India AI in Medical Diagnostics Market Size Likely to Grow at a CAGR of 12.72% By 2034

Market Size and Growth

The India AI in Medical Diagnostics Market size is forecast to grow at a CAGR of 12.72% from 2025 to 2034. The market is expected to reach USD 191.4 Million by 2034, up from USD 64.8 Million in 2025.

Overview

As per an industry expert at CMI, the India AI in Medical Diagnostics Market has commented on the India AI in Medical Diagnostics Market. Various factors such as the rising prevalence of chronic diseases, increasing demand for AI tools, technological advancements and favourable government initiatives and funding are mainly driving the global AI in the medical diagnostic market.

Key Trends & Drivers

• Rising Patients of Chronic Diseases: The growing prevalence of chronic diseases in India due to the increasing aging population and unhealthy lifestyle is expected to drive the demand for early and accurate diagnostics. The Indian government is implementing various supportive initiatives, such as the Ayushman Bharat Digital Mission and the National Digital Health Mission, to promote the adoption and integration of AI technologies in healthcare. For instance, the data published by the National Family health survey, show that the prevalence of chronic diseases is high across various age groups, with a 2023 study estimating the prevalence of at least one chronic disease at 41.73% among adults and the elderly in India. Thus, such increasing disease burden is expected to drive the demand for advanced diagnostic technologies, thereby driving the demand for AI in Medical diagnostic during the forecast period.

• Supportive Government Initiatives: The government of India and respective state governments are implementing the supportive government policies and health programs, such as the National Health Mission, Ayushman Bharat Mission, etc., to ensure availability of essential medicines and diagnostics. For instance, under the Ayushman Bharat Abhiyan, the government of India built the 150,000 Ayushman Arogya Mandirs (AAMs), formerly known as Ayushman Bharat Health and Wellness Centres (AB-HWCs), across the country. A total of 177,906 Ayushman Arogya Mandirs have been established and operationalized by June 2025. These have been created by transforming existing Sub-Health Centres (SHCs) and Primary Health Centres (PHCs) in both rural and urban areas. Thus, such a supportive policy framework is expected to drive the market growth of AI in Medical Diagnostic Market during the forecast period. Furthermore, under the free drugs and free diagnostics service initiative, the Government provides financial support to States and UTs to ensure the availability of essential medicines and diagnostics.

Report Scope

SWOT Analysis

• Strengths: India has a well-established medical diagnostic industry. India has a large and increasing population base, and an expanding middle class population coupled with increasing disposable income and increasing awareness of lifestyle diseases fuels demand for healthcare services. AI algorithms improve diagnostic accuracy by analysing complex medical data, reducing human error. Machine learning models can identify early signs of diseases such as cancer or heart disease, allowing for timely intervention. Thus, such factors are providing strength to the India AI in the medical diagnostic market.

• Weaknesses: There are millions of families in India that don’t have access to the basic healthcare facilities. The overdependence on government support and less participation of private investors in the Indian healthcare system are acting as weaknesses for AI in Medical diagnostic market. Furthermore, various factors such as insufficient public healthcare infrastructure, a limited number of diagnostic centers leading to overcrowded public healthcare facilities, and a significant shortage of doctors and trained professionals, particularly in rural areas.

• Opportunities: The increasing supportive government initiatives coupled with the rapidly expanding healthcare industry across India are expected to create lucrative opportunities for the market during the forecast period. The increasing investment by the new startups and supportive policies for the health-tech ecosystem are driving innovation in AI-powered diagnostics, creating new apps and devices to address healthcare challenges. Key growth opportunities observed in the AI in the medical diagnostic market include the increasing focus by the government on digital health, affordable diagnostics, health insurance, and specialized healthcare services like geriatrics and mental wellness.

• Threats: Lack of skilled expertise to operate and run AI driven diagnostic tools is mainly acting as a threat for the Market. The inadequate infrastructure and lack of beds, especially in rural areas, and overdependence on government hospitals are creating a significant shortage of skilled healthcare professionals, particularly in public and rural settings. Furthermore, increasing incidences of the cyberattacks targeting sensitive patient data, including ransomware and data exfiltration, and increasing healthcare costs that make services unaffordable for many are expected to create a threat for the market growth during the forecast period.

List of the prominent players in the India AI in Medical Diagnostics Market:

• Cardiotrack
• CrelioHealth
• HealthifyMe
• Niramai
• Practo
• Qure ai
• SigTuple
• Teleradiology Solutions
• Tricog Health
• Digital Diagnostics Inc.
• Enlitic
• IBM Corporation
• Imagen Technologies
• NVIDIA Corporation
• PathAI
• RADLogics
• Riverain Technologies
• Siemens Healthineers
• Microsoft Corporation
• Others

The India AI in Medical Diagnostics Market is segmented as follows:

By Component

• Software
• Services
• Hardware

By Application

• Radiology
• Oncology
• Cardiology
• Neurology
• Pathology
• Infectious Diseases

By End-use

• Hospitals & Clinics
• Imaging Centers
• Others