Written by imarc marketing » Updated on: July 17th, 2025 27 views
The Canada artificial intelligence in healthcare market size reached USD 163.80 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,321.44 Million by 2033, exhibiting a growth rate (CAGR) of 36.81% during 2025-2033. The market is expanding due to surging demand for AI-driven diagnostics, personalized medicine, and efficient healthcare workflows. Growth is fueled by government investments, integration of wearable tech, and rising adoption of predictive analytics, making the industry more dynamic, precise, and competitive.
Key Market Highlights:
✔️ Rapid digital transformation across healthcare systems is accelerating AI adoption for diagnostics, treatment planning, and patient monitoring
✔️ Increasing government and private investments are supporting AI-driven medical innovations and research
✔️ Growing integration of machine learning in medical imaging, virtual care, and hospital workflow automation is improving clinical outcomes and operational efficiency
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The Canada Artificial Intelligence in Healthcare Market is changing fast, helped by new rules like the Artificial Intelligence and Data Act (AIDA). In 2024, people became more concerned about the privacy of their health data. In response, Health Canada sped up the approval of AI diagnostic tools, which led to a 40% rise in the use of AI for medical imaging. Programs like Ontario’s $120 million AI Health Fund are encouraging partnerships between tech startups like Deep Genomics and large hospitals.
There is also a 55% increase in the use of AI tools for remote patient care, mainly because of the aging population and a lack of doctors. However, different rules across provinces make it hard to share patient data, so many healthcare groups are using hybrid cloud systems to follow both federal and local privacy laws. There are still ethical concerns too, especially around AI bias in care for Indigenous communities, and experts are calling for better oversight in 2025.
A major part of Canada Artificial Intelligence in Healthcare Market Size comes from precision oncology. In 2024, AI tools used in cancer genomics made up 32% of the market. National efforts like the Pan-Canadian Genome Library use AI to study over 500,000 genomes while keeping patient information private. Big pharmaceutical companies, including Roche, invested over $200 million in AI-based drug development, focusing on rare diseases affecting Canada’s diverse population. Platforms like BlueDot are also using real-world data to predict disease outbreaks like Lyme disease, but challenges with data sharing between hospitals and universities still limit AI results.
In rural areas, AI use is still low—telehealth in remote locations only reached 15%, showing the digital divide despite new broadband programs. The demand for AI-powered surgical robots is also growing fast. Thanks to better technology in 2024, companies like Corindus from Montreal cut heart surgery mistakes by 60% and helped patients recover 30% faster. AI is also helping with admin tasks like billing and scheduling, saving the healthcare system about $380 million a year. Nurses are now using voice-AI tools for faster patient record-keeping. But higher costs for medical robots slowed down their use among smaller hospitals. Cybersecurity risks also increased, especially after cyberattacks on Quebec hospitals, which exposed weak spots in AI systems. At the same time, Canada is losing AI talent—about 75% of developers are moving to the U.S., which hurts local innovation.
Despite these challenges, the Canada Artificial Intelligence in Healthcare Market Share is growing because of strong teamwork between universities, the government, and private companies. Some key actions in the mid-2020s include quicker approval of AI in radiology and Alberta’s $90 million funding for AI ethics. While the market first focused on diagnosis, AI is now being used to predict ICU bed shortages and chronic illness risks.
Even with delays in robot deliveries due to chip shortages, cloud-based AI use rose 48% in 2024 as hospitals looked for flexible, low-cost tools. As Canadian rules become more aligned with EU and U.S. standards, new chances for export are opening up. Still, data privacy and rules for sharing information across borders remain big issues. Looking into 2025, decentralized clinical trials and Indigenous-led health data efforts will help create a fair and balanced growth path for the Canada Artificial Intelligence in Healthcare Market Size and future impact.
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