Key Highlights
- AI healthcare market is projected to grow from $39.5 billion in 2025 to $1 trillion by 2034.
- North America is expected to hold the largest market share.
- Experts say AI could improve diagnosis, research and healthcare operations.
Artificial intelligence is expected to play a much bigger role in healthcare over the next decade, with a new study projecting major growth in the market.
According to research released Monday by The Insight Partners, the global AI healthcare market is expected to grow from $39.5 billion in 2025 to nearly $1 trillion by 2034.
The study forecasts a compound annual growth rate (CAGR) of 45.3% between 2025 and 2034, reflecting growing investment and wider adoption of AI technologies across healthcare systems.
Experts say artificial intelligence is already beginning to reshape how healthcare organizations handle both administrative and clinical work.
“When we talk about the application of AI, we can think of applying it across the entire spectrum of health care specialties, from the administrative side through to clinical care,” said Samir Kendale, Assistant Professor of Anaesthesia at Harvard Medical School, in a statement.
Healthcare Sector Sees Growing Use of AI Tools
The growing market projection comes as hospitals, clinics and healthcare providers continue adopting AI tools for different functions.
According to a Harvard Medical School analysis published in August 2024, AI can help healthcare systems automate routine work, improve efficiency, support faster diagnoses and even accelerate the discovery of new treatments.
Some analysts have also suggested AI could play a larger role in cancer care, helping specialists improve detection methods, analyse medical information and support patient diagnosis.
The study found that North America is likely to remain the leading market for healthcare AI, accounting for more than 42.92% of the global market share by 2034.
Meanwhile, Europe is expected to hold the second-largest share at more than 26.83%, with the United Kingdom’s AI healthcare market projected to grow at a 44.3% CAGR during the same period.
Despite growing adoption, AI expansion has also raised concerns in some communities across the U.S.
According to a Gallup poll released in May, around 7 in 10 Americans opposed building new AI data centres in their local communities, while only 7% strongly supported such projects.
Separately, a Wall Street Journal report said opposition had delayed or halted 48 AI data centre projects worth around $156 billion in 2025.
The Insight Partners said its research included interviews with C-suite executives, engineers, procurement leaders and policy analysts across more than 15 countries, supported by proprietary databases and third-party validation.