The global artificial intelligence in healthcare market size is anticipated to hit USD 32.8 billion by 2027, growing at a CAGR of 42.9% over a forecast period 2020 to 2027.
The rising demand to reduce healthcare costs, increasing adoption of precision medicine, growing importance of big data in healthcare, and declining hardware costs are some factors propelling adoption of AI technology in healthcare industry. Moreover, rise in potential applications of AI-based tools in medical care and growth in venture capital investments are anticipated to aid growth over the forecast period.
Artificial intelligence (AI) has the potential to revolutionize any piece of work that can be operated via binary commands and has a finite set of possibilities. The AI concept is currently being harnessed furiously, and the forever flourishing field of healthcare is leveraging it to attain greater goods for the humanity. Artificial intelligence is a combination of software programs with algorithms that can replicate human senses in analyzing medical data, which can often be very complex. Going forward, AI is poised to aid not only in diagnosis procedures but also help in drug development, devising personalized medicine, and monitoring of patients in a relentless manner. A vast number of pioneering technology vendors are currently involved in developing AI algorithms of the healthcare sector and the market for the same is prospering.
According to the findings of this business intelligence study, the demand for artificial intelligence in healthcare sector across the globe will increase at an exuberant CAGR during the forecast period of 2016 to 2027. This report has been developed by healthcare IT professionals and aspires to serve as a credible business tool for targeted audiences such as healthcare software vendors, chipset companies, technology providers, doctors and hospitals, software solution providers, artificial intelligence system providers, and venture capitalist. The report includes comprehensive and figurative assessment of the demand potential of various market segments, analyzes various impacting factors including trends, drivers, and obstructions, and takes stock of the demand that can be expected out of different countries and regions. The report also contains a featured chapter on the competitive landscape.
Rise in the number of cross-industry collaborations is anticipated to fuel growth. For instance, in March 2018, Microsoft announced partnership with Apollo Hospitals, one of the prominent healthcare systems in India. The partnership was focused on developing and deploying new machine learning models for predicting the risk of developing cardiac diseases and aid doctors in treatment planning. Increase in venture capital funding is a key factor propelling growth of AI start-ups, which is further contributing to market growth.
The adoption of AI in healthcare is increasing, as healthcare providers are focused on enhancing patient care further. The adoption of this technology in healthcare has various benefits, both patients and healthcare providers. AI enables personalized care, based on body constitution and past medical history. Moreover, the shortage of physicians in some countries is anticipated to increase demand for AI in healthcare.
Trends and Opportunities
Greater new possibilities with big data, ability of AI to enhance patient care, strong imbalance between the pool of patients and healthcare professionals, and possibilities of reducing medical costs are some of the key factors expected to augment the demand for AI in the healthcare sector. Additionally, growing importance of precision medicine, increasing number of cross-industry collaborations, consistent inflow of venture capital investments, and increasing geriatric population are some of the other factors that are expected to reflect positively over this market. On the other hand, reluctance of medical practitioners in adopting new technologies, strong lack of a preset and universal regulatory guidelines, lack of curated healthcare data, and concerns of data privacy are curtailing the market from attaining higher grounds.
Technology-wise, the artificial intelligence (AI) in healthcare market can be segmented into querying method, deep learning, context aware processing, and natural language processing, whereas application-wise, artificial intelligence (AI) in healthcare marketcan be bifurcated into wearables, virtual assistant, research and drug discovery, in-patient care and hospital management, medical imaging and diagnosis, precision medicine, lifestyle management and monitoring, and patient data and risk analysis.
Rising funding in artificial intelligence in healthcare fuels the market growth
Artificial intelligence (AI) and Machine Learning (ML) are playing a very important role in healthcare industry. AI is predominantly used in clinical research, robotic personal assistants, and big data analytics. Classic venture capitalists and corporate strategic investors are both investing generously in this space. According to Mercom Research Report 2017, Health IT funding set a record in 2017 with AI and predictive analytics as top tech funded, with patient engagement, telehealth and clinical decision support close behind. Total corporate funding for healthcare technology companies climbed to $8.2 billion in 2017 reporting an increase of 47% from the $5.6 billion in 2016. The worldwide venture funding for digital health startups increased from $5.1 billion in 2016 to $7.2 billion in 2017 posing a growth of 42% in one year. According to TM Capital (U.S.), healthcare AI venture capital deal volume and funding was valued at $794 million in investments across 90 deals in the healthcare AI space and it was expected that AI-focused healthcare and wellness startups were to raise over $690 million from venture capital firms in 2017.
Large pool of healthcare data supports the market growth
In the healthcare industry, big data comprise information generated from clickstream, and web and social media interactions; readings from medical devices such as sensors ECG X-rays and pulse oximeters; healthcare claims and other billing records; and EMRs, prescriptions, and biometric data among other sources. With the increasing digitalization and adoption of information systems in the healthcare industry, a large volume of data is being generated at various stages of the care delivery process. As a result, healthcare is one of the top 5 big data industries especially in the U.S. Moreover, in the coming years, the volume of big data in healthcare is expected to increase as a result of the use of bidirectional patient’s portals that allow patients to upload their own data and images to their EMRs. This will include unstructured data, such as, images, medications compliance, tracking report, and blood pressure & weight logs.
AI to reduce overall healthcare cost
According to OECD estimates, 20% of healthcare spend is wasted globally. The United States Institute of Medicine believes the figure is more like 30%. According to above mentioned data, the top 15 countries by healthcare expenditure waste an average of $1,100 and $1,700 per person annually. The average waste per-person across the top 15 countries is 10-15 times more than the average amount spent by the bottom 50 countries on healthcare, which currently spend an average of around $120 per person. Underlying reasons for this waste include preventable and rectifiable system inefficiencies such as care delivery failures, over-treatment, and improper care delivery. Technologies such as Artificial Intelligence (AI) can help minimize such inefficiencies, ensuring substantially more stream-lined and cost-effective health ecosystems. Accurate and effectively harnessed data enables more efficient decision making across the industries, including healthcare. As healthcare providers begin to move towards a standardized format for recording patient outcomes, large sets of data will become available for analysis by AI-enabled systems which can track outcome patterns following treatment and identify optimal treatments based on patients’ profiles. As a result of this, AI empowers clinical decision-making by ensuring the right interventions and treatments for each patient, creating a personalized approach of care. The immediate consequence of this will be a significant improvement in outcomes, which will eliminate costs associated with post-treatment complications, which is one of the key drivers of cost in most healthcare ecosystems across the world.
Key findings in the global artificial intelligence market in healthcare study:
Artificial intelligence services to post fastest growth
AI is a highly complex technology and requires implementation of sophisticated algorithms for a wide range of applications in the patient data & risk analysis, lifestyle management & monitoring, precision medicine, drug discovery, and medical imaging and diagnostics. In order to achieve the desired results from application of AI in healthcare, a variety of support services are required. These include installation and integration of AI solution in existing workflow environment and support & maintenance. Most companies that manufacture and develop AI systems and software provide online and offline support depending on the application. This segment is expected to grow at a highest CAGR during the forecast period.
Natural Learning Process (NLP) technology to grow at highest CAGR
In 2018, NLP holds the largest share among all the healthcare AI technologies. This segment is also expected to grow at a highest CAGR during the forecast period. The large share of this segment is attributed to the rising adoption of NLP in clinical documentation and automated coding in claims submissions. The demand for AI technologies in the healthcare is on the rise as healthcare companies are increasingly structuring huge volumes of patient data and using it for clinical inferences. Growing focus on personalized medicine is one of the major factors contributing to the growth of the Artificial Intelligence market for clinical applications. On the other hand, the use of AI in drug discovery and development applications is also supporting the growth of the Artificial Intelligence In Healthcare Market among pharma and biotech companies, CROs, and other non-healthcare provider end-user segments.
Hospital and diagnostic centers to witness largest demand through 2027
In 2018, hospitals and diagnostics centers end user segment accounted for the largest share of the global healthcare AI market. Rising adoption of IT in healthcare organizations, increasing focus towards development of precision medicine approaches, and increasing number of collaborations among hospitals and companies for the development and implementation of customized AI solutions are some of the major factors attributed to the large share of this end user segment.
The developed country of the U.S., which readily adopts new technology and houses a number of pioneering companies, is expected to maintain North America are the region with maximum demand potential, with little but significant demand added by Canada. While the European region is another key region for the vendors of artificial intelligence (AI) in healthcare market, emerging economies of Japan, South Korea, China, and India are expected to provide for decent demand over the course of the aforementioned forecast period.
IBM Corporation, Welltok, Inc., Intel Corporation, Google, Inc., Next IT Corp., Microsoft Corporation, General Electric Company, Medtronic PLC, and Koninklijke Philips N.V. are some of the notable companies in artificial intelligence (AI) in healthcare market.
The report offers a comprehensive evaluation of the artificial intelligence (AI) in healthcare market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the artificial intelligence (AI) in healthcare market, including but not limited to: Regional markets, technology, types, and applications.
Scope of the Report:
Market by Product
Market by Application
Market by Technology
Market by End User
Market by Geography
Key questions answered in the report:
Rising funding in artificial intelligence in healthcare fuels the market growth
Hospital and Diagnostics centers accounted for the largest share of the Artificial Intelligence in Healthcare Market
Artificial Intelligence in Healthcare Market favors both global and local manufacturers that compete in multiple segments
Recent partnerships, acquisitions, and expansions have taken place in the global artificial intelligence in healthcare market
The study is a source of reliable data on:
The regional analysis covers:
The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.
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