AI in Oncology Market Trends: Transforming Cancer Diagnosis and Treatment

The global market for artificial intelligence (AI) in oncology is currently valued at $2.80 billion and is projected to expand at a substantial annual growth rate of 28.92% between 2024 and 2030. This growth is primarily driven by several factors, including the rising incidence of cancer, advancements in cancer diagnostics and healthcare infrastructure, and a growing demand for early and accurate cancer detection.

Public and private organizations are actively investing in research and development (R&D) to introduce innovative AI technologies, further stimulating market growth. For instance, Tempus, a company specializing in precision medicine and AI, recently launched a program called Tempus+. This proprietary program leverages real-world data to facilitate collaborative research in precision oncology. A network of researchers, including institutions like Baylor College of Medicine, Allegheny Health Network, Stanford Cancer Center, Rush University Medical Center, TriHealth, and others, are already utilizing the Tempus+ program to advance their research. Additionally, the increasing approval of AI-related medical devices is expected to boost market growth. In January 2024, the U.S. FDA granted approval to DermaSensor, the first AI medical device designed to detect skin cancer.

Gather more insights about the market drivers, restrains and growth of the AI in Oncology Market

Product Segmentation Insights 

The hospitals segment dominated the market with a revenue share of 48.2% in 2023 due to increased adoption of AI-powered solutions. This segment is expected to grow significantly during the forecast period due to rising number of companies entering the market to cater cancer care in hospitals and positive responses from patients.

The hospitals segment is also expected to grow at the fastest CAGR over the forecast period, owing to technological advancements in the healthcare sector. Digitalizing processes and implementing AI, virtual reality, and immersive technologies are key examples that changed healthcare institutions’ diagnostic, treatment, and data collection processes, including hospitals. Furthermore, hospitals are integrating AI-powered algorithms in cancer therapy to enhance accuracy by avoiding misdiagnosis.

Order a free sample PDF of the AI in Oncology Market Intelligence Study, published by Grand View Research.