Number of pages: 100 | Report Format: PDF | Published date: February 21, 2021
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
According to the deep-dive market assessment study by Growth Plus Reports, the global AI in healthcare market was valued at US$ 10.08 billion in 2022 and is expected to register a revenue CAGR of 41% to reach US$ 222.2 billion by 2031.
AI in Healthcare Market Fundamentals
Artificial intelligence (AI) is the replication of human intellect in robots that are programmed to think and act like humans. Artificial intelligence in healthcare uses machine-learning algorithms and software to simulate human cognition in the analysis, display, and interpretation of complicated medical and health care data. The major goal of artificial intelligence in healthcare is to investigate the association between preventative or therapy strategies and patient outcomes. AI programs are used in a variety of professions, including diagnosis, treatment protocol creation, medication discovery, customized medicine, and patient monitoring and care.
The global AI in healthcare market growth is supported by a growing ecosystem of startups and research institutions. Many startups are focused on developing niche AI solutions for specific healthcare applications, while research institutions are advancing the state of the art in healthcare AI through collaborations and open-source projects.
AI in Healthcare Market Dynamics
With advances in genomics and other areas of medical research, personalized medicine is becoming more common. AI can help healthcare providers analyze large amounts of data to identify patterns and tailor treatments to individual patients, thus boosting the growth of the global AI in healthcare market. Furthermore, healthcare costs are rising globally, and AI can help reduce costs by automating processes, reducing errors, and optimizing resource allocation. The development of more powerful and sophisticated AI technologies, such as deep learning and natural language processing, has opened new possibilities for healthcare applications, which is also fueling the global AI in healthcare market growth. Moreover, electronic health records and other sources of healthcare data are becoming more prevalent, providing a rich source of information for AI algorithms to analyze, and is also expected to boost the growth of the global AI in healthcare market.
However, healthcare data is highly sensitive and needs to be protected from unauthorized access. AI systems must adhere to strict privacy regulations, which can make data sharing and collaboration challenging. Furthermore, AI systems require high-quality data to train their algorithms, and healthcare data is often incomplete or inaccurate. Access to quality data is critical for the success of AI in healthcare, and efforts are needed to improve data quality and availability. Some healthcare providers may be skeptical of AI systems, and there may be concerns about the accuracy and reliability of these systems. Building trust in AI systems will be critical for their widespread adoption. Additionally, high development and implementation costs and data privacy and security concerns are some AI in healthcare market challenges.
AI in Healthcare Market Ecosystem
The global AI in healthcare market is analyzed from five perspectives: offering, technology, application, end user, and region.
AI in Healthcare Market by Offering
Based on the offering, the global AI in healthcare market is segmented into hardware, software, and services.
The software segment dominated the market with the principal revenue share in 2022. In healthcare, there are several software solutions that use artificial intelligence (AI), with applications ranging from medical imaging and diagnostics to drug discovery and patient monitoring. Software in healthcare is used to improve the accuracy and speed of diagnosis, identify patterns and insights in large datasets, and personalize treatments for individual patients. Some examples of software include natural language processing (NLP) tools for analyzing electronic health records, computer vision algorithms for analyzing medical images, and machine learning models for predicting patient outcomes. These aspects contribute to the growth of the software segment.
The hardware segment also accounted for a prominent SI in healthcare market share. Hardware refers to the physical components that are used to power and support the use of artificial intelligence (AI) technologies in healthcare applications. This includes a wide range of hardware devices and equipment, from sensors and wearables to high-performance computing systems and specialized AI hardware. The necessity for high-performance computing systems to assist the processing and analysis of massive volumes of healthcare data is one of the primary drivers of hardware in AI in healthcare. These systems require specialized hardware components, such as graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and tensor processing units (TPUs), to support the complex calculations and algorithms required for AI applications. Other types of hardware in the healthcare market include medical devices and sensors that are used to collect data from patients, such as blood pressure monitors, electrocardiogram (ECG) devices, and wearable devices. These devices can be used to monitor patient health and collect data for analysis by AI algorithms.
AI in Healthcare Market by Technology
Based on the technology, the global AI in healthcare market is segmented into machine learning, context-aware computing, natural language processing, and others.
The machine learning segment accounted for a prominent share of the market, attributed to the growing adoption of the technology in different areas such as medical imaging, disease diagnostics, and drug discovery. Machine learning is a subset of artificial intelligence (AI) that focuses on building algorithms and models that can learn from data and make predictions or decisions. In the healthcare industry, machine learning has the potential to improve the accuracy and speed of diagnosis, identify patterns and insights in large datasets, and personalize treatments for individual patients. Machine learning algorithms can also be used to develop predictive models that can help healthcare providers identify patients who are at risk of developing certain conditions, such as diabetes or heart disease. These models can be used to personalize treatments and interventions, improving patient outcomes, and reducing healthcare costs. These factors contribute to the growth of the machine learning segment.
AI in Healthcare Market by Application
Based on the applications, the global AI in healthcare market is segmented intorobot-assisted surgery, virtual nursing assistants, administrative workflow assistance, dosage error reduction, preliminary diagnosis, automated image diagnosis, and others.
Robotic surgery systems use a combination of computer-controlled instruments and cameras to provide surgeons with a magnified, high-definition, 3D view of the surgical site. Surgeons control the robotic instruments using a console that is located a short distance from the patient. According to a study, AI-assisted robotic procedures resulted in five times fewer complications compared to surgeons operating alone. Robotic instruments can move in ways that are not possible with traditional surgical instruments, providing greater precision and control during surgery. AI technology is used in robot-assisted surgery to improve the accuracy and speed of surgical procedures. Machine learning algorithms are used to analyze data from previous surgeries and to identify patterns and insights that can be used to improve surgical outcomes. This includes identifying the most effective surgical techniques and helping surgeons avoid potential complications. These factors contribute to the growth of the robot-assisted surgery segment.
AI in Healthcare Market by End User
Based on the end users, the global AI in healthcare market is segmented intohospitals, pharmaceuticals & biotechnology companies, patients, and others.
The hospitals segment is a key player in the AI in healthcare market with the largest revenue share in 2022. Artificial intelligence simplifies the lives of patients, doctors, and hospital administrators by performing tasks that are typically done by humans, but in less time and at a fraction of the cost. It is used to predict ICU transfers, improve clinical workflows, and even pinpoint a patient's risk of hospital-acquired infection.
AI in Healthcare Market by Region
Geographically, the global AI in healthcare market has been segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America dominated the global AI in healthcare market with the largest revenue share in 2022, attributed to advanced healthcare infrastructure, rising demand for digital health systems, technological advancements, and presence of the prominent players. Additionally, companies across the region are continuously involved in launching new software as well as building innovative algorithms which are also expected to improve the AI in healthcare market outlook. For instance, in December 2022, GE Healthcare launched a new artificial intelligence (AI) algorithm to assist doctors in assessing endotracheal tube (ETT) placements, a vital step in ventilation severely sick COVID-19 patients. The artificial intelligence solution is one of five in GE Healthcare's Critical Care Suite 2.02, an industry-first set of AI algorithms built on mobile X-ray equipment for automated measurements, case prioritizing, and quality control.
AI in Healthcare Market Competitive Landscape
The prominent players operating in the global AI in healthcare market are:
AI in Healthcare Market Strategic Developments
Artificial intelligence in healthcare uses machine-learning algorithms and software to simulate human cognition in the analysis, display, and interpretation of complicated medical and health care data.
North America dominated the global AI in healthcare market with the largest revenue share in 2022.
The high development and implementation costs and data privacy and security concerns factors are restricting the global market growth to full potential.
The revenue CAGR of the AI in healthcare market during the forecast period will be 41% from 2023 to 2031.
Prominent players operating in the global AI in healthcare market are Siemens Healthcare Private Limited Koninklijke Philips N.V, Medtronic plc, General Electric Company, Johnson & Johnson Services, Inc and NVIDIA Corporation.
*Insights on financial performance are subject to the availability of information in the public domain