(MENAFN- GlobeNewsWire - Nasdaq) The global AI in healthcare market is projected to grow from USD 36.67 billion in 2026 to USD 194.79 billion by 2031, registering a 39.7% CAGR. Growth is driven by rising hospital adoption, demand for clinical efficiency, personalized care, accurate diagnostics and reduced physician burnout. Cloud-based AI solutions will see the fastest growth, while hospitals and clinics remain the leading end users. Asia Pacific is the fastest-growing region, supported by healthcare digitalization and government initiatives. Key players include Microsoft, NVIDIA, Siemens Healthineers, Philips, Epic Systems, GE Healthcare, Oracle and Google.Dublin, Oct. 02, 2026 (GLOBE NEWSWIRE) -- "Artificial Intelligence in Healthcare Market by Function, Tools, End User - Global Forecast to 2031" has been added to ResearchAndMarkets.com's offering.
The global artificial intelligence (AI) in healthcare market is projected to grow from USD 36.67 billion in 2026 to USD 194.79 billion by 2031, registering a compound annual growth rate (CAGR) of 39.7% during the forecast period. Market expansion is being supported by increasing adoption of AI solutions across hospitals, clinics and health systems to improve clinical efficiency, reduce physician burnout, strengthen diagnostic accuracy and enhance patient outcomes.
Recent healthcare industry developments demonstrate the accelerating deployment of clinical AI. In 2025, Cleveland Clinic introduced Ambience Healthcare's AI documentation platform across its US outpatient network after evaluating the technology in more than 80 specialties. More than 4,000 clinicians adopted the platform within 15 weeks, enabling documentation for over one million patient encounters.
In January 2026, Aultman Health System deployed Nabla's ambient AI solution across hundreds of clinicians through an integration with Oracle Cerner. AtlantiCare also reported a 50% reduction in documentation time following implementation of Oracle Health's Clinical AI Agent. Continued real-world adoption across healthcare delivery settings is expected to reinforce AI's role in clinical documentation, decision support, patient management and operational optimization.
Cloud-Based AI Deployment Leads Market Growth
By deployment model, the AI in healthcare market is segmented into on-premises, cloud-based and hybrid solutions. Cloud-based models hold the largest market share and are expected to register the highest growth during the forecast period. Their expansion is supported by scalability, cost-effectiveness, remote accessibility, secure data storage, rapid deployment and real-time analytics.
Cloud platforms facilitate data processing, collaboration and integration across healthcare providers and payers. Growing telehealth adoption and continued advancements in healthcare IT infrastructure are further increasing demand for cloud-based healthcare AI solutions.
Hospitals and Clinics Account for the Largest End-User Share
The hospitals and clinics segment dominated the artificial intelligence in healthcare market for healthcare providers in 2025. Other end-user categories include ambulatory surgical centers, home healthcare agencies and assisted living facilities, diagnostic and imaging centers, pharmacies, and other healthcare providers.
Growth within hospitals and clinics is associated with rising demand for personalized medicine, precise diagnostics, surgical planning, minimally invasive procedures and interoperability with existing systems. AI-powered healthcare solutions support diagnostic accuracy, administrative automation, real-time decision-making, patient outcome prediction, remote monitoring and resource optimization. These capabilities can also reduce unnecessary treatments and associated costs.
Asia Pacific to Register the Highest Regional Growth
The market analysis covers North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific is expected to record the fastest growth, driven by rapid healthcare digitalization, expanding electronic health record adoption, increasing AI investment and government support for digital health initiatives.
China, India, Singapore, Japan and South Korea are integrating AI into diagnostics, medical imaging, clinical decision support and hospital workflow management. In February 2026, India launched its Strategy for AI in Healthcare (SAHI), establishing a national framework for responsible, large-scale AI adoption across the healthcare ecosystem.
Singapore's Ministry of Health is scaling generative AI for clinical documentation and AI-powered imaging across the public healthcare system. Ng Teng Fong General Hospital and other regional providers are also deploying AI-enabled tools to improve patient management and care delivery.
Competitive Landscape and Key Market Players
Prominent companies operating in the global AI in healthcare market include Koninklijke Philips N.V. (Netherlands), Microsoft Corporation (US), Siemens Healthineers AG (Germany), NVIDIA Corporation (US), Epic Systems Corporation (US), GE HealthCare (US), Medtronic (US), Oracle (US), Veradigm LLC (US), Merative (IBM) (US), Google (US), Cognizant (US), Johnson & Johnson (US), Amazon Web Services, Inc. (US), SOPHiA GENETICS (US), Riverain Technologies (US), TeraRecon (ConcertAI) (US), Solventum Corporation (US), Tempus (US), and Viz.ai (US).
Market participants are using product launches, software updates, geographic expansion, partnerships, collaborations, mergers and acquisitions to strengthen their competitive positions.
Research Coverage
The report evaluates the artificial intelligence in healthcare market by offering, function, application, deployment model, tool, end user and region. It assesses market size, revenue forecasts, growth trends, micromarket contributions, stakeholder opportunities and competitive developments across five major regions.
The research examines key growth drivers, including the rapid proliferation of healthcare AI and demand for improved healthcare services. It also analyzes restraints such as the shortage of skilled AI professionals and the absence of standardized frameworks for AI and machine learning technologies. Identified opportunities include strategic partnerships between healthcare companies and AI technology providers, along with increased investment in human-aware AI systems. Data privacy concerns and limited interoperability remain key market challenges.
The report also provides:
Product development and innovation analysis: Upcoming trends, research and development activity, and software launches in the artificial intelligence in healthcare market. Market development insights: Opportunities across emerging markets, offerings, functions, applications, deployment models, tools, end users and regions. Market diversification analysis: Software portfolios, expanding geographies, recent developments and industry investments. Competitive assessment: Market shares, growth strategies, product offerings, company evaluation quadrants and capabilities, including detailed analysis of Koninklijke Philips N.V., Microsoft Corporation, Siemens Healthineers AG, NVIDIA Corporation and Epic Systems Corporation.
Primary Research Participant Breakdown
By company type: Tier 1, 32%; Tier 2, 44%; and Tier 3, 24%. By designation: Directors, 30%; managers, 34%; and others, 36%. By region: North America, 40%; Europe, 28%; Asia Pacific, 20%; Latin America, 7%; and the Middle East and Africa, 5%.
The report is designed to help established companies, new entrants and smaller firms assess market conditions, identify growth opportunities and develop strategies to increase their share of the rapidly expanding artificial intelligence in healthcare market.
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