Generative AI in Healthcare Market - Application (Personalized Treatment, Patient Assistance, Patient Monitoring & Predictive Analytics, Medical Image Analysis & Diagnostics, Drug Discovery & Development), End-use, Global Forecast 2024 - 2032

Generative AI in Healthcare Market - Application (Personalized Treatment, Patient Assistance, Patient Monitoring & Predictive Analytics, Medical Image Analysis & Diagnostics, Drug Discovery & Development), End-use, Global Forecast 2024 - 2032

Generative AI in Healthcare Market is set to expand at 32.6% CAGR from 2024-2032 driven by the rising investments in healthcare system modernization initiatives.

Healthcare providers and leading organizations are focusing on improving patient outcomes and operational efficiency by investing in AI-driven solutions to streamline processes, such as patient triage, medical imaging analysis, and drug discovery for enhanced diagnostics and personalized treatments. For instance, in October 2023, the Inter-American Development Bank granted a $40 million loan to strengthen Brazil's health system by increasing access and effectiveness to healthcare via the expansion and improvement of service infrastructure and equipment.

With the global trend of digital transformation in healthcare, led by the need for improved access, quality, and cost-effectiveness, generative AI is gaining significant traction. Moreover, several industry players are introducing innovative solutions for catering to the evolving patient needs, further augmenting the industry outlook. To cite an instance, in December 2023, Google launched two of its new generative AI models for healthcare under MedLM, to provide flexibility to healthcare organizations as they deploy AI for various jobs.

The generative AI in healthcare industry is segmented into application, end-use, and region.

In terms of application, the market share from the patient monitoring and predictive analytics segment is projected to record 32.1% CAGR between 2024 and 2032. Generative AI enables real-time monitoring of patient health data and predictive analytics for allowing healthcare providers to anticipate and prevent adverse events. AI-powered algorithms help identify patterns and trends by analyzing vast datasets for facilitating early disease detection and personalized treatment strategies.

The demand for such innovative solutions is driven by the increasing emphasis on proactive healthcare management, improved patient outcomes, and the optimization of healthcare resources, further offering potential growth opportunities to the industry participants. To cite an instance, in September 2023, Oracle launched healthcare-generative AI capabilities to leverage speech technology to enhance patient interaction, develop trust, and improve treatment.

In terms of end-use, the generative AI in healthcare industry size from the pharmaceutical and life science companies segment is set to witness 33% CAGR from 2024-2032 attributed to the increasing use of generative AI solutions to expedite drug discovery processes, optimize clinical trials, and develop personalized therapies. Pharmaceutical firms are harnessing AI-generated insights and predictive modeling to enhance R&D efficiency, reduce costs, and accelerate time-to-market for novel treatments. Additionally, generative AI aids in deciphering complex biological data for facilitating precision medicine initiatives, contributing to the segment growth.

Regionally, the Asia Pacific generative AI in healthcare industry is slated to depict over 32% growth rate through 2032. Generative AI has emerged as a transformative tool for disease prediction, drug discovery, and personalized treatment with healthcare systems increasingly embracing technological advancements. The large patient population, coupled with the rising healthcare expenditure and government initiatives for promoting digital healthcare is accelerating the regional adoption of generative AI solutions. For instance, in September 2023, Avanade announced the official debut of its first Generative AI Lab in Southeast Asia for enabling industrial change and developing local talent in the region.