News

AI Diagnostic Tools Market to Hit $11.5B by 2034

• By John K. Waters
• 07/17/2024

The global market for AI-based medical diagnostic tools is projected to reach $11.5 billion by 2034, according to a report by Transparency Market Research (TMR), a market research and survey firm. This surge is being driven both by the increasing funding for AI start-ups and advancements in diagnostic systems integration, TMR found.

In 2023, the AI-based medical diagnostic tools market was valued at $1.3 billion, according to TMR, and the firm expects to see a compound annual growth rate (CAGR) in that market of 20.8% between 2024 and 2034. AI-powered diagnostic systems are now enhancing the precision and efficiency of diagnoses, enabling healthcare professionals to develop more timely and effective treatment plans. This integration spans various diagnostic tools, including X-rays, the researchers said.

The TMR report covers various segments of the market, including software, services, hardware, radiology, cardiology, neurology, oncology, hospitals, diagnostic laboratories, and different regions such as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Ongoing research and development in AI-based diagnostics focuses on improving existing algorithms and exploring new approaches, such as deep learning, reinforcement learning, and federated learning. These innovations are expected to empower patients with personalized health information through AI-driven health monitoring gadgets and smartphone apps, the researchers found.

They also found that AI-based diagnostics can enhance healthcare accessibility in underserved or remote areas. Portable diagnostic devices and telemedicine platforms are poised to expand healthcare access for communities with limited resources. The healthcare sector is expected to increasingly adopt AI-based diagnostic technologies, integrating them with clinical decision support systems and electronic health records (EHRs) to expedite diagnoses.

Key findings from the report highlight the significant growth of AI-based medical diagnostic tools, particularly in the software segment. As the prevalence of chronic illnesses such as cancer rises, the demand for oncology-related AI diagnostics is expected to increase. In 2023, diagnostic laboratories held the largest market share, with North America dominating the global market, TMR found.

Growth drivers for the market cited in the report include the rising prevalence of chronic illnesses and the expanding need for accurate and timely diagnoses. AI-powered tools improve the speed and accuracy of detecting diseases, leading to more effective treatments. The adoption of EHRs and increased data access facilitate the integration of AI diagnostics into clinical practice. Regulatory agencies are also becoming more supportive of AI-based tools, recognizing their potential to improve patient outcomes and reduce healthcare costs.

Key players in the AI-based medical diagnostic tools market include Microsoft, Nvidia Corporation, Merative L.P., Alphabet Inc., Intel Corporation, Siemens Healthineers, GE HealthCare, Advanced Micro Devices Inc., Koninklijke Philips N.V., and InformAI. Recent developments include Microsoft's launch of new AI solutions for healthcare organizations in October 2023 and Nvidia's release of cloud APIs for medical imaging applications in December 2023.