AI in Healthcare Market Research, 2030
The AI in healthcare market size was valued at $8.23 billion in 2020, and is projected to reach $194.4 billion by 2030, growing at a CAGR of 38.1% from 2021 to 2030.Artificial intelligence is defined as an intelligent system that applies various human intelligence-based functions such as reasoning, learning, and problem-solving skills in different disciplines such as biology, computer science, mathematics, linguistics, psychology, and engineering. Artificial intelligence in healthcare makes use of algorithms and software to analyze complex medical data.
Artificial intelligence is used within the healthcare sector to research the connection between treatment techniques and patient outcomes. AI in healthcare has various applications in medication management, treatment plans, and drug discovery. It is used in medical practices such as diagnostic processes, personalized medicines, drug development, and patient monitoring care.
The growth of the artificial intelligence healthcare market is majorly driven by increase in volume of healthcare data and rise in complexities of datasets driving the necessity for AI in healthcare in the market. In addition, improvements in the computing power and decline in hardware costs, surge in number of cross-industry partnerships, collaborations, and rise in imbalance between the health workforce and patients drive the necessity for improvised healthcare services. of skilled healthcare professionals result into increase in demand for AI algorithms applicable in the healthcare sector.
Machine learning and deep learning technologies have developed quickly as a result of the recent increase in processing capability of AI systems. The advancement of AI algorithms is also anticipated to decrease processing times, improving the use of algorithms in the healthcare industry. For instance, in June 2020, GE Healthcare launched Thoracic Care Suite to detect chest X-Ray abnormalities, such as pneumonia and tuberculosis, caused by COVID-19 as well as support clinicians and health systems to ensure quick diagnosis and effective treatment of patients. In April 2020, Microsoft investment USD 20 million to help in COVID-19 research with the use of artificial intelligence technology and data sciences, mainly focusing on hospital resources, diagnostics, and other critical areas.
The use of artificial intelligence-based algorithms reduces the human effort and acts as a substitute for some of the roles played by the physicians and healthcare professionals. The World Health Organization predicts that there was a global shortage of trained workers in 2019 of 4.3 million, including nurses, doctors, and other professions. Thus, the industry's need for systems with artificial intelligence capabilities is being fueled in part by the lack of a competent labour force. Thus, the dearth of skilled healthcare professionals results into increase in demand for AI algorithms applicable in the healthcare sector.
For instance, in August 2017, Penn Medicine developed a predictive solution using machine learning where the system analyzes an individual's vital signs and helps to predict the risk of developing sepsis and detects the possibility of heart failure.
Furthermore, the emergence of advanced hardware systems that would help to improve the efficiency and effectiveness of the AI software is expected to boost the market growth for hardware segment. For instance, in 2016, Nvidia introduced graphics processing units that improved the efficiency of using deep learning, and was 20–50 times more efficient than central processing units Another major factor fueling the market growth currently is the adoption of AI in healthcare by multiple pharmaceutical and biotechnology companies across the planet to expedite vaccine or drug development processes for COVID-19.
However, limited acceptance from healthcare professionals, owing to the risk of injury and misinterpretation is expected to hamper the growth of the global artificial intelligence in healthcare market.
AI in Healthcare Market Segmentation
The AI in healthcare market is segmented on the basis of offering, algorithm, application, end user, and region. By offering, the market is divided into hardware, software, and services. By algorithm, it is classified into deep learning, querying method, natural language processing, and context aware processing. By application, it is fragmented into robot-assisted surgery, virtual nursing assistant, administrative workflow assistance, fraud detection, dosage error reduction, clinical trial participant identifier, preliminary diagnosis, and others. By end user, it is categorized into healthcare providers, pharmaceutical & biotechnology companies, patients, and payers. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Offering Segment Review
By offering, the artificial intelligence in healthcare market is divided into hardware, software, and services. The software segment was the major revenue contributor in 2020 and is anticipated to remain dominant during the forecast period. Owing to continuous software innovation that caters to the requirement in the healthcare sector. The hardware segment is projected to witness the highest growth rate with a CAGR of 39.5% during the forecast period. Owing to Increase in need for AI hardware systems is anticipated to further provide opportunities for the players to develop in the market.
By Offering
Software segment holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
Algorithm Segment Review
By algorithm, the AI in healthcare market is classified into deep learning, querying method, natural language processing, and context aware processing. The natural language processing segment is projected to grow at a CAGR of 36.9% during the forecast period, owing to an increase in the use of signal reduction, data mining, and image recognition, which are integral components of most AI protocols.
By Algorithms
Natural Language Processing Segment hold the dominant position and would continue to maintain the lead over the forecast period.
Application Segment Review
By application, the AI in healthcare market is classified into robot-assisted surgery, virtual nursing assistant, administrative workflow assistance, fraud detection, dosage error reduction, clinical trial participant identifier, preliminary diagnosis, and others. The robot-assisted surgery segment accounted for the highest share in 2020, generating $2.42 billion, and is expected to reach & $50.98 billion by 2030, growing at an estimated CAGR of 36.6%, owing to an upsurge in demand for minimally invasive surgeries where AI-assisted technologies are being widely used. The dosage error reduction segment is expected to witness the highest CAGR of 40.0%.
By Application
Robot Assisted Surgery holds a dominant position in 2020 and continue to maintain lead in the forecast year
End User Segment Review
By end user, the AI in healthcare market is divided into healthcare providers, pharmaceutical & biotechnology companies, patients, and payers. The healthcare providers segment dominates the end-user segment, and is expected to grow at a CAGR of 37.2% during the forecast period. An increase in usage & applications of AI systems to improve patient outcomes and maintain EHR & patient records are expected to boost the market growth.
By End User
Healthcare Providers segements holds a dominant position in 2020 and continue to maintain lead in the forecast year
Region Segment Review
North America was the largest shareholder in the artificial intelligence in healthcare market in 2020, owing to its well-established healthcare infrastructure, and supportive government regulations for product type commercialization are the major factors driving the growth of AI in healthcare market. However, Asia-Pacific is anticipated to register the highest CAGR of 44.5% during the forecast period, owing to rise in adoption of healthcare IT solutions, increase in funding for the development of AI capabilities, and major players are collaborating with universities and research centers for the development of advanced AI algorithms that could be used in the healthcare industry. For instance, Microsoft Corporation collaborated with the University of Pittsburgh Medical Center to introduce virtual AI assistant in February 2018.
By Region
Asia Pacific region would exhibit the highest CAGR of 44.5% during 2020-2030
Competitive Analysis
Key players operating in the global artificial intelligence in healthcare market include Welltok, Inc., Intel Corporation, Nvidia Corporation, Google Inc., IBM Corporation, Microsoft Corporation, General Vision, Inc., Enlitic, Inc., Next IT Corporation, and iCarbonX.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the AI in healthcare market, and the current trends and future estimations to elucidate imminent investment pockets.
- It presents a quantitative analysis of the market from 2021 to 2030 to enable stakeholders to capitalize on the prevailing market opportunities.
- Extensive analysis of the market based on procedures and services assists to understand the trends in the industry.
- Key players and their strategies are thoroughly analyzed to understand the competitive outlook of the market.
Key Market Segments
By Offering
- Hardware
- Software
- Services
By Algorithms
- Deep Learning
- Querying Method
- Natural Language Processing
- Context Aware Processing
By Application
- Robot-assisted Surgery
- Virtual Nursing Assistant
- Administrative Workflow Assistance
- Fraud Detection
- Dosage Error Reduction
- Clinical Trial Participant Identifier
- Preliminary Diagnosis
- Others
By End User
- Healthcare Providers
- Pharmaceutical & Biotechnology Company
- Patients
- Payers
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Saudi Arabia
- Rest of LAMEA
Key Market Players
- Welltok, Inc.
- Intel Corporation
- Nvidia Corporation
- Google Inc.
- IBM Corporation
- Microsoft Corporation
- General Vision, Inc.
- Enlitic, Inc.
- Next IT Corporation
- iCarbonX
AI in Healthcare Market Report Highlights
| Aspects | Details |
 By OFFERING |
|
 By ALGORITHM |
|
 By APPLICATION |
|
 By END USER |
|
 By Region |
|
 Key Market Players | Welltok Inc., Alphabet Inc. (Google Inc.), IBM Corporation, Enlitic Inc., General Vision, Intel Corporation, Nvidia Corporation, iCarbonX, Microsoft Corporation, Next IT Corp. |
Analyst Review
According to the analyst perspective, AI in healthcare market is expected to witness steady growth in the future. Increase in technological advancements coupled with rise in need for efficient and innovative solutions to enhance clinical and operational outcomes drive the growth of the market. In addition, an increase in the development of AI-based software solutions further propel the growth of the market. However, limited acceptance from healthcare professionals, owing to the risk of injury and misinterpretation hinder the growth of the global AI in healthcare market. On the contrary, increase in need for improvised healthcare services due to the imbalance between the health workforce & patients and the rise in number of cross-industry partnerships and collaborations are expected to drive the growth of the global AI in healthcare market in the future.
Further, the use of AI in healthcare is highest in North America, owing to technological advancements of these products in the U.S., followed by Europe and Asia-Pacific. In addition, key players in this industry have focused on expanding their presence in the emerging economies, which is anticipated to drive the market growth.
The total market value of AI in healthcare market is $ 8.23 billion in 2020
The forecast period in the report is from 2021 to 2030
The market value of AI in healthcare market in 2030 was $ 194.14 billion
The base year for the report is 2020 in artificial intelligence in healthcare market.
Yes, AI in healthcare market companies are profiled in the report
The top companies that hold the market share in AI in healthcare market are Welltok, Inc., Intel Corporation, Nvidia Corporation, Google Inc and IBM Corporation
No, there is value chain analysis provided in the AI in healthcare market report
The key trends in the AI in healthcare market are due to rise in adoption of AI systems and technological advancements in AI systems are anticipated to augment the market growth
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