AI in Healthcare Projected to Grow to $110.61 Billion by 2030

The global AI in healthcare market is set to grow from $21.66 billion in 2025 to $110.61 billion by 2030, driven by data explosion and tech adoption. Key players like Microsoft and Philips are leveraging collaborations and innovations, targeting opportunities despite challenges in infrastructure and acceptance. The cloud-based model shows significant promise, while the Asia Pacific region emerges as a major growth zone due to demographic changes.

A new comprehensive report from ResearchAndMarkets.com, titled “Artificial Intelligence (AI) in Healthcare Market by Offering, Function, Application, End User, Region – Global Forecast to 2030,” unveils a rapidly growing sector. Estimated to leap from a value of $21.66 billion in 2025 to an astonishing $110.61 billion by 2030, the growth reflects a compound annual growth rate (CAGR) of 38.6%.

This surge is fueled by several driving factors—one of them being the staggering growth in healthcare data combined with relentless cost pressures on providers. Moreover, the swift embrace of AI technologies in the healthcare landscape, along with ongoing innovations in product development, are pivotal to this expansion. The report doesn’t shy away from addressing the challenges too, such as the inadequacies in IT infrastructure and the hesitance towards AI in emerging markets.

Major players in the AI healthcare game—like Koninklijke Philips N.V., Microsoft Corporation, and NVIDIA Corporation—are vigorously pursuing strategies like product innovations and partnerships to bolster their market positions. Their approaches also include strategic acquisitions and expanding their geographical footprint, which aims to capture a larger share as the market blooms.

The report also breaks down the AI healthcare market by deployment models: on-premise, cloud-based, and hybrid. Interestingly enough, cloud-based solutions are on track for the greatest growth trajectory due to their scalability and remote access features. These types make for smooth integration and secure storage, crucial for healthcare providers needing to manage rising telehealth demands and improved IT infrastructure.

In terms of end users, hospitals and clinics are leading the charge, largely because there’s a booming demand for personalized healthcare solutions. AI technologies promise enhanced diagnostic accuracy and efficient operations, helping tailor approaches to patient care while trimming unnecessary costs. By automating tasks, healthcare practitioners can allocate their resources more effectively, increasing operational efficiency.

With the Asia Pacific region gearing up to be the fastest-growing market for AI in healthcare, the demographic shifts—especially the aging population—are driving this momentum. According to the United Nations, the number of older individuals will double in the coming decades, heavily influencing healthcare demands in Eastern and Southeastern Asia.

The report underscores the dual nature of opportunities and challenges in this unfolding market, listing factors like the slow adoption among some healthcare providers and the lack of standardized AI frameworks as hurdles yet to be overcome. However, the increasing need for advanced senior care solutions and collaborations between healthcare firms and AI tech companies offer pathways for growth.

The outlook for AI within healthcare is promising, with rapid growth anticipated globally. Despite challenges such as insufficient IT infrastructure and acceptance hurdles, key players are actively innovating. As cloud solutions gain traction and regional demands shift, particularly in Asia Pacific, the journey of AI in healthcare is just beginning. With the right partnerships and technologies, the sector is primed for transformation in diagnosing and treating patients.

Original Source: www.globenewswire.com