Artificial Intelligence In Healthcare Industry Overview
The global artificial intelligence in healthcare market size was valued at USD 10.4 billion in 2021 and is expected to reach USD 208.2 billion by 2030, registering a CAGR of 38.4% over a forecast period.
The growing datasets of patient health-related digital information, increasing demand for personalized medicine, and the rising demand for reducing care expenses are some of the major driving forces of the market growth. The growing global geriatric population, changing lifestyles, rising prevalence of chronic diseases has contributed to the surge in demand for diagnosing and improved understanding of diseases in their initial stages. Artificial Intelligence (AI) and machine learning (ML) algorithms are being widely adopted and integrated into healthcare systems to accurately predict diseases in their early stage based on historical health datasets.
Gather more insights about the market drivers, restrains and growth of the Global Artificial Intelligence In Healthcare Market
Furthermore, deep learning technologies, predictive analytics, content analytics, and Natural Language Processing (NLP) tools are enabling care professionals to diagnose patients’ underlying health conditions at an earlier stage. The Covid-19 pandemic positively influenced the demand for AI technologies and unearthed the potential held by these advanced technologies. Healthcare systems widely adopted these technologies in the rapid diagnosis and detection of different virus strains and utilized personalized information in improving the management of the outbreak. AI/ML algorithms were utilized in the diagnosis sector wherein these technologically driven modules were trained with datasets of chest CT images, symptoms, pathological findings, and exposure history to diagnose Covid-19 positive patients rapidly and accurately.
Moreover, the growing shortage of healthcare workforce drove the adoption of AI/ML technologies. Therefore, AI algorithms can be trained to analyze patient health information which further supports care providers in quickly diagnosing the condition and devising an accurate treatment regime. Supportive government initiatives, the rising number of mergers and acquisitions and technological collaborations, and the ongoing Covid-19 pandemic had a significant role in boosting the growth of the market and accelerating the adoption rate of AI in healthcare. AI/ML algorithms are being widely implemented in rapid and accurate diagnosis of medical conditions after the initial implementation in the detection of Covid-19 positive patients using personalized patient information and data consolidation.
As per an NCBI study in 2020, AI-based algorithms accurately detected 68% of COVID-19 positive cases in a dataset of twenty-five patients which were diagnosed as negative cases by care professionals. The implementation of AI/ML technologies in enhancing patient care, reducing machine downtime, and minimizing care expenses are some of the driving forces of artificial intelligence (AI) in healthcare market growth. Owing to the Covid-19 pandemic, AI-based technologies witnessed a significant boost in adoption and are set to experience a dramatic growth trajectory. Healthcare functions such as diagnostics, patient management, medication management, claims management, workflow management, integration of machines, and cybersecurity saw a remarkable surge in the integration of AI/ML technologies.
The growing penetration of Artificial Intelligence technologies in healthcare applications led to key market participants focusing on product innovation and technological collaborations to expand their product portfolio and meet the growing demands during the pandemic. For instance, in May 2020, MIT-IBM Watson AI Lab promoted the implementation of AI technologies in research projects studying the health and economic consequences of the pandemic. Similarly, Qventus introduced AI-based patient flow automation systems covering critical resource control, hospitalization duration optimization, Covid-19 scenario planner, and ICU capacity creation in its healthcare facilities.
Artificial Intelligence In Healthcare Market Segmentation
Based on the Component Insights, the market is segmented into Software Solutions, Hardware, and Services.
- In 2021, the software solutions segment dominated the market for artificial intelligence in healthcare and accounted for the largest revenue share of 39.9% owing to the rapidly growing adoption rate of AI-based software solutions amongst healthcare providers, payers, and patients.
- The software solutions segment is anticipated to grow lucratively over the forecast period. This dramatic growth rate is attributable to the rising penetration of AI-based technologies in several healthcare applications such as cybersecurity, clinical trials, virtual assistants, robot-assisted surgeries, telemedicine, dosage error reduction, and fraud detection.
Based on the Application Insights, the market is segmented into Robot-Assisted Surgery, Virtual Assistants, Administrative Workflow Assistants, Connected Machines, Diagnosis, Clinical Trials, Fraud Detection, Cybersecurity, and Dosage Error Reduction.
- The clinical trials segment dominated the AI in the healthcare market in 2021 and accounted for the largest revenue share of 24.2% owing to the growing number of patent expirations, rising demand for faster and accurate clinical trials to cater to the need for new drug discoveries and drug development.
- The virtual assistant segment is anticipated to register the fastest growth over the forecast period. The rapid growth and penetration of AI-based technologies in the virtual assistant segment is attributable to the growing shortage of skilled professionals, increasing penetration of smartphones, and improved internet connectivity.
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
- North America dominated the AI in healthcare market in 2021 and accounted for the largest revenue share of 58.4%, owing to advancements in healthcare IT infrastructure, growing care expenditures, widespread adoption of AI/ML technologies, favorable government initiatives, lucrative funding options, and presence of several key market players.
- Asia Pacific region is anticipated to register the fastest growth over the forecast period. This growth rate is attributable to the rapid innovations and development in the IT infrastructure and entrepreneurship ventures specializing in AI-based technologies.
Market Share Insights
- September 2019: GE Healthcare partnered with five Chinese local software developers namely, 12Sigma Technologies, Biomind, Shukun Technology, Yizhun Medial AI, and YITU Technology to collaboratively work on developing Edison AI platform and support the smooth digital transformation of GE Healthcare.
- May 2020: MIT-IBM Watson AI Lab promoted the implementation of AI technologies in research projects studying the health and economic consequences of the pandemic.
Key Companies Profile:
Increasing investments in R&D, innovative product developments and launches, the rising number of technological collaborations, and service differentiation are the key strategies players are focusing on to gain a competitive edge in the market.
Some of the prominent players in the artificial intelligence in healthcare market include,
- Nuance Communications, Inc.
- IBM Corporation
- Microsoft
- NVIDIA Corporation
- Intel Corporation
- DeepMind Technologies Limited
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