U.S. AI in Oncology Market Current Research and Development Trends

Revenue, 2025

USD 720.04 Million

Forecast, 2035

USD 8467.58 Million

CAGR, 2026-2035

27.95%

Report Coverage

United States

U.S. AI in Oncology Market Trends for 2026

The U.S. AI in oncology market size was estimated at USD 720.04 million in 2025 and is predicted to increase from USD 921.29 million in 2026 to approximately USD 8467.58 billion by 2035, expanding at a CAGR of 27.95% from 2026 to 2035.

The U.S. AI in oncology market is increasing as AI-driven technology supports doctors in making precise treatment decisions, lowers unnecessary surgeries, and helps oncologists enhance patients' cancer treatment plans.

Key Takeaways

• The U.S. AI in oncology market will likely exceed USD 921.29 million by 2026.
• Valuation is projected to hit USD 8467.58 million by 2035.
• Estimated to grow at a CAGR of 27.95% starting from 2026 to 2035.
• By component, the software solutions segment dominated the market in 2025 with approximately 64.0% share.
• By component, the services segment is expected to grow at the fastest CAGR in the market during the forecast period.
• By cancer type, the breast cancer segment dominated with approximately 41% share in 2025.
• By cancer type, the lung cancer segment is expected to grow at the fastest CAGR in the market during the forecast period.
• By application, the diagnostics segment dominated the U.S. AI in oncology market in 2025 with approximately 38.0% share.
• By application, the drug discovery & research segment is expected to grow at the fastest CAGR in the market during the forecast period.
• By end-user, the hospitals segment dominated the market in 2025 with approximately 49% share.
• By end-user, the diagnostic centers segment is expected to grow at the fastest CAGR in the market during the forecast period.

What Factors Support the Growth of AI in Oncology in the U.S.?

The U.S. AI in oncology market is growing because AI-based technology rapidly understands how cancer cells become resistant to anticancer drugs, which helps enhance drug development and adjust drug applications. AI-based technology improves the identification of cancer neoantigens and the effectiveness of tumor immunotherapy. AI-based technology manages the use of chemotherapy medicines and predicts the tolerance of chemotherapy drugs to optimize the chemotherapy regimen. AI-driven technology focuses more on the response between drugs and patients. The use of AI in cancer radiotherapy majorly includes the cancer target region, the delineation of organs at risk, and the automatic formulation of a radiotherapy plan. AI-based technology could speed up the discovery of novel materials, a shift that could dramatically accelerate the advancement of anticancer drugs.

Applications of AI in Healthcare

Future Outlook & Trends in the U.S. AI in Oncology Market

Advanced Diagnostics:

AI-based imaging diagnostics using a range of modalities like computed tomography, positron emission tomography, magnetic resonance imaging, ultrasound, and digital pathology, highlighting the growing role of advanced technology in identifying early-stage cancers.

Precision Medicine:

Precision medicine is a new strategy for tailoring disease prevention and treatment. It makes it possible for doctors and researchers to more accurately predict which treatments are more likely to work for a patient, considering the patient's genetic and molecular make-up, lifestyle, and environment.

Digital Twins in Oncology:

Digital twin technology holds considerable promise for advancing precision oncology via predictive, personalised, and adaptive care policies. It improves and elevates research and discovery of novel drugs and treatments while deepening the understanding of diseases.

Key Indicators and Highlights

Segmentation Analysis

By Component Insights

Which Component Led the U.S. AI in the Oncology Market in 2025?

In 2025, the software solutions segment held the dominant U.S. AI in oncology market share with approximately 64.0% share in 2025, due to software solutions such as the major software-based oncology platform, offering significant advantages in providing documented and effective. Advanced patient engagement software transforms oncology care by connecting the gaps between appointments, improving the patient experience, and streamlining medical care workflows.

Services

Whereas the services segment is the fastest-growing in the market, as AI-based technology allows earlier and more precise diagnosis by identifying subtle irregularities in radiology, pathology, and liquid biopsy data that elude conventional valuation. Integrating multi-omics, healthcare, and imaging datasets, AI-based technology supports highly targeted treatment planning, expects therapeutic responses, and guides the selection of specific agents and immunotherapies.

By Cancer Type Insights

Why did Breast Cancer, the Pharmaceutical Companies Segment Dominate the Market in 2025?

The breast cancer segment is dominant in the U.S. AI in oncology market in 2025, with approximately 41% share in 2025, as AI-based technology has the potential to enhance breast cancer screening by increasing precision and lowering radiologist workload.  Significant AI-based technology has effectively identified breast cancer that physicians missed and tissue features that predict future cancers. AI-based software systematizes the interpretation of breast mammograms, ultrasounds, and MRI scans to get patients their outputs faster.

Lung Cancer

Whereas the lung cancer segment is estimated to be the fastest-growing in the market, as AI-based technology applications in lung cancer significantly focus on lung nodule identification, diagnosis, and radiotherapy planning, with all these algorithms being imaging-based. AI-based research in lung cancer offers promising prospects for automated and precise management. AI-based technology is emerging rapidly, with the definitive objective being the advancement of a comprehensive model, called generalist AI-base capable of analyzing multi-modal data and tackling a wide range of tasks.

By Application Insights

Why did the Diagnostics Segment Dominate the Market in 2025?

The diagnostics segment is dominant in the U.S. AI in oncology market with approximately 38.0% share in 2025, as diagnostic technology in oncology provides early identification with high precision, increase effectiveness of care, and is scalable in the health care systems. With the promise of rapid, more precise diagnoses, AI-based technology is transforming how clinicians detect, diagnose, and manage cancer. AI-based technology has become a significant tool in revolutionising cancer diagnosis and treatment because of its capacity to spot minute patterns and irregularities in healthcare data.

Drug Discovery & Research

Whereas the drug discovery & research segment is the fastest-growing in the market, as AI-based technology in drug discovery speeds up target identification, enhances clinical trials, lowers expenses, and allows targeted medicine.  AI has allowed groundbreaking developments in molecular modeling, simulation processes, and the identification of new compounds. AI-driven drug discovery lowers research and development expenses by up to 40%.

By End-User Insights

Why did the Hospitals Segment Dominate the Market in 2025?

The hospitals segment is dominant in the U.S. AI in oncology market with approximately 49% share in 2025, as AI-based technology in oncology provides early identifications with high precision, rise effectiveness of care, and is scalable in the healthcare systems. Two cancer types that have helped from automated diagnosis with AI-based technology are skin and breast cancers. AI's capacity to identify patterns and aberrations that escape human care in the hospital.

Diagnostic Centers

Whereas the diagnostic centers segment is the fastest-growing in the market, as AI-based technology becomes a significant tool in revolutionising cancer diagnosis and treatment due to its capacity to spot minute patterns and irregularities in medical data. AI-based tools that are integrated into diagnostic center workflows in oncology clinics analyse medical records and supports physician make more up-to-date decisions.

Latest Updates of Key Players in the U.S. AI in Oncology Market

SWOT Analysis

Strengths

• Diagnostic AI-driven technology in oncology offers early detection with high precision, increase effectiveness of care, and is scalable in the health systems.
• AI-based system plays a significant role in cancer treatment planning, specifically by offering an additional layer of insight or authorizing existing decisions.

Weaknesses

• AI algorithms are complex and difficult to interpret, making it complex to understand how they arrive at their decisions.
• The applications of AI-based in Medicare increase ethical questions, such as the potential for job displacement and the influence on patient–physician relationships.

Opportunities

• Recent developments in AI-based applications in cancer research, focusing on early identification via computer-driven diagnosis, modified treatment strategies, and drug discovery.
• Computer-aided diagnosis (CAD) systems have shown noteworthy promise in cancer diagnosis, specifically in the detection, classification, and monitoring of cancer.

Threat

• Patient data security is a significant challenge. AI systems require wide amounts of sensitive data, raising challenges about data breaches and misuse.

Recent Developments in the U.S. AI in Oncology Market

• In February 2026, PathAI announced the strategic expansion of its support of inflammatory bowel disease clinical trials on the AISight Clinical Trials Platform with the launch of IBDExplore to join AIM-HI UC.
• In January 2026, 10x Genomics, Inc., a leader in single-cell and spatial biology, today announced a collaboration with the Cancer Research Institute (CRI) to advance the frontiers of immuno-oncology through high-resolution molecular data and AI.
• In January 2026, the Mount Sinai Tisch Cancer Center (TCC) launched a novel artificial intelligence (AI) platform to help connect more cancer patients across the Mount Sinai Health System to life-saving clinical trials.
• In January 2026, Modella AI announced that it had been acquired by AstraZeneca, expanding the companies’ existing collaboration to advance the application of multi-modal AI foundation models and AI agents across AstraZeneca’s global oncology portfolio.

Segments Covered in the Report

By Component

• Software Solutions
• Hardware
• Services

By Cancer Type

• Breast Cancer
• Lung Cancer
• Prostate Cancer
• Colorectal Cancer
• Brain Tumors & Others

By Therapeutic Area

• Diagnostics
• Drug Discovery & Research
• Radiation Therapy
• Chemotherapy & Immunotherapy

By End-User

• Hospitals
• Diagnostic Centers
• Pharmaceutical & Biotech Companies