Growing demand for personalized medicine is fueling explainable AI in diagnostics market
The Business Research Company’s 2026 market reports feature enhanced tools like market attractiveness analysis, TAM assessment, and company scoring matrices, along with interactive dashboards, deeper supply chain insights, and startup coverage strengthening the depth, usability, and strategic value of insights.
What Is The Projected Increase In Market Value Of The Explainable Artificial Intelligence For Diagnostics Market During 2026–2030?
The explainable artificial intelligence for diagnostics market size has witnessed significant expansion in recent years. Projections indicate a growth from $1.69 billion in 2025 to $2.12 billion in 2026, with a robust compound annual growth rate (CAGR) of 25.9%. Historically, this market’s development was driven by factors such as the escalating adoption of AI-based diagnostic tools, the broadening of digital health infrastructure, the increasing volumes of medical imaging data, the rising demand for clinical decision support systems, and the establishment of initial regulatory frameworks for AI in healthcare.
The explainable artificial intelligence for diagnostics market size is projected to experience substantial growth in the upcoming years. It is foreseen to expand to $5.28 billion by 2030, achieving a compound annual growth rate (CAGR) of 25.6%. This anticipated growth during the forecast period stems from several factors, including an increase in regulatory mandates for transparent AI models, escalating investments in trustworthy AI platforms, the expansion of explainable AI applications beyond imaging, a rising demand from clinicians for interpretable outputs, and greater integration of AI with electronic health records. Significant trends expected during the forecast period involve the increasing adoption of interpretable AI diagnostic models, the growing integration of explainability layers within clinical AI tools, a heightened focus on regulatory-compliant AI systems, the broadened application of AI in multi-modal diagnostics, and an enhanced emphasis on clinical trust and transparency.
Access Your Free Sample Report For In-Depth Market Analysis:
Which Factors Are Influencing The Growth Of The Explainable Artificial Intelligence For Diagnostics Market?
The expanding need for personalized medicine is anticipated to drive the future expansion of the explainable artificial intelligence for diagnostics market. Personalized medicine describes a healthcare strategy that tailors prevention, diagnosis, and treatment to an individual’s unique genetic makeup, lifestyle, and environmental factors. The adoption of personalized medicine is rising due to breakthroughs in genomic data and sequencing technologies, which facilitate more precise, targeted, and effective treatments customized for individual patients. Explainable artificial intelligence in diagnostics supports personalized medicine by offering clear, understandable insights into patient-specific information, thereby assisting in customized treatment choices. For example, data from February 2024, published by the Personalized Medicine Coalition, a US-based non-profit, indicates that in 2023, the FDA sanctioned 16 novel personalized therapies for rare disease patients, an increase from six in 2022. These recently approved personalized treatments for 2023 additionally comprised seven cancer drugs and three therapies for other diseases and conditions. Consequently, the growing demand for personalized medicine is fueling the expansion of the explainable artificial intelligence for diagnostics market.
Which Segment Types Are Examined In The Explainable Artificial Intelligence For Diagnostics Market Segment Study?
The explainable artificial intelligence for diagnostics market covered in this report is segmented –
1) By Component: Software, Hardware, Services
2) By Deployment Mode: On-Premises, Cloud
3) By Application: Medical Imaging, Pathology, Genomics, Risk Assessment, Treatment Recommendation, Other Applications
4) By End-User: Hospitals, Diagnostic Laboratories, Research Institutes, Clinics, Other End-Users
Subsegments:
1) By Software: Machine Learning Platforms, Natural Language Processing Tools, Computer Vision Tools
2) By Hardware: Imaging Devices, Computational Devices, Sensors And Scanners
3) By Services: Consulting And Implementation, Maintenance And Support, Training And Education
Which Trends Are Influencing Demand In The Explainable Artificial Intelligence For Diagnostics Market?
Major companies within the explainable artificial intelligence for diagnostics market are concentrating on developing advanced methods, such as the AI-powered HER2 scoring algorithm, to enhance diagnostic precision, enable transparent decision-making, and support personalized cancer treatment. An AI-powered HER2 scoring algorithm denotes a machine learning-based system crafted to analyze medical images, like breast cancer tissue samples, to automatically evaluate the level of HER2 protein expression, yielding accurate, consistent, and explainable outcomes to guide diagnosis and individualized treatment decisions. For instance, in July 2023, PathAI Inc., a US-based AI-powered digital pathology company, introduced AIM-HER2 Breast Cancer to improve accurate HER2 status detection in breast cancer patients. It delivers automated, reproducible HER2 scoring alongside explainable AI heatmaps that highlight key tissue characteristics, thus increasing diagnostic confidence and transparency. It analyzes complete breast cancer biopsy slides without manual region selection, streamlining pathologists’ workflow, especially in challenging borderline cases. This AI-powered tool aims to enhance accuracy, efficiency, and trust in HER2 scoring for biopharma research and clinical labs.
Which Players Are Part Of The Competitive Landscape Of The Explainable Artificial Intelligence For Diagnostics Market?
Major companies operating in the explainable artificial intelligence for diagnostics market are Fujitsu Limited, Koninklijke Philips N.V., Tempus AI, Owkin Inc., PathAI Inc., Aidoc Medical Ltd., Viz.ai Inc., Qure.ai Technologies Private Limited, Paige.AI Inc., Digital Diagnostics Inc., Enlitic, Aignostics GmbH, Proscia Inc., Corti ApS, Fiddler AI Inc., Riverain Technologies LLC, Arthur AI Inc., InData Labs, Ibex Medical Analytics Ltd., Mindpeak GmbH, Therapixel SAS.
Get The Full Explainable Artificial Intelligence For Diagnostics Market Report:
Which Region Accounts For The Largest Portion Of The Explainable Artificial Intelligence For Diagnostics Market?
North America was the largest region in the explainable artificial intelligence for diagnostics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the explainable artificial intelligence for diagnostics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Request A Customized Explainable Artificial Intelligence For Diagnostics Market Report For Competitive Insights:
Browse Through More Reports Similar to the Global Explainable Artificial Intelligence For Diagnostics Market 2026, By The Business Research Company
Explainable Ai Market Report 2026
https://www.thebusinessresearchcompany.com/report/explainable-ai-global-market-report
Ai In Medical Diagnostics Market Report 2026
https://www.thebusinessresearchcompany.com/report/ai-in-medical-diagnostics-global-market-report
Artificial Intelligence In Healthcare Diagnosis Market Report 2026
Get in touch with us:
The Business Research Company: https://www.thebusinessresearchcompany.com/
Americas +1 310-496-7795
Asia +44 7882 955267 & +91 8897263534
Europe +44 7882 955267
Email us at info@tbrc.info
Follow us on:
LinkedIn: https://in.linkedin.com/company/the-business-research-company
YouTube: https://www.youtube.com/channel/UC24_fI0rV8cR5DxlCpgmyFQ
Global Market Model: https://www.thebusinessresearchcompany.com/global-market-model
