AI in Healthcare: Telehealth Set to Hit $119B by 2035 as Imaging AI Gains Pace
New market projections released at 11:00 p.m. ET on February 10, 2026, signal a steep growth curve for AI in healthcare, led by telehealth and telemedicine. The segment is projected to surge from an estimated $5.20 billion in 2025 to $119.34 billion by 2035, reflecting a compound annual growth rate of 36.85% fueled by remote care demand, AI-enabled clinical decision support, and scaling virtual services.
Market Outlook: Telehealth AI Accelerates
AI is increasingly embedded across virtual care pathways, from faster triage and automated symptom assessment to remote monitoring and personalized treatment plans. Adoption is rising as providers look to extend reach, ease clinician workload, and maintain continuity of care. Software currently anchors the value stack with a 68% share, underpinning virtual visit orchestration, analytics, and decision support. Services are the fastest-growing component as health systems seek implementation, customization, training, and managed AI solutions to operationalize deployments at scale.
U.S. Trajectory and Core Use Cases
The U.S. market is on track to expand from $1.61 billion in 2025 to $36.10 billion by 2035, a 36.54% CAGR over the forecast period. Virtual consultations and clinical decision support form the bedrock of adoption, representing 34% of use today. Remote patient monitoring is the fastest-climbing application as care models pivot to continuous, home-based oversight of chronic conditions, post-acute recovery, and preventive care.
AI-enabled tools are helping close provider gaps, streamlining documentation, and elevating patient engagement. In practice, this spans conversational intake and routing, risk stratification, image and waveform interpretation, and proactive outreach anchored in real-time data.
Tech Mix: NLP Leads, Deep Learning Rises
Natural language processing currently holds a 32% share among enabling technologies, reflecting the centrality of conversational AI, ambient scribing, and patient-facing virtual assistants. Deep learning is the fastest-growing technology as models mature in pattern recognition across imaging, video, and multimodal physiologic signals. This progression is catalyzing more robust decision support, earlier detection, and adaptive care pathways that respond to changing patient status.
Where Care Happens: Hospitals Lead, Homecare Surges
Hospitals and clinics remain primary adopters at 44% share, leveraging AI to scale virtual clinics, support specialty consults, and optimize throughput. Homecare settings are the fastest-growing end-user segment, reflecting a broader shift toward decentralized, patient-centric care. Intelligent scheduling, remote diagnostics, and escalation pathways are becoming standard components as systems blend in-person, virtual, and home-based services.
Regional Dynamics: North America in Front, Asia-Pacific Races Ahead
North America led the telehealth AI landscape with a 37.50% share in 2025, buoyed by advanced digital infrastructure, robust virtual care platforms, and favorable reimbursement. Asia-Pacific is poised for the fastest expansion through 2035, with an expected CAGR of about 38.33%, propelled by rapid digitalization, greater telehealth penetration in emerging economies, and widespread smartphone and internet access. These dynamics suggest a two-speed market: established systems driving scale and integration, and fast-growing regions leapfrogging with mobile-first models.
Imaging AI Adds Momentum to Care Continuum
Parallel growth in AI-powered imaging diagnostics is reinforcing the broader AI in healthcare story. That market is projected to reach $9.73 billion by 2033 at a 22.3% CAGR, with software holding a 55% share and North America accounting for 40% of the segment. Innovations across AI-enabled CT, MRI, and radiology workflows—driven by major modality players—are improving throughput, consistency, and triage, and increasingly linking insights with telehealth platforms for faster, more coordinated interventions.
Taken together, the surge in telehealth AI and imaging AI underscores a clear trajectory: more proactive, data-driven, and distributed care. With software at the core, services scaling rapidly, and advanced algorithms gaining ground, the next decade of AI in healthcare is set to redefine how and where patients are treated—and how quickly decisions can be made.
