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AI in healthcare market forecast to reach $110.61 billion by 2030, growing at 38.6% annually
The AI healthcare market will grow from $21.66 billion in 2025 to $110.61 billion by 2030, a 38.6% annual rate. Hospitals lead spending, though clinician resistance and a shortage of skilled workers remain barriers to adoption.
AI Healthcare Market to Reach $110.61 Billion by 2030
The artificial intelligence healthcare market will grow to $110.61 billion by 2030 from $21.66 billion in 2025, expanding at an annual rate of 38.6 percent, according to market research from MarketsandMarkets.
Healthcare providers are driving adoption. Hospitals and health systems account for the largest share of AI spending today, driven by budget increases aimed at improving care quality while cutting costs.
Where AI Is Being Used
Deep learning-a subset of machine learning-commands the largest share of AI tools in healthcare. Beyond that, hospitals are deploying AI across diagnosis and early detection, treatment planning, patient monitoring, pharmacy management, and administrative functions.
Asia Pacific is seeing the fastest growth. Demographic shifts, technology improvements, and rising investment in innovation are accelerating AI adoption across the region.
Who's Building These Systems
Major players include Microsoft, Siemens Healthineers, NVIDIA, Epic Systems, GE Healthcare, Medtronic, Oracle, Veradigm, and Google. These companies are pursuing mergers, acquisitions, partnerships, and new product launches to strengthen their positions.
What's Holding Adoption Back
Clinician resistance remains a barrier. Many medical practitioners hesitate to adopt AI-based tools. A shortage of skilled professionals who can implement and manage AI systems compounds the problem.
Lack of standardized frameworks for AI and machine learning also constrains growth. Without consistent standards, healthcare organizations struggle to evaluate and integrate solutions.
What's Driving Growth
The need for earlier disease detection is pushing adoption. The volume and complexity of health data are growing exponentially as digital health systems expand. Rising chronic disease prevalence is putting cost pressure on providers, making AI efficiency gains more attractive.