India AI-Medical Diagnostics Market

India AI-Medical Diagnostics Market Overview

• The India AI-Medical Diagnostics Market was valued at USD 300 million in 2023, driven by advancements in artificial intelligence (AI) technologies, the increasing demand for early disease detection, and the need for improved diagnostic accuracy in healthcare systems. The growing awareness of AI's benefits in reducing diagnostic errors is further accelerating its adoption in healthcare.
• Major players in the Indian AI-medical diagnostics market include IBM Watson Health, Siemens Healthineers, and GE Healthcare. These companies are collaborating with hospitals and research institutions to expand the use of AI tools in diagnostics.
• Key cities leading the AI-medical diagnostics market in India include Delhi NCR, Mumbai, and Bengaluru. These cities dominate due to their concentration of advanced healthcare facilities, research institutions, and AI startups. In Delhi NCR, leading hospitals have integrated AI diagnostic tools, while Bengaluru is a hub for healthcare technology innovation, making these cities central to the growth of AI-driven diagnostics in India.
• On January 24, 2024, Siemens Healthineers inaugurated the Siemens Healthineers-Computational Data Sciences Collaborative Laboratory at the Indian Institute of Science (IISc). This laboratory aims to develop open-source AI tools for automating the segmentation of pathological findings in neuroimaging data, focusing on neurological disease diagnosis.

India AI-Medical Diagnostics Market Segmentation

The India AI-Medical Diagnostics Market is segmented based on diagnostic type, application, and region.

• By Diagnostic Type: The market is segmented into imaging diagnostics, pathology diagnostics, and genomics diagnostics. In 2023, imaging diagnostics dominated the market due to the rapid adoption of AI-powered tools in radiology and oncology. Imaging diagnostics use AI to enhance the accuracy of medical imaging, making it easier for healthcare professionals to detect diseases like cancer and cardiovascular conditions at an early stage.

• By Application: The market is categorized into radiology, cardiology, neurology, pathology, and oncology. Radiology holds the largest market share in 2023, driven by the demand for AI tools that assist in interpreting complex imaging data with greater accuracy. Hospitals and diagnostic centers across India are increasingly adopting AI to improve diagnostic speed and reduce errors in radiology.

• By Region: The market is divided into North, South, East, and West. In 2023, North India dominated the market, led by Delhi NCR, which has a high concentration of AI-driven healthcare facilities and research institutions. The governments push for digital health initiatives and the presence of advanced healthcare infrastructures are contributing to the regions dominance.

India AI-Medical Diagnostics Market Competitive Landscape

• GE Healthcare: In 2022, GE Healthcare launched its 5G Innovation Lab in Bengaluru, which is the first of its kind globally for the company. This lab aims to develop future-ready healthcare solutions and enhance remote care capabilities. It serves as a testbed for innovations that combine AI, IoT, big data, and cybersecurity, facilitating the development of precision healthcare applications.
• Philips Healthcare: At the IRIA 2024 conference, Philips unveiled its comprehensive suite of AI-driven enterprise imaging solutions, including next-generation technologies in Ultrasound, MRI, and CT systems. These innovations are designed to enhance operational performance and workflow efficiency for healthcare providers.

India AI-Medical Diagnostics Market Analysis

Growth Drivers:

1. Increasing Investment in AI-based Healthcare Solutions: India is witnessing substantial investments in AI-driven healthcare solutions, particularly in diagnostics. In 2023, AI-driven medical diagnostics received noteworthy amount in funding from both public and private sectors, aiming to accelerate early disease detection and improve treatment outcomes. This surge in funding is enabling the development of advanced diagnostic tools that integrate AI for faster, more accurate detection of critical diseases like cancer and cardiovascular disorders.
2. Rising Demand for Early Disease Detection: Early diagnosis through AI technology is gaining traction, especially for chronic diseases like cancer and cardiovascular conditions. AI tools are now being integrated with screening programs for early-stage cancer detection, allowing for quicker diagnosis and personalized treatment plans. This advancement is leading to better patient outcomes and reducing the overall burden on healthcare systems.
3. Rising Prevalence of Chronic Diseases: India is facing a rising burden of chronic diseases, such as diabetes, cancer, and cardiovascular conditions. Between 2019-2021, over 31 million people in India were diagnosed with diabetes, while cardiovascular diseases accounted for 28% of all deaths, according to the Indian Council of Medical Research (ICMR). This growing prevalence is driving the demand for AI-driven diagnostic tools, which can provide faster, more accurate detection of these conditions.

Challenges:

1. Lack of AI Infrastructure in Rural Areas: Despite significant advancements in AI-based medical diagnostics, the rural healthcare system still lags behind in adopting these technologies. In 2023, only 15% of rural hospitals were equipped with AI-based diagnostic tools, according to the National Rural Health Mission (NRHM). This disparity is due to inadequate infrastructure, lack of trained personnel, and high costs associated with implementing AI systems in remote regions
2. High Cost of AI Diagnostic Tools: While AI-powered diagnostic solutions are becoming increasingly popular in urban hospitals, the high cost of these tools remains a significant barrier to entry, especially for mid-tier and smaller hospitals. ccording to the Indian Medical Association, hospitals in Tier 2 and Tier 3 cities find it challenging to bear these costs without government subsidies or private investment.

Government Initiatives:

1. National Digital Health Mission (NDHM): The National Digital Health Mission (NDHM), launched by the Government of India on August 15, 2020, aims to create a comprehensive digital health ecosystem in the country. This initiative is expected to improve patient data management and diagnostic accuracy through AI tools.
2. Ayushman Bharat Digital Mission (ABDM): The Ayushman Bharat Digital Mission (ABDM) aims to create a digital health ecosystem in India, facilitating universal health coverage. It includes initiatives like Health IDs and registries for healthcare facilities and professionals. The mission received a funding boost of USD 175 million to enhance healthcare delivery through digital solutions and improve access to services across the country.

India AI-Medical Diagnostics Market Future Outlook

The India AI-Medical Diagnostics Market is expected to grow remarkably over the forecast period, driven by continued advancements in AI and machine learning technologies, government support, and increasing demand for early diagnostic solutions in the healthcare sector.

Future Market Trends:

• AI Diagnostics to Drive Precision Medicine: Over the next five years, the India AI-Medical Diagnostics Industry will be driven by advancements in precision medicine, where AI will play a crucial role in tailoring treatment plans based on genetic and clinical data. By 2028, AI-based genomics diagnostics are expected to be widely used for personalized cancer treatment.
• AI Integration with Wearable Health Devices: By 2028, AI diagnostics are expected to integrate seamlessly with wearable health devices, enabling real-time monitoring and early detection of chronic diseases like diabetes and cardiovascular conditions. In 2024, the Indian Medical Devices Regulatory Authority (IMDRA) began approving AI-powered wearables for remote patient monitoring.