AI in Oncology Market Trends Point to 33.6% CAGR Through 2032

Prajwal Agale

May 26, 2025 - 17:17

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The global artificial intelligence (AI) in oncology market was valued at USD 1.23 billion in 2023 and is poised for explosive growth, projected to reach USD 16.72 billion by 2032, expanding at a remarkable compound annual growth rate (CAGR) of 33.6% during the forecast period (2024–2032). The surge is driven by technological advancements in deep learning, precision diagnostics, and the urgent need for earlier and more accurate cancer detection and treatment.

Market Overview

The global burden of cancer continues to rise, with over 20 million new cases estimated annually by 2030. Traditional diagnostic methods, though improving, often fall short in early detection, treatment personalization, and outcome prediction. Artificial intelligence (AI) is rapidly transforming the oncology landscape by enabling data-driven, real-time insights that support clinical decision-making, drug development, and patient stratification.

AI-powered tools are being used to detect tumors on imaging scans, analyze pathology slides, interpret genomic data, and predict treatment responses. These capabilities are revolutionizing early diagnosis, personalizing therapies, and reducing costs through automation and optimization. Moreover, AI is playing an increasing role in clinical trial design, radiomics, and digital pathology, further broadening its applicability.

Major healthcare systems and research institutions are rapidly integrating AI platforms into oncology workflows, supported by collaborative initiatives between technology companies and life sciences firms. As regulatory frameworks evolve and data availability increases, the AI in oncology market is expected to maintain exponential growth.

𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐓𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 𝐇𝐞𝐫𝐞:

https://www.polarismarketresearch.com/industry-analysis/ai-in-oncology-market

Market Segmentation

By Application:

Diagnostics
Therapeutics (Personalized Treatment Planning)
Clinical Trials & Drug Discovery
Medical Imaging & Radiology
Genomics & Precision Oncology
Predictive Analytics & Risk Stratification

Diagnostics accounted for the largest revenue share in 2023, with AI-based tools being used for early cancer detection through medical imaging (CT, MRI, mammography) and histopathology. However, therapeutics and personalized treatment planning are anticipated to experience the fastest growth, with AI being used to tailor cancer treatments to individual genetic and molecular profiles.

By Cancer Type:

Breast Cancer
Lung Cancer
Prostate Cancer
Colorectal Cancer
Brain Cancer
Other Cancers (Pancreatic, Ovarian, Skin, etc.)

Breast and lung cancer dominate the application scope of AI technologies, given their high incidence rates and extensive research investment. Nevertheless, the colorectal and brain cancer segments are witnessing increasing AI adoption due to rising incidence and the complexity of diagnosis and treatment.

By Component:

Software
Hardware
Services

Software solutions represent the largest and fastest-growing component, comprising AI algorithms for image analysis, EHR integration, machine learning models, and natural language processing (NLP) tools for clinical data mining.

By End User:

Hospitals & Clinics
Research & Academic Institutes
Biopharma & Life Sciences Companies
Diagnostic Labs
Others (Government Agencies, CROs)

Hospitals and diagnostic centers are the largest consumers of AI in oncology, thanks to growing demand for enhanced diagnostic accuracy and efficiency. Biopharma companies are increasingly leveraging AI to accelerate drug discovery and patient recruitment for clinical trials.

Regional Analysis

1. North America

North America is the largest market for AI in oncology, driven by:

Robust healthcare IT infrastructure
High R&D expenditure
Strong presence of tech giants (Google, IBM, Microsoft)
Widespread use of EHRs and imaging systems

The U.S. remains the global leader due to government funding initiatives (NIH, FDA support for AI-based diagnostics), early adoption of AI platforms, and a large base of AI health startups.

2. Europe

Europe is the second-largest market, fueled by:

Pan-European health data sharing initiatives
Public-private collaborations (e.g., AI4Health, Horizon Europe)
Growing burden of cancer and supportive reimbursement systems

Countries like the UK, Germany, France, and Netherlands are at the forefront of AI-enabled cancer care implementation.

3. Asia-Pacific

The Asia-Pacific (APAC) region is projected to witness the fastest CAGR due to:

Large patient population
Government investments in AI and healthcare digitization (China’s AI 2030 strategy, India’s National Digital Health Mission)
Increasing cancer prevalence and growing awareness of precision medicine

China, Japan, and South Korea are major adopters of AI-powered medical imaging and oncology research platforms.

4. Latin America, Middle East & Africa (LAMEA)

While still in the nascent stages, LAMEA shows promising growth due to:

Rising cancer incidence
Digital health initiatives
Growing investment from international AI companies entering emerging markets

Key Players in the AI in Oncology Market

The market is characterized by a mix of healthcare AI startups, biotechnology firms, and established tech companies. Strategic partnerships, funding rounds, and AI product approvals are rapidly shaping the competitive landscape.

1. IBM Watson Health

Pioneer in AI-driven oncology solutions
Watson for Oncology assists clinicians in treatment recommendations
Recently restructured with focus on scalable AI platforms for cancer centers

2. Tempus

Specializes in precision medicine using AI for genomic sequencing and oncology data analysis
Rapidly expanding its database and partnerships with major cancer centers

3. Siemens Healthineers

Offers AI-powered imaging software and diagnostic solutions
Focused on radiomics and AI-enabled diagnostics for breast and lung cancer

4. PathAI

AI-based pathology platform improving diagnostic accuracy and efficiency
Used in research, clinical trials, and hospital diagnostics

5. NVIDIA Corporation

Provides deep learning and GPU computing frameworks for medical AI applications
Partnered with academic institutions and hospitals to support AI in radiology and oncology research

6. Google Health / DeepMind

Developing AI tools for breast cancer screening, histopathology analysis, and genomics
Collaborations with Mayo Clinic, University of Chicago, and others

7. Flatiron Health (a Roche Company)

Focused on oncology real-world data and AI analytics
Enables drug development, post-marketing surveillance, and personalized care

8. Paige.AI

First FDA-approved digital pathology platform for prostate cancer detection using AI
Rapidly expanding applications into breast and colorectal cancers

Key Trends Shaping the Future

Multimodal AI Models: Integration of genomics, imaging, clinical, and lifestyle data for comprehensive cancer prediction and decision support.
Explainable AI (XAI): Demand for transparency and interpretability in clinical AI tools is driving development of explainable algorithms.
Regulatory Evolution: Growing clarity from FDA, EMA, and other regulators on AI/ML devices is accelerating approvals.
AI + Robotics: Integration of AI with surgical robotics and radiation therapy platforms to personalize treatments.
Federated Learning & Privacy-Preserving AI: New models enable training algorithms across institutions without sharing sensitive patient data, promoting collaboration while maintaining privacy.

Conclusion

The AI in oncology market is on the cusp of a transformative decade, driven by disruptive technology, cross-sector collaborations, and the urgent global need for earlier, smarter, and more cost-effective cancer care. As AI continues to mature, it will redefine not just how cancer is detected and treated, but how it is understood, prevented, and ultimately overcome.

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