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Artificial Intelligence (AI) in Healthcare Market Size, Share & Industry Analysis, By Platform (Solutions and Services), By Application (Robot-Assisted Surgery, Virtual Nursing Assistant, Administrative Workflow Assistance, Clinical Trials, Diagnostics, and Others), By End-user (Hospitals & Clinics, Pharmaceutical & Biotechnology Companies, Contract Research Organization (CRO), and Others), and Regional Forecasts, 2024-2032
Report Format: PDF | Latest Update: Sep, 2024 | Published Date: May, 2024 | Report ID: FBI100534 | Status : PublishedThe global Artificial Intelligence (AI) in healthcare market size was valued at USD 19.54 billion in 2023 and is projected to grow from USD 27.69 billion in 2024 to USD 490.96 billion by 2032, exhibiting a CAGR of 43.2% during the forecast period. North America dominated the AI in healthcare market with a market share of 44.93% in 2023.
Artificial Intelligence in healthcare is used to analyze the medical data that helps doctors and medical providers deliver accurate diagnoses and treatments to their patients. AI in healthcare assists doctors, nurses, and other healthcare workers to enhance their productivity. This advancement helps patients in treatment and improves their quality of life. Also, according to an article published by GE Healthcare, it is found that healthcare professionals are already using AI to improve data analysis, which has enabled them to diagnose their patients in a better way with proper predictions for the treatment and decrease the time spent by the medical staff on administrative functioning.
The expansion of AI in the healthcare industry due to investments made by private and government enterprises in the sector and advancements in medicine, research, innovation, and technology are expected to drive the market's growth.
- For instance, in September 2021, Microsoft Corporation collaborated with Truveta Inc., a U.S.-based firm that specializes in providing health data platforms. This collaboration will assist Truveta in leveraging the power of Microsoft Azure and artificial intelligence (AI) to develop a data-driven platform for the healthcare industry and work together to scale this platform globally.
Such collaborations or investments are projected to contribute to the growth of Artificial Intelligence (AI) in the healthcare market growth.
The impact of COVID-19 is expected to result in a considerably high growth of Artificial Intelligence (AI) in the healthcare market during the analysis period. This is attributed to the significant acceleration in the demand for AI-based tools and solutions due to its ability to diagnose COVID-19 by keeping track of the spread of the virus. Also, the increase in demand for Electronic Health Record (EHR) system analyses of the risk profiling of the pandemic among the population in order to get real-time data contributed to the growth of the market.
Artificial Intelligence in Healthcare Market Trends
Rising Implementation of Artificial Intelligence and Robotics is Transforming the Healthcare Industry
In recent years, artificial intelligence is rapidly transforming the global healthcare industry. It has brought unprecedented tools for diagnosing, treating, and patient care. With this growing demand, providers are focusing on advancements in technology, which enhances the diagnosis and treatment of various clinical indications. Along with this, the use of various tools, such as virtual assistants, can be used to improve patient care by transforming patient symptom checking, providing e-consultation, tracking patient health and sending medication alerts, and many more
- In August 2021, NVIDIA Corporation launched ‘NVIDIA AI Enterprise,’ a new artificial intelligence tool that visualizes AI workloads on NVIDIA Certified systems.
- In January 2021, Nuance launched a new virtual assistant platform to streamline the use of Artificial Intelligence (AI) to connect patients. This new platform addresses the needs of healthcare providers and patients and delivers care solutions.
- In November 2020, Google launched the Google Cloud Healthcare Interoperability Readiness Program which understands the interoperability maturity levels and helps organizations to increase readiness for the Centers for Medicare and Medicaid Services (CMS)
AI in Healthcare Market Growth Factors
Investments by Private and Government Sectors in Artificial Intelligence to Drive Market Growth
An increase in investments by the pharmaceutical and MedTech companies in Artificial Intelligence (AI) in healthcare to expand their business is likely to propel the growth of the market. According to the PwC, Artificial Intelligence (AI) is efficient, quick, and performs operational activities at a much lower cost. Also, the AI assists medical professionals in the early diagnosis and detection of any disease. This has led to a rise in investments by the majority of healthcare providers working in the industry.
- In April 2021, Microsoft Corporation acquired Nuance Communications, Inc. This acquisition assisted the company in adopting Nuance Communications' advanced cloud and AI capabilities, which are complemented by their expertise in the healthcare industry.
Additionally, national spending on healthcare in several countries, including both developed and developing countries, is rising. This shows the growing adoption of artificial intelligence in various industries, including healthcare. For instance, according to the World Economic Forum report, expenditure on artificial intelligence in India is expected to reach USD 11.78 billion in 2025.
RESTRAINING FACTORS
Increasing Complexities, Data Breaches, and High Costs to Restrict Market Growth
Though Artificial Intelligence (AI) has a lot of uses in healthcare, the adoption of AI in healthcare is limited. The reason for this is the complexities faced by healthcare providers. The incorporation of artificial intelligence may lead to inaccuracies and create a gap between the diagnosis and medicines prescribed to the patient. Some of the concerns associated with using AI in healthcare include lack of quality medical data, clinically irrelevant performance metrics, methodological research flaws, data collection concerns, ethical concerns, and social concerns. Another factor that hampers Artificial Intelligence (AI) in the healthcare market is data privacy issues. In many countries, there are certain regulations to protect patient health data. The violation of this regulation can lead to legal and financial penalties. Also, problems, such as unethical gathering of sensitive data, increase the risk of patient data safety. Thus, increasing concerns of patient safety and unethical collection of patient data are hampering the overall growth of the market.
- According to the statistics published by CI security, data breaches in the healthcare industry increased by around 36.0% in the second half of 2020. This revealed that around 21.3 million patient records were hampered.
Such factors are restraining the use of artificial intelligence technology by healthcare providers and hampering the growth of the market.
AI in Healthcare Market Segmentation Analysis
By Platform Analysis
New Launches and Investments Made by Key Players are Contributing to the Growth of the Segment
Based on the platform, the market is segmented into solutions and services.
The solutions segment accounted for the highest share and dominated the global market in 2023. An increase in investments by the key market players and the introduction of new products are the major factors surging the demand for Artificial Intelligence (AI) in healthcare. For instance, in March 2023, Microsoft announced the launch of Microsoft Fabric, which aims to integrate multiple technologies, enabling organizations to analyze & generate insights from their data easily. Also, initiatives taken by governments to promote Artificial Intelligence (AI) in healthcare facilities lead to the adoption of AI-based tools and solutions.
The services segment is projected to grow comparatively at a lower CAGR during the forecast period. Services such as virtual nursing assistance help to continuously monitor the patient’s symptoms with physician feedback on demand and are contributing to the growth of the segment. For instance, in October 2021, Sensely launched Virtual Primary Care (VPC), which has a virtual assistant which is voice-enabled and character-based. This virtual assistance assists patients to connect with their healthcare team with the medium of their own choice.
By Application Analysis
Advancements and Introduction of New Technologies Likely to Propel the Growth
The market is segmented by application into robot-assisted surgery, virtual nursing assistant, administrative workflow assistance, clinical trials, preliminary diagnostics, and others.
The robot-assisted surgery segment held the highest market share and dominated the market in 2023 due to an upsurge in technological advancements. For instance, in October 2021, Medtronic received approval for its Hugo RAS system in Europe. This new system is approved for performing urological and gynecological procedures. In addition, various advantages AI tools offer in surgeries, such as improved efficiency and enhanced surgical decision-making, also support segment growth.
Furthermore, the preliminary diagnostics segment is projected to grow at a considerable growth during the forecast period with a substantial CAGR. The positive results of AI-based diagnostics tools led to an increase in demand for AI-based pathology tools. For instance, in October 2021, Olympus, one of the manufacturers of optical and digital life science solutions, announced the results of its AI-based pathology diagnostic tool. The results depicted that the tool can identify adenocarcinoma and non-adenocarcinoma tissue in gastric cancer patients. Such factors are contributing to the high growth of the segment.
By End-user Analysis
Need to Manage Hospital & Clinics Administrative Workload in a Structured Manner to Drive Market Growth
The market is segmented by end-users into hospitals and clinics, pharmaceutical and biotechnology companies, Contract Research Organizations (CROs), and others.
The hospitals & clinics segment held the majority of the share and dominated the market in 2023. The increase in adoption of new technologies in these settings and the increase in collaborations of major players in the market are contributing to the growth of this segment.
The pharmaceutical & biotechnology companies segment is projected to grow at a substantial CAGR during the forecast period. Artificial Intelligence (AI) in healthcare not only helps in gene sequencing work but also predicts the drug efficacy and safety of pharmaceutical products. The growing number of collaborations of different players in the market is driving the growth of this segment. For example, in July 2020, Merck KGaA collaborated with Janssen Pharmaceuticals, N.V. to develop an AI diagnostic tool. This tool can help in the improvisation of the detection of the Neglected Tropical Diseases (NTDs) schistosomiasis and Soil Transmitted Helminthiasis (STH).
REGIONAL INSIGHTS
By region, this market is divided into North America, Europe, Asia Pacific, and Latin America.
The market in North America was valued at USD 8.78 billion in 2023 and is anticipated to continue to dominate the global market during the forecast period. The increase in the adoption of new AI-based medical devices and the efforts shown by key players in the market to gain approval from the regulatory authorities is expected to drive market growth in the region. Also, the increase in the number of Machine Learning (ML) based clinical trials, which gives results with higher accuracy with reduced study period interval, is likely to contribute to the growth of the market in the region.
Europe is anticipated to be the second-most dominant region in terms of Artificial Intelligence (AI) in healthcare market share. The market in Europe holds a significant share due to improvements in the drug discovery process that smoothens the administrative workflow, with efficient healthcare delivery to the patient. Also, the improved operations in the healthcare delivery system by using AI contributed to the growth of the market in the region.
The market in Asia Pacific is estimated to grow at the highest CAGR, especially in developing countries such as China, Japan, and India. The growing number of investments in AI-based medical devices for the diagnosis of various diseases is likely to drive the growth of the market in the region during the forecast duration. For instance, in September 2021, CytoReason collaborated with Summit Pharmaceuticals (SPI) to enter the Japanese market and use AI to develop a computational disease model.
Latin America, the Middle East, and Africa accounted for a limited amount of market revenue during the forecast period. However, AI-based telehealth services and increasing collaborations between healthcare facilities in these regions are expected to lead the market's future growth prospects.
List of Key Companies in Artificial Intelligence (AI) in Healthcare Market
Mergers and Acquisitions by Key Players to Propel Market Progress
The global market includes players such as Amazon.com, Inc., Microsoft Corporation, NVIDIA Corporation, and Alphabet Inc., which held a significant share in 2023. Key market players are adopting strategies, such as mergers and acquisitions, the launch of new products, and technological advancements, thereby strengthening their position in the global market.
- For instance, in March 2022, Microsoft Corporation announced technological updates in the healthcare cloud and the access of Azure HealthData services. The new features include improved health bot templates, improved clinical workflow integration, and introduction of new patient insight features.
- In June 2021, Amazon Web Services, Inc. and Salesforce, Inc. collaborated to integrate AWS services for machine learning, artificial intelligence, and the delivery of various services to customers in various verticals of various industries.
Other market players with a significant presence in the global market include Hewlett Packard Enterprise Company, Intel Corporation, Siemens AG, and General Electric Company. These companies are expected to focus on new product launches and collaborations to increase their market share during the forecast period.
LIST OF KEY AI IN HEALTHCARE COMPANIES:
- Amazon.com, Inc. (U.S.)
- Microsoft Corporation (U.S.)
- NVIDIA Corporation (U.S.)
- Alphabet Inc. (U.S.)
- Hewlett Packard Enterprise Company (U.S.)
- Intel Corporation (U.S.)
- Siemens Healthineers AG (Germany)
- General Electric Company (U.S.)
- Allscripts Healthcare Solutions, Inc. (U.S.)
- UnitedHealth Group, (Optum Inc.) (U.S.)
KEY INDUSTRY DEVELOPMENTS:
- October 2023: Google introduced a new generative AI feature for healthcare professionals. This aims to help them find relevant and accurate clinical information more efficiently.
- October 2023: Microsoft launched new data and AI solutions for healthcare organizations at the HLTH 2023 conference.
- March 2022: NVIDIA Corporation launched Clara Holoscan MGX, a device that uses real-time Artificial Intelligence (AI) applications to the edge with long-term software support. This new platform accelerated innovation in the medical devices industry.
- February 2022: Hewlett Packard Enterprise Company and Ayar Labs entered into a collaboration to enter into a data center innovation based on optical I/O technologies.
- November 2021: CANON MEDICAL SYSTEMS EUROPE B.V. launched Altivity, a new innovative brand that uses artificial intelligence that combines machine learning and needs learning technologies. This new technology is used in medical imaging systems such as MRI, which decreases the scanning time and provides images with improved quality.
- October 2021: Microsoft Corporation introduced the Microsoft AI innovate program. This new AI-based startup program assists Indian entrepreneurs in scaling up their operations and also invites B2B and B2C businesses from different industries, such as healthcare, education, space, and logistics, to join its batches.
- June 2021: NVIDIA Corporation launched the “AI Launch Pad,” a hybrid cloud supplier system that provides organizations with access to NVIDIA-powered infrastructure and helps them accelerate the entire AI lifecycle.
- June 2021: Hewlett Packard Enterprise Development LP acquired Determined AI, a startup based in San Francisco. This acquisition aims to connect AI software solutions with HPC and AI, which allows faster delivery and accurate data insights.
REPORT COVERAGE
The research report provides detailed market analysis and focuses on key aspects such as an overview of the advanced technology, regulatory scenario for key countries, and challenges faced for the adoption and implementation of AI-based solutions. Additionally, it includes an overview of the application of AI in hospitals and clinics and key industry developments such as mergers, partnerships, & acquisitions. In addition to the above-mentioned factors, the report also includes the factors that have contributed to the growth of the market in recent years, with a regional analysis of different segments.
Report Scope & Segmentation
ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024-2032 |
Historical Period | 2019-2022 |
Growth Rate | CAGR of 43.2% from 2024-2032 |
Unit | Value (USD billion) |
Segmentation | By Platform
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By Application
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By End-user
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By Region
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Frequently Asked Questions
How much is the global Artificial Intelligence in healthcare market worth?
Fortune Business Insights says that the global AI in healthcare market size was USD 19.54 billion in 2023 and is projected to reach USD 490.96 billion by 2032.
What was the value of AI in healthcare market in North America in 2023?
In 2023, North America stood at USD 8.78 billion.
At what CAGR is the market projected to grow over the forecast period (2024-2032)?
Registering a CAGR of 43.2%, the market will exhibit rapid growth over the forecast period (2024-2032).
Which is the leading segment in the market?
The platform segment is expected to lead the market during the forecast period.
What are the key factors driving the market?
Rising investment by private and government sectors in AI is driving the market.
Who are the major players in this market?
Amazon.com, Inc., Microsoft Corporation, NVIDIA Corporation, and Alphabet Inc. are major players in the global market.
Which region held the highest share in the market?
North America dominated the market in terms of share in 2023.
Which factors are expected to drive the adoption of the products?
Advancement in medicine, research, innovation, and technology are the factors expected to drive the adoption of the products.
- Global
- 2023
- 2019-2022
- 159