U.S. AI In Oncology Market (By Component: Software Solutions, Hardware; By Cancer Type: Breast Cancer, Lung Cancer; By Application; By End-use) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. AI in oncology market size was estimated at around USD 0.92 billion in 2023 and it is projected to hit around USD 11.08 billion by 2033, growing at a CAGR of 28.25% from 2024 to 2033. The U.S. AI in oncology market is driven by an increasing cancer incidence, enhanced diagnostics, personalized treatment approaches, clinical trials acceleration, and real-time patient monitoring.

Key Pointers

• By Component Type, the hardware segment held the largest revenue share of 40% in 2023.
• By Component Type, the software solutions segment is projected to experience the fastest CAGR from 2024 to 2033.
• By Cancer Type, the "others" segment had the largest market share of 26% and is expected to exhibit a lucrative CAGR from 2024 to 2033.
• By Cancer Type, the prostate cancer segment is poised to exhibit the fastest CAGR from 2024 to 2033.
• By Application, the diagnostics segment registered the maximum market share of 38% in 2023.
• By End-use, the hospitals segment generated the maximum market share of 49% in 2023.

U.S. AI In Oncology Market Overview

The landscape of oncology care in the United States is undergoing a transformative shift, driven by the integration of Artificial Intelligence (AI) technologies. As the healthcare sector embraces innovation, AI in oncology emerges as a pivotal force, promising advancements in diagnostics, treatment optimization, and overall patient care. This overview delves into the key facets of the U.S. AI in Oncology market, exploring its current status, trends, and future potential.

U.S. AI In Oncology Market Growth

The growth of the U.S. AI in oncology market is underpinned by various factors contributing to its upward trajectory. Firstly, the increasing incidence of cancer cases necessitates innovative solutions, and AI presents a powerful tool for enhanced diagnostics and personalized treatment strategies. The integration of machine learning algorithms into the analysis of diverse datasets enables swift and accurate cancer detection, thereby improving patient outcomes. Additionally, the trend towards treatment personalization, where AI assists in predicting individual patient responses and optimizing therapeutic approaches, is a significant growth factor. The optimization of clinical trials through AI-driven patient selection expedites the development of new oncology treatments, fostering further market expansion. Real-time monitoring capabilities offered by AI contribute to proactive healthcare interventions, further fueling the market's growth.

U.S. AI In Oncology Market Trends:

• Diagnostic Advancements: AI is driving significant trends in improving cancer diagnostics. Machine learning algorithms analyze various data sources, including medical imaging and genetic information, leading to more accurate and early detection of cancer types.
• Treatment Personalization: A notable trend is the increasing use of AI for tailoring cancer treatments to individual patients. By analyzing patient data, AI assists in predicting treatment responses, allowing oncologists to optimize therapeutic strategies for better outcomes and reduced side effects.
• Clinical Trials Optimization: AI is streamlining the process of identifying eligible patients for clinical trials. This trend not only accelerates the development of new oncology treatments but also ensures that patients have quicker access to cutting-edge therapies.
• Real-time Monitoring: The integration of AI enables real-time monitoring of cancer patients, providing continuous insights into their health status. This trend facilitates proactive healthcare interventions, allowing for timely adjustments to treatment plans and improved overall patient care.
• Data Integration and Interoperability: As AI applications become more widespread, there is a growing trend towards enhancing data integration and interoperability. This allows different healthcare systems and technologies to work seamlessly together, leading to more comprehensive and cohesive patient care.
• Expaned Role in Genomic Medicine: AI is increasingly playing a crucial role in genomic medicine, aiding in the analysis of vast genomic datasets. This trend contributes to a deeper understanding of the genetic basis of cancer, paving the way for more targeted and effective treatments.
• Explainable AI: As the adoption of AI in oncology grows, there is a parallel trend towards developing "explainable AI." This involves creating algorithms that provide transparent and understandable insights, addressing concerns related to the interpretability of AI-generated recommendations in a medical context.

Component Insights

In 2023, hardware emerged as the dominant component in the market, holding a substantial revenue share of 40%, and its supremacy is anticipated to persist throughout the forecast period. AI hardware encompasses physical components and systems specifically designed to meet the computational requirements of AI algorithms. Within this category, crucial components like medical linear accelerators, vital for radiotherapy in oncology, are included. For instance, Varian's Ethos therapy, an AI-powered adaptive radiotherapy treatment system featuring a linear accelerator, received regulatory clearances in 2019 and 2020. Ethos therapy enhances radiotherapy by offering adaptive treatments within a concise 15-minute timeframe.

Furthermore, the rising need for hardware platforms with substantial computing power to operate AI-based software contributes significantly to the growth of this segment. The software solutions segment is projected to experience the fastest Compound Annual Growth Rate (CAGR) from 2024 to 2033. This surge is attributed to the widespread adoption of AI software solutions by healthcare providers and payers involved in oncology. The utilization of software solutions proves highly effective in predicting various types of cancer, such as brain, breast, liver, lung, and prostate cancer, offering superior accuracy compared to clinicians.

Cancer Type Insights

In 2023, the "others" segment claimed the largest share of revenue at 26% and is expected to exhibit a lucrative Compound Annual Growth Rate (CAGR) from 2024 to 2033. This segment's dominance is primarily driven by the increasing prevalence of kidney cancer, which ranks among the top 10 types of cancer globally, as reported by the Global Cancer Observatory. Contributing factors to kidney cancer include inherited syndromes, high blood pressure, obesity, smoking, old age, long-term dialysis, and a family history of kidney cancer. Common diagnostic techniques involve blood tests and imaging procedures like CT scans, Magnetic Resonance Imaging (MRI), and ultrasound. Additionally, awareness programs initiated by public and private organizations to enhance understanding of kidney cancer are expected to bolster market growth.

The prostate cancer segment is poised to exhibit the fastest CAGR from 2024 to 2033. Prostate cancer affects around 13 out of every 100 men in the U.S., according to CDC data. In 2023, the National Cancer Institute reported approximately 288,300 new cases of prostate cancer. Risk factors for prostate cancer include age, family history, diet, smoking, obesity, chemical exposure, and vasectomy. Obesity, in particular, significantly impacts men with advanced and aggressive forms of prostate cancer. Certain studies also suggest that obesity is associated with a higher likelihood of mortality in prostate cancer cases.

Application Insights

In 2023, the diagnostics segment emerged as the market leader, commanding a substantial revenue share of 38%. Cancer diagnostics, a crucial starting point for formulating relevant therapeutic strategies and clinical management, has witnessed enhanced efficiency and effectiveness through AI advancements. The intersection of early cancer diagnosis and AI represents a rapidly evolving domain with significant synergies. Detecting cancer at its initial stages significantly enhances the potential for delivering effective treatment across various tumor groups. Consequently, several companies are actively developing approaches for early diagnosis, encompassing the screening of at-risk patients without symptoms and promptly investigating those exhibiting symptoms.

The research and development segment is poised to exhibit the fastest Compound Annual Growth Rate (CAGR) from 2024 to 2033. This is attributed to the increasing adoption of AI by modern pharmaceutical companies to expedite and enhance various facets of clinical development. AI holds immense potential in assisting pharmaceutical corporations in bringing medications to market. Beyond its gene-sequencing capabilities, AI is undergoing training to predict drug effectiveness and anticipate potential adverse reactions..

End-use Insights

In 2023, the hospitals segment emerged as the market leader, capturing a substantial revenue share of 49%. This dominance is attributed to the escalating demand for AI applications, driving a transformative shift in medicine and advancing research, diagnostics, and cancer treatment. Notably, the hospitals segment's rapid adoption of AI in pathology solutions, particularly for cancer diagnostics, stands out as a significant market driver. Projected to grow at the fastest Compound Annual Growth Rate (CAGR) from 2024 to 2033, this segment reflects the increasing embrace of AI-powered solutions within hospital settings.

The market is anticipated to receive additional impetus from the entry of numerous companies focusing on cancer care in hospitals. Positive responses from patients further contribute to the segment's growth during the forecast period. Disturbingly, AI Multiple reports indicate that around 12 million individuals in the U.S. experience misdiagnosis, with 44% misdiagnosed with cancer. Breast cancer, prostate cancer, and thyroid cancer top the list of most misdiagnosed cancers.

U.S. AI In Oncology Market Key Companies

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

U.S. AI In Oncology Market Segmentations:

By Component Type

• Software Solutions
• Hardware
• Services

By Cancer Type

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

By Application

• Diagnostics
• Radiation Therapy
• Research & Development
• Chemotherapy
• Immunotherapy

By End-use

• Hospitals
• Surgical Centers & Medical Institutes
• Others