United States Generative AI in Healthcare Market 2025 | Growth Drivers, Key Players & Investment Opportunities

Market Size and Growth

The Global Generative AI in Healthcare Market Size reached US$ 2.92 Billion in 2024 and is expected to reach US$ 30.68 Billion by 2033, growing at a CAGR of 35.1% during the forecast period 2025-2033, according to DataM Intelligence report.

Key Development:

United States: Recent Industry Developments

✅ October 2025: Heidi Health, an Australian healthcare AI startup, secured $65 million in a Series B funding round led by Point72 Private Investments, bringing its total funding to $97 million and its valuation to $465 million. The company aims to expand its AI-powered clinical documentation tools and patient follow-up automation in the U.S. market.

✅ October 2025: Microsoft announced a new version of its Copilot app, integrating content from Harvard Health Publishing to provide more accurate health-related responses. This move is part of Microsoft's strategy to enhance its AI capabilities in healthcare and reduce reliance on OpenAI.

✅ October 2025: Qualtrics acquired health-tech firm Press Ganey Forsta for $6.75 billion, aiming to merge AI-driven customer experience tools with Press Ganey's extensive footprint in the healthcare sector. This acquisition is expected to accelerate innovation within healthcare and expand AI capabilities in regulated industries.

Japan: Recent Industry Developments

✅ October 2025: Japan launched the GENIAC initiative to strengthen domestic generative AI capabilities by providing companies with computing resources, fostering collaboration, and supporting foundation model development. This initiative aims to enhance AI adoption in sectors like healthcare, manufacturing, and finance.

✅ October 2025: Nvidia and Fujitsu announced a collaboration to advance AI technologies, particularly in smart robotics and other innovations, using Nvidia's GPUs. The partnership aims to establish a foundational AI infrastructure in Japan by 2030, focusing on sectors such as healthcare and manufacturing.

✅ September 2025: Japan's AI Promotion Act was enacted to accelerate the adoption of AI technologies across various sectors, including healthcare. The act aims to address challenges such as the aging population and labor shortages by promoting AI integration in healthcare services.

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Generative AI in healthcare refers to the use of AI models to create medical content, simulate patient data, and generate predictive insights for diagnostics, drug discovery, and personalized treatment. It enhances clinical decision-making, accelerates research, and improves patient care through data-driven innovation.

Recent Mergers and acquisitions:

United States: Recent M&A in Generative AI Healthcare

✅ October 2025: Qualtrics announced the acquisition of healthcare firm Press Ganey Forsta for $6.75 billion. This strategic move aims to merge Qualtrics' AI-driven customer experience tools with Press Ganey's extensive footprint in the healthcare sector, enhancing innovation and expanding AI capabilities in regulated industries.

✅ October 2025: Innovaccer acquired Story Health, a company specializing in heart failure care, in a deal involving equity and cash. This acquisition marks Innovaccer's fourth in about a year, aiming to become the default AI platform for health systems and accelerate development through mergers and acquisitions.

✅ October 2025: Datavant finalized its acquisition of DigitalOwl, a medical data analysis company. This acquisition enhances Datavant's platform, allowing healthcare records to move between organizations while ensuring compliance and security, thereby advancing data sharing in healthcare.

Key Players:

=> IBM, Google LLC, Microsoft, OpenAI, NVIDIA Corporation, Oracle, Johnson & Johnson Services, Inc., NioyaTech, and Saxon. among others.

Growth Forecast Projected:

The Global Generative AI in Healthcare Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2033. In 2024, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Research Process:

Both primary and secondary data sources have been used in the global Generative AI in Healthcare Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Key Segments:

➥ By Component: Solutions, Services
➥ By Application: Diagnostics & Medical Imaging, Drug Discovery & Development, Personalized Treatment, Patient Monitoring & Predictive Analytics, Others
➥ By End User: Hospitals & Clinics, Healthcare Organizations, Diagnostic Centers, Others

Regional Analysis for Generative AI in Healthcare Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

Benefits of the Report:

Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.

Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.

Chapter 3: Offers an in-depth look at the competitive landscape among Generative AI in Healthcare producers, including revenue shares, strategic moves, and recent mergers and acquisitions.

Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.

Chapters 5 & 6: Analyze Generative AI in Healthcare revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.

Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.

Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.

Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.

Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.

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FAQ

What is the current size of the Generative AI in Healthcare Market?

A: In 2024, the Generative AI in Healthcare Market was valued at US$ 2.92 Billion, reflecting its strong industry presence.

Q2: How large is the Generative AI in Healthcare Market expected to be by 2033?

A: By 2033, industry forecasts suggest the Generative AI in Healthcare Market will grow to around US$ 30.68 Billion, demonstrating significant expansion.

Q3: What is the growth rate of the Generative AI in Healthcare Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 35.1% during the forecast period from 2025 to 2033.

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