Artificial Intelligence (AI) in Healthcare Market Forecasts to 2030 – Global Analysis By Offering (Hardware, Software and Services), Technology (Natural Language Processing, Machine Learning, Computer Vision and Other Technologies), Application, End User

Artificial Intelligence (AI) in Healthcare Market Forecasts to 2030 – Global Analysis By Offering (Hardware, Software and Services), Technology (Natural Language Processing, Machine Learning, Computer Vision and Other Technologies), Application, End User and By Geography

According to Stratistics MRC, the Global Artificial Intelligence (AI) in Healthcare Market is accounted for $22.42 billion in 2023 and is expected to reach $311.04 billion by 2030 growing at a CAGR of 45.6% during the forecast period. Artificial intelligence (AI) involves the use of algorithms and software to analyze complex medical data. AI is defined as an intelligent system that applies various human intelligence-based functions, such as reasoning, learning, and problem-solving skills, to a variety of fields, including biology, computer science, mathematics, linguistics, psychology, and engineering. The use of AI in the healthcare sector has improved the efficiency, creativity, and cost-effectiveness of medical research and development.

According to a 2020 NCBI study, AI-based algorithms correctly identified 68% of COVID-19 positive cases in a dataset of twenty-five patients diagnosed as negative cases by care professionals.

Market Dynamics

Driver

Government and private sector investments

The industry is projected to experience rapid expansion as a result of rising expenditures made in artificial intelligence (AI) by pharmaceutical and medical technology companies to grow their businesses. Artificial intelligence (AI) is effective, rapid, and performs operational tasks at a significantly lower cost, according to PwC. Additionally, AI aids medical personnel in the early detection and diagnosis of any ailment. As a result, the vast majority of healthcare providers operating in this business have increased their investments.

Restraint

Rising costs, data breaches, and growing complexity

Although there are many applications for artificial intelligence (AI) in the healthcare industry, its uptake is still relatively low. This is because healthcare providers must deal with several complications. Artificial intelligence integration could result in errors and a disconnect between the patient's diagnosis and the medications that are provided. Privacy concerns with respect to data are another obstacle to artificial intelligence in the healthcare sector. Specific laws protecting patient health information are in place in many nations. However, there may be financial and legal consequences for breaking this regulation. The risk to the security of patient data is also increased by issues like the unethical collection of sensitive data. As a result, the market's overall expansion is being hampered by increasing concerns about patient safety and unethical data collection.

Opportunity

Development of extensive and intricate healthcare datasets

Large and complex data, also known as big data, is used in the healthcare sector to identify information gathered from clickstream and web and social media interactions, medical device readings like electrocardiogram (ECG), X-ray, and pulse oximeter readings, healthcare claims and other billing records, electronic health records (EMRs), medications, and biometric data, among other sources. With the introduction of electronic health records (EHRs), digitized laboratory slides, and superior-resolution radiology images by healthcare practitioners over the past decade, collecting big data and developing analytical tools have become exponentially more sophisticated and widely used.

Threat

AI manpower shortage and inadequate e-medicine software regulatory standards

Because AI is a complicated system, businesses need individuals with a certain set of skills to design, manage, and implement AI systems. For instance, individuals working with AI systems need to be knowledgeable about technologies like deep learning, cognitive computing, ML, and machine intelligence. However, it is a difficult undertaking that necessitates considerable data processing to replicate human brain behavior and integrate AI solutions into already-existing systems. Even a small mistake might cause a system to malfunction or negatively impact the desired result.

Covid-19 Impact

During the analysis period, it is anticipated that COVID-19's effects will significantly boost the market for artificial intelligence (AI) in healthcare. Due to AI's capacity to diagnose COVID-19 by monitoring the virus's spread, the demand for AI-based tools and solutions has significantly increased. Additionally, a rise in the need for Electronic Health Record (EHR) systems—used to help analyze the population's pandemic risk assessments and obtain real-time data—also contributed to the market's expansion.

The software segment is expected to be the largest during the forecast period

Over the course of the forecast period, the software category held the largest market share, primarily as a result of the rapid uptake of artificial intelligence-powered software solutions by healthcare organizations, healthcare professionals, consumers, and payers. The expansion of the software sector is being fueled by the increasing investments being made in the use of AI-based software solutions in the healthcare industry. Moreover, this growth is related to the rising use of AI and machine learning-based technologies in a variety of healthcare applications around the world.

The pharmaceuticals & biotechnology companies segment is expected to have the highest CAGR during the forecast period

Pharmaceuticals & Biotechnology Companies segment is estimated to witness lucrative growth over the projection period. In the area of healthcare, artificial intelligence (AI) is used to forecast the therapeutic efficacy and safety of pharmaceutical products, in addition to assisting in gene sequencing work. The expansion of this market sector is being fueled by an increase in the number of partnerships between various industry participants. For instance, Merck KGaA and Janssen Pharmaceuticals, N.V., worked together to create an AI diagnostic tool in July 2020. This technique can aid in the improvement of the detection of schistosomiasis and soil-transmitted helminthiasis (STH), two neglected tropical diseases (NTDs).

Region with largest share

Owing to the rapid IT infrastructure development and entrepreneurship projects specialized in AI-based technologies, Asia-Pacific is predicted to hold the largest share throughout the extrapolation timeframe. The adoption rates are being driven by growing investments made by private investors, venture capitalists, and non-profit groups to improve therapeutic results, data analysis, and security, as well as lower costs. Additionally, one of the main reasons propelling the growth of the Asia-Pacific market is favorable government policies supporting and promoting healthcare organizations and care providers to rapidly implement AI-based technology.

Region with highest CAGR

Due to the increasing demand for the most cutting-edge digital technology, North America is predicted to have profitable growth during the projected period. The market for artificial intelligence in healthcare has expanded as a result of North America's robust and well-developed healthcare, IT, and telecommunications infrastructure. Additionally, there are supportive government regulations that promote the use of cutting-edge digital technologies in the healthcare industry in the region. There is a huge patient pool in North America. According to estimates, more than half of the US population has one or more chronic illnesses. As a result, hospital patient volumes are rising in the area.

Key players in the market

Some of the key players in Artificial Intelligence (AI) in Healthcare market include Alphabet Inc, Butterfly Network, Inc, Cyrcadia Health Inc, DeepMind Technologies Limited, Enlitic Inc, General Vision, IBM Corporation, Intel Corporation, Microsoft Corporation, Next IT Corp., Nuance Communications, Inc, NVIDIA Corporation, Sophia Genetics, Welltok Inc. and Zebra Medical Vision Ltd.

Key Developments

In January 2023, Amazon Web Services, Inc. announced its Strategic Collaboration Agreement (SCA) with Slalom, LLC to develop vertical solutions and accelerators on AWS for their customers in healthcare, life sciences, financial services, energy, and media and entertainment industries.

In November 2022, GE Healthcare at Radiological Society of North America’s (RSNA) 2021 Annual Meeting unveiled its 60 innovative technology solutions for diagnostics, patient screening, guidance, therapy planning, and monitoring. With this, the company has accelerated its healthcare innovation with artificial intelligence (AI) and digital solutions.

In October 2022, Google Inc announced the launch of its new Medical Imaging Suite, which helps in the accessibility and interoperability of radiology and other imaging data. It is designed to offer flexible options for cloud on-prem or edge deployment, which allows the organizations to achieve diverse sovereignty, privacy requirements, and data security

Offerings Covered
• Hardware
• Software
• Services

Technologies Covered
• Natural Language Processing
• Machine Learning
• Computer Vision
• Other Technologies

Applications Covered
• Cybersecurity
• Healthcare Assistance Robots
• Emergency Room & Surgery
• Lifestyle Management & Monitoring
• Drug Discovery
• Medical Imaging & Diagnostics
• Other Applications

End Users Covered
• Patients
• Pharmaceuticals & Biotechnology Companies
• Healthcare Payers
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements