Artificial Intelligence in Healthcare Market Size, Share, and Trends - Updated FY Q2 2025 Outlook by DataM Intelligence"

The Global Artificial Intelligence in Healthcare Market size reached US$ 13248.65 million in 2022 and is projected to witness lucrative growth by reaching up to US$ 187704.75 million by 2031. The market is growing at a CAGR of 41.1% during the forecast period (2024-2031)

DataM Intelligence has published a new research report on "Artificial Intelligence in Healthcare Market Size 2025". The report explores comprehensive and insightful Information about various key factors like Regional Growth, Segmentation, CAGR, Business Revenue Status of Top Key Players and Drivers. The purpose of this report is to provide a telescopic view of the current market size by value and volume, opportunities, and development status.

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Mergers & Acquisitions (M&A):-

GE Healthcare's acquisitions of MIM Software (2024), Caption Health (2023), and BK Medical (2022) to strengthen AI imaging and diagnostics.

Stryker's $3 billion acquisition of Vocera Communications in 2022 enhanced AI-based clinical communication.

In 2025, Innovaccer acquired Humbi AI (healthcare actuarial analytics) and RLDatix acquired IPeople Healthcare (data accessibility), demonstrating interest in data analytics and risk management.

United States: Recent Industry Developments

✅ In 2025, the U.S. AI healthcare market was estimated at USD 8.41 billion in 2024 and is expected to grow to ~USD 195 billion by 2034, with a CAGR of 36.9%, driven by government initiatives like the HHS AI Strategic Plan promoting innovation, equity, and workforce development.

✅ In 2025, state-level regulations and HIPAA updates in the U.S. addressed AI-specific privacy challenges, with increased scrutiny on insurers' use of AI for claims processing, ensuring responsible adoption of AI in healthcare.

Japan: Recent Industry Developments

✅ In 2025, the Japanese AI healthcare market was valued at USD 1.42 billion in 2024 and is projected to reach USD 14.8 billion by 2033, growing at a CAGR of 36.5%, fueled by advancements in AI image analysis for improved diagnostics in oncology and preventive care.

✅ In 2025, leading Japanese companies like LPixel and Fujifilm deployed AI tools for early cancer detection, predictive analytics, and personalized treatment planning, enhancing diagnostic accuracy and patient outcomes.

KeyPlayers:

Intel Corporation, Koninklijke Philips N.V., Microsoft, Siemens Healthcare GmbH, NVIDIA Corporation, IBM, Labcor Laboratórios Ltd., Medtronic, Google and Micron Technology, Inc.

Growth Forecast Projected:

The Global Artificial Intelligence in Healthcare Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. 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 Artificial Intelligence 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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FDA Approvals & Regulatory Updates:-

The FDA has significantly streamlined approvals of AI-enabled medical devices, with approvals jumping 39% from 160 in 2022 to 223 in 2023.​

In 2024-2025, FDA published draft guidances on AI-enabled device software lifecycle management and marketing submissions emphasizing transparency, safety, and innovation.

The FDA coordinates across multiple centers (CBER, CDER, CDRH) to align AI regulatory policies across biologics, drugs, and devices.

Key Segments:

By Product Type- Hardware, Software, Services

By Technology- Speech recognition, Natural language processing, Machine learning, Disaster recovery, Others

By Application- Imaging & diagnostics, Drug discovery, Precision medicine, Hospital management, Insights & risk analytics, Wearables, Virtual assistants, Healthcare assistant robots, Others

By End-User- Hospitals, Pharmaceutical Company, Diagnostic Centers, Others

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Market Growth & Trends:-

Global AI in Healthcare Market:

Key growth drivers: digital health infrastructure, chronic disease burden, and demand for predictive and personalized medicine.

North America leads with the highest market share owing to advanced infrastructure and favorable policies, followed by Asia-Pacific (notably Japan).​

Emerging trends include:

AI adoption in medical imaging, patient monitoring, drug discovery, and clinical decision support.

Streamlining administrative workflows such as billing, claims processing, and resource management through AI.

Focus on ethical AI development, bias mitigation, and health equity.

FAQ's

Q1: What is the current size of the Artificial Intelligence in Healthcare Market?

A: The Artificial Intelligence in Healthcare Market stood at US$ 13248.65 million in 2022 and is set to experience remarkable growth, reaching US$ 187704.75 million by 2031

Q2: How fast is the Artificial Intelligence in Healthcare Market growing?

A: The Market is on an impressive growth trajectory, expected to expand at a CAGR of41.1% from 2024 to 2031

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