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

North America Artificial Intelligence In Healthcare Market Analysis

The North America Artificial Intelligence In Healthcare Market size is estimated at USD 4.62 billion in 2024, and is expected to reach USD 14.84 billion by 2029, growing at a CAGR of 26.27% during the forecast period (2024-2029).

Artificial intelligence (AI) in healthcare leverages data-driven insights and advanced algorithms to enhance clinical decision-making, optimize operations, and deliver more personalized, cost-effective healthcare solutions that improve patient outcomes. Factors such as growing demand for innovative healthcare solutions, rising uptake of digital healthcare, and increased emphasis on patient-centric care are projected to accelerate market growth over the forecast period.

Artificial intelligence has driven the healthcare space and is increasingly integrated into various medical applications like patient management, monitoring, and drug development. In addition, several benefits of artificial intelligence (AI) in healthcare operations are expected to accelerate market expansion over the forecast period. For instance, according to an article published by Clinical Pathology in January 2024, AI has a proven role in helping healthcare professionals in accurate, quick diagnosis and developing effective treatment plans as per patient’s condition. Thus, the important role of AI in healthcare is expected to fuel market growth over the forecast period.

In addition, the growing importance of artificial intelligence (AI) in healthcare decision-making is further projected to accelerate industry expansion over the study period. For instance, according to an article published by Health Service Research and Managerial Epidemiology in March 2024, AI plays a significant role in healthcare decision-making, including organizational, clinical, and shared decision-making, and increases the effectiveness of healthcare decisions. Thus, such an increased role of AI in healthcare is expected to foster industry uptake over the study period.

Moreover, several government initiatives to foster the uptake of digital health and artificial intelligence in healthcare are expected to accelerate market growth over the projection period. For instance, in May 2024, the US Department of Health and Human Services (HHS) announced funding programs for AI in healthcare for the fiscal year 2024. The funding will be aimed at developing innovative ways to improve healthcare data with the help of artificial intelligence (AI).

The presence of key players and several strategic initiatives undertaken by them are expected to drive market growth in North America. For instance, in April 2024, Google Cloud and Bayer AG collaborated to develop artificial intelligence (AI) based healthcare applications for radiologists. These applications help radiologists sophisticate their work and facilitate accurate diagnosis. Thus, such strategic events are expected to accelerate market expansion over the forecast period.

Furthermore, the introduction of advanced technological products by the market players is expected to propel the growth of the market. For instance, in September 2022, AGS Health, a revenue cycle management (RCM) solutions provider, launched the AGS AI Platform. This connected solution combined artificial intelligence (AI) and automation with human-in-the-loop services and professional support to maximize revenue cycle performance.

Thus, due to the increase in government initiatives to support digital health in North America and the rise in strategic activities by the key players, such as agreements and collaborations, the market studied is expected to witness significant growth over the forecast period. However, reluctance among traditional practitioners to adopt AI-based technologies is likely to hinder market growth over the forecast period.

North America Artificial Intelligence In Healthcare Market Trends

The Medical Imaging and Diagnostics Segment is Anticipated to Register Significant Growth Rate During the Forecast Period

North America Artificial Intelligence 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 North American artificial intelligence in the healthcare market is segmented by technology, application, offering, end user, and geography. Based on technology, the market is segmented into natural language processing (NLP), deep learning, context-aware processing, querying methods, and other technologies. Based on application, the market is segmented into robot-assisted surgery, virtual nursing assistants, fraud detection, drug discovery and research, dosage error reduction, medical imaging and diagnostics, wearables, and other applications. By offering, the market is segmented into hardware, software, and services. Based on end user, the market is segmented into healthcare payers, healthcare providers, pharmaceutical and biotechnology companies, and patients. The report also covers the market sizes and forecasts for the market studied in major countries across North America. For each segment, the market size and forecast are provided in terms of value (USD).