A recent market forecast highlights that the global artificial intelligence (AI) in healthcare market is set for rapid expansion over the coming decade, driven by widespread adoption of AI tools in diagnostics, clinical workflows, treatment planning and other medical applications. The market was valued at about US $13.25 billion in 2022 and is projected to surge to approximately US $187.7 billion by 2031, growing at an estimated compound annual growth rate (CAGR) of 41.1 % between 2024 and 2031.
AI is transforming key aspects of care delivery by boosting diagnostic accuracy, optimizing treatment pathways, and streamlining clinical and administrative workflows. Technologies such as machine learning, natural language processing and computer vision are being applied across a wide range of healthcare use cases — including medical imaging interpretation, predictive analytics, personalized medicine, virtual health assistants and patient monitoring systems — which is expanding the addressable market.
North America is expected to retain the largest share of market revenue, supported by strong healthcare infrastructure, high technology adoption rates and the presence of major tech players investing in healthcare AI solutions. Europe and the Asia‑Pacific region are also poised for significant growth, with the Asia‑Pacific market benefiting from expanding digital health initiatives and increasing AI integration into clinical and diagnostic services.
Market dynamics are shaped by rising healthcare data volumes, the need to address provider shortages, and the push for cost‑effective care delivery models. Government support for AI research and development and continued innovation by leading tech and medical companies are expected to further accelerate the adoption of AI in healthcare, making it one of the fastest‑growing sectors of the global AI economy.
