AI In Oncology Market Size, Share & Trends Analysis Report By Component Type (Software Solutions, Hardware), By Cancer Type (Breast Cancer, Lung Cancer), By Application, By End-use, By Region, And Segment- Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

The global AI in oncology market size was estimated at USD 3.19 billion in 2023 and is projected to hit around USD 40.49 billion by 2033, growing at a CAGR of 28.93% during the forecast period from 2024 to 2033.

Key Takeaways:

• North America dominated the AI in oncology market with a revenue share of 43.9% in 2023
• The AI in oncology market of  U.S. held with the largest revenue share in the North America in 2023.
• Canada AI in oncology market is experiencing significant growth with a CAGR of 26.8% due to rising cancer cases in the country.
• Asia Pacific AI in oncology market is expected to grow at the fastest CAGR over the projected period.
• AI in oncology market in China held the largest revenue share of 22.6% in the APAC region in 2023.
• Based on component type, the hardware segment held the largest revenue share of 39.9% in 2023.
• The software solutions segment is anticipated to witness the fastest CAGR from 2024 to 2033
• Based on cancer type, breast cancer is the single biggest cancer type holding the largest revenue share in 2023.
• The prostate cancer segment is expected to register the fastest CAGR of 29.95% over the forecast period.
• Based on application, the diagnostics segment held the largest revenue share of 38.9% in 2023.
• The research & development segment is expected to grow at the fastest CAGR over the forecast period.
• Based on end-use, the hospitals segment led the market with a largest revenue share of 48.6% in 2023.
• The segment is also expected to grow at the fastest CAGR over the forecast period.

AI In Oncology Market Growth

The growth of the market is attributed to increasing prevalence of cancer, technological advancement in cancer diagnostics & healthcare infrastructure, and an increasing demand for early and accurate diagnosis of cancer.

The growing initiatives undertaken by public and private organizations to invest in research and development (R&D) for introduction of novel technologies are further anticipated to fuel the market growth. For instance, in October 2022, Tempus, a company specializing in precision medicine and AI, recently announced a program called Tempus+. This proprietary program utilizes real-world data to power collaborative precision oncology research. A community of researchers, including Baylor College of Medicine, Allegheny Health Network, Stanford Cancer Center, Rush University Medical Center, TriHealth, and others, is already using the Tempus+ program to advance their research. Furthermore, increasing product approval of AI-associated medical devices is anticipated to boost market growth. In January 2024, the U.S. FDA approved the first AI medical device, DermaSensor, to detect skin cancer.

The future of AI applications in cancer care is poised for groundbreaking advancements, encompassing early detection, precision medicine, and personalized treatment plans. AI's ability to analyze vast datasets, identify subtle patterns, and provide real-time insights holds the potential to revolutionize cancer diagnosis and therapy, ushering in a new era of improved patient outcomes and more efficient healthcare delivery.

AI In Oncology Market Report Scope

Segments Insights:

Component Type Insights

Software solutions currently dominate the AI in oncology market due to their role in image analysis, treatment planning, and decision support. AI-driven software like Aidoc, PathAI, and Zebra Medical Vision are used extensively in radiology and pathology labs to enhance speed and accuracy. These platforms analyze medical images to detect anomalies, grade tumors, and assist in staging all with minimal human input. Their scalable deployment across hospitals and diagnostic centers further solidifies their leadership.

However, services are the fastest-growing component type. Many healthcare institutions are partnering with AI firms for turnkey solutions, including cloud integration, training, maintenance, and regulatory compliance support. Managed AI services ensure that healthcare providers can deploy complex algorithms without needing in-house technical expertise. The service model is also beneficial for smaller clinics and developing regions where resource constraints limit large-scale software implementation.

Cancer Type Insights

Breast cancer dominates this segment, fueled by the high global prevalence and extensive screening programs. AI tools have shown remarkable success in early breast cancer detection through mammography analysis, often identifying malignancies that human radiologists miss. Companies like iCAD and Google Health have developed AI models that significantly reduce false positives and streamline diagnostic workflows. The widespread use of digital mammography creates a large dataset base, ideal for algorithm training and refinement.

Lung cancer is the fastest-growing segment due to rising incidence, especially in developing countries, and the availability of CT imaging datasets. AI is proving particularly useful in detecting small nodules and distinguishing between benign and malignant growths. In 2023, MIT researchers developed an AI model capable of predicting lung cancer risk years in advance by analyzing baseline scans. The move toward low-dose CT screening in high-risk populations will further accelerate AI deployment in this area.

Application Insights

Diagnostics remain the leading application for AI in oncology. AI’s ability to rapidly analyze radiological images, pathology slides, and lab reports makes it an indispensable tool in early cancer detection. Diagnostic accuracy is critical in oncology, where misdiagnosis or delayed diagnosis can drastically impact survival outcomes. Tools such as Google’s DeepMind and PathAI have demonstrated diagnostic capabilities that rival expert clinicians.

Research & Development is the fastest-growing application segment. AI is being leveraged to identify novel drug targets, optimize trial design, and simulate tumor behavior. Pharmaceutical companies are using AI to repurpose existing drugs for oncology, significantly reducing development timelines. For instance, Insilico Medicine identified a potential treatment pathway for fibrosis using AI in less than 18 months—a process that traditionally takes years. As precision oncology research intensifies, the R&D segment will see continued expansion.

End-use Insights

Hospitals dominate the end-use landscape, largely because most cancer diagnoses, imaging, and treatments occur in hospital settings. Tertiary care hospitals are adopting AI-based diagnostic tools to streamline workflows and reduce diagnostic errors. Institutions like Mayo Clinic and MD Anderson Cancer Center have integrated AI into their radiology, pathology, and genomics departments for faster, more accurate decision-making.

Pharmaceutical companies are the fastest-growing users of AI in oncology. They are deploying AI platforms to accelerate the development of targeted therapies, monitor treatment outcomes, and integrate real-world evidence. Pfizer, for instance, has partnered with Tempus to harness AI insights from clinical and molecular data to enhance oncology research. This trend reflects a shift from bench-to-bedside models toward a more integrated discovery and care approach.

Regional Insights

North America holds the dominant position in the global AI in oncology market. The United States, in particular, benefits from a robust AI startup ecosystem, substantial R&D investment, and supportive regulatory frameworks. The FDA’s establishment of the Digital Health Center of Excellence underscores its commitment to fostering AI innovation in healthcare. Leading institutions like Johns Hopkins, Stanford, and the Dana-Farber Cancer Institute are at the forefront of AI oncology research and clinical trials.

The presence of global technology firms such as Google, IBM, Microsoft, and NVIDIA, all actively engaged in healthcare AI development, further strengthens the region's market dominance. Widespread adoption of EHR systems and increasing reimbursement coverage for AI-enabled diagnostics are also key enablers.

Asia-Pacific is the fastest-growing region, driven by rising cancer incidence, expanding healthcare infrastructure, and favorable government policies. Countries like China, India, and Japan are investing heavily in AI research, with national initiatives supporting AI healthcare innovation. In China, companies like 4Paradigm and Yitu Healthcare are developing AI diagnostic platforms tailored to local healthcare systems.

Japan’s emphasis on geriatric oncology, combined with advanced imaging infrastructure, makes it a hotspot for AI adoption. In India, government-backed programs like Digital India and Ayushman Bharat are encouraging public-private collaborations to deploy AI in rural oncology diagnostics. The combination of population scale, rising cancer awareness, and tech innovation makes Asia-Pacific a critical growth frontier.

Recent Developments

• In March 2024, PathAI partnered with Bristol Myers Squibb to apply AI-powered pathology tools in immuno-oncology trials.

• Tempus, in February 2024, unveiled an updated version of its AI Clinical Trial Matching Tool to accelerate oncology research.

• Google Health, in January 2024, published new results showing its breast cancer AI model outperformed radiologists in retrospective studies.

• Owkin, in December 2023, collaborated with Sanofi to use AI models for predicting treatment responses in rare tumors.

• Aidence, a lung cancer AI diagnostics startup, was acquired by RadNet in November 2023 to scale its deployment across the U.S.

Some of the prominent players in the AI In Oncology Market include:

• Azra AI
• IBM
• Siemens Healthcare GmbH
• Intel Corporation
• GE HealthCare
• NVIDIA Corporation
• Digital Diagnostics Inc.
• ConcertAI
• Median Technologies
• PathAI

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the AI In Oncology market.

By Component Type 

• Software Solutions
• Hardware
• Services

By Cancer Type 

• Breast Cancer
• Lung Cancer
• Prostate Cancer
• Colorectal Cancer
• Brain Tumor
• Others

By Application 

• Diagnostics (Pathology, Cancer Radiology)
• Radiation Therapy (Radiotherapy)
• Research & Development (Drug design, development process, etc.)
• Chemotherapy
• Immunotherapy

By End-use Type 

• Hospitals
• Surgical Centers & Medical Institutes
• Others (Pharmaceutical companies, Research institutes & training centers)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)