Artificial Intelligence (AI) in Healthcare Market by Offering (Hardware, Software, Services), Technology (Machine Learning, Natural Language Processing), Application (Medical Imaging & Diagnostics, Patient Data & Risk Analysis), End User & Region - Global

Artificial Intelligence (AI) in Healthcare Market by Offering (Hardware, Software, Services), Technology (Machine Learning, Natural Language Processing), Application (Medical Imaging & Diagnostics, Patient Data & Risk Analysis), End User & Region - Global Forecast to 2029

The AI in Healthcare market is projected to grow from USD 20.9 billion in 2024 and is projected to reach USD 148.4 billion by 2029; it is expected to grow at a CAGR of 48.1% from 2024 to 2029. Strong focus on AI in Healthcare rising potential of AI-based tools for elderly care, increasing trend towards developing human-aware AI systems, and acceleration of AI technology in drug discovery, genomics, and imaging & diagnostics to fuel the growth of AI in Healthcare market.

“Market for Software to hold the largest share during the forecast period.”

The software segment is categorized into AI Platform and AI Solution. Software is the foundational element driving the integration and functionality of AI in healthcare. Acting as the catalyst for the AI brain, it enables the implementation of intricate machine learning algorithms such as natural language processing and deep learning. These algorithms, supported by efficient data ingestion and management facilitated by software, empower AI systems to analyze extensive medical datasets and derive valuable insights. In practical application, software plays a pivotal role in diagnostic tools, treatment personalization, and virtual assistants, enhancing the accuracy in disease detection, treatment planning, and patient engagement. Additionally, the software optimizes healthcare operations through administrative automation and predictive analytics, contributing to improved efficiency and proactive patient care. As the backbone of AI in healthcare, software transforms the landscape by offering innovative solutions for enhanced patient care, early diagnosis, and personalized treatment.

“Market for Natural Language Processing segment is projected to hold for second-largest share during the forecast timeline.”

The clinical and research community widely uses NLP in healthcare for efficient managing and development of unstructured and semi-structured textual documents, including electronic health reports, clinical notes, and pathology reports. The algorithm extracts health problems from narrative text clinical documents and proposes inclusion in a patient’s electronic problem list to interpret accurately. NLP involves four steps: document pre-processing, health problem detection, negation detection, and document post-processing. Babylon Health (UK) has developed an app and NLP algorithms to help a chatbot ask the same questions a doctor would ask during in-person examination. The app does not outline an official diagnosis; rather it uses speech and language processing to extract symptoms and forward the profile information to a doctor. NLP is experiencing significant demand from healthcare institutions for structuring and interpretation of clinical data more accurately. Moreover, the rising usage of connected devices, along with the massive volume of patients’ data, accelerates the growth of this market.

“Market for patient data & risk analysis segment holds for major market share during the forecast period.”

The convergence of machine learning (ML) and natural language processing (NLP) in healthcare offers significant advancements in predictive insights for patient health. Utilizing diverse data sources, ML models analyze medical records, lab tests, demographics, and social determinants to identify patients at risk of specific diseases, while NLP algorithms extract insights from clinical notes to spot early signs of illness. This synergy enables personalized treatment plans, considering factors like treatment response and lifestyle. ML predicts potential exacerbations, allowing proactive interventions, and NLP interprets real-time data for remote monitoring. The benefits include improved patient outcomes, reduced costs, and enhanced medical decision-making. However, challenges like data privacy, algorithmic bias, and the need for transparency underscore the importance of ethical and responsible AI implementation in healthcare.

“North America is expected to have the largest market share during the forecast period.”

The healthcare sector in North America is witnessing an influx of new entrants into the Artificial Intelligence (AI) landscape, driven by cross-industry involvement and a substantial rise in venture capital investments. An example is Navina (US), a startup dedicated to an AI-driven primary care platform, securing a substantial USD 44 million in its series B funding round in October 2022. These investments propel Navina's AI and Machine Learning (ML) technology advancements. Another illustration is Tempus (US), specializing in AI-based precision medicine solutions, securing a notable USD 1.3 billion from 11 investors, including Ares Management and Google, in the same month.

Extensive primary interviews were conducted with key industry experts in the AI in Healthcare market space to determine and verify the market size for various segments and subsegments gathered through secondary research. The break-up of primary participants for the report has been shown below:

The break-up of the profile of primary participants in the AI in Healthcare market:

By Company Type: Tier 1 – 50%, Tier 2 – 30%, and Tier 3 – 20%

By Designation: C Level – 60%, Director Level – 30%, Others-10%

By Region: North America – 40%, Europe – 20%, Asia Pacific – 30%, ROW- 10%

The report profiles key players in the AI in Healthcare market with their respective market ranking analysis. Prominent players profiled in this report are Koninklijke Philips N.V. (Netherlands), Microsoft (US), Siemens Healthineers AG (Germany), Intel Corporation (US), NVIDIA Corporation (US), Google Inc. (US), GE HealthCare Technologies Inc. (US), Oracle (US), and Johnson & Johnson Services, Inc. (US) among others.

Apart from this, Merative (US), General Vision, Inc., (US), CloudMedx (US), Oncora Medical (US), Enlitic (US), Lunit Inc., (South Korea), Qure.ai (India), Tempus (US), COTA (US), FDNA INC. (US), Recursion (US), Atomwise (US), Virgin Pulse (US), Babylon Health (UK), MDLIVE (US), Stryker (US), Qventus (US), Sweetch (Israel), Sirona Medical, Inc. (US), Ginger (US), Biobeat (Israel) are among a few emerging companies in the AI in Healthcare market.

Research Coverage: This research report categorizes the AI in Healthcare market based on offering, technology, application, end user, and region. The report describes the major drivers, restraints, challenges, and opportunities pertaining to the AI in Healthcare market and forecasts the same till 2029. Apart from these, the report also consists of leadership mapping and analysis of all the companies included in the AI in Healthcare ecosystem.

Key Benefits of Buying the Report The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall AI in Healthcare market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Generation of large and complex healthcare datasets, Pressing need to reduce healthcare costs, Improving computing power and declining hardware cost, Rising number of partnerships and collaborations among different domains in healthcare sector, and Growing need for improvised healthcare services due to imbalance between healthcare workforce and patients) influencing the growth of the AI in Healthcare market.

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the AI in Healthcare market.

Market Development: Comprehensive information about lucrative markets – the report analysis the AI in Healthcare market across varied regions

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the AI in Healthcare market

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Koninklijke Philips N.V. (Netherlands), Microsoft (US), Siemens Healthineers AG (Germany), Intel Corporation (US), NVIDIA Corporation (US) among others in the AI in Healthcare market.