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The global Artificial Intelligence (AI) in healthcare market size was USD 15.40 Billion in 2022 and is expected to register a revenue CAGR of 37.2% during the forecast period. Rapid digitalization as well as rising demand for wearable technology and chip market solutions are major factors driving the market revenue growth. In addition, rising trend of medical robots, which are designed to assist in various tasks such as surgery and diagnostics to rehabilitation and patient care is a major factor contributing to the market revenue growth. For instance, robots are used in rehabilitation to assist patients in regaining mobility and strength after injuries or surgeries. They can provide consistent and targeted exercises. Medical robots offer a high level of precision and accuracy that is difficult to achieve with human hands alone. This is particularly valuable in surgical procedures through smaller incisions, resulting in quicker recovery times and reduced scarring for patients.
Rising data privacy and security concerns, ethical and legal challenges, and interoperability issues are major factors restraining the market revenue growth. Healthcare systems often use disparate data formats and standards, making it challenging to integrate Artificial Intelligence solutions seamlessly. Lack of interoperability between Electronic Health Records (EHRs) and AI systems can limit their effectiveness. Limited Artificial Intelligence expertise and data quality and availability are other major factors restraining the market revenue growth. There is a shortage of Artificial Intelligence (AI) and data science expertise in the healthcare sector. Healthcare organizations can struggle to recruit and retain AI talent, making it difficult to develop and manage Artificial Intelligence (AI) solutions effectively.
On the basis of offering, the global Artificial Intelligence (AI) in healthcare market is segmented into hardware, software, and services.
The hardware segment accounted for a significantly large market share in 2022. Significant investments in data centers and rapid adoption of advanced data processing and real-time analysis are major factors driving revenue growth of this segment. AI applications in healthcare often involve processing and analyzing large volumes of data including medical images, genomics data, and sensor data among others. High-performance hardware components, such as Graphic Processing Units (GPUs) and Tensor Processing Units (TPUs), are required to handle these data-intensive tasks efficiently.
In addition, AI-powered medical imaging applications, including Magnetic Resonance Imaging (MRI), Computed Tomography (CT), and X-ray analysis, benefit from GPUs and specialized hardware optimized for image processing. These components improve the speed and accuracy of diagnoses. Increasing awareness regarding investing in the right hardware for Artificial Intelligence (AI) applications is a major factor driving revenue growth of this segment. The right hardware is critical to ensure optimal performance of the AI application, whether it involves diagnostic imaging, surgical robotics, patient monitoring, genomics, or any other use case. The correct hardware is crucial to ensuring that the Artificial Intelligence (AI) application performs optimally, whether it involves diagnostic imaging, surgical robotics, patient monitoring, genomics, or any other use case.
To maximize the speed and accuracy of AI inferencing operations, each hardware platform must be matched to the unique Artificial Intelligence (AI) workload it will be running. This includes having the appropriate GPUs to analyze vast volumes of data and images fast and in parallel, as well as enough Central Processing Unit (CPU) power to perform AI operations. In some circumstances, this necessitates platforms that are specifically designed to meet the computational requirements of the application.
On the basis of technology, the global Artificial Intelligence (AI) in healthcare market is segmented into machine learning, natural language processing, and others.
The machine learning segment accounted for a significantly large market share in 2022. Increasing focus on clinical trials and research, fraud detection, and patient engagement and education are major factors driving revenue growth of this segment. Machine learning plays a central role in AI in healthcare. It is employed in various applications and functions, and its importance lies in its ability to analyze vast amounts of data, recognize patterns, make predictions, and continuously improve its performance. For instance, machine learning accelerates drug discovery by predicting potential drug candidates, optimizing molecular structures, and identifying drug interactions.
In addition, Artificial Intelligence (AI) models are used to analyze genetic and biological data to understand diseases at a molecular level. Fraud detection and billing optimization are major factors driving the increasing application of machine learning in Artificial Intelligence (AI) in healthcare. Machine learning is used to detect healthcare fraud by analyzing billing patterns and claims data. It also helps optimize billing processes and identify coding errors. As the availability of healthcare data continues to grow and machine learning algorithms become more sophisticated, their applications in healthcare are expected to expand further.
On the basis of application, the global Artificial Intelligence (AI) in healthcare market is segmented into preventive healthcare, risk analysis, hospital management, medical imaging & diagnostics, and others.
The preventive healthcare segment accounted for a significantly large market share in 2022. Rising healthcare costs, significant improvements in healthcare access, and rapid technological advancements are major factors driving revenue growth of this segment. For instance, the cost of treating chronic diseases and managing their complications is substantial. Preventive healthcare is seen as a cost-effective approach because it can help avoid expensive medical treatments and hospitalizations.
End-use companies are seeking healthcare programs and health insurance, which offer incentives such as lower premiums or reduced out-of-pocket costs, to individuals who engage in preventive healthcare activities. These incentives encourage participation. Many employers and organizations have implemented wellness programs to promote health and well-being of their employees or members. These programs often include preventive health initiatives. Rising demand for preventive healthcare is driving innovation in the healthcare industry, with a focus on early detection, lifestyle interventions, and patient engagement. Healthcare providers, technology companies, and patient engagement. Moreover, healthcare providers, technology companies, and policymakers are increasingly recognizing the value of preventive healthcare in improving overall health outcomes and reducing healthcare costs in the long term.
North America accounted for largest market in 2022. Rapid integration of high-tech solutions into existing healthcare systems is a major factor driving market revenue growth in this region. North America boasts a wealth of healthcare data, including Electronic Health Records (EHRs), medical imaging data, and genomic information. Integration of high-tech solutions has made it easier to collect, store, and access this data, providing a rich source of AI-driven applications and research. Advanced medical imaging, drug discovery and clinical trials, and rising demand for telehealth and remote monitoring are major factors contributing to the market revenue growth in this region. The integration of high-tech imaging technologies, such as Magnetic Resonance Imaging (MRI), Computed Tomography (CT), and Polyethylene Terephthalate (PET) scans, with AI is leading to more accurate and faster diagnoses.
Artificial Intelligence (AI) algorithms can assist radiologists in detecting abnormalities, thus improving patient care. The market in the U.S. accounted for largest revenue share due to significant investments by market companies in optimizing patient care and increasing focus on expanding their presence. For instance, on 20 September 2023, Navenio, which is a leading technology company headquartered in England announced securing a USD 6.3 million investment to expand AI location services in the U.S. healthcare market. The technological platform is used to locate people in hospitals or other large buildings where the use of a Global Positioning System (GPS) is not ideal.
Europe accounted for second-largest market share in 2022. Significant investments in research & development activities is a major factor driving the market revenue growth in this region. For instance, on 29 June 2023, European Commission (EU) announced investing USD 234 million to test AI solutions for healthcare, food, and everyday life. In addition, the EU co-funds the Testing and Experimentation Facilities (TEFs) with USD 117 million over five years under the Digital Europe Program. TEFs are intended to assist Artificial Intelligence (AI) developers in bringing trustworthy AI to market more efficiently, as well as to facilitate its adoption in Europe, as well as to serve as a sandbox for the development and deployment of AI technologies.
They are accessible to all European technology suppliers to test and experiment with Artificial Intelligence (AI), robots, and other developing technologies. The market in Germany accounted for largest revenue share due to increasing application of the Internet of Things (IoT) in medical devices. IoT-connected devices allow healthcare professionals to remotely monitor patients with chronic conditions or those recovering from surgeries. AI-driven analytics can identify trends and patterns in data, facilitating early intervention and personalized care plans.
Asia Pacific accounted for third-largest market share in 2022. Rising demand for cloud-based solutions and significant investments in providing faster, and more efficient customer service, and enhancing the overall experience are major factors driving the market revenue growth in this region. In addition, increasing awareness regarding teleconsultation among consumers in the region is another major factor contributing to the market revenue growth. Teleconsultation is a key component of telemedicine, which is rapidly expanding across the Asia Pacific region.
AI-powered telemedicine platforms can assist healthcare providers in diagnosing and treating patients during virtual consultations. These platforms can analyze patient data, provide decision support, and even recommend treatment options. The market in China accounted for largest revenue share due to major investments in healthcare infrastructure and rising interest in genomics and personalized medicine. Moreover, Chinese pharmaceutical companies are using Artificial Intelligence (AI) in drug discovery and development. AI algorithms are using AI in drug discovery and development. AI algorithms can analyze vast datasets to identify potential drug candidates and streamline the drug development process.
The global Artificial Intelligence (AI) in healthcare market is fairly fragmented, with many large and medium-sized players accounting for the majority of market revenue. Major players are deploying various strategies, entering into mergers & acquisitions, strategic agreements & contracts, developing, testing, and introducing more effective AI in healthcare products.
PARAMETERS | DETAILS |
The market size value in 2022 | USD 15.40 Billion |
CAGR (2023-2032) | 37.2% |
The Revenue forecast in 2032 | USD 365.29 Billion |
Base year for estimation | 2022 |
Historical data | 2019-2021 |
Forecast period | 2023-2032 |
Quantitative units | Revenue in USD Billion and CAGR in % from 2023 to 2032 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Offering, technology, application, end-use, Region |
Regional scope |
North America; Europe; Asia-Pacific; Latin America; Middle East & Africa |
Country scope |
U.S., Canada, Mexico, Germany, U.K., France, Spain, BENELUX, Rest of Europe, China, India, Japan, South Korea, Rest of APAC, Brazil, Rest of LATAM, Saudi Arabia, UAE, Israel, and Rest of MEA |
Key companies profiled | IBM Corporation, Nuance Communication, Inc., PathAI, Koninklijke Philips N.V., Microsoft, Siemens Healthcare GmbH, NVIDIA Corporation, Intel Corporation, Babylon Inc., Amazon Web Services, Inc., Oracle Corporation, Zebra Technologies, Tempus Labs, Inc., Aidoc, Google Health |
Customization Scope |
10 hrs of free customization and expert consultation |
For the purpose of this report, Emergen Research has segmented the global Artificial Intelligence (AI) in healthcare market on the basis of offering, technology, application, end-use, and region:
The global Artificial Intelligence (AI) in healthcare market is expected to register a revenue Compound Annual Growth Rate (CAGR) of 37.2% during the forecast period.
The global Artificial Intelligence (AI) in healthcare market size was USD 15.40 Billion in 2022.
Telehealth and remote monitoring, enhanced personalized medicine, and efficient drug discoveries are major factors driving revenue growth of the global Artificial Intelligence (AI) in healthcare market.
The machine learning segment was leading the Artificial Intelligence (AI) in healthcare market in terms of technology in 2022.
Data privacy, security concerns, and lack of clinical validation are some major restraints for revenue growth of the global Artificial Intelligence (AI) in healthcare market.
Key Aspects Covered
Market Overview:
Market Dynamics:
Competitive Landscape:
Segmentation Analysis:
Market Size and Forecast:
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