USD 14.09 billion
Artificial Intelligence (AI) in Healthcare Market Size, Share, Growth Analysis, By Component(Hardware, Services, and Software), By Technology(Machine Learning, Natural Language Processing, Context-aware Computing, and Computer Vision), By Application(Robot-assisted Surgery, Virtual Assistants, Administrative Workflow Assistants, Clinical Trials), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35G2090 |
Region:
Global |
Published Date: July, 2024
Pages:
219
|Tables:
143
|Figures:
77
Artificial Intelligence (AI) in Healthcare Market Insights
Global Artificial Intelligence in Healthcare Market size was valued at USD 14.09 billion in 2022 and is poised to grow from USD 19.47 billion in 2023 to USD 259.11 billion by 2031, growing at a CAGR of 38.2% during the forecast period (2024-2031).
The market is primarily being fueled by the escalating need to trim down healthcare expenses, and the integration of big data in healthcare. For instance, a study published in the International Journal of Environmental Research and Public Health in January 2021 revealed that over 60% of hospitals worldwide had adopted IoT in their facilities. It also projected that "AI applications could yield up to USD 150 billion in annual savings for United States healthcare by 2026." Hospitals were projected to allocate USD 6.6 billion annually towards AI-related technologies by 2021. Therefore, the incorporation of AI in healthcare stands to curtail healthcare expenses, fostering demand for AI in healthcare in the foreseeable future.
Furthermore, the surging utilization of big data in healthcare, along with initiatives to integrate big data systems into healthcare, is anticipated to bolster market growth.
US Artificial Intelligence In Healthcare Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Services
Growth Rate
38.2% CAGR
Global Artificial Intelligence in Healthcare Market ($ Bn)
Country Share for North America Region (%)
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Artificial Intelligence (AI) in Healthcare Market Segmental Analysis
Global artificial intelligence in the healthcare market is segmented by Component, Technology, Application, and region. By component, the market is segmented into hardware, services, and software. By Application, the market is segmented into Robot-assisted Surgery, Virtual Assistants, Administrative Workflow Assistants, Clinical Trials, and Others. By Technology, the market is segmented into Machine Learning, Natural Language Processing, Context-aware Computing, Computer Vision. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Component
In 2022, the software solutions segment dominated the artificial intelligence in healthcare market as healthcare providers, payers, and patients are increasingly adopting AI-based software solutions. For instance, in September 2019, GE Healthcare collaborated on the development of the Edison AI platform with five local Chinese software developers, namely 12Sigma Technologies, Biomind, Shukun Technology, Yizhun Medial AI, and YITU Technology, to support the GE Healthcare's seamless digital transformation.
Hardware solutions are expected to grow at the fastest rate of 39.4% during the forecast period. The rise of AI-based technologies in several healthcare applications, including cyber security, clinical trials, virtual assistants, robot-assisted surgeries, telemedicine, dose error reduction, and fraud detection, is responsible for this rapid growth rate. Also, the potential for growth is being boosted by the increasing number of strategic efforts, including collaborations and seed investments, undertaken by important stakeholders.
Analysis by Application
In 2022, the clinical trials segment emerged as the dominant force in the AI healthcare market, capturing the largest revenue share at 24.2%. The anticipation of shorter clinical trial durations and heightened accuracy and reliability is expected to fuel further market growth. Healthcare startups, government regulatory bodies, and life sciences organizations are increasingly endorsing and integrating AI-powered solutions into their operations. For example, Deep6AI offers an AI monitoring system that accelerates patient recruitment while cutting costs.
The virtual assistant segment is poised for rapid expansion during the forecast period. Factors such as the scarcity of skilled personnel, widespread smartphone usage, and increased internet accessibility are contributing to the swift proliferation of AI-based technologies in the virtual assistant market. Alongside, the market for robot-assisted surgery is forecasted to witness lucrative growth and holds significant promise in the foreseeable future. This accelerated growth is attributed to the burgeoning collaborations between AI technology providers and companies specializing in surgical robots.
Global Artificial Intelligence in Healthcare Market By Component (%)
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Artificial Intelligence (AI) in Healthcare Market Regional Insights
The surge in artificial intelligence adoption within the North America region is fueled by several key factors, including the increasing integration of advanced technology into healthcare systems, heightened investment in AI-based startups, the escalating burden of chronic diseases, and the imperative to curtail healthcare expenditures, alongside the widespread implementation of big data in healthcare. The escalating uptake of big data in healthcare within the region is poised to propel market expansion further. For Instance, in August 2022, the Children's Hospital of Philadelphia (CHOP) and the University of Pennsylvania School of Medicine (Penn Medicine) jointly inaugurated the Penn-CHOP Kidney Innovation Center, leveraging big data to bolster research aimed at enhancing patient care for individuals, both adults, and children, grappling with kidney disease.
Asia-Pacific is forecasted to demonstrate a remarkable CAGR of 44.8% throughout the projected period. This growth is primarily propelled by the expanding patient demographic and the increasing adoption of cloud computing. Moreover, the region is witnessing a surge in government initiatives aimed at promoting AI technology, further bolstering market expansion. Additionally, numerous biopharmaceutical companies are harnessing AI to revolutionize the drug discovery process, while diagnostic applications of AI are also becoming increasingly prevalent.
Global Artificial Intelligence in Healthcare Market By Geography
- Largest
- Fastest
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Artificial Intelligence (AI) in Healthcare Market Dynamics
Artificial Intelligence In Healthcare Market Drivers
Improved Diagnostic Accuracy and Generalized Medication
- Artificial intelligence (AI) in healthcare dramatically increases diagnostic accuracy by analyzing large amounts of medical data, including medical imaging, genetic data, and patient records. AI systems can identify patterns and abnormalities that might be missed by human doctors, leading to faster and more accurate diagnoses. Furthermore, AI enables personalized medicine by developing treatment regimens based on individual patient data, improving patient outcomes and reducing side effects. This capability is especially impressive in industry hear as in oncology, cardiology, and neurology.
Increasing Efficiency and Operating Costs
- AI technologies are streamlining business and clinical operations in healthcare, increasing efficiency and reducing operating costs. Automation of routine tasks such as scheduling, billing and data entry frees healthcare professionals to focus on patient care. Additionally, AI-powered predictive analytics can optimize resource allocation, reduce hospital readmissions, and improve supply chain management. These efficiencies improve care quality and contribute to significant cost savings for health care providers.
Restraints
High Implementation Costs and Technical Difficulties
- The adoption of AI in healthcare requires significant initial investment in technology, infrastructure and training. Developing and integrating AI solutions into existing healthcare systems can be technically complex and resource intensive. Smaller healthcare providers, especially those in rural or underserved areas, may struggle with financial and technical barriers to implementing AI technologies. These high costs and challenges may limit the adoption of AI in healthcare has been slow in the process.
Data Privacy and Security Issues
- AI in healthcare relies heavily on the availability and use of vast critical patient data. Ensuring the privacy and security of this data is a major challenge. Patient data breaches can raise serious legal and ethical issues, undermining trust in AI technology. Additionally, regulatory frameworks such as HIPAA (Health Insurance Portability and Accountability Act) in the US impose stringent requirements on data processing, which can complicate the implementation of AI solutions. Addressing these privacy and security concerns is crucial for the sustainable development of the market.
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Artificial Intelligence (AI) in Healthcare Market Competitive Landscape
The global artificial intelligence in the healthcare market is experiencing robust growth, driven by factors such as the increasing need for efficient healthcare solutions, rising investments in AI technology by key players, and supportive government initiatives. Major players in the market are actively engaged in strategic partnerships, mergers, and acquisitions to expand their product portfolios and strengthen their market presence. Additionally, advancements in AI technology, particularly in areas such as medical imaging analysis, predictive analytics, and personalized treatment planning, are further propelling market growth.
Artificial Intelligence In Healthcare Market Top Player’s Company Profiles
- Microsoft Corporation
- Alphabet Inc.
- NVIDIA Corporation
- General Vision, Inc.
- Intel Corporation
- IBM Corporation
- Welltok, Inc.
- General Electric Company
- Verint Systems Inc.
- Bolton NHS Foundation Trust
- Qure.ai
- THIRONA
- Koninklijke Philips N V.
- Siemens Healthineers
- Lunit Inc
- Biobeat
- Ginger Recruitment
- Sirona Medical, Inc.
- Qventus Inc
- Stryker
Artificial Intelligence In Healthcare Market Recent Developments
- In March 2024, Microsoft and NVIDIA joined forces to boost AI innovation and enhance computing capabilities. This collaboration harnesses the expansive reach and advanced computing power of Microsoft Azure, combined with NVIDIA's DGX Cloud and Clara suite, to accelerate innovation and advance patient care.
- In March 2024, NVIDIA unveiled the novel Generative AI Microservices designed to revolutionize medical technology (MedTech), drug discovery, and digital health. This pioneering strategy seeks to redefine healthcare technology by harnessing advanced AI capabilities.
- In September 2023, Merck KGaA forged a strategic partnership with Exscientia and BenevolentAI to expedite drug discovery through the integration of cutting-edge AI platforms.
Artificial Intelligence (AI) in Healthcare Key Market Trends
- Impact of Chronic Disease Prevalence on Adoption of AI in Healthcare: The escalating prevalence of chronic diseases, coupled with significant product launches by industry players, is a driving force in the healthcare segment. For instance, the Cancer Facts and Figures 2022 report released by the American Cancer Society in January 2022 projected nearly 1.9 million new cancer cases in 2022 alone. This forecast included estimates of 186,670 prostate cancer cases, 169,870 lung cancer cases, and 144,490 female breast cancer cases. The rising incidence of cancer and other chronic ailments underscores the pressing need for precise diagnosis and treatment solutions. Consequently, there's a growing demand for AI-driven technologies aimed at facilitating early disease detection, thus propelling market growth in the healthcare sector.
Artificial Intelligence (AI) in Healthcare Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to SkyQuest, the global artificial intelligence in healthcare market is witnessing significant growth driven by the rising adoption of AI-based solutions across healthcare providers, payers, and patients. Looking forward, the Asia Pacific region is poised for rapid growth, fueled by advancements in technology, increasing healthcare investments, and rising acceptance of AI/ML technologies, indicating promising opportunities for market expansion in the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in Healthcare | USD 14.09 billion |
| Market size value in 2031 | USD 259.11 billion |
| Growth Rate | 38.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence (AI) in Healthcare Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence (AI) in Healthcare Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Artificial Intelligence (AI) in Healthcare Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) in Healthcare Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence (AI) in Healthcare Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence (AI) in Healthcare Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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