The global market for artificial intelligence in medicine is forecast to grow from $29.27 billion this year to $3.36 trillion by 2040, according to a new report from ResearchAndMarkets, the Dublin-based market intelligence firm.
The projection implies a compound annual growth rate of 40.34% over the forecast period, driven by rising chronic and genetic disease burdens and growing demand for precision diagnostics.
The report identifies AI-enabled drug discovery, personalised medicine using genomic data, wearable monitoring devices and predictive analytics as key accelerants, arguing the technology is shifting healthcare from reactive treatment towards earlier intervention and workflow automation.
It sits within a broader wave of bullish forecasts for AI in healthcare, an area where multiple research houses are projecting rapid expansion as machine learning tools move from pilot programmes into clinical and commercial deployment.
A separate ResearchAndMarkets report published in March estimated the wider AI in healthcare market would grow from $48.5 billion to $1.92 trillion by 2040, while its AI in drug discovery study forecast that segment alone rising from $1.81 billion to $41.08 billion over the same period.
The AI in medicine report names Google DeepMind, IBM Watson Health, Nvidia, Tempus and PathAI as dominant players in the space, citing substantial investment in machine learning algorithms across diagnostics, drug discovery and personalised treatment.
It highlights challengers including Insilico Medicine and BenevolentAI, both of which are applying generative AI to novel drug design, an area attracting significant venture and pharmaceutical interest.
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Regulatory developments are also shaping the competitive landscape, with the report pointing to consolidation activity as companies seek to build integrated platforms spanning discovery, diagnostics and care delivery.
The broader AI in medicine market is segmented across components, technologies, applications and end users, reflecting the technology's widening footprint from hospital imaging departments and clinical trial design through to remote patient monitoring and administrative automation.
The recap
- ResearchAndMarkets releases AI in medicine market report globally
- Market grows from $29.27 billion to $3.36 trillion
- Report forecasts a 40.34% compound annual growth rate
