U.S. AI in Oncology Market Driven by Personalized Treatment Approaches

The U.S. AI in oncology market size was valued at USD 890.5 million in 2023 and is projected to reach USD 5.9 billion by 2030, expanding at a CAGR of 28.25% from 2024 to 2030.

This significant growth is driven by the rising prevalence of cancer, continuous advancements in AI-powered diagnostic tools, improvements in healthcare infrastructure, and a growing demand for early and precise cancer detection. In addition, the increasing focus by public and private entities on research and development is accelerating innovation in the field. For example, in October 2022, Vara secured USD 4.4 million in funding to launch an AI-enabled breast cancer screening platform aimed at millions of women.

According to 2023 data from the National Institutes of Health (NIH), approximately 2.0 million individuals in the U.S. are diagnosed with cancer each year. Breast cancer emerged as the most common diagnosis, with 297,790 cases among women and 2,800 among men. Prostate cancer followed closely with an estimated 288,300 new cases, making it the most common among men and the second-most diagnosed overall. Lung and bronchus cancers ranked third, with 238,340 new cases reported. The increase in cancer incidence contributes to a surge in data generation, fueling demand for AI-based oncology solutions.

The COVID-19 pandemic further accelerated the adoption of AI in oncology, as hospitals and care providers faced restrictions that limited in-person consultations. This highlighted the need for remote and early-stage diagnostic tools. The shortage of medical professionals also pushed the healthcare sector toward AI integration to enhance patient outcomes and streamline cancer care.

Key Market Trends & Insights

• Component-wise, the hardware segment led the market with a 39.4% revenue share in 2023 and is expected to maintain its dominance.
• By cancer type, the "others" segment accounted for the largest share at 25.4% in 2023 and is anticipated to grow at a robust CAGR through 2030.
• Application-wise, diagnostics led with a 37.5% revenue share in 2023.
• In terms of end use, hospitals dominated the market with a 48.7% revenue share in 2023, driven by increasing adoption of AI to support research, diagnostics, and treatment advancements.

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Market Size & Forecast

• 2023 Market Size: USD 890.5 million
• 2030 Projected Market Size: USD 5.9 billion
• CAGR (2024–2030): 28.25%

Key U.S. AI in Oncology Company Insights

The U.S. AI in oncology market is shaped by the presence of key players, supportive government initiatives, and expanded AI applications in cancer care. The rise in AI-based startups and strategic efforts by research institutions further supports growth. For instance, in January 2024, researchers at Penn Medicine introduced iStar (Inferring Super-Resolution Tissue Architecture), aimed at aiding clinicians in detecting and treating cancers that may be difficult to identify using conventional methods.

Market leaders are pursuing innovation through product development, partnerships, and mergers & acquisitions to strengthen their foothold. Companies like Azra AI, IBM, Siemens Healthcare GmbH, Intel Corporation, and others continue to develop cutting-edge technologies tailored to evolving industry needs. For example, Massive Bio announced in January 2023 its plan to develop and launch an AI-driven drug-matching solution to support oncology treatments.

Key U.S. AI in Oncology Companies

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

Browse Horizon Databook for U.S. AI In Oncology Market Size & Outlook

Conclusion

The U.S. AI in oncology market is witnessing transformative growth fueled by technological innovations, increased cancer prevalence, and supportive investments in research and digital health infrastructure. As AI technologies continue to mature and become more integrated into clinical workflows, they are expected to play a critical role in improving cancer diagnostics, treatment personalization, and overall healthcare delivery. This trend positions AI as a vital enabler in the ongoing evolution of oncology care across the United States.