The global artificial intelligence in healthcare market size is predicted to surpass around USD 208.5 billion by 2030 from valued at USD 10.5 billion in 2021, growing at a CAGR of 38.4% from 2022 to 2030.
The growing demand for personalized medicine, rising demand for value-based care, growing datasets of patient health-related digital information, advancements in healthcare IT infrastructure, penetration of smartphones, improved internet connectivity, and shortage of care providers is propelling the growth of the market over the forthcoming years.
In addition, changing lifestyles, the growing geriatric population, rising prevalence of chronic diseases have contributed to the need for faster and accurate disease detection and improving the understanding of the disease in the early stage, thereby driving the adoption of technologies based on Artificial Intelligence (AI) in healthcare. The ongoing Covid-19 pandemic positively impacted the adoption of AI-based technologies and unearthed the potential they withhold. Healthcare systems began adopting AI-based technologies in faster and early diagnosis & detection of diseases and quicker & accurate clinical trials.
Furthermore, AI-based technologies were implemented in virtual assistants, robot-assisted surgeries, claims management, cybersecurity, and patient management. AI algorithms were trained with patient health datasets to optimize the diagnosis and detection of diseases at an early stage, to begin with, an optimum treatment regime. Supportive government initiatives, a growing number of investments from private investors and venture capitalists, and the emergence of AI-specialized startups across the globe are driving the market growth.
Report Scope of Artificial Intelligence In Healthcare Market
|Market Size in 2021||USD 208.5 Billion|
|Growth Rate||38.4% from 2022 to 2030|
|Forecast Period||2022 to 2030|
|Historic Data||2017 to 2021|
|Companies Covered||Welltok, Inc., Intel Corporation, Nvidia Corporation, Google Inc., IBM Corporation, Microsoft Corporation, General Vision, Inc., Enlitic, Inc., Next IT Corporation, iCarbonX|
In 2021, the software solutions segment dominated the market for artificial intelligence in healthcare and accounted for the largest revenue share of 39.9% owing to the rapidly growing adoption rate of AI-based software solutions amongst healthcare providers, payers, and patients. For instance, in September 2019, GE Healthcare partnered with five Chinese local software developers namely, 12Sigma Technologies, Biomind, Shukun Technology, Yizhun Medial AI, and YITU Technology to collaboratively work on developing Edison AI platform and support the smooth digital transformation of GE Healthcare.
However, the software solutions segment is anticipated to grow lucratively over the forecast period. This dramatic growth rate is attributable to the rising penetration of AI-based technologies in several healthcare applications such as cybersecurity, clinical trials, virtual assistants, robot-assisted surgeries, telemedicine, dosage error reduction, and fraud detection. Moreover, the growing number of strategic initiatives such as partnerships and seed investments undertaken by key players are contributing to the growth potential. Key players in this segment are IBM Corporation, NVIDIA Corporation, Intel Corporation, and Biosymetrics.
By application, the clinical trials segment dominated the AI in the healthcare market in 2021 and accounted for the largest revenue share of 24.2% owing to the growing number of patent expirations, rising demand for faster and accurate clinical trials to cater to the need for new drug discoveries and drug development. Although, prior to the pandemic AI-technologies in clinical trials were still in a nascent stage, now with the growth in demand for faster clinical trials supporting trial designing, study adherence, minimizing dropout rates, and patient recruitment, AI-based technologies in clinical trials has witnessed a surge in adoption. Decreasing the amount of time required in performing clinical trials and enhancing the accuracy and reliability of the clinical trial are expected to boost the market growth. Life science organizations, government regulatory authorities, and healthcare start-ups are beginning to support and adopt AI-empowered solutions in their processes. For example, Deep6AI is an AI monitoring system that enhances the patient recruitment process and reduces the time and expenses involved.
For instance, as per studies, the mean Return On Investment (ROI) for new drug development reduced from 10.1% in 2010 to 1.9% in 2018. On the other hand, the virtual assistant segment is anticipated to register the fastest growth over the forecast period. The rapid growth and penetration of AI-based technologies in the virtual assistant segment is attributable to the growing shortage of skilled professionals, increasing penetration of smartphones, and improved internet connectivity. In addition, to the virtual assistant’s segment, the robot-assisted surgeries segment is expected to grow lucratively and possess a promising potential over the forthcoming years. This significant growth rate is attributable to the increasing number of partnerships between surgical robot manufacturers and AI technology providers.
North America dominated the AI in healthcare market in 2021 and accounted for the largest revenue share of 58.4%, owing to advancements in healthcare IT infrastructure, growing care expenditures, widespread adoption of AI/ML technologies, favorable government initiatives, lucrative funding options, and presence of several key market players. Moreover, the growing geriatric population, changing lifestyles, increasing prevalence of chronic disorders, growing demand for value-based care, and rising awareness levels towards the implementation of AI-based technologies is bolstering the market growth in North America.
On the other hand, Asia Pacific region is anticipated to register the fastest growth over the forecast period. This growth rate is attributable to the rapid innovations and development in the IT infrastructure and entrepreneurship ventures specializing in AI-based technologies. Increasing investments by private investors, venture capitalists, and non-profit organizations to enhance clinical outcomes, improved data analysis and data security, and reduced costs are driving the adoption rates. Favorable government initiatives supporting and promoting healthcare organizations and care providers to readily adopt AI-based technologies are some of the key factors driving the growth of the Asia Pacific market.
The AI in healthcare market has historically been showcasing significant growth owing to the rapid adoption of AI and ML solutions in the healthcare sector. The onset of the COVID-19 pandemic proved to be an opportunity to showcase the prowess and sophistication AI can bring to the healthcare sector. During the second wave of the pandemic hospitals and clinics across the world made use of AI-based virtual assistants, inpatient care bots, and AI-assisted surgery robots to handle the continuous influx of patients, which would have otherwise overwhelmed the entire hospital operation cycle. With several countries such as the US, Germany, France, China, India, Japan, and South Korea allocating funds to develop AI applications in the healthcare sector, the market is expected to boom over the course of 5 to 10 years.
The major drivers for the market are the increasingly large and complex datasets driving the need for AI, surging demand to reduce the increasing healthcare costs, improving computing power and declining hardware costs, a growing number of cross-industry partnerships and collaborations, and rising imbalance between health workforce and patients driving the need for improvised healthcare services. Another major driving factor for the market currently is the adoption of this technology by multiple pharmaceutical and biotechnology companies across the world to expedite the vaccine or drug development process for
COVID-19. The major restraint for the market is the reluctance among medical practitioners to adopt AI-based technologies and the lack of a skilled workforce. Critical challenges facing the AI in healthcare market include the lack of curated healthcare data, concerns related to data privacy, and the lack of interoperability among AI solutions. Underlying opportunities in the AI in healthcare market include the growing potential of AI-based tools for elderly care and increasing focus on developing human-aware AI systems. The emergence of the COVID-19 pandemic, which has significantly stressed the healthcare infrastructure across the world, is expected to force healthcare providers, payers, and pharmaceutical companies to adopt AI technology. The significant adoption of AI is expected in drug discovery, medical imaging, pathology, mental health, assistance robots, and precision medicine applications in the post-COVID-19 healthcare system.
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