Artificial Intelligence in Medicine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Artificial Intelligence in Medicine Market Analysis

The Artificial Intelligence In Medicine Market size is estimated at USD 11.66 billion in 2024, and is expected to reach USD 36.79 billion by 2029, growing at a CAGR of 25.83% during the forecast period (2024-2029).

The growing global geriatric population, varying lifestyles, and growing prevalence of chronic diseases have contributed to the surge in the need for diagnosing and enhanced understanding of diseases in their initial phases. For instance, according to the American Heart Association, in 2022, the prevalence rate of heart failure in the United States is 6 million, 1.8 percent of the total population.

• The Market is driven by various factors, including the need to handle data more effectively and optimize healthcare expenses, the growth of public-private partnerships, and regional spending on healthcare. Additionally, the Market is predicted to grow as opportunities in geriatric population care with AI technology, imaging, and diagnostics to generate data for research development occur. According to IBEF, in the Union Budget 2023-24, the government allocated INR 89,155 crore (USD 10.76 billion) to the Ministry of Health and Family Welfare (MoHFW).
• Small-molecule drug discovery benefits from AI in four ways; permit new biology, higher success rates, improved or unique chemistry, and speedier and less expensive discovery procedures. For instance, the FDA's Center for Drug Evaluation and Research recently approved 50 new medicines and biological products. About 33 of the 50 novel medications and biological products authorized for use had tiny molecules, while 17 were monoclonal antibodies and other large molecules. However, the number of biological approvals has constantly increased during the past few years. Such huge approvals for drugs will drive the Market's growth.
• Further, the healthcare sector transitioned significantly due to the digital revolution over the past decade. Care delivery and system performance have been the best-demonstrated change enabled by innovation and integration. The next wave of revolt in healthcare is already laying the groundwork for a customer-driven business model as digital convergence makes it possible to seamlessly integrate new technologies such as AI, IoT, and ML.
• For instance, in June 2023, Dartmouth launched its Center for Precision Health and Artificial Intelligence (CPHAI), which is set to advance interdisciplinary research into how artificial intelligence (AI) and biomedical data can improve precision medicine and health outcomes. CPHAI's launch is supported by USD 2 million in initial funding from Dartmouth's Geisel School of Medicine and the Dartmouth Cancer Center. The center's research aims to improve public health and healthcare delivery while maintaining rigorous ethical standards for health AI. Such developments may further drive the studied market growth.
• Furthermore, AI and associated technologies are becoming increasingly common in business and society and are starting to be used in healthcare. These technologies could change many facets of patient care and internal administrative procedures at payer, provider, and pharmaceutical organizations. Healthcare services are constantly growing, and many nations need more healthcare professionals, particularly doctors. Healthcare organizations are likewise working hard to stay up with all the latest technological advancements and the high standards people have for service and results. Further, in November 2022, healthcare technology innovator ModMed announced the US government granted Patent No. 11,443,836, protecting some of the core functionality of its EHR system, a system designed to save clinicians time documenting exams and allowing them to focus more on the patient in front of them.
• AI is offering transformative opportunities for the life sciences industry. It is a crucial investment target in the coming years, with myriad organizations hoping to capitalize on its potential. The number of applications is expected to continue to increase, and investors are expected to enter the AI industry early. However, at the start-up stage, AI investment can pose a risk to a company's growth. Massive cash injections are required to launch robust AI products off the ground, and it is not a sector that can be monetized quickly or easily. Often, these products require R&D teams and specialist engineers in machine learning, which would come at a cost.
• Moreover, the COVID-19 pandemic influenced international politics and the economy. There weren't any particularly potent therapies or medications to treat the disease at the time. Therefore, developing unique techniques for early illness isolation, diagnosis, and treatment became essential. Artificial intelligence with multimodal data helped different segments of the healthcare industry to cater to the rapid disease outbreak by providing cutting-edge applications in disease, treatment, medicine, and target recognition during the pandemic.

Artificial Intelligence in Medicine Market Trends

Patient Management Application to Witness Significant Growth

Artificial Intelligence in Medicine Industry Segmentation

Artificial intelligence in the medical sector uses machine learning models to enhance patient outcomes and medical research data. These methods support healthcare professionals by leveraging medical knowledge to deliver immediate services for various clinical and medical solutions. Electronic health records (EHRs) provide data that AI systems can use to deliver therapeutically relevant, timely, and high-quality information to doctors and researchers for immediate needs.

The studied Market is segmented by various applications such as Medical Administration and Support, Patient Management, and Research and Development among Hardware, Software, and Services types in multiple geographies. The impact of macroeconomic trends on the Market is also covered under the scope of the study. Further, the disturbance of the factors affecting the Market's evolution in the near future has been covered in the study regarding drivers and constraints. The market sizes and predictions are provided in terms of value in USD for all the above segments.