Market Size of Artificial Intelligence in Healthcare Industry
Study Period | 2021 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 42.20 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
AI in Healthcare Market Analysis
The artificial intelligence in the healthcare market is expected to register a CAGR of 42.2% during the forecast period.
The COVID-19 pandemic increased the demand for artificial intelligence (AI) in healthcare. This is due to the increasing demand for AI-based tools and solutions that can evaluate and diagnose COVID-19. According to a study published by Intelligence Medicine in May 2021, artificial intelligence (AI) has aided in addressing challenges and accelerating progress in mitigating this public health crisis. It has been used in applications ranging from outbreak forecasting to patient management and drug/vaccine research.
AI-based techniques are widely used in four areas: patient tracking and monitoring, screening and diagnosis, characterization and severity evaluation, and prognostic prediction in COVID-19 patients. Additionally, according to the study published in MDPI Diagnostics in November 2022, AI systems are beneficial for complex medical diagnoses that traditional statistical methods cannot manage. Models that auto-regulate, recognize, segment, and classify COVID-19 data are utilized in AI for screening and diagnosing COVID-19. Thus, the pandemic positively influenced the studied market. Currently, the market is predicted to develop further over the forecast period, as demand for AI in healthcare is expected to rise due to the increased prevalence of chronic diseases and the use of AI in their management.
The market is primarily driven by the growing need to reduce healthcare costs, utilization of big data in healthcare, the ability of AI to improve patient outcomes, and the ever increasing importance of AI-assisted robotic surgeries. For instance, according to a study published in the International Journal of Environmental Research and Public Health in January 2021, more than 60% of hospitals globally had incorporated IoT in their facilities. It also stated that "AI applications could generate up to USD 150 billion in yearly savings for United States healthcare by 2026." By 2021, hospitals planned to invest USD 6.6 billion annually in AI-related technologies. Thus, by implementing AI in healthcare, healthcare costs can be reduced, driving demand for AI in healthcare over the projected period.
Additionally, the rising application of big data in healthcare, as well as strategies to bring the big data system into healthcare are expected to support market expansion. In March 2022, the government of Thailand launched a big data portal for healthcare facilities. The National Reform Committee on Public Health recently joined hands with 12 government agencies to improve the quality of healthcare services through the implementation of digital technologies. Similarly, in March 2022, Microsoft launched its Azure Health Data Services. It is a Platform as a Service (PaaS) offering designed exclusively to support protected health information (PHI) in the cloud.
Furthermore, the introduction of an advanced technological products by the market players is expected to propel the growth of the market. In September 2022, AGS Health, a revenue cycle management (RCM) solutions provider, announced the launch of the AGS AI Platform, a connected solution that combines artificial intelligence (AI) and automation with award-winning human-in-the-loop services and professional support to maximize revenue cycle performance.
Additionally, in March 2022, Health Catalyst, Inc. announced the new Healthcare.AI launch. Created to address healthcare business opportunities and challenges across revenue, cost, and quality, Healthcare. AI suite of augmented intelligence (AI) products and services will significantly expand AI's effective use and use-cases in healthcare. In March 2022, NVIDIA Corporation launched Clara Holoscan MGX, a device that is used to accelerate innovation in the medical industry. It uses real-time AI.
Thus, all the above-mentioned factors, such as the growing need to reduce healthcare costs and product launches by the market players, are expected to boost the market over the forecast period. However, reluctance among traditional practitioners to adopt AI-based technologies may restrain the market growth.
AI in Healthcare Industry Segmentation
Artificial intelligence in healthcare is an umbrella phrase for the use of machine-learning algorithms and software or artificial intelligence (AI) to simulate human cognition in the analysis, display, and comprehension of complicated medical and healthcare data. AI is the ability of computer algorithms to estimate conclusions based purely on input data.
The Artificial Intelligence in Healthcare Market is Segmented by Technology (Natural Language Processing (NLP), Deep Learning, Context Aware Processing, Querying Method, and Other Technology Types), Application (Robot-assisted Surgery, Virtual Nursing Assistants, Fraud Detection, Drug Discovery and Research, Dosage Error Reduction, Medical Imaging and Diagnostics, Wearables, and Other Application Types), Offering (Hardware, Software, and Services), End-user (Healthcare Payers, Healthcare Providers, Pharmaceutical and Biotechnology Companies, Patients, and Other End-user Types), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value in USD million for all the above segments.
By Technology | |
Natural Language Processing (NLP) | |
Deep Learning | |
Context Aware Processing | |
Querying Method | |
Other Technology Types |
By Application | |
Robot-assisted Surgery | |
Virtual Nursing Assistants | |
Fraud Detection | |
Drug Discovery and Research | |
Dosage Error Reduction | |
Medical Imaging and Diagnostics | |
Wearables | |
Other Application Types |
By Offering | |
Hardware | |
Software | |
Services |
By End-user | |
Healthcare Payers | |
Healthcare Providers | |
Pharmaceutical and Biotechnology Companies | |
Patients | |
Other End-user Types |
By Geography | ||||||||
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Artificial Intelligence in Healthcare Market Size Summary
The artificial intelligence in healthcare market is poised for significant growth, driven by the increasing demand for AI-based tools and solutions, particularly in the wake of the COVID-19 pandemic. The pandemic highlighted the potential of AI in various applications, such as outbreak forecasting, patient management, and drug research, thereby accelerating its adoption. The market is further propelled by the rising prevalence of chronic diseases, which necessitates advanced diagnostic and management solutions. Key factors contributing to market expansion include the need to reduce healthcare costs, the integration of big data in healthcare, and the growing importance of AI-assisted robotic surgeries. The introduction of advanced technological products by market players also plays a crucial role in boosting market growth.
In North America, the market is driven by the increasing adoption of advanced technologies in healthcare systems, the rising burden of chronic diseases, and the need to minimize healthcare costs. The implementation of big data solutions, such as the Penn-CHOP Kidney Innovation Center, underscores the region's commitment to enhancing patient care through data-driven insights. The competitive landscape is characterized by the presence of major players like IBM, Google, and Microsoft, who are actively engaging in product innovation and strategic partnerships. These developments, coupled with the launch of technologically advanced products, are expected to sustain the market's growth trajectory over the forecast period.
Artificial Intelligence in Healthcare Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Growing Need to Reduce Increasing Healthcare Costs
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1.2.2 Big Data in Healthcare
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1.2.3 Ability of AI to Improve Patient Outcomes and Growing Importance of AI-assisted Robot Surgery
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1.3 Market Restraints
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1.3.1 Reluctance Among Traditional Practitioners to Adopt AI-based Technologies
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD million)
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2.1 By Technology
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2.1.1 Natural Language Processing (NLP)
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2.1.2 Deep Learning
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2.1.3 Context Aware Processing
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2.1.4 Querying Method
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2.1.5 Other Technology Types
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2.2 By Application
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2.2.1 Robot-assisted Surgery
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2.2.2 Virtual Nursing Assistants
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2.2.3 Fraud Detection
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2.2.4 Drug Discovery and Research
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2.2.5 Dosage Error Reduction
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2.2.6 Medical Imaging and Diagnostics
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2.2.7 Wearables
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2.2.8 Other Application Types
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2.3 By Offering
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2.3.1 Hardware
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2.3.2 Software
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2.3.3 Services
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2.4 By End-user
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2.4.1 Healthcare Payers
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2.4.2 Healthcare Providers
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2.4.3 Pharmaceutical and Biotechnology Companies
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2.4.4 Patients
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2.4.5 Other End-user Types
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2.5 By Geography
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2.5.1 North America
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2.5.1.1 United States
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2.5.1.2 Canada
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2.5.1.3 Mexico
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2.5.2 Europe
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2.5.2.1 Germany
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2.5.2.2 United Kingdom
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2.5.2.3 France
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2.5.2.4 Italy
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2.5.2.5 Spain
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2.5.2.6 Rest of Europe
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2.5.3 Asia-Pacific
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2.5.3.1 China
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2.5.3.2 Japan
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2.5.3.3 India
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2.5.3.4 Australia
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2.5.3.5 South Korea
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2.5.3.6 Rest of Asia-Pacific
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2.5.4 Middle East and Africa
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2.5.4.1 GCC
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2.5.4.2 South Africa
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2.5.4.3 Rest of Middle East and Africa
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2.5.5 South America
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2.5.5.1 Brazil
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2.5.5.2 Argentina
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2.5.5.3 Rest of South America
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Artificial Intelligence in Healthcare Market Size FAQs
What is the current Artificial Intelligence in Healthcare Market size?
The Artificial Intelligence in Healthcare Market is projected to register a CAGR of 42.20% during the forecast period (2024-2029)
Who are the key players in Artificial Intelligence in Healthcare Market?
IBM Corporation, Google Inc., Microsoft Corporation, Intel Corporation and Oracle Corporation are the major companies operating in the Artificial Intelligence in Healthcare Market.