Global Artificial Intelligence in Diagnostics Market Size

AI in Diagnostics Market Analysis

The Global Artificial Intelligence in Diagnostics Market size is estimated at USD 1.33 billion in 2024, and is expected to reach USD 5.57 billion by 2029, growing at a CAGR of 33.14% during the forecast period (2024-2029).

The COVID-19 pandemic has significantly impacted the healthcare system, particularly diagnostics. The lockdown measures worldwide decreased public mobility and impacted the diagnostic industry. Moreover, the COVID-19 pandemic not only affected the global economy but also greatly impacted the functioning of general hospital care for non-COVID-19 patients in hospitals across the globe. However, with the increasing demand for diagnostic imaging procedures globally, the demand for implementing artificial intelligence in diagnostics is also increasing. According to the article "Artificial intelligence in the diagnosis of COVID-19: challenges and perspectives," published in April 2021, at different levels of the healthcare system, including diagnosis, artificial intelligence (AI) has been implemented. Particularly during the current pandemic, AI algorithms are crucial for the quick diagnosis of COVID-19 patients.

Additionally, AI tools were employed to handle the pandemic's depth and complexity, from diagnosis to drug development, disease transmission prediction, and population monitoring and surveillance. A study titled "The Role of Artificial Intelligence in Fighting the COVID-19 Pandemic," published in the Journal of "Nature Public Health Emergency Collection" in April 2021, proposed a temporal step method, which includes presenting recent research investigations, examining how AI observes and acts on society and the healthcare system, and reporting various data types. Hence, the deployment of AI tools in diagnosing patients with SARS-CoV-2 played a substantial role throughout the pandemic phase, thereby augmenting the market growth.

Furthermore, factors such as increasing demand for AI tools in the medical imaging field and rising focus on reducing the workload of radiologists, government initiatives to increase the adoption of AI-based technologies, and growth in funding for AI-based start-ups are anticipated to bolster the growth of the market shortly.

Incorporating artificial intelligence into imaging devices may improve the diagnosis, which is expected to aid the overall market growth during the forecast period. For instance, the Journal of the American Medical Association article titled "An Artificial Intelligence-Based Chest X-ray Model on Human Nodule Detection Accuracy from a Multicenter Study," published in December 2021, reported that an artificial intelligence algorithm was associated with improved detection of pulmonary nodules on chest radiographs compared with unaided interpretation for different levels of detection difficulty and readers with different experience. The research articles stated that artificial intelligence could be a promising technology for medical imaging shortly.

Moreover, factors such as increasing funding for AI start-ups globally are increasing the demand for increasing incorporation of AI in the diagnostic imaging modalities. For instance, in March 2022, Qure.ai (Qure), a health-tech business raising USD 40 million in fundraising, employs artificial intelligence (AI) for medical imaging diagnostics. The company further declared that it would utilize the funding to broaden and improve its global presence, particularly in the United States and Europe, and accelerate the development of products for critical care and community diagnostics. Therefore, such fundraising is anticipated to contribute to market growth.

Thus, owing to the aforementioned factors, the market studied is anticipated to grow over the analysis period. However, the lack of a skilled AI workforce and ambiguous regulatory guidelines for medical software is expected to restrain the market's growth.