Artificial Intelligence in Healthcare Market

Artificial Intelligence in Healthcare Market Size, Share, Trends, Growth, and Industry Analysis, By Component (Software, Hardware and Services), Technology (Machine Learning, Natural Language Processing, Context-aware Computing and Computer Vision), Application (Virtual Assistants, Diagnosis, Wearables, Administrative Workflow, Robot Assisted Surgery, Clinical Trials, Assistants, Cybersecurity, Dosage Error Reduction, Fraud Detection and Connected Machines), End-Use (Hospital & Healthcare Providers, Patients, Pharmaceuticals & Biotechnology Companies and Healthcare Payers), Regional Analysis and Forecast 2032.

ICT & Media | May 2024 | Report ID: EMR00876 | Pages: 252

Global Artificial Intelligence in Healthcare market size was USD 13.98 billion in 2023 and the market is projected to touch USD 168.25 billion by 2032, at a CAGR of 31.84% during the forecast period.

 

AI technologies, such as machine learning and natural language processing, are applied across various healthcare sectors, including diagnostics, treatment planning, drug discovery, and patient monitoring. The market has witnessed rapid growth due to the increasing adoption of AI-driven solutions by healthcare providers to improve patient outcomes, streamline workflows, and reduce costs.

The increasing number of healthcare data, developments in AI algorithms, and the demand for personalized and efficient healthcare services are all key drivers of market expansion. Furthermore, government measures promoting AI integration in healthcare, as well as increased need for precision medicine, help to drive market growth. However, obstacles such as data privacy issues, regulatory impediments, and a scarcity of experienced specialists impede market expansion. Despite these challenges, the Global Artificial Intelligence in Healthcare market is expected to maintain its upward trend, driven by continued technology developments and growing recognition of AI's potential to improve healthcare delivery.

 

Global Artificial Intelligence in Healthcare report scope and segmentation.

Report Attribute

Details

Estimated Market Value (2023)

USD 13.98 billion

Projected Market Value (2032)

USD 168.25 billion

Base Year

2023

Forecast Years

2024 – 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Component, By Technology, By Application, By End-User, & Region.

Segments Covered

By Component, By Technology, By Application, By End-User, & By Region.

Forecast Units

Value (USD Million or Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032.

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others.

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Artificial Intelligence in Healthcare dynamics

Rapid technological developments in AI algorithms and computer capacity are driving healthcare innovation, allowing for more precise diagnosis, individualized treatment regimens, and effective patient management. Furthermore, the growing availability of healthcare data, such as electronic health records and medical imaging, is driving the development and implementation of AI solutions throughout the industry. Furthermore, rising demand for cost-effective and scalable healthcare solutions, combined with the global rise in chronic illness prevalence, is driving healthcare providers to use AI-driven technology to improve operational efficiency and patient outcomes.

Furthermore, government initiatives and legislation that promote the integration of AI in healthcare, such as the installation of electronic health records and AI adoption incentives, play a vital role in market expansion. However, challenges such as data privacy concerns, interoperability issues, and the lack of standardized regulations pose obstacles to market growth. Moreover, the shortage of skilled professionals capable of developing and implementing AI solutions in healthcare settings presents a challenge for market stakeholders.

 

Global Artificial Intelligence in Healthcare drivers

  • Advancements in AI Technology

Continuous advancements in artificial intelligence (AI) technology, particularly in machine learning and natural language processing, are driving innovation in healthcare. These advancements enable AI systems to analyse vast amounts of medical data with unprecedented speed and accuracy, leading to improved diagnostics, personalized treatment plans, and more efficient patient management. For example, AI-powered diagnostic tools can analyse medical images such as MRI scans or X-rays to detect abnormalities or assist radiologists in interpreting complex images. Similarly, natural language processing algorithms can extract valuable insights from unstructured clinical notes, enhancing clinical decision-making and patient care.

  • Increasing Demand for Personalized Healthcare

There is a growing demand for personalized healthcare solutions tailored to individual patient needs, driven by factors such as the rise in chronic diseases and the shift towards value-based care. AI technologies play an important role in providing personalized healthcare by utilizing patient data to create tailored treatment plans, anticipate illness progression, and identify effective solutions. AI systems, for example, can analyse genetic data, biomarkers, and patient health records to identify individuals who are at high risk of acquiring specific disorders and offer preventive measures or individualized treatment options. Additionally, AI-powered wearable devices and remote monitoring solutions allow for continuous monitoring of patient health data, supporting early intervention and proactive disease treatment.

 

Restraints:

  • Data Privacy and Security Concerns

The widespread adoption of AI in healthcare raises concerns about the privacy and security of patient data. Healthcare organizations must ensure compliance with stringent data protection regulations such as HIPAA (Health Insurance Portability and Accountability Act) to safeguard patient confidentiality and prevent unauthorized access or misuse of sensitive information. Moreover, the integration of AI systems with electronic health records and other healthcare IT infrastructure introduces potential vulnerabilities to cyberattacks and data breaches, posing risks to patient safety and trust in healthcare services.

  • Regulatory Hurdles and Compliance Challenges

The regulatory landscape for AI in healthcare is complex and constantly evolving, presenting challenges for market players seeking to develop and deploy AI-driven solutions. Regulatory agencies such as the FDA (Food and Drug Administration) in the United States require rigorous testing and validation of AI algorithms to ensure safety, efficacy, and compliance with regulatory standards before market approval. However, the lack of standardized guidelines and the dynamic nature of AI technology make it difficult for companies to navigate the regulatory process and obtain timely approvals for their products. Additionally, the diversity of healthcare systems and regulatory frameworks across different countries further complicates regulatory compliance for global market expansion.

 

Opportunities:

  • Integration of AI with Telehealth and Remote Monitoring

The increasing expansion of telehealth and remote monitoring services opens up numerous prospects for AI integration in healthcare delivery. AI-powered telemedicine platforms and remote monitoring devices provide real-time patient data analysis, allowing for virtual consultations, remote diagnostics, and proactive illness management. AI systems, for example, can analyse streaming physiological data from wearable sensors to detect early indicators of deterioration in patient health and inform healthcare personnel to intervene promptly. By employing AI to increase telehealth capabilities, healthcare organizations can improve access to care, eliminate healthcare inequities, and promote patient engagement and satisfaction.

 

Segment Overview

  • By Component

The Artificial Intelligence in Healthcare market comprises three main components: software, hardware, and services. Software encompasses the AI algorithms and applications that analyse medical data and assist in clinical decision-making. Hardware includes the computing infrastructure and devices required to run AI software efficiently, such as servers, GPUs, and edge computing devices. Services encompass consulting, implementation, and support services provided by vendors to assist healthcare organizations in deploying and optimizing AI solutions. Together, these components form the foundation of AI-driven healthcare systems, enabling providers to harness the power of AI technology to improve patient care, streamline workflows, and enhance operational efficiency.

  • By Technology

Machine learning, natural language processing, context-aware computing, and computer vision are examples of basic AI technologies used in healthcare. Machine learning algorithms use vast datasets to discover patterns and make predictions, whereas natural language processing techniques allow computers to interpret and generate human language.

Context-aware computing incorporates environmental context into artificial intelligence systems to improve decision-making, whereas computer vision techniques allow robots to comprehend and analyze visual data. These technologies work synergistically to power numerous applications in healthcare, from diagnostic tools to virtual assistants, redefining the way healthcare is given and changing patient outcomes.

  • By Application

AI-driven applications in healthcare span a wide range of use cases, including virtual assistants, diagnosis support, wearable devices, administrative workflow optimization, robot-assisted surgery, clinical trial management, cybersecurity, dosage error reduction, fraud detection, and connected machines. Virtual assistants leverage AI to interact with patients, schedule appointments, and provide personalized health recommendations.

Diagnosis support tools aid healthcare professionals in interpreting medical images and identifying disease patterns. Wearable devices equipped with AI sensors monitor patient health metrics and facilitate remote patient monitoring. Administrative workflow optimization tools streamline hospital operations and improve resource allocation. Robot-assisted surgery systems enhance surgical precision and efficiency, while AI-powered clinical trial management platforms accelerate drug discovery and development.

Cybersecurity solutions protect healthcare data from unauthorized access and cyber threats, while dosage error reduction and fraud detection systems improve medication safety and financial integrity. Connected machines leverage AI to enable interoperability and data exchange between medical devices and healthcare IT systems, facilitating seamless integration and data-driven decision-making.

  • By End-User

The adoption of AI in healthcare spans across various end-users, including hospitals and healthcare providers, patients, pharmaceutical and biotechnology companies, and healthcare payers. Hospitals and healthcare providers leverage AI to improve clinical outcomes, enhance patient care, and optimize operational efficiency. Patients benefit from AI-driven solutions such as virtual assistants, wearable devices, and telehealth services, which empower them to actively manage their health and engage with healthcare providers remotely. Pharmaceutical and biotechnology companies utilize AI to accelerate drug discovery and development, identify new therapeutic targets, and optimize clinical trial processes. Healthcare payers leverage AI to enhance claims processing, fraud detection, and risk assessment, improving cost efficiency and quality of care delivery.

 

Global Artificial Intelligence in Healthcare Overview by Region

North America dominates the market due to the presence of advanced healthcare systems, significant investment in AI research and development, and favorable regulatory environments. Hospitals, healthcare providers, and pharmaceutical companies in the region are widely implementing AI-powered healthcare solutions. Europe is following suit, with considerable investments in AI technology and expanding ambitions to integrate AI into healthcare services.

Asia Pacific is experiencing strong market expansion, driven by rising healthcare spending, increased awareness of AI's benefits, and government initiatives to encourage digital health. The region's emerging economies, such as China and India, are heavily investing in AI-driven healthcare solutions to address healthcare concerns and enhance access to excellent care.

Latin America and the Middle East & Africa regions are also experiencing growing interest in AI in healthcare, driven by expanding healthcare infrastructure, rising chronic disease burden, and efforts to modernize healthcare delivery systems. However, challenges such as data privacy concerns, regulatory barriers, and limited access to AI expertise hinder market growth in these regions.

 

 

Global Artificial Intelligence in Healthcare market competitive landscape

Major companies such as IBM Corporation, Google LLC (Alphabet Inc.), Microsoft Corporation, and NVIDIA Corporation are at the forefront, leveraging their technological expertise and extensive resources to develop cutting-edge AI solutions for healthcare. These companies offer a wide range of AI-powered products and services, including diagnostic tools, predictive analytics platforms, virtual assistants, and robotic systems, catering to diverse healthcare needs. Additionally, startups and emerging players are making significant strides in the market, introducing disruptive AI technologies and niche solutions targeting specific healthcare domains.

Collaborations, partnerships, and strategic alliances are prevalent in the market as companies seek to leverage complementary strengths and expand their market reach. Moreover, mergers and acquisitions are common strategies employed by market players to consolidate their market position, acquire talent and technology, and accelerate product development. Regulatory compliance, data privacy, and ethical considerations are key focus areas for market participants as they navigate the complex healthcare landscape and address concerns surrounding AI adoption.

Key Players:

  • Google
  • Amazon Web Services
  • Microsoft
  • Nvidia
  • Intel
  • IBM
  • General Electric Company
  • Johnson & Johnson
  • Koninklijke Philips
  • Medtronic
  • Siemens Healthineers
  • Micron Technology
  • General Vision
  • CloudmedX
  • Oncora Medical
  • Enlitic
  • Lunit 

 

Global Artificial Intelligence in Healthcare Recent Developments

  • March 2024, Stanford Medicine and Microsoft have joined forces to implement Nuance Dragon Ambient eXperience Copilot (DAX Copilot) across their enterprise, introducing conversational, ambient, and generative AI capabilities to clinicians at Stanford Medicine. This strategic rollout reflects Stanford Medicine's dedication to combatting physician burnout and elevating patient care through the simplification of administrative tasks. By harnessing DAX Copilot's innovative automation of clinical documentation, significant enhancements in efficiency and patient-centered care have been achieved. This initiative underscores Stanford Medicine's commitment to pioneering solutions and underscores the scalability of DAX Copilot in empowering healthcare organizations to integrate AI-driven clinical documentation tools seamlessly, thereby optimizing existing investments in our trusted Dragon solutions.
  • March 2024, WellSpan Health has recently introduced DAX Copilot into its practice, revolutionizing patient-physician interactions both in-person and through telehealth appointments. By harnessing the power of generative AI, DAX Copilot automates the drafting of clinical notes, freeing up physicians to fully concentrate on their patients without the need for manual documentation. This strategic move by WellSpan builds upon its successful utilization of Nuance solutions, aimed at streamlining clinical workflows and elevating the standard of patient care. Feedback from surveys indicates a high level of satisfaction among both physicians and patients, with DAX significantly enhancing the quality of interactions while simultaneously reducing the burden of documentation. This initiative underscores WellSpan's dedication to providing outstanding care experiences and combating physician burnout by offering innovative tools to improve efficiency and personalize care delivery.

 

Scope of global Artificial Intelligence in Healthcare report

Global Artificial Intelligence in Healthcare report segmentation

ATTRIBUTE

DETAILS

By Component

  • Software
  • Hardware
  • Services

By Technology

  • Machine Learning
  • Natural Language Processing
  • Context-aware Computing
  • Computer Vision

By Application

  • Virtual Assistants
  • Diagnosis
  • Wearables
  • Administrative Workflow
  • Robot Assisted Surgery
  • Clinical Trials
  • Assistants
  • Cybersecurity
  • Dosage Error Reduction
  • Fraud Detection
  • Connected Machines  

By End-User

  • Hospital & Healthcare Providers
  • Patients
  • Pharmaceuticals & Biotechnology Companies
  • Healthcare Payers

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Artificial Intelligence in Healthcare size and forecast: To identify and estimate the market size for global Artificial Intelligence in Healthcare market segmented By Component, By Technology, By Application, By End-User, and by region. Also, to understand the consumption/ demand created by consumers between 2024 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global Artificial Intelligence in Healthcare
  • Market Influencing Factors: To find out the factors which are affecting the market of global Artificial Intelligence in Healthcare among consumers.
  • Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

Global Artificial Intelligence in Healthcare forecast period is 2024 - 2032.
According to global Artificial Intelligence in Healthcare research, the market is expected to grow at a CAGR of ~ 31.84% over the next eight years.
The possible segments in global Artificial Intelligence in Healthcare are based on By Component, By Technology, By Application, By End-User, & by region.
The expected market size for Global Artificial Intelligence in Healthcare is USD 168.25 billion in 2032.
The major players in the market are Google, Amazon Web Services, Microsoft, Nvidia, Intel, IBM, General Electric Company, Johnson & Johnson, Koninklijke Philips, Medtronic, Siemens Healthineers, Micron Technology, General Vision, CloudmedX, Oncora Medical, and Enlitic, Lunit.
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