Healthcare Artificial Intelligence (AI) Market Forecasts to 2028 – Global Analysis By Technology (Deep Learning, Machine), Application (Drug Discovery, Fraud Detection), End User (Research Laboratories, Hospital) and By Geography

Healthcare Artificial Intelligence (AI) Market Forecasts to 2028 – Global Analysis By Technology (Deep Learning, Machine), Application (Drug Discovery, Fraud Detection), End User (Research Laboratories, Hospital) and By Geography

According to Stratistics MRC, the Global Healthcare Artificial Intelligence (AI) Market is accounted for $6.66 billion in 2021 and is expected to reach $86.37 billion by 2028 growing at a CAGR of 44.2% during the forecast period. Artificial intelligence was initiated in 1956 and started gaining significant importance in the medical field in 1972. It is the use of complex algorithms and software to estimate human cognition in the analysis of complicated medical data. The primary aim of health-related AI applications is to analyze relationships between prevention or treatment techniques and patient outcomes. AI programs have been developed and applied to practices such as diagnosis processes, treatment protocol development, drug development, personalized medicine, and patient monitoring and care.

Market Dynamics:

Driver:

Rising funding in artificial intelligence in healthcare

Artificial Intelligence (AI) and Machine Learning (ML) are playing a very important role in the healthcare industry. AI is predominantly used in clinical research, robotic personal assistant, and big data analytics. Classic venture capitalists and corporate strategic investors are both investing generously in this space. According to the report from CB Insights, artificial intelligence-focused health care companies raised nearly $1 billion in funding in the first quarter of 2020. The start-up helps in the wellness, screening, and diagnosis of acute as well as chronic heart diseases using AI & Machine Learning. The start-up has helped 3 million patients. As of 2020, the private sector continues to play a significant role, with venture capital (VC) funding for the top 50 firms in healthcare-related AI reaching $8.5 billion, and big tech firms, startups, pharmaceutical, and medical-devices firms and health insurers, all engaging with the nascent AI healthcare ecosystem. Thus, the rising fund in healthcare artificial intelligence is expected to fuel the growth in the AI market for healthcare during the forecast period.

Restraint:

High capital investment

The integration of healthcare artificial intelligence in the existing healthcare infrastructure is observed to remain capital sensitive. This involves up-gradation of installed systems and networks, training and development of healthcare professionals, installing surveillance systems as well as maintenance, among others. Further, as the volume of data increases, the need for storage and security intensifies, affecting the overall capital investment required. In addition, the demand for specialized manpower also increases for operations and maintenance purposes, thereby increasing the overall cost of AI integration.

Opportunity:

Increasing usage of artificial intelligence in several areas

Artificial intelligence such as machine learning and natural language processing is also being used in the treatment of mood and mental health conditions. For instance, machine learning algorithms have been developed to detect words and intonations of speech that might indicate a mood disorder. This has enabled companies to develop more such algorithms, thereby creating growth opportunities for the market. Moreover, artificial intelligence has been extensively used in intelligent personal health recorders such as wearable devices and electronic medical records (EMRS).

Threat:

High costs of AI systems

As healthcare institutions will not be able to utilize AI technologies without necessary licenses and legal permission, stringent rules are likely to limit business expansion. In addition, since it is still a relatively modern technology, the costs of AI systems are extremely high and need high investment for all components. These systems often require frequent maintenance and repair, which often lead to the high cost of healthcare AI systems, thus hindering the development of the healthcare artificial intelligence industry.

The hardware segment is expected to have the highest CAGR during the forecast period

The hardware segment is growing at the highest CAGR in the market. The best use of AI hardware is by medical device companies and healthcare providers. Robotic surgery is one of the major segments with a wide adoption rate in healthcare. MedTech companies specialize in the invention, creation, and production of medical devices that can be used in different healthcare systems.

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

The software segment is expected to be the largest share in the market due to the factors such as the ability to reduce operational or administrative complexity, acceleration of data analysis with high accuracy, and rise in the software launches by the medical devices and healthcare IT companies.

Region with highest share:

Europe is projected to hold the largest share in the market. Acceptance of healthcare artificial intelligence in research areas and advancement in technology to electronic health records (EHR) and eHealth is anticipated to accelerate the regional expansion. Numerous efforts undertaken by the European Union to stimulate the use of healthcare artificial systems are poised to favour the industry demand.

Region with highest CAGR:

The Asia Pacific is projected to have the highest CAGR in the market. The factors driving the growth of the Asia Pacific healthcare artificial intelligence market are the growing need for coordination between the healthcare workforce & patients, the rise in adoption of precision medicine, the growing prevalence of diseases, and remarkable growth in venture capital investments. In addition to this, the factors such as the significant use of big data in the healthcare sector, growing technological innovation, and demand from China are also supporting the growth of the healthcare AI market in the APAC region.

Key players in the market:

Some of the key players profiled in the Healthcare Artificial Intelligence (AI) Market include Zebra Medical Vision Ltd, Sophia Genetics, Enlitic, Inc., Butterfly Network, Inc, Cyrcadia Health Inc., IBM, iCarbonX, Insilico Medicine, Inc., Lifegraph, Welltok, AiCure, APIXIO, Inc., Atomwise, Inc, GE Healthcare, Bolton NHS Foundation Trust, and Thirona.

Key developments:

In December 2020: GE Healthcare revealed that it would encourage consumers to search, try and purchase artificial intelligence (AI) driven apps via an online marketplace from a variety of developers from third parties. Many of the currently available applications help doctors gain insights into clinical evidence and boost results.

In April 2020: the Bolton NHS Foundation Trust partnered with Qure.ai, a healthcare AI startup for monitoring COVID-19 patients. The startup has developed qXR solution which is a diagnostic software used to detect the findings that are indicative of COVID-19 and also helps in the quantifying the volume of the infection.

In April 2020: THIRONA and DELFT IMAGING launched CAD4COVID, a cloud-based system for triage of Covid-19 patients that uses deep learning to analyze chest X-rays and is intended to support healthcare specialists manage COVID-19 cases.

Components Covered:
Services
Software
Hardware

Technologies Covered:
Context Aware Processing
Deep Learning
Machine Learning
Natural Language Processing
Querying Method

Applications Covered:
Automated Image Diagnosis
Clinical Trial Participant Identifier
Dosage Error Reduction
Drug Discovery
Fraud Detection
Hospital Workflow
Medical Imaging & Diagnosis
Robot-Assisted Surgery
Therapy Planning
Virtual Assistants
Wearables

End Users Covered:
Academic & Research Laboratories
Hospital & Diagnostic Centers
Pharmaceutical & Biotechnology Companies

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 2020, 2021, 2022, 2025, and 2028
- 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

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances