China’s artificial intelligence healthcare sector is set for a year of stronger commercial prospects as AI accelerates the reshaping of the healthcare market with its applications in diversified scenarios that span clinical applications, patient services, medical research and operation management, according to market research.
Analysys, a Beijing-based data analytics firm, noted in a recent research paper that the industrialization of China’s AI healthcare market is speeding up. The firm said that the value of the AI healthcare market reached about 106 billion yuan ($15.21 billion) in 2024, with this growth having been driven by transformative advancements in AI technologies and intelligent hardware.
According to its analysis, AI applications in high-value scenarios, such as tumor screening and chronic disease management, are expected to become a growth engine for the industry over the next three years.
China Securities, a leading securities company, has also highlighted a promising market and investment outlook for AI healthcare in a series of recently published market analyses.
In one research note, China Securities particularly attributed the development momentum of the AI healthcare sector to policy support, citing a national goal announced in April 2025 by the government to develop over 100 typical scenarios where digital intelligence technologies will be applied in the pharmaceutical industry by 2027.
A notable case in point is a plan released last month by Beijing’s municipal health commission, which aims for the widespread adoption of AI in medical institutions by 2027, a move expected to be emulated by other regions, according to the China Securities research.
In a January research report, CITIC Securities, another securities company, highlighted a fundamental shift in the commercialization of China’s AI healthcare, which is showing a more defined pathway this year as payment mechanisms for AI medical solutions strengthen and payers are more clearly identified.
Government policies are fueling market demand, according to the report.
A guideline released by the National Healthcare Security Administration last year incorporated AI-assisted diagnostics into the national pricing framework for pathology, allowing public medical insurance to directly reimburse AI-assisted medical solutions. This move, the report stated, has unlocked substantial commercial potential for AI pathology.
The report noted that many regions in China, including the municipalities of Beijing and Shanghai as well as Zhejiang and Guangdong provinces, are speeding up the application of AI healthcare, with government-supported pilot bases already established.
Moreover, CITIC Securities highlighted five potential investment frontiers, including AI-driven medicine development, AI solutions for grassroots healthcare, medical data circulation and transaction, AI-assisted pathology diagnostics, and the expansion of AI healthcare models into consumer markets.
Investment by big firms in healthcare AI models, such as PANDA, an AI platform developed by Alibaba’s Damo Academy, and Ant Afu, an AI health management app for users, is strengthening the capacity of these models and pushing AI healthcare’s deepened commercialization.
