AI in Healthcare Market Size, Trends & Forecast 2025-2033 | Value to Hit $347.21 Billion

The AI in Healthcare Market was valued at US$ 34.97 Billion in 2024 and is projected to reach US$ 347.21 Billion by 2033, growing at a CAGR of 29.1%.

AUSTIN, TX, UNITED STATES, June 19, 2025 /EINPresswire.com/ -- AI in Healthcare Market Overview (2025 Outlook)

The AI in Healthcare Market Size was valued at US$ 34.97 billion in 2024 and is projected to grow significantly, reaching US$ 347.21 billion by 2033, expanding at a compound annual growth rate (CAGR) of 29.1% from 2025 to 2033.

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Industry Developments

In February 2025, Innovaccer Inc. introduced “Agents of Care”, a collection of pre-trained AI agents specifically designed to automate repetitive, low-value tasks within healthcare environments. This suite aims to reduce administrative burdens and manage the growing workload challenges linked to staffing shortages.

That same month, Salesforce rolled out Agentforce for Health, a new set of AI-powered tools created to support healthcare providers by automating time-consuming administrative functions, enhancing efficiency and productivity across healthcare systems.

In December 2024, DexCom, Inc. became the first manufacturer of continuous glucose monitors (CGMs) to launch a Generative AI (GenAI) platform. This advanced solution is capable of analyzing personalized health data, identifying correlations between lifestyle habits and glucose levels, and offering meaningful insights to support better metabolic health management.

In November 2024, Japanese healthcare innovators began working on AI-enhanced technologies to support radiologists and surgeons. These systems are designed to provide "real-time superpowers," enhancing clinical precision and improving overall operational workflows in medical settings.

In October 2024, Microsoft announced a major upgrade to its Cloud for Healthcare platform. The update includes several new AI capabilities such as healthcare-specific models in Azure AI Studio, improved data integration via Microsoft Fabric, and expanded tools for developers in Copilot Studio, all aimed at advancing healthcare delivery.

In June 2024, Cognizant, in partnership with Google Cloud, launched its first set of healthcare-focused large language model (LLM) solutions. These tools utilize cutting-edge generative AI, including Vertex AI and Gemini models, to deliver enhanced analytics and support across a wide range of healthcare use cases.

In March 2024, NVIDIA Healthcare unveiled a comprehensive suite of generative AI microservices to accelerate innovation in drug discovery, MedTech, and digital health. This initiative introduced 25 versatile, cloud-agnostic microservices that healthcare developers can use for applications spanning biology, medical imaging, chemistry, and data management.

In September 2024, Harrison.ai introduced Harrison.rad.1, a specialized vision-language model tailored for radiology. This development represents a major step forward in the application of AI in medical imaging, aiming to elevate diagnostic accuracy and improve radiologist support tools.

Regional Outlook

North America

North America, particularly the United States, holds the dominant share of the global market. Strong healthcare infrastructure, large-scale investments in digital health, and favorable government policies have created a thriving environment for AI integration. The U.S. is leading in AI patent filings in healthcare and continues to attract venture capital for AI-based startups in medical imaging, oncology, and hospital management systems.

Europe

Europe is catching up with significant investments in AI for diagnostics, especially in the U.K., Germany, and France. The EU has launched dedicated funding initiatives to foster safe and ethical use of AI in health applications, focusing on transparency and interoperability across systems.

Asia-Pacific

Countries like Japan, China, and India are quickly adopting AI-powered tools to address gaps in healthcare access and quality. Japan, with its aging population, is especially focused on robotic AI and elder care solutions, while China is investing in AI for drug discovery and genomics.

Key Companies in the Market

The AI healthcare ecosystem comprises tech giants, healthcare leaders, and startups. Notable players shaping the industry include:

Intel Corporation

Koninklijke Philips N.V.

Microsoft

Siemens Healthcare GmbH

NVIDIA Corporation

Merative

GE Healthcare

Medtronic

Google (Alphabet Inc)

Arterys Inc. (Tempus)

IBM

Google

Itrex Group

Oracle

Medidata

Merck

IQVIA

Epic System Corporation

Cognizant

Market Segmentation

By Component Type: Software , Services, Hardware

By Technology: Machine Learning , Natural Language Processing, Speech Recognition, Others

By Application: Medical Imaging & Diagnostics, Precision Medicine, Drug Discovery & Development, Virtual Assistants, Lifestyle Management & Monitoring, Healthcare Assistant Robots, Insights & Risk Analytics, Others

By End-User: Healthcare providers, Healthcare payers, Pharmaceutical & Biotechnological Companies, Others

Regional Analysis: North America, U.S., Canada, Mexico, Europe, Germany, U.K., France, Spain, Italy, Rest of Europe, South America, Brazil, Argentina, Rest of South America, Asia-Pacific, China, India, Japan, South Korea, Rest of Asia-Pacific, Middle East and Africa

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Latest News of USA

In 2025, the United States is witnessing a strong push toward integrating AI into primary care and hospital systems. One of the most significant developments includes the FDA’s streamlined fast-track program for AI-based diagnostic tools. Several startups, such as Aidoc and Caption Health, have received accelerated clearance for their AI platforms, which assist in detecting stroke symptoms and cardiac abnormalities in real-time.

Moreover, Epic Systems one of the largest electronic health record (EHR) providers has integrated generative AI directly into its physician dashboard, allowing clinicians to summarize patient charts and get AI-recommended actions. This integration is reducing administrative burden significantly while enhancing patient interaction.

Another noteworthy advancement is the use of AI in mental health apps like Woebot and Wysa, which are now being prescribed alongside traditional therapy in several U.S. clinics. These apps use conversational AI to provide cognitive behavioral therapy (CBT) exercises, especially for anxiety and depression patients.

Latest News of Japan

In early 2025, a consortium including Toshiba, Fujitsu, and the University of Tokyo launched a revolutionary AI-powered empathetic robot nurse that not only assists in physical tasks but can recognize and respond to patient emotions in real time using micro-expression analysis and voice tone detection.

This project is being piloted in Tokyo’s top geriatric hospitals, aimed at improving patient satisfaction and reducing burnout among human nursing staff.
Additionally, Japan’s Ministry of Health, Labour and Welfare has announced funding for nationwide adoption of AI in elderly care, focusing on real-time monitoring systems, fall prediction, and chronic disease management. Japanese firms are also pushing boundaries in AI-driven genomic medicine, with initiatives targeting early cancer detection through AI-trained sequencing platforms.

Conclusion

The AI in the healthcare market is evolving rapidly, unlocking enormous opportunities for improving clinical decision-making, enhancing diagnostics, and personalizing treatments. The convergence of big data, cloud computing, and machine learning has made AI not just a supporting tool but a central pillar in next-generation healthcare delivery. As global health systems face mounting pressure to do more with less, AI is no longer a luxury it’s a necessity.

With the USA embracing regulatory advancements and Japan innovating in robotic care, the global stage is set for AI to revolutionize how healthcare is delivered, managed, and experienced in the years to come.

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