Let's See What Role Does AI in Healthcare Market Companies Play!
Market Growth
The AI in healthcare market is projected to reach USD 674.19 billion by 2034, growing from USD 37.98 billion in 2025, at a CAGR of 37.66% during the forecast period from 2025 to 2034, as a result of the increasing adoption of advanced technology, innovation in clinical research and rising demand for customized healthcare.
AI in Healthcare Market Trends
- In January 2025, Nvidia announced a collaboration with Mayo Clinic, Illumina, IQVIA, and Arc Institute at the J.P. Morgan Healthcare Conference in San Francisco. The collaboration was made to focus on scaling AI models across the healthcare sector.
- In January 2025, Innovaccer Inc. announced that it raised $275 million in a Series F funding round. The funding was raised to expand collaboration with existing customers, introduce new AI and cloud capabilities, and scale its developer ecosystem.
- According to the “Digital Healthcare – Top 10 Myths Debunked Digital Health & AI” report, AI in healthcare is projected to contribute $25-30 billion to India’s GDP by 2025, enhancing accessibility, diagnostics, and treatment outcomes. Government initiatives such as IndiaAI's mission and the Digital Personal Data Protection Act of 2023 promote the market.
Strategic Initiative
In February 2025, India’s healthcare sector is rapidly evolving with technology, and MedMitra AI is playing a key role in this shift. The health-tech startup, focused on using AI to improve clinical decisions, recently raised ₹3 crore in a pre-seed round led by All In Capital and WEH Ventures. Angel investors like Rohan Khandelwal, Pawan Gupta, and Venkat Subramanyam also participated. This funding will help MedMitra AI develop autonomous, AI-driven solutions to bridge critical gaps in patient care.
Latest Announcement by Industry Leaders
Mary Verghese Presti, Vice President of Portfolio Evolution and Incubation at Microsoft Health and Life Sciences, commented that the company aims to reduce the strain on medical staff, foster collective health team collaboration, and enhance the overall efficiency of healthcare systems across the country through integrating AI in healthcare.
Recent Developments
- In April 2025, HelloCareAI secured $47 million in funding to grow its AI-powered virtual healthcare platform tailored for smart hospitals. The goal of this expansion is to improve patient care by integrating AI-supported nursing, remote health monitoring, and streamlined hospital workflow systems.
- In February 2025, Innovaccer introduced "Agents of Care," a set of AI-driven tools aimed at reducing burnout among medical staff. By handling repetitive administrative duties, these assistants help boost efficiency and allow healthcare workers to focus more on patient care.
- In July 2024, Microsoft partnered with Mass General Brigham and the University of Wisconsin-Madison to develop AI models focused on medical imaging. These models aim to support the diagnosis of over 23,000 conditions, helping radiologists work more efficiently and ultimately leading to better outcomes for patients.
- In January 2024, Siemens joined forces with Amazon Web Services (AWS) to make generative AI more accessible in software development. By incorporating Amazon Bedrock into Siemens’ Mendix low-code platform, the collaboration aimed to enable professionals from various fields to effortlessly build and improve applications using advanced generative AI tools.
- In December 2024, the Andhra Pradesh, India, government announced the launch of an AI-based Janani Mitra healthcare app for pregnant women across the state. The app provides delivery parameters for pregnant women, including their nutrition and overall well-being.
- In October 2024, Google Cloud announced the expansion of its Vertex AI platform for its Healthcare Data Engine (HDE). The platform helps healthcare professionals with swifter and more robust ways to query health records, collate insights across different sources, and participate in advanced analytics.
Collaborate with our experts to explore the AI in Healthcare Market at sales@towardshealthcare.com
