 8,983.53 million by 2032.
• The AI-based disease diagnosis market is projected to grow at a significant rate due to the growing number of patients worldwide and the crumbling healthcare infrastructure.
• Based on diagnosis type, the neurology segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the component type, the software segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

AI-Based Disease Diagnosis Market: Growth Drivers

Growing number of patients worldwide and crumbling healthcare infrastructure will drive market demand rate

The global AI-based disease diagnosis market is expected to grow due to the rising population of patients across the globe. The current healthcare architecture is under tremendous pressure due to the escalating number of people requiring medical care. The lack of a sufficient number of diagnostic centers, healthcare providers, and facilities along with surging healthcare expenditure has led to a large number of people without access to quality medical care. As per market study, Africa’s doctors-to-patient ratio is 1 doctor for more than 10,000 people. Such statistics are observed in other parts of the world, including developed nations.

According to a 2019 report submitted by the World Economic Forum, more than 6 million people die every year due to the poor state of the healthcare system in developed nations. In addition to this, every year, the patient population has been growing. The surge in the rising number of patients is attributed to the emergence of drug-resistant disease strains, an increase in the geriatric population, and an escalating number of patients with autoimmune diseases. The use of Artificial Intelligence during the diagnosis of diseases can help the current healthcare system cope with the changing demands and medical needs of the patient.

Investments in AI worldwide are on the rise, thus affecting the market growth trajectory

Artificial Intelligence has been termed as a high-potential next-generation industry with applications across fields. AI investments in the last 5 years have grown at a rapid rate. The regional governments as well as the private sector globally are betting on AI as a leading solutions provider for all sectors.

All segments of AI have registered significant growth, including understanding & generation of natural language processing, speech recognition & generation, multi-agent systems, decision-making, planning, and video & image generation. Governments worldwide are creating an AI-investment environment to attract more investors.

For instance, in a recent event, the European Parliament announced the EU Digital Europe program through which the region will invest around €2.1 billion in AI between 2021-2027. Such measures are likely to promote the global AI-based disease diagnosis market growth rate.

AI-Based Disease Diagnosis Market: Restraints

High cost of technology development and integration will limit the industry’s expansion rate

The global industry for AI-based disease diagnosis is projected to be limited due to the high cost of developing and implementing the technology. Artificial Intelligence, although a growing technology, is in its nascent stage of development with limited players. Additionally, full-scale use of Artificial Intelligence requires years of research by experts followed by trials and quality checks. These factors are likely to impede the industry’s growth rate in the coming years.

AI-Based Disease Diagnosis Market: Opportunities

Cancer diagnosis using AI holds exceptional growth possibilities in the future

The global AI-based disease diagnosis market is expected to generate more growth opportunities during the projection period in the cancer diagnosis segment. According to official data, cancer is a leading cause of medically-related deaths globally. The number of cancer patients globally has increased every year. In addition to this, early diagnosis of cancer is one of the major concerns among medical practitioners due to the intrinsic nature of the disease.

For instance, cancer can take years to develop and spread. Moreover, certain cancers are difficult to diagnose until the cancer cells start affecting major body organs. The lack of a single standard test for cancer diagnosis further complicates the disease treatment.

In September 2024, Roche, a leading diagnostics company, announced the expansion of its digital pathology open environment. The company will invest in integrating 20 advanced AI algorithms to drive cancer diagnostics. The company will partner with 8 new collaborators to achieve this vision.

AI-Based Disease Diagnosis Market: Challenges

Regulatory hurdles could impact expansion into new markets in the coming years

The global AI-based disease diagnosis industry is projected to be challenged by the ever-evolving regulatory hurdles around AI and its incorporation into the healthcare industry. The regulations change between countries, leading to market confusion. In addition to this, the long process of obtaining a product license to make a commercial sale could further limit the market’s adoption value. Other challenges include concerns over data privacy and the ethical use of AI in diagnosing diseases.

AI-Based Disease Diagnosis Market: Segmentation

The global AI-based disease diagnosis market is segmented based on diagnosis type, component type, and region.

Based on the diagnosis type, the global market divisions are radiology, cardiology, neurology, pathology, chest & lung, oncology, and others. In 2023, the highest demand was observed in the neurology segment. It dominated nearly 25% of the total revenue due to the growing demand for value-based medical diagnosis in the case of neurological disorders. In addition, adopting AI for disease diagnosis is helping medical professionals deliver precision treatment with higher efficiency in results.

Based on the component type, the global market divisions are software, hardware, and services. In 2023, the software segment was the leading revenue generator. It held control over 45.01% of the final segmental share. The growth rate is a result of increased focus on delivering early and accurate medical assistance to patients, especially for conditions that can be difficult to treat in advanced stages. Moreover, the growing integration of technology in the global healthcare sector will fuel more revenue in the industry.

AI-Based Disease Diagnosis Market: Report Scope

AI-Based Disease Diagnosis Market: Regional Analysis

North America to continue dominating the market growth rate as per projections

The global AI-based disease diagnosis market is expected to be led by North America during the projection period. In 2023, it contributed to over 55.9% of the global revenue. The US is the leading nation in North America, and it is influenced by the presence of a technologically advanced and highly sophisticated health infrastructure. The US has been at the forefront of adopting new technologies to diagnose diseases and treat patients.

In August 2024, the Advanced Research Projects Agency for Health (ARPA-H), a Federal body under the U.S. Department of Health and Human Services (HHS), announced the launch of a new funding opportunity through the Performance and Reliability Evaluation for Continuous Modifications and Useability of Artificial Intelligence (PRECISE-AI) program.

The investments will be directed toward developing capabilities to detect any misalignment in AI-enabled tools with real-life applications in the clinical care environment. These developments will be beneficial not only to medical professionals but also to patients.

Asia-Pacific is projected to emerge as a second-highest revenue generator in the AI-based disease diagnosis industry. The growing pressure on regional healthcare agencies along with advancements in AI technology and investments will promote growth in the region. In July 2024, Olympus, a leading endoscope producer, announced its entry into the diagnostic platform segment with the aid of AI. The pilot project will be launched in Europe and provide a cloud-based service connecting the platform to the hospital endoscopes.

AI-Based Disease Diagnosis Market: Competitive Analysis

The global AI-based disease diagnosis market is led by players like:

• Babylon Health
• IBM Watson Health
• PathAI
• Insilico Medicine
• Zebra Medical Vision
• Buoy Health
• Tempus
• Arterys
• Freenome
• Lunit
• Butterfly Network
• CureMetrix
• Viz.ai
• Aidoc
• Qure.ai.

The global AI-based disease diagnosis market is segmented as follows:

 By Diagnosis Type

•  Radiology
•  Cardiology
•  Neurology
•  Pathology
•  Chest & Lung
•  Oncology
•  Others

 By Component Type

•  Software
•  Hardware
•  Services

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa