Report Overview

Spurring demand for personalized medicine, expanding datasets of digital patient health information, rising pressure to cut healthcare costs, rising geriatric population, and rising awareness of mental disorders could boost the growth of Global AI in Healthcare Market during the forecast period between 2023 and 2029.

Global AI in Healthcare Market - Industry Trends & Forecast Report, 2029

Global AI in healthcare market size was estimated at USD 14.89 billion in 2022. During the forecast period between 2023 and 2029, global AI in healthcare market size is expected to grow at a CAGR of 38% reaching a value of USD 138.62 billion by 2029. Major growth factors for the market include growing datasets of patient health-related digital information, rising demand for personalized medicine, and rising demand for reducing care expenses. The growing global geriatric population, changing lifestyles, and rising prevalence of chronic diseases have all contributed to an increase in demand for early disease diagnosis and understanding. Based on historical health datasets, artificial intelligence (AI) and machine learning (ML) algorithms 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 mankind. Artificial intelligence 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.

Growth Drivers

Push for digitalization in healthcare

Digitized healthcare not only simplifies the provision of healthcare services but also helps to handle patient data efficiently and safely. This creates new revenue-generation opportunities for the stakeholders. AI and advanced analytics allow healthcare providers by collecting patient-specific information to deliver customized medicines and diagnostics. With the aid of telemedicine, precision medicine, and digitized record handling, the rise in digitalization of healthcare has also contributed to medical tourism. This will result in the expansion of global artificial intelligence (AI) in the healthcare market during the forecast period with a lucrative growth rate. Creating strategies for the Internet of Medical Things (IoMT) that suit sophisticated sensors with AI-backed analytics will be crucial to creating future smart hospitals–and smart homes.

Growing potential for AI-based tools in elderly care

Healthcare providers have begun to use AI extensively in intelligent monitoring of biometric information and early disease detection. AI enhances therapies and increases patient and clinician satisfaction. AI's uses include mainly smart devices, assisted living, fall detection, home health monitoring, and virtual assistants, such as robots for elderly care. It is expected have a positive impact on the overall growth of the market.

Restraints

Lack of Skilled AI Workforce and Ambiguous Regulatory Guidelines for Medical Software

During the forecast period, physician and provider skepticism, regulatory challenges, and lack of skilled AI workforce may impede the growth of AI in the healthcare industry. However, inconsistency in the availability and quality of data, because AI relies on data, and inconsistency in the availability and quality of data, together with the enormous amount of computational power and energy needed to analyze data, is anticipated to limit the market growth.

Impact of COVID-19 on Global AI in Healthcare Market

The COVID-19 outbreak adversely affected several industries across the world. To slow the pandemic's rapid spread, governments all over the world enacted stringent lockdown procedures and social segregation standards. During the early stages of the pandemic, factories all over the world were shut down. The economic downturn that followed the pandemic may cause a sizable delay in the commercialization of the healthcare sector. The backbone of technology providers, small and medium-sized businesses, has seen a sharp decline in revenue since the pandemic's emergence in 2020. As a result of the supply chain disruptions, market players faced numerous difficulties.

Global AI in Healthcare Market

Segmental Coverage

Global AI in Healthcare Market - By Offering

Based on the global healthcare market AI is being offered segmented into hardware, software, and services. One of the major factors contributing to the segment growth is the growing need for high-computing hardware platforms to operate multiple AI-based software. Increasing need for high-computing hardware platforms to run various AI applications is the key factor driving the growth in healthcare market for hardware devices in AI. In the hardware segment, the demand for high-calculation processors to run AI algorithms continues to grow. The Segment Processor consists of MPUs, GPUs, FPGAs, and ASICs. GPUs are expected to witness strong growth in processors because of high parallel computing capacities, and the same is expected to continue in the coming years. Growth in the services segment can be largely attributed to the growing need for AI technologies to be implemented and deployed. In addition, the rise in the adoption of AI systems in the healthcare sector has increased the need for maintenance and support services, which are necessary if the apps are to remain functional.

Global AI in Healthcare Market: End-Use Application

Artificial intelligence in the healthcare market is segmented based on application into patient data and risk assessment, medical imaging and diagnosis, drug discovery, precision medicine, hospital automation, patient management, and other applications. The application segment of hospital workflow management is estimated to account for the highest share of the overall artificial intelligence market in healthcare. The large proportion of this segment can be attributed to increased implementation of machine learning, deep learning, and other detailed pattern recognition algorithms which provide clinical decision support while improving the efficiency of radiologists, pathologists, and other image-based diagnostics. Artificial intelligence is expected to grow at a substantial pace in robotic-assisted surgery platforms and the segment is expected to grow at a high CAGR over the forecast period. These robots can incorporate information from actual surgical experiences to create new, improved insights coupled with improved overall surgical outcomes, thus enhancing consumer confidence in AI integration across surgery centers.

Global AI in Healthcare Market: End User

Based on end users, AI in healthcare market is segmented into Hospitals and Providers, Patients, Pharmaceutical and Biotechnology Companies, Healthcare Payers, and Others. Due to the growing investment made by hospitals in AI, people's strong desire to be surrounded by 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, the hospital and providers segment is predicted to hold a sizable market share over the forecast period. The World Health Organization estimates that over the past 20 years, global health spending has increased overall, doubling in real terms, and reaching USD 8.5 trillion in 2019 and 9.8% of GDP (up from 8.5% in 2000). Rising geriatric population, who are more likely to require hospital care, and rising awareness of mental disorders are expected to drive segment growth over the forecast period.

Global AI in Healthcare Market - Regional Insights

As a developed and technologically advanced region, North America is likely to be one of the key contributors during the forecast period to the overall AI growth of the healthcare market. Furthermore, high GDP investment in healthcare, especially in the US and Canada, is likely to complement the growth of next-generation technologies such as AI in the region. Asia Pacific is expected to emerge as the region with the most rapid growth. Improving healthcare IT infrastructure, an increasing number of AI start-ups, and rising increasingly the adoption of advanced technologies are some of the factors that contribute to market growth. There is also expected to be an increase in the number of government initiatives for AI technology in this area.

Competitive Landscape

Major companies in global AI in the healthcare 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. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In September 2022 - Philips International B.V. to demonstrate the clinical solution and data with enhanced efficiency at TCT 2022. These solutions are primarily designed to promote clinical assurance.

• In July 2022 - Siemens Healthcare GmbH introduced a study that has been conducted to evaluate and monitor the accuracy of diagnosis of non-contrast flat detector CT.

Scope of the Report

By Offering

• Hardware

• Software

• Services

By Technology

• Machine Learning

• NLP, Context-Aware Computing

• Computer Vision

• End-Use Application

• Patient Data and Risk Analysis

• Inpatient Care & Hospital Management

• Medical Imaging & Diagnostics, etc.

End-Use Application

• Patient Data and Risk Analysis

• Inpatient Care & Hospital Management

• Medical Imaging & Diagnostics

End User

• Hospitals and Providers

• Patients

• Pharmaceutical and Biotechnology Companies

• Healthcare Payers

• Others

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa