Global Artificial Intelligence (AI) in Healthcare Market 2022-2028

Global Artificial Intelligence (AI) in Healthcare Market 2022-2028

Global AI in healthcare market is projected to have a CAGR of 51.5% during the forecast period. AI is the technology that combines the power of machine learning and deep learning technology used by many sectors including remote sensing, medical diagnosis, electronic trading, transportation, education, and others. It is one of the essential tools in the healthcare industry as it supports analyzing complex medical data by utilizing software and algorithms. The AI-based technologies are also supported in detecting and preventing diseases in patients. Some of the factors attributing to the growth of the market include increasing demand for early and effective detection of diseases as people are becoming conscious regarding their health. Therefore, advanced AI technology supports in detecting the diagnosis of diseases on an early basis. Another factor being an increasing investment in healthcare to provide better healthcare facilities to patients that result in cost and time reduction of major surgeries.

However, some factors are hindering the growth of the market that includes security concerns with technology as all the data is stored in a wide area network called IoT where leakage of information can take place along with loss of services. Additionally, there must be the availability of relevant data in order to make AI work and without such proper data it's impossible to make them work is another restraint for the market. Since there is a substantial increase in government funding, investment in R&D and venture capital is creating significant opportunities for the growth of the market.

Impact of COVID-19 on AI in Healthcare Industry

The COVID-19 has accelerated the adoption of AI in the healthcare sector, where AI-based solutions can be deployed at scale and respond more quickly to the dynamic nature of such crisis. Many market players universities, established companies, and start-ups are collaborating for the integration of AI in healthcare industry. For Instance, Current Health the UK-based remote monitoring company are supporting Mayo clinic and Baptist Health with their COVID-19 responses by contributing to the industry by high-speed digital adoption and scaling faster to meet demand during such crisis. The companies such as Google, Microsoft, Apple are also involved in initiatives including contact tracing, drug development, remote communications between patients and clinicians among others. COVID-19 has encouraged unparalleled data sharing and collaboration efforts, for instance, C3 AI has created a data lake accessible through APIs that contain a growing number of COVID-19 related data sets including genomic sequences of virus samples and image data. These initiatives will be establishing new infrastructures that will be driving the future growth of AI in healthcare industry.

Segmental Outlook

The global AI in healthcare market is segmented based on product type, application, and end-user. Based on the product type, the market is further classified into hardware and software & services. Further, based on the application the market is classified into diagnosis, biomarkers, AI-enabled hospital care, drug discovery and others. Based on end-user the market is segmented into hospitals and healthcare facilities, personal care, biotechnology, and pharmaceutical companies.

The AI-enabled Hospital care segment is projected to dominate the global AI in the healthcare market

Among application, the AI-enabled hospital care segment is estimated to hold the major share in the global AI in healthcare market. AI can act as a care provider in hospitals by using a range of advanced solutions such as smart monitoring of IV solutions, patient alert systems, patient medication tracking, nursing staff assessment systems, and tracking of patient movement within hospitals, among others. Robot-assisted surgeries and a range of applications of AI in routine phlebotomy procedures are some other potential applications of AI in hospitals. It considerably decreases errors in medicinal dosage and further increases the productivity of staff nurses in hospitals.

Regional Outlook

Geographically, the global AI in the healthcare market is classified into four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (India, China, Japan, South Korea and Rest of Asia-Pacific), and Rest of the World (Latin America and the Middle East and Africa (MEA)). Europe is projected to grow at a significant CAGR during the forecast period. The market growth is attributed to the rising number of start-ups, increasing healthcare expenditure in the region. The other factors such well-developed ICT infrastructure, healthcare, and business services in countries such as the UK Germany, and others.

North America to hold a considerable share in the global AI in Healthcare market

Geographically, North America is projected to hold a significant market share in the global AI in the healthcare market. The factors that are contributing to the growth of the market include high healthcare expenditures and the presence of major market players in the region such as Google, IBM, GE Healthcare, Jonson & Johnson, and others. Other factors being the rise in demand for digital health systems and decreasing healthcare workforce in various North American countries is raising demand for effective diagnosis and treatment services. US and Canada are the major economies of North America that have well-developed IT infrastructure and employ a large number of connected devices in healthcare facilities.

Market Players Outlook

The key players in the AI in the healthcare market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include Siemens AG, Microsoft Corp., IBM Corp., Google, LLC., and General Electric Co., among others. These market players adopt various strategies such as product launches, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. In September 2022, NIH launches Bridge2AI program to expand the use of AI in biomedical and behavioral research. The National Institutes of Health will invest $130 million over four years, pending the availability of funds, to accelerate the widespread use of artificial intelligence (AI) by the biomedical and behavioral research communities. Further, in February 2019, IBM Corp. announced that it plans to make a 10-year $50 million investment in research collaborations with two academic centres Brigham and Women's capital and Vanderbilt University Medical Center to advance AI research and its applications in major public health issues. This scientific collaboration with both the universities will be focusing upon critical health issues that are well suited to AI solutions.