Artificial Intelligence In Healthcare Market Size, Share, And Trends Analysis Report By Component (Software Solutions, Hardware, Services), By Application (Virtual Assistants, Connected Machines), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global artificial intelligence in healthcare market size was valued at USD 15.4 billion in 2022 is expected to expand at a compound annual growth rate (CAGR) of 37.5% from 2023 to 2030. The growing datasets of patient health-related digital information, increasing demand for personalized medicine, and the rising demand for reducing care expenses are some of the major driving forces of the market growth. The growing global geriatric population, changing lifestyles, rising prevalence of chronic diseases has contributed to the surge in demand for diagnosing and improved understanding of diseases in their initial stages. Artificial Intelligence (AI) and machine learning (ML) algorithms are being widely adopted and integrated into healthcare systems to accurately predict diseases in their early stage based on historical health datasets.

Furthermore, deep learning technologies, predictive analytics, content analytics, and Natural Language Processing (NLP) tools are enabling care professionals to diagnose patients’ underlying health conditions at an earlier stage. The Covid-19 pandemic positively influenced the demand for AI technologies and unearthed the potential held by these advanced technologies. Healthcare systems widely adopted these technologies in the rapid diagnosis and detection of different virus strains and utilized personalized information in improving the management of the outbreak. AI/ML algorithms were utilized in the diagnosis sector wherein these technologically driven modules were trained with datasets of chest CT images, symptoms, pathological findings, and exposure history to diagnose Covid-19 positive patients rapidly and accurately.

Moreover, the growing shortage of healthcare workforce drove the adoption of AI/ML technologies. Therefore, AI algorithms can be trained to analyze patient health information which further supports care providers in quickly diagnosing the condition and devising an accurate treatment regime. Supportive government initiatives, the rising number of mergers and acquisitions and technological collaborations, and the ongoing Covid-19 pandemic had a significant role in boosting the growth of the market and accelerating the adoption rate of AI in healthcare. AI/ML algorithms are being widely implemented in rapid and accurate diagnosis of medical conditions after the initial implementation in the detection of Covid-19 positive patients using personalized patient information and data consolidation.

As per an NCBI study in 2020, AI-based algorithms accurately detected 68% of COVID-19 positive cases in a dataset of twenty-five patients which were diagnosed as negative cases by care professionals. The implementation of AI/ML technologies in enhancing patient care, reducing machine downtime, and minimizing care expenses are some of the driving forces of artificial intelligence (AI) in healthcare market growth. Owing to the Covid-19 pandemic, AI-based technologies witnessed a significant boost in adoption and are set to experience a dramatic growth trajectory. Healthcare functions such as diagnostics, patient management, medication management, claims management, workflow management, integration of machines, and cybersecurity saw a remarkable surge in the integration of AI/ML technologies.

The growing penetration of AI technologies in healthcare applications led to key market participants focusing on product innovation and technological collaborations to expand their product portfolio and meet the growing demands during the pandemic. For instance, in May 2020, MIT-IBM Watson AI Lab promoted the implementation of AI technologies in research projects studying the health and economic consequences of the pandemic. Similarly, Qventus introduced AI-based patient flow automation systems covering critical resource control, hospitalization duration optimization, Covid-19 scenario planner, and ICU capacity creation in its healthcare facilities.

COVID19 artificial intelligence in healthcare market impact: an increase of 55.0% market growth between 2020 and 2021

Key market players are focusing on devising innovative product development strategies, partnership strategies, and mergers and acquisitions to expand their business footprint to cater to the growing demand for early and accurate detection of diseases, curb rising care expenses, compensate for the growing shortage of care providers, and deliver value-based care. For instance, in 2020 Aidoc and Imbio partnered to integrate AI technologies in medical image analysis for pulmonary embolism to improve detection and treatment regimes. Furthermore, the growing number of startups specializing in AI-based technologies for the healthcare sector is witnessing recognition in the form of investments by private investors and venture capitalists. For instance, in 2019, Partners Healthcare collaborated with FUJIFILM Sonosite to develop AI-based ultrasound technology, improve the accessibility of this technology for the healthcare fraternity, and improve the quality of diagnostic care.

Component Insights

In 2022, the software solutions segment dominated the market for artificial intelligence in healthcare and accounted for the largest revenue share of 40.2% 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, software solutions is anticipated to register the fastest growth rate of 39.4% 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.

Application Insights

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.

Regional Insights

North America dominated the AI in healthcare market in 2022 and accounted for the largest revenue share of 58.0%, 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 of 40.9% 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.

Key Companies & Market Share Insights

Increasing investments in R&D, innovative product developments and launches, the rising number of technological collaborations, and service differentiation are the key strategies players are focusing on to gain a competitive edge in the market. Moreover, the emergence of AI-based startups and recognition of the same is boosting growth. Some of the prominent players in the artificial intelligence in healthcare market include:

• Nuance Communications, Inc.

• IBM Corporation

• Microsoft

• NVIDIA Corporation

• Intel Corporation

• DeepMind Technologies Limited

 Artificial Intelligence in Healthcare Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the global artificial intelligence in healthcare market report on the basis of component, application, and region:

• Component Outlook (Revenue, USD Million, 2016 - 2030)

  • Software Solutions

  • Hardware

  • Services

• Application Outlook (Revenue, USD Million, 2016 - 2030)

  • Robot-Assisted Surgery

  • Virtual Assistants

  • Administrative Workflow Assistants

  • Connected Machines

  • Diagnosis

  • Clinical Trials

  • Fraud Detection

  • Cybersecurity

  • Dosage Error Reduction

• Regional Outlook (Revenue, USD Million, 2016 - 2030)

  • North America

  • U.S.

  • Canada

  • Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Russia

  • Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • Singapore

  • South Korea

  • Latin America

  • Brazil

  • Mexico

  • Argentina

  • MEA

  • South Africa

  • Saudi Arabia

  • UAE