India AI in Medical Diagnostics Market By Component (Software, Hardware, Services), By Diagnosis Type (Cardiology, Oncology, Pathology, Radiology, Chest and Lung, Neurology, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The India AI in Medical Diagnostics Market was valued at USD 12.87 million in 2024 and is expected to reach USD 44.87 million by 2030, with a CAGR of 23.10% during the forecast period.

The AI in Medical Diagnostics Market in India is witnessing rapid growth, driven by an increasing demand for early and accurate disease detection, a rising burden of chronic illnesses, and a shortage of skilled healthcare professionals. 

With a growing reliance on AI-powered radiology, pathology, and predictive analytics, hospitals and diagnostic centers are integrating AI solutions to enhance efficiency and reduce turnaround times. The market is further fueled by government initiatives, such as the Ayushman Bharat Digital Mission (ABDM) and the National Digital Health Mission (NDHM), which promote healthcare digitization and the adoption of AI. 

India's thriving health-tech startup ecosystem, led by companies such as Qure.ai, Niramai, and Predible Health, is accelerating innovation in AI-based diagnostic imaging and automation.

The Southern region, particularly Bangalore, Chennai, and Hyderabad, dominates the market due to its strong IT infrastructure, top-tier hospitals, and AI research facilities. However, challenges persist, including high costs of AI implementation, a lack of standardization in AI regulations, and concerns over data privacy and patient confidentiality. 

Moreover, the limited adoption of AI in rural healthcare facilities poses a barrier to widespread deployment. Despite these challenges, the increasing availability of cloud-based AI solutions, growing adoption of telemedicine, and ongoing regulatory developments are expected to drive further expansion of AI in medical diagnostics across India.

Key Market Drivers

Rising Healthcare Demand and Disease Burden

India's healthcare system is under heavy strain due to the rising prevalence of chronic diseases, an aging population, and growing demand for early diagnostics. As life expectancy improves, the elderly population requiring medical attention is increasing. Globally, the number of people aged 60 and above is projected to reach 2.1 billion by 2050, underlining the need for advanced and efficient diagnostic solutions.

In India, the Longitudinal Ageing Survey in India (LASI) 2023 reported that 21% of the elderly population suffers from at least one chronic condition. The prevalence is higher in urban areas (29%) compared to rural areas (17%). This demographic shift is driving the adoption of AI-driven diagnostics to strengthen early disease detection and management.

Chronic diseases such as diabetes, cardiovascular diseases (CVDs), and cancer are rising at a concerning pace. A 2024 study in The Lancet revealed that out of 82.8 crore diabetics worldwide, India accounts for over 21.2 crore, the largest share globally. Managing such a large diabetic population requires continuous monitoring and early detection of complications. AI-based diagnostic tools, particularly in ophthalmology and nephrology, are proving vital in these areas.

Cardiovascular diseases present another pressing challenge. Heart attacks and strokes contribute to over 80% of CVD-related deaths worldwide. India carries one of the highest burdens of acute coronary syndrome (ACS) and myocardial infarction, with cases increasing by 138% since 1990. AI-powered tools for ECG interpretation and cardiac imaging are playing an important role in early risk assessment and timely intervention.

India faces a dual challenge of rising disease burden and a shortage of skilled healthcare professionals. AI-driven diagnostic solutions are helping by reducing turnaround times, improving accuracy, and supporting remote healthcare access. These solutions are especially critical in urban centers, where non-communicable diseases are more widespread. Yet, barriers remain, including low AI adoption in rural regions and high implementation costs. Addressing these issues will be key to ensuring equitable access to advanced diagnostic care across the country.

Shortage of Skilled Healthcare Professionals

India is grappling with a severe shortage of skilled healthcare professionals, which is significantly impacting the efficiency and accessibility of medical diagnostics. The country has an insufficient ratio of doctors to patients and radiologists to population, leading to delays in diagnosis and treatment.

According to the World Health Organization (WHO), India has one doctor for every 1,511 people, falling short of the WHO-recommended 1:1,000 doctor-patient ratio. The situation is even more critical in specialized fields such as radiology, pathology, and cardiology, where the number of trained professionals is insufficient to meet the increasing demand for healthcare. The Indian Radiological and Imaging Association (IRIA) estimates that India has only about 15,000 radiologists for a population exceeding 1.4 billion, resulting in a significant diagnostic bottleneck, particularly in rural and semi-urban areas.

The shortage of skilled professionals is particularly concerning in tier-2 and tier-3 cities, where access to trained specialists remains limited. Many smaller hospitals and diagnostic centers lack the necessary expertise to accurately interpret complex medical imaging, resulting in delayed or incorrect diagnoses. AI-powered diagnostic solutions are emerging as a game-changer in bridging this gap by automating image interpretation, analyzing large volumes of patient data, and assisting doctors in clinical decision-making. For instance, AI-based radiology software can rapidly detect abnormalities in X-rays, MRIs, and CT scans, significantly reducing the dependency on highly specialized professionals.

The rising burden of chronic diseases such as diabetes, cardiovascular diseases (CVDs), and cancer has increased the demand for diagnostics, further straining the existing workforce. AI-driven pathology solutions can enhance efficiency in cancer detection, blood sample analysis, and genetic testing, thereby easing the workload on medical professionals. Moreover, AI-driven chatbots and virtual assistants are enhancing primary healthcare accessibility by providing initial assessments, reducing the burden on doctors, and enabling early intervention.

While AI-based diagnostics are helping mitigate the healthcare workforce shortage, challenges such as a lack of AI-trained personnel, resistance to technology adoption, and high implementation costs still exist. However, government initiatives, private investments, and AI-focused training programs are expected to drive adoption, ensuring that AI bridges the healthcare skills gap and enhances diagnostic efficiency across India.

Growing Investments in AI Healthcare Technology

Another important driver is the rising level of public and private investment in AI healthcare solutions. Several Indian startups and multinational companies are developing AI-based diagnostic platforms for pathology, radiology, and cardiology. Venture capital funding for health-tech companies has been increasing, with a focus on AI-enabled platforms that improve accessibility and reduce costs. The Government of India is also supporting AI adoption through programs such as the National Digital Health Mission (NDHM) and National AI Strategy, which encourage integration of AI in diagnostics and hospital management. These initiatives are boosting market confidence and accelerating innovation, leading to faster adoption of AI-powered diagnostics across the country.

Download Free Sample Report

Key Market Challenges

Data Privacy and Security Concerns

One of the biggest challenges in India's AI-driven medical diagnostics market is ensuring data privacy and security. AI-driven diagnostics rely heavily on patient data, including medical records, imaging scans, genetic information, and real-time health monitoring, making data protection a critical concern. 

The healthcare industry in India is still in the early stages of implementing robust data protection regulations, and the absence of a comprehensive legal framework raises concerns about unauthorized access, data breaches, and misuse of sensitive medical information.

With the increasing adoption of cloud-based AI solutions for diagnostics, patient data is often stored and processed on third-party servers, which can pose risks if stringent encryption and cybersecurity measures are not in place. A significant concern is the potential for cyberattacks on healthcare databases, which could result in the theft of sensitive patient information. India has witnessed a rise in cyberattacks on healthcare institutions, with over 1.9 million cyberattacks reported in the healthcare sector in 2022 alone, underscoring the urgent need for improved data protection mechanisms.

Another critical issue is patient consent and data ownership. Many AI-powered diagnostic tools collect, analyze, and learn from patient data to improve accuracy; however, concerns arise regarding who owns this data and how it is utilized. Patients often lack clarity on how their medical information is shared, stored, and utilized for AI training models, which raises ethical and legal concerns. The introduction of India's Digital Personal Data Protection (DPDP) Act, 2023, aims to strengthen data security measures, but its implementation in the healthcare sector remains a work in progress.

Moreover, the lack of standardization in AI regulations across hospitals, diagnostic centers, and research institutions adds complexity to ensuring data security and interoperability. Without clear guidelines on AI integration and data protection, hospitals and AI developers face challenges in complying with multiple regulations, which could potentially slow down AI adoption.

Key Market Trends

Technological Advancements and Startups

India's AI in the medical diagnostics market is witnessing a surge in technological advancements and startup innovations, revolutionizing the delivery of healthcare. This transformation is driven by the rising prevalence of chronic diseases and an aging population; by the end of 2025, India's elderly population (aged 60 and above) is expected to reach 158.7 million. More than 21% of the elderly in India have at least one chronic condition, with hypertension and diabetes accounting for about 68% of these diseases. With rapid developments in machine learning (ML), deep learning (DL), and computer vision, AI-powered diagnostic tools are becoming more sophisticated, offering faster, more accurate, and cost-effective solutions for disease detection and treatment planning. 

Startups are playing a pivotal role in pioneering AI-driven innovations, addressing critical challenges such as early disease detection, automating diagnostic processes, and improving healthcare accessibility in remote areas. This is particularly crucial in a country that has one doctor for every 1,511 people. The Indian government is supporting this shift by digitalizing the healthcare system through the National Digital Health Mission and providing over $1 billion in funds for AI-driven digital health services in the 2025 union budget.

Leading Indian startups, such as Qure.ai, Niramai, Predible Health, and Tricog Health, are making significant strides in AI-driven diagnostics. Qure.ai, for instance, has developed AI-powered tools for interpreting chest X-rays and CT scans, aiding in the early detection of tuberculosis, lung diseases, and neurological disorders. 

Similarly, Niramai has introduced a non-invasive, AI-based breast cancer screening solution using thermal imaging, making early cancer detection more accessible, especially for women in rural India. Tricog Health leverages AI for real-time cardiac diagnostics, enabling the quick interpretation of ECGs and the identification of heart diseases at an early stage.

The market is also benefiting from advancements in AI-driven pathology, genomics, and precision medicine. AI-powered digital pathology platforms are enhancing cancer detection by automating the analysis of whole slide images, which reduces the dependency on specialized pathologists. In a clinical study on metastatic tumors, 15.6% of patients who underwent comprehensive genomic profiling received targeted therapy, which was associated with prolonged survival. 

Institutions are also advancing the field. The Apollo Cancer Centre in Bengaluru has launched a Precision Oncology Centre that uses AI to identify patients for targeted therapy and immunotherapy. Similarly, the Indian Institute of Science (IISc) has partnered with Siemens Healthineers to create open-source AI tools for analyzing brain scans to help diagnose neurological diseases. The rise of cloud-based AI solutions and telemedicine integration is further transforming diagnostics, enabling real-time AI-assisted consultations and remote patient monitoring.

Growing Collaborations Between Healthcare Providers and Tech Companies

Another important trend is the increasing collaboration between hospitals, diagnostic chains, and technology companies to integrate AI-driven diagnostic tools into clinical workflows. Partnerships are helping to accelerate AI deployment by combining medical expertise with technological capabilities. Large healthcare providers are collaborating with AI startups to co-develop solutions tailored to specific use cases, such as radiology reporting automation, pathology image analysis, and predictive analytics for patient outcomes. These collaborations are improving adoption rates, enhancing clinical accuracy, and making AI-driven diagnostics more scalable and sustainable across diverse healthcare settings.

Segmental Insights

Diagnosis Type Insights

Based on Diagnosis Type, Radiology have emerged as the dominating segment in the India AI in Medical Diagnostics Market in 2024. One of the key reasons for radiology’s dominance is the high volume of medical imaging data generated daily. India faces a shortage of radiologists, with approximately one radiologist per 100,000 people, making AI-driven solutions essential for reducing diagnostic backlogs and improving patient outcomes. AI algorithms can process large volumes of radiology scans within seconds, helping radiologists detect abnormalities, prioritize critical cases, and enhance diagnostic accuracy.

Furthermore, the rising prevalence of chronic diseases such as cancer, cardiovascular diseases (CVDs), and lung infections has fueled the demand for AI-powered radiology solutions. For instance, AI-driven chest X-ray analysis is playing a crucial role in early tuberculosis (TB) detection, aligning with India’s National TB Elimination Program (NTEP). Similarly, AI-powered brain imaging tools are helping detect strokes, tumors, and neurodegenerative disorders like Alzheimer's at an early stage.

Download Free Sample Report

Regional Insights

Based on Region, South India has emerged as the dominating region in the India AI in Medical Diagnostics Market in 2024. It is driven by advanced healthcare infrastructure, strong IT and tech ecosystem, high adoption of AI-driven healthcare solutions, and government initiatives supporting digital health transformation. States like Karnataka, Tamil Nadu, Telangana, and Kerala are at the forefront of AI-powered diagnostic adoption, owing to their well-established medical research institutions, AI-focused startups, and collaborations between healthcare providers and technology firms.

One of the key reasons for South India's dominance is Bengaluru's position as India's hub for AI and healthcare innovation. The city is home to leading AI-driven health-tech startups, such as Qure.ai, Niramai, and Tricog Health, which are developing advanced AI-based solutions in radiology, pathology, and diagnostics. Karnataka's supportive policies and incentives for AI research and development further fuel market growth.

South India boasts some of the country's top-tier hospitals and diagnostic centers, including Apollo Hospitals (Chennai), Narayana Health (Bangalore), Manipal Hospitals, and Christian Medical College (Vellore), which are actively integrating AI-based diagnostics into their clinical workflows. AI-powered radiology, pathology automation, and predictive analytics are being increasingly adopted to enhance early disease detection and precision medicine approaches.

Recent Development

• In February 2025, Kauvery Hospitals has launched India’s first AI-driven Advanced Heart Failure Centre, revolutionizing cardiac care with AI-powered diagnostics, predictive analytics, and personalized treatment plans. This center leverages machine learning algorithms to detect early signs of heart failure, optimize patient management, and enhance clinical decision-making, ensuring improved outcomes for cardiac patients across India.
• In March 2024, iHridAI has launched an AI-ML-powered diagnostics tool designed for advanced cardiac MRI analysis, enhancing early detection of heart diseases, precision in cardiac imaging, and automated reporting. This innovation accelerates diagnostic workflows, reduces human errors, and aids cardiologists in detecting complex cardiac conditions, marking a significant leap in AI-driven cardiovascular diagnostics in India.
• In February 2024, AIIMS Delhi has introduced a cutting-edge AI-powered oncology system to enhance early cancer detection, diagnosis accuracy, and treatment planning. Leveraging machine learning and deep learning models, this AI solution improves tumor identification, prognosis predictions, and personalized therapy recommendations. Across India, AI adoption in healthcare is accelerating, with advancements in radiology, pathology, and telemedicine.
• In January 2024, Apollo Cancer Centres has launched India’s first AI-Precision Oncology Centre, revolutionizing cancer care with AI-driven diagnostics, personalized treatment plans, and advanced predictive analytics. This initiative enhances early cancer detection, precision medicine, and treatment efficiency, integrating cutting-edge machine learning algorithms and genomics-based insights to improve patient outcomes and streamline oncology workflows.

Key Market Players

• Microsoft Corporation
• GE HealthCare Technologies Inc.
• Koninklijke Philips N.V.
• Intel Corporation
• Google LLC
• NVIDIA Corporation
• Digital Diagnostics Inc.

Report Scope

In this report, the India AI in Medical Diagnostics Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India AI in Medical Diagnostics Market, By Component:

o   Software

o   Hardware

o   Services

• India AI in Medical Diagnostics Market, By Diagnosis Type:

o   Cardiology

o   Oncology

o   Pathology

o   Radiology

o   Chest and Lung

o   Neurology

o   Others

• India AI in Medical Diagnostics Market, By Region:

o   East India

o   West India

o   North India

o   South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India AI in Medical Diagnostics Market.

Available Customizations:

India AI in Medical Diagnostics Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

India AI in Medical Diagnostics Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]