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

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 like the Ayushman Bharat Digital Mission (ABDM) and National Digital Health Mission (NDHM), which promote healthcare digitization and AI adoption. 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, lack of standardization in AI regulations, and concerns over data privacy and patient confidentiality. Moreover, the limited AI adoption in rural healthcare facilities poses a barrier to widespread deployment. Despite these challenges, the increasing availability of cloud-based AI solutions, growing telemedicine adoption, 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 immense pressure due to the rising prevalence of chronic diseases, an aging population, and an increasing demand for early diagnostics. As life expectancy improves, the number of elderly individuals requiring medical attention is growing significantly. According to estimates, the global population aged 60 and above is projected to reach around 2.1 billion by 2050, highlighting the urgent need for advanced and efficient diagnostic solutions.

In India, the Longitudinal Ageing Survey in India (LASI) 2023 revealed that 21% of the elderly population suffers from at least one chronic condition, with urban areas facing a higher prevalence (29%) compared to rural areas (17%). This demographic shift is fueling the demand for AI-driven diagnostics to enhance early disease detection and management.

The burden of chronic diseases such as diabetes, cardiovascular diseases (CVDs), and cancer is escalating at an alarming rate, necessitating rapid advancements in medical diagnostics. A 2024 study published in The Lancet found that out of the 82.8 crore diabetics worldwide, India accounts for over a quarter (21.2 crore), making it the largest diabetic population globally. The increasing diabetic population requires continuous monitoring and early detection of complications, areas where AI-based diagnostics, particularly in ophthalmology and nephrology, are proving invaluable. Similarly, the growing incidence of cardiovascular diseases (CVDs) poses a major healthcare challenge, with heart attacks and strokes accounting for over 80% of CVD-related deaths globally. India bears the greatest burden of acute coronary syndrome (ACS) and myocardial infarction, with cases surging 138% from 1990. AI-powered diagnostic tools in cardiology, such as ECG interpretation and cardiac imaging analysis, are becoming crucial in early risk assessment and timely intervention.

With India witnessing a rising disease burden coupled with a shortage of skilled healthcare professionals, AI-driven diagnostic solutions are emerging as a transformative force. By reducing diagnostic turnaround times, increasing accuracy, and enabling remote healthcare access, AI is playing a pivotal role in addressing the growing healthcare demand and disease burden, particularly in urban centers where non-communicable diseases (NCDs) are more prevalent. However, challenges such as limited AI adoption in rural areas and high implementation costs need to be addressed to ensure equitable access to advanced diagnostics 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 doctor-to-patient and radiologist-to-population ratio, 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 like radiology, pathology, and cardiology, where the number of trained professionals is inadequate to meet the growing healthcare demand. The Indian Radiological and Imaging Association (IRIA) estimates that India has only about 15,000 radiologists for a population exceeding 1.4 billion, creating a massive diagnostic bottleneck, especially 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 expertise needed to interpret complex medical imaging, resulting in delayed or inaccurate 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 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.

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Key Market Challenges

Data Privacy and Security Concerns

One of the biggest challenges in India's AI in 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 major concern is the potential for cyberattacks on healthcare databases, which could lead to the theft of sensitive patient records. India has witnessed a rise in cyberattacks on healthcare institutions, with over 1.9 million cyberattacks on the healthcare sector reported in 2022 alone, highlighting the urgent need for better 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, but concerns arise regarding who owns this data and how it is used. Patients often lack clarity on how their medical information is shared, stored, or utilized for AI training models, raising 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, 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 difficulties in complying with multiple regulations, potentially slowing AI adoption.

Key Market Trends

Technological Advancements and Startups

India’s AI in medical diagnostics market is witnessing a surge in technological advancements and startup innovations, revolutionizing healthcare delivery. 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, automation of diagnostic processes, and healthcare accessibility in remote areas.

Leading Indian startups like Qure.ai, Niramai, Predible Health, and Tricog Health are making significant strides in AI diagnostics. Qure.ai, for instance, has developed AI-powered chest X-ray and CT scan interpretation tools, 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 quick interpretation of ECGs and identifying 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 histopathology slide analysis, reducing the dependency on specialized pathologists. AI is revolutionizing genomics by identifying genetic risk factors for diseases, aiding in personalized medicine and targeted therapies. The rise of cloud-based AI solutions and telemedicine integration is further transforming diagnostics, enabling real-time AI-assisted consultations and remote patient monitoring.

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.

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Regional Insights

Based on Region, South India have 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 AI and healthcare innovation hub. 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 radiology, pathology, and diagnostic solutions. 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, such as Apollo Hospitals (Chennai), Narayana Health (Bangalore), Manipal Hospitals, and Christian Medical College (Vellore), which are actively integrating AI-based diagnostics into 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).

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