AI In Healthcare Market Size To Reach $187.7 Billion By 2030

AI In Healthcare Market Growth & Trends

The global AI in healthcare market size is expected to reach USD 187.7 billion by 2030, registering a CAGR of 38.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. AI acts as a transformative force in healthcare systems, shifting them from reactive to proactive, predictive, and preventive models. Clinical decision support systems, fueled by artificial intelligence (AI), empower physicians and healthcare professionals with predictive and real-time analytics, enhancing decision-making and elevating care quality, ultimately resulting in improved patient outcomes. Furthermore, AI facilitates a comprehensive understanding of disease biology and patient pathology, advancing precision medicine and precision public health initiatives.

Furthermore, the growing field of life sciences R&D opens numerous opportunities for market growth, with AI's ability to process vast volumes of multidimensional data playing a crucial role. This capability accelerates the generation of novel hypotheses, expedites drug discovery and repurposing processes, and significantly reduces costs and time to market through the utilization of in silico methods. In essence, AI drives innovation and efficiency across the healthcare sector, revolutionizing healthcare delivery worldwide. AI-based technologies are implemented in various healthcare domains, including virtual assistants, robot-assisted surgeries, claims management, cybersecurity, and patient management.

AI algorithms are trained using patient health datasets to optimize disease diagnosis and early detection, enabling the initiation of timely treatment regimens. Supportive government initiatives, funding, a growing number of investments from private investors and venture capitalists, and the emergence of AI-specialized startups globally are key drivers of market growth. For instance, in February 2024, Fabric, a health tech company, raised USD 60 million in series A funding to expand its conversational AI-powered healthcare platform. In September 2023, Amazon announced a USD 4 billion investment in AI in partnership with Anthropic, representing a significant strategic move toward advancing the tech giant's healthcare aspirations.

The emergence of several startups in the AI healthcare market is another significant driver of industry growth. Their presence stimulates investment, encourages technological advancements, and expands the scope of AI applications in healthcare. The collective efforts of these startups fuel momentum in the AI healthcare market, driving greater innovation, efficiency, and effectiveness in delivering healthcare solutions. Notable startup companies in this space include Activate Health, Kahun, Likeminded, and Pharmarun, among others.

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AI In Healthcare Market Report Highlights

• The software solutions component segment dominated the global market in 2023 with the largest revenue share of 46.3%. This large share is attributed to the widespread adoption of AI-based software solutions among care providers, payers, and patients

• The robot-assisted surgery application segment dominated the market in 2023 with the largest revenue share and it is anticipated to witness the fastest CAGR from 2024 to 2030

• A rise in the volume of robot-assisted surgeries and increased investments in the development of new AI platforms are a few key factors supporting the penetration of AI in robot-assisted surgeries

• The machine learning (ML) technology segment held the largest share in 2023 as a result of advancements in ML algorithms across various applications. This trend is expected to continue due to the increasing demand for ML technologies

• The healthcare payers end-use segment is anticipated to experience the fastest CAGR from 2024 to 2030

• In 2023, North America dominated the industry and held the largest share of over 45% owing to advancements in healthcare IT infrastructure, readiness to adopt advanced technologies, presence of several key players, growing geriatric population, and rising prevalence of chronic diseases

• In Asia Pacific, the market is anticipated to witness significant growth over the forecast period

AI In Healthcare Market Segmentation

Grand View Research, Inc. has segmented the global AI in healthcare market on the basis of component, application, technology, end-use, and region:

Artificial Intelligence (AI) In Healthcare Component Outlook (Revenue, USD Million, 2018 - 2030)

• Hardware

  • Processor

    • MPU (Memory Protection Unit)

    • FPGA (Field-programmable Gate Array)

    • GPU (Graphics Processing Unit)

    • ASIC (Application-specific Integrated Circuit)

  • Memory

  • Network

    • Adapter

    • Interconnect

    • Switch

• Software Solutions

  • AI Platform

    • Application Program Interface (API)

    • Machine Learning Framework

  • AI Solutions

    • On-premise

    • Cloud-based

• Services

  • Deployment & Integration

  • Support & Maintenance

  • Others (Consulting, Compliance Management, etc.)

Artificial Intelligence (AI) In Healthcare Application Outlook (Revenue, USD Million, 2018 - 2030)

• Robot-assisted Surgery

• Virtual Assistants

• Administrative Workflow Assistants

• Connected Medical Devices

• Medical Imaging & Diagnostics

• Clinical Trials

• Fraud Detection

• Cybersecurity

• Dosage Error Reduction

• Precision Medicine

• Drug Discovery & Development

• Lifestyle Management & Remote Patient Monitoring

• Wearables

• Others (Patient Engagement, etc.)

Artificial Intelligence (AI) In Healthcare Technology Outlook (Revenue, USD Million, 2018 - 2030)

• Machine Learning

  • Deep Learning

  • Supervised

  • Unsupervised

  • Others (Reinforcement Learning, Semi-supervised)

• Natural Language Processing

  • Smart Assistance

  • OCR (Optical Character Recognition)

  • Auto Coding

  • Text Analytics

  • Speech Analytics

  • Classification & Categorization

• Context-aware Computing

• Computer Vision

Artificial Intelligence (AI) In Healthcare End-user Outlook (Revenue, USD Million, 2018 - 2030)

• Healthcare Providers (Hospitals, Outpatient Facilities, and Others)

• Healthcare Payers

• Healthcare Companies (Pharmaceutical, Biotechnology, Medical Devices)

• Patients

• Others

Artificial Intelligence (AI) In Healthcare Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Sweden

  • Denmark

  • Norway

  • Russia

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • Singapore

  • South Korea

  • Thailand

• Latin America

  • Brazil

  • Mexico

  • Argentina

• MEA

  • South Africa

  • Saudi Arabia

  • UAE

  • Kuwait

List of Key Players of Artificial Intelligence (AI) In Healthcare Market

• Microsoft

• IBM

• Google

• NVIDIA Corporation

• Intel Corporation

• Itrex Group

• GE Healthcare

• Medtronic

• Oracle

• Medidata

• Merck

• IQVIA