Global AI in Healthcare Market Expands Rapidly to Reach USD 138.6 Billion By 2029

Published | 30 January 2023

Global AI in healthcare market size is flourishing owing to growing elderly population, rising prevalence of various chronic diseases, and increasing need to lower healthcare costs and provide patients with higher-quality care services.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated global artificial intelligence (AI) in healthcare market size at USD 14.89 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects global AI in healthcare market size to grow at a robust CAGR of 38% reaching a value of USD 138.62 billion by 2029. Growing datasets of patient health-related digital information, rising demand for personalized medicine, and rising demand to reduce care costs are some of the major driving forces of market growth. The growing global geriatric population, changing lifestyles, and rising chronic disease prevalence have all contributed to an increase in demand for early disease diagnosis and understanding. AI and machine learning (ML) algorithms based on historical health datasets are being widely adopted and integrated into healthcare systems to accurately predict diseases in their early stages.

Global AI in Healthcare Market – Overview

Artificial Intelligence (AI) can revolutionize any piece of work that can be run by binary commands and has a finite array of possibilities. The power of AI is currently being harnessed aggressively, and it is being leveraged by the endlessly thriving sector of healthcare to attain greater goods for humankind. AI is a mixture of software programs with algorithms that can mimic human senses while analyzing medical data. In the future, AI is in a position to assist not only in diagnostic procedures but also in the development of medications, the development of personalized medicine, and the unremitting monitoring of patients. There are currently a large number of innovative technology vendors involved in the development of healthcare sector AI algorithms and the demand for the same is prospering.

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Opportunity: Growing investments in AI in healthcare

In the healthcare sector, AI and ML are playing a critical role. Big data analytics, robotic personal assistants, and clinical research are the main applications of AI. Both traditional venture capitalists and corporate strategic investors are making sizable investments in this field. In the first quarter of 2020, healthcare companies with a focus on AI raised close to USD 1 billion in funding, claims a CB Insights report. Tricog Health India Pvt. (India), a company that provides healthcare analytics, has also raised USD 10.5 million in a series B round of funding. Rising investment in AI in healthcare is expected to drive market expansion. Three million patients have benefited from the startup. As of 2020, the private sector continues to play a key role, with USD 8.5 billion in venture capital (VC) funding for the top 50 firms in healthcare-related AI, and big tech firms, startups, pharmaceutical and medical-device firms, and health insurers all engaging with the nascent AI healthcare ecosystem. As a result, rising investments in healthcare AI are expected to fuel the growth in the AI market for healthcare during the forecast period.

Challenge: Inadequate AI Workforce and Vague Regulatory Guidelines for Medical Software

Skepticism on the part of medical professionals, regulatory issues, and a shortage of skilled AI workers could all hinder the development of AI in the healthcare sector during the forecast period. Because AI depends on data, however, and because of inconsistency in the availability and quality of data as well as the enormous amount of computational power and energy required to analyze data, it is anticipated that these factors will impede market growth.

Impact of COVID-19 on Global AI in Healthcare Market

The COVID-19 outbreak had an impact on several industries around the world. Governments all over the world enacted strict lockdown procedures and social segregation standards to slow the pandemic's rapid spread. During the initial stages of the pandemic, factories around the world were forced to close. The subsequent economic downturn may cause a significant delay in the commercialization of the healthcare sector. Small and medium-sized businesses, the backbone of technology providers, witnessed a sharp decline in revenue since the pandemic's emergence in 2020. Market participants faced numerous challenges as a result of supply chain disruptions.

Global AI in Healthcare Market – By End User

The AI market for healthcare is divided into segments based on end users, including hospitals and providers, patients, pharmaceutical and biotechnology firms, healthcare payers, and others. The hospital and providers segment is expected to hold a sizable market share over the forecast period because of the increasing investments made by hospitals in AI, an increasing need for highly qualified medical professionals, and the presence of a sizable patient pool within a hospital facility, which is expected to increase overall spending in the healthcare sector. According to the World Health Organization (WHO), global health spending has increased overall over the past 20 years, doubling in real terms, and reaching USD 8.5 trillion in 2019 and 9.8% of GDP (up from 8.5% in 2000). During the forecast period, the segment growth is expected to be driven by an aging population, which is more likely to need hospital care, and increased awareness of mental disorders.

Competitive Landscape

Global AI in healthcare market is fiercely competitive. Prominent players in the market include NVIDIA, Intel, IBM, Microsoft, Google, Siemens Healthineer, General Electric (GE) Company, Medtronic, Amazon Web Services (AWS), Koninklijke Philips, Johnson & Johnson Services, Butterfly Network, Welltok, Inc., and Micron Technology. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in global AI in healthcare market.

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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Global AI in Healthcare Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global AI in Healthcare Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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