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Healthcare Artificial Intelligence Market Size

ID: MRFR//4226-CR | 144 Pages | Author: Kinjoll Dey| February 2021

In artificial intelligence in healthcare sector, new technologies come out all the time and change the field. With the help of new technologies like better computer vision, machine learning, and natural language processing, AI can find better ways to find and solve problems.
AI needs to be used for big data analytics to work for sure. Large amounts of healthcare data can be looked at and understood by AI. In turn, this makes it possible for individualized treatment, predictive analytics, and better professional choices, all of which help the business grow.
A lot of data in healthcare is being added very quickly, like DNA information, electronic health records (EHRs), and picture data. This is making AI solutions more important. Computer programs that use AI can look through huge amounts of data to find thoughts that could make people feel better.
If you use AI to look at pictures from images and lab, it has completely changed the healthcare business. Healthcare is being pushed by AI programs that find problems early and make correct evaluations, which improve care.
Because telemedicine and online patient tracking are becoming more popular, AI is being used in healthcare more and more. AI technologies improve and make healthcare easier to get because they allow for online evaluation, constant tracking, and prediction analytics.
If artificial intelligence can do boring tasks, make office work easier, and make the best use of resources, it could save healthcare companies a lot of money. Due to its low cost, artificial intelligence is being used by many in health.
In order to make drugs that are right for each patient, AI solutions are being pushed forward. Genetic data analysis and precision medicine are two areas that can use AI to figure out who will get sick and how to treat them best.
Concerns have been raised about privacy and safety in healthcare that uses AI. People will be more open to and likely to believe AI if these fears are talked about in healthcare, where AI systems handle private patient data.
More work is being done to make drugs that are controlled by AI. AI systems could look at genetic information and find new ways to treat illnesses and make drugs more quickly. This would speed up the process of progress in pharmaceutical research.
When it comes to hospital processes, AI is hard to operate. The ease with which artificial intelligence can be used in healthcare has an impact on both connectivity and process integration.
There should be clear rules and ethics about how AI can be used in healthcare. Following the rules set by officials and being fair, open, and responsible are all social problems that need to be dealt with in order to help the market grow.

Global Artificial Intelligence in Healthcare Market Overview

The Artificial Intelligence in Healthcare Market Size was valued at USD 0.75 Billion in 2023 and is projected to grow from USD 1.13925 Billion in 2024 to USD 21.52 Billion by 2032, displaying a compound annual growth rate (CAGR) of probably 44.39% throughout 2024 - 2032.Growing patient health-related digital information datasets, expanding desire for personalized treatment, and rising demand to reduce care expenses are the key market drivers enhancing the AI in Healthcare Market growth.

Artificial Intelligence in Healthcare Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Artificial Intelligence in Healthcare Market Trends

  • Rapid digitization of the healthcare sector is driving the AI in healthcare market growth

Market CAGR for healthcare artificial intelligence is driven by the ongoing digitization of healthcare. The market's growth will probably be fueled by rising expenditures made in artificial intelligence (AI) in healthcare by pharmaceutical and MedTech companies to improve their businesses. According to research from PwC, artificial intelligence is effective, rapid, and executes operational tasks for a significantly lower cost. The Al aids doctors in the early detection and diagnosis of any ailment. The expanding use of precision medicine, the rising value of big data in healthcare, the rising need to keep healthcare expenditures to a minimum, and falling hardware costs are all elements that are propelling expansion. Microsoft Corporation bought Nuance Communications, Inc. in April 2021. This acquisition helped the business integrate Nuance Communications' cutting-edge cloud and A/capabilities and their knowledge of the healthcare sector.

Figure 1: Projected digital health market size from 2019 to 2025

 Projected digital health market size from 2019 to 2025

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Additionally, the growing healthcare personnel scarcity sparked the use of AI/ML technology. It is now possible to train AI algorithms to analyze patient health data, enabling medical personnel to identify patients' illnesses and create efficient treatment programs. The ongoing Covid-19 pandemic, growing numbers of mergers and acquisitions, technical partnerships, and supportive government initiatives all played a vital part in advancing the application of AI in healthcare. Following their initial deployment in detecting Covid-19 positive individuals utilizing individualized patient information and data consolidation, AI/ML algorithms are now widely used in the quick and accurate diagnosis of medical problems. Thus, driving the Healthcare Artificial Intelligence Market revenue.

Artificial Intelligence in Healthcare Market Segment Insights

AI in Healthcare Components Insights

The Healthcare Artificial Intelligence Market Segments based on components, includes hardware, software, and services. The software segment acquired a major market share, accounting for 51.6% of market revenue (0.3 Billion). The rise of AI-based technologies in several healthcare applications, including cybersecurity, clinical trials, virtual assistants, robot-assisted surgeries, telemedicine, dose error reduction, and fraud detection, is responsible for this rapid growth rate. A smaller CAGR is predicted for the services segment during the forecast period. Services like virtual nursing support, which help to continuously monitor the patient's symptoms with physician comments on demand, are assisting in the segment's expansion.

Figure 2: Artificial Intelligence in Healthcare Market, by Components, 2023 & 2032 (USD Billion)

Artificial Intelligence in Healthcare Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

AI in Healthcare Application Insights

The Healthcare Artificial Intelligence Market segmentation, based on application, includes robot-assisted surgery, virtual nursing assistant, dosage error reduction, clinical trial, preliminary diagnosis, and automated image diagnosis. Due to a boom in technical improvements in the category, the robot-assisted surgery segment had the highest market share and was in complete control of the market in 2022.

October 2021: Medtronic has acquired CE Mark approval for the Hugo robotic-assisted surgery (RAS) system to be utilized in general surgical procedures in Europe. Hugo RAS acquired CE Mark in October 2021 for urologic and gynecologic treatments. Together with general surgery, these indications account for over 80% of all robotic-assisted procedures performed globally.

The preliminary diagnostics market is also anticipated to expand significantly with a significant CAGR throughout the forecast period. AI-based pathology tools have become more popular due to the success of AI-based diagnostics tools.

AI in Healthcare Technology Insights

The Healthcare Artificial Intelligence Market segmentation, based on technology, includes machine learning, querying method, and natural language processing. In 2022, the machine learning segment dominated the market. Machine learning is helpful for healthcare applications like detecting early indications of sickness or optimizing drug discovery through imaging data because it enables computers to learn from enormous volumes of data rather than following a specified set of instructions. Additionally, in 2022, the natural language processing segment witnessed the fastest growth rate. Computers can now scan unstructured records like doctor notes, translate them into structured data, and then display that information to healthcare professionals to help them make decisions more rapidly, thanks to the growing usage of natural language processing in EHRs.

AI in Healthcare End-User Insights

The AI in Healthcare Market segmentation, based on end-user, includes pharmaceutical & biotechnology companies, hospital & diagnostic centers, and academic & research laboratories. In 2022, the hospitals & clinics sector had the largest share of the market. This category is expanding due to the rising use of new technologies in these environments and the growing level of industry-wide cooperation. During the projected time frame, the pharmaceutical and biotechnology firms category is anticipated to grow at a considerable CAGR. In healthcare, artificial intelligence (AI) forecasts pharmaceutical items' therapeutic efficacy and safety and assists in gene sequencing work.

Artificial Intelligence in Healthcare Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Healthcare Artificial Intelligence Market area will dominate this market. The regional market will expand due to the increased acceptance of innovative AI-based medical devices and the efforts of significant industry players to obtain regulatory authority approval. Additionally, the rise in the quantity of Machine Learning (ML) based clinical trials, which produce outcomes with higher accuracy and shorter study intervals, will probably support the expansion of the market in the area.

Further, the major countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.


Artificial Intelligence in Healthcare Market

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's AI in Healthcare Market accounts for the second-largest market share due to advancements in the medication discovery process that streamline administrative processes and provide patients with effective healthcare. Additionally, using AI to streamline processes in the region's healthcare delivery system helped the market expand. Further, the German market of Artificial Intelligence in Healthcare held the major market share, and the UK market of Artificial Intelligence in Healthcare was the fastest-growing market in the European region.

The Asia-Pacific AI in Healthcare Market is estimated to expand at a rapid rate from 2024 -2032. Increasing expenditures in AI-based medical devices for diagnosing various ailments are anticipated to fuel market expansion in the area over the forecast year. For instance, CytoReason and Summit Pharmaceuticals (SPI) partnered in September 2021 to enter the Japanese market and create a computational illness model using AI. Moreover, China’s market of Artificial Intelligence in Healthcare held the largest market share, and the Indian market of Artificial Intelligence in Healthcare was the fastest-growing market in the Asia-Pacific region.

Artificial Intelligence in Healthcare Key Market Players & Competitive Insights

Leading market players are largely investing heavily in research and development to expand their product lines, which will help the Healthcare Artificial Intelligence Market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their presence. The AI in Healthcare Market must provide affordable products to expand and thrive in a more competitive and challenging market environment.

One of the major business strategies manufacturers use in the Artificial Intelligence in Healthcare industry to increase the market sector and benefits customers is local manufacturing to lower operational costs. In recent years, the Artificial Intelligence in Healthcare industry has stipulated some of the most important medicinal benefits. Major players in the Artificial Intelligence in Healthcare Market, including Recursion Pharmaceuticals, Medtronic, CloudmedX, Oncora Medical, Google, and others, are funding operations for research and development to boost market demand.

Nvidia is the leading manufacturer of discrete graphics processing units, which improve the user experience on computing platforms. The company's chips are used in various applications, including PC gaming and data centers. Over 1,800 healthcare businesses are supported by the NVIDIA Inception program, which fosters the development of cutting-edge, GPU-based applications to optimize operations, improve diagnostics, and elevate patient care. In March 2022, NVIDIA announced Clara Holoscan MGXTM, a platform designed to satisfy regulatory standards for the medical device sector to create and deploy real-time AI applications at the edge. Clara Holoscan MGX extends the Clara Holoscan platform to deliver an all-in-one, medical-grade reference architecture and long-term software support to speed medical device creation.

Canon Medical Systems Corporation is a Japanese medical equipment manufacturer headquartered in Tawara, Tochigi. Canon Medical Equipment Europe markets, sells, distributes, and services radiology and cardiovascular equipment such as CT, MR, ultrasound, and X-ray throughout Europe, as well as coordinating clinical diagnostic imaging research across all modalities. In November 2021, Canon Medical launched Altivity, a new AI innovation brand combining machine learning and deep learning technologies to bring unrivaled quality and value across the treatment pathway. Canon Medical, beginning with its Advanced intelligent Clear-IQ Engine (AiCE), has been steadily redefining the role of AI in healthcare.

Key Companies in the market of Artificial Intelligence in Healthcare include

  • Google

  • Medtronic

  • Amazon Web Services

  • Johnson & Johnson

  • General Electric Company

  • General Vision

  • CloudmedX

  • Oncora Medical

  • Enlitic

  • Lunit

  • Cota

  • FDNA Inc.

  • Recursion Pharmaceuticals

  • Atomwise (US)

  • Welltok (US)

  • Babylon Health

  • Gauss Surgical

  • Qventus

  • Desktop Genetics

  • Cylance

  • Ginger.io

  • Pillo

Artificial Intelligence in Healthcare Industry Developments

September 2023, Merck entered into two strategic collaborations with Exscientia and BenevolentAI to strengthen their drug development capabilities using AI. They are going to focus specifically to develop candidates for immunology, neurology, and oncology drug candidates. 

November 2023, Wipro partner with NVIDIA to expedite adoption of AI among healthcare companies. The collaboration is expected to augment Medicare, Medicaid, and other platforms with the help of AI.

October 2023, ZS launch ZAIDYN Connected Health solution that will enable biopharmaceutical companies, healthcare providers and payers to gain health insights, provide patient engagement, and perform connected research with the help of AI.

Artificial Intelligence in Healthcare Market Segmentation

Artificial Intelligence in Healthcare Component Outlook

  • Hardware

  • Software

  • Services

Artificial Intelligence in Healthcare Application Outlook

  • Robot-Assisted Surgery

  • Virtual Nursing Assistant

  • Dosage Error Reduction

  • Clinical Trial

  • Preliminary Diagnosis

  • Automated Image Diagnosis

Artificial Intelligence in Healthcare Technology Outlook

  • Machine Learning

  • Querying Method

  • Natural Language Processing

Artificial Intelligence in Healthcare End-User Outlook

  • Pharmaceutical & Biotechnology Companies

  • Hospital & Diagnostic Centers

  • Academic & Research Laboratories

Artificial Intelligence in Healthcare Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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