AI in Oncology Market Report Size Analysis:

The AI in oncology market size was valued at USD 4.22 billion in 2024 and is expected to reach USD 27.17 billion by 2032, growing at a CAGR of 26.23% over the forecast period of 2025-2032.

The global AI in oncology market has seen rapid development driven by the rising incidence of cancer, growing demand for precision treatment, and advances in AI technologies. While more than 20 million new cases of cancer are diagnosed each year globally, with lung cancer still the leading cause of cancer death, diagnostic performance is crucial to healthcare systems. AI in oncology plays a central role in early detection, risk stratification, and personalized treatment, with programs achieving diagnostic accuracy of over 90% in image-based cancer detection.

The U.S. AI in oncology market is advancing due to soaring investments, supportive regulations, and tech companies partnering with cancer centers. More than 25% of healthcare venture funding currently goes to AI-powered cancer solutions, and R&D investment in oncology AI jumped by a factor of 5–10 over the last five years. Oncology companies, such as PathAI, Tempus,  and Paige, are utilizing AI solutions that can be easily incorporated into hospital workflow, accelerating both the speed and accuracy of diagnosis and clinical results. Rising availability of big data and cloud computing also enables the global AI in oncology market size and advanced AI model training.

Moreover, an increase in approvals for AI diagnostic tools and clinical decision support systems by the US FDA, and recommendations from the transcription industry and AHRQ CDSiC, is promoting the AI in oncology market growth from a long-term standpoint. Real-time tumor profiling, prediction of therapy response, and drug design are some of the use cases where AI solutions are being leveraged, pointing towards a new paradigm in cancer care.

For instance, one breakthrough was reached with the release at the beginning of 2024 of a deep-learning model for early-stage breast-cancer detection in mammography scans, which achieved an accuracy of 94.5%, outperforming average radiologist performance and providing an AI in the oncology market trend.

In May 2025, DeepScribe partnered with Flatiron Health to deliver ambient AI solutions tailored for oncology documentation to over 4,200 providers in Flatiron’s network.

AI in Oncology Market Dynamics:

Drivers:

• Rising Demand for Precision Oncology and AI-Driven Clinical Tools Propel the Market Expansion

Rising complexity in cancer, adoption of personalized approach, and increasing requirement for quick and accurate diagnosis are driving the global AI in oncology market. Cancer diagnosis is transformed with AI algorithms providing up to 95% accuracy in detecting malignancies in CT and PET scans, and decreasing interpretation time by more than 50%. Hospital EMRs now include AI-enabled clinical decision support tools, and use of such tools at comprehensive cancer centers has grown 42% in the past three years from 2021-2024. By combining multi-omics and real-world evidence with patient genomics into AI, oncologists can personalize treatment regimens and improve outcomes.

In April 2025, Tempus signed expanded strategic agreements with AstraZeneca and Pathos to develop the largest multimodal foundation model in oncology globally, aiming to accelerate AI-powered drug discovery and precision treatment.

Demand is boosted by higher R&D expenditure, and global AI on cancer-related clinical trials has grown 4.7x over the last six years. There is also regulatory backing, and more than 30 cancer-related AI devices were approved by the U.S. FDA to use AI between 2019 and 2024, and organizations, such as CDSiC and ASCO, have produced prescriptive guidelines to promote ethical use of AI. AI in oncology companies is also enjoying significant funding support. AI drug discovery platforms bagged over USD 2.3 billion in investment in 2023 alone. The accelerating importance of cutting down on doctor burnout and decision fatigue has led to greater reliance on AI for planning treatments and reporting on radiology, an evolution that has helped keep alive the expanding AI in oncology market.

Restraints:

• Data Privacy, Infrastructure Gaps, and Clinical Validation Challenges Hamper the Market Growth

Data privacy is one major hurdle, and 85% of healthcare leaders identify HIPAA and GDPR compliance as barriers to implementing AI at scale. AI is dependent on large, high-quality labeled datasets, however, hidden, fragmented EHR systems and non-standardized cancer registries block effective data transfer. Tumor detection sensitivity decreased by 21% in underrepresented populations, a 2023 study found, as AI algorithms often learn from non-diverse data, underpinning diagnostic inaccuracies among ethnic groups. Furthermore, clinical validation is incomplete, and only 12% of the oncological AI tools in the clinical trials are at the Phase III stage. Differences in infrastructure are also a barrier due as over 50% of mid-tier hospitals in developed countries describe a lack of GPU servers and IT resources to deliver AI solutions in real time.

From a regulatory perspective, although the FDA has approved AI tools, evolving SaMD (Software as a Medical Device) guidelines introduce compliance ambiguity. Furthermore, physician skepticism remains 40% of oncologists polled had reservations about AI interpretability and patient confidence. The resulting combined constraints may slow down holistic adoption and the speed of uptake of AI in the oncology market despite strong promise and high need.

AI in Oncology Market Segmentation Analysis:

By Component Type

In 2024, hardware is the leading category under the AI in oncology market, which was valued at 40.2% AI in oncology market share of revenue. This leadership is driven by the growing need for high-performance computing infrastructure, including GPUs, AI chips, and edge devices that can immediately process complex oncology datasets in real-time. Significant investment in AI-ready imaging equipment and data storage systems by hospitals and research centres was driving hardware adoption.

On the other hand, software solutions is expected to be the fastest-growing segment in the market, as AI-based solutions are increasingly being integrated with diagnostic platforms, workflow assistance, and decision support platforms. There is growing use of cloud-based AI software that analyzes multifaceted data (genomics and radiomics) to improve prediction and treatment planning for a broad range of oncology use cases.

By Cancer Type

In 2024, breast cancer was the largest segment of the AI in oncology market, accounting for an AI in oncology market share of 21.3%. The growth is attributed to the increasing number of mammography and digital breast tomosynthesis for early detection and classification, bolstered by AI algorithms. Additionally, breast cancer also benefits from high levels of screening programs and public awareness, resulting in a larger number of diagnoses.

For instance, in March 2025, Vanderbilt University Medical Center researchers announced their leadership in an AI-driven oncology workshop at AACR 2025, emphasizing advancements in deep learning for cancer research.

Meanwhile, the prostate cancer segment is expected to be the fastest growing, driven by the increase in AI-assisted MRI interpretation and image-guided biopsy optimization. AI is now facilitating accurate tumor mapping and risk grouping, enhancing clinical judgments and patient proactive outcomes in the management of prostate cancer.

By Application

In 2024, the most widespread application of AI in oncology was diagnostics, which occupied 37.3% of the total AI in oncology market. The prevalence of diagnostics is supported by the ever-increasing demand for accurate, point-of-care (POC), and high-throughput cancer detection devices. AI-augmented radiology and pathology systems also shorten diagnosis time and cut error rates, and can help clinicians find tumors at earlier stages.

The increase in use of AI tools to tailor drug dosing, predict toxicity, and assess responses to treatment, on the other hand, means that the chemotherapy category is projected to grow the fastest. This assists oncologists in personalizing the regimens and minimizing the side effects for enhanced patient care in chemotherapy-based treatment strategies.

By End Use

Hospitals dominated the AI in oncology market with the largest share of 49.3% during the forecast period due to the wide usage of AI-based imaging solutions, diagnostic tools, and treatment planning systems in hospitals. Hospitals act as the central access points for cancer diagnosis, treatment, and surgery, and are the single largest adopters of AI.

On the other hand, the highest growth rate is projected in the surgical centers and medical institutes with the rising demand for AI-powered robotic surgery systems, AI-enhanced intraoperative imaging systems, and AI-based precision oncology platforms. In addition, their ability to adopt emerging technologies and involvement in clinical research facilitate the wider adoption of AI in these specialized settings.

Regional Analysis:

The North American region led the AI in oncology market in 2024, with high digitization in the healthcare market, the presence of leading market players specifically working in the field of AI-based oncology, and early adoption of AI-based technologies along with precision medicines in the region.

The U.S. AI in oncology market size was valued at USD 1.38 billion in 2024 and is expected to reach USD 8.26 billion by 2032, growing at a CAGR of 25.17% over the forecast period of 2025-2032. With the highest market share in the region, the U.S. is attributed to the presence of a large number of AI start-ups with well-established AI R&D infrastructure that emphasizes oncology (total R&D expenditure over USD 48 billion), and supportive government policies such as the FDA’s Software Precertification Program. In Canada, there is a growing uptake of AI driven by public-private partnerships and national AI strategies in cancer. The U.S. still leads usage as AI tools become more common in diagnosing and planning the treatment of oncology in leading cancer centers such as MD Anderson and Memorial Sloan Kettering. Cross-border foreign tech investments are gradually introducing AI platforms to Mexico, particularly in radiology and digital pathology.

The European AI in oncology market is the second-fastest-growing region in the world, driven by robust national healthcare systems, EU digital health laws, and cooperative R&D initiatives such as Horizon Europe. The European market is led by Germany, which is home to a well-established medical devices industry and a growing AI in radiotherapy planning integration in the country. Fastest-growing in the region, with NHS AI-backed breast cancer diagnostics studies and funding as part of the NHS AI Lab being key drivers. France and Italy are deploying personalized oncology platforms, and other countries, including Spain and Poland, are fast-tracking AI in hospital oncology workflows. Germany’s front is buttressed by corporations between healthcare workers and the artificial intelligence industry, which in turn upgrades clinical results and research.

Asia Pacific is the fastest-growing market in the AI in oncology market globally, primarily due to the increasing cancer prevalence, burgeoning need for improved analytical solutions in diagnostics, digital healthcare infrastructure, and government efforts. China is the regional leader and has the world’s most aggressive AI policies and investments in AI diagnostic platforms for hospitals, and its health AI industry passed USD 10 billion in 2024. India is fast catching up with its first AI Precision Oncology Center launched by Apollo Hospitals and government-supported AI missions. Robots and machine learning, being used in surgical oncology and diagnostics, Japan and South Korea are combining robotics and machine learning.

Australia and Singapore, for instance, are investing massively in joint research partnerships and integrating AI into cancer genomics. China is also buoyed up by a handful of mighty domestic tech players rolling out AI platforms with an oncology focus, such as Tencent and Alibaba.

AI in Oncology Market Key Players:

Prominent AI in oncology companies operating in the market are Azra AI, IBM, Siemens Healthcare GmbH, Intel Corporation, GE HealthCare, NVIDIA Corporation, Digital Diagnostics Inc., ConcertAI, Median Technologies, PathAI, and MVision AI.

Recent Developments in the AI in Oncology Market:

In April 2025, Azra AI announced an expansion of its end-to-end oncology platform, enhancing automation and care coordination features to further streamline cancer diagnosis and patient management.

In January 2025, Pathos AI emerged with USD 100 million in Series A funding to launch an AI platform focused on transforming oncology drug discovery and clinical trial optimization.