Market Summary

The global artificial intelligence in the healthcare market was valued at USD 10.56 billion in 2021 and it is predicted to rise at a compound annual growth rate (CAGR) of 36.78% from 2022 to 2030. Large and multifaceted healthcare datasets are flooding the market, there is an increasing need to lower healthcare costs, computing power is improving, hardware costs are falling, there are more partnerships and collaborations between various domains in the healthcare sector, and there is a growing demand for improved healthcare services as a result of the imbalance between the patients and health workforce. Additionally, the market for artificial intelligence in healthcare is anticipated to grow as a result of the increasing potential of AI-based tools for elderly care, the increased focus on creating human-aware AI systems, the growing potential of AI technology in drug discovery, genomics, and diagnostics & imaging to combat COVID-19.

Artificial intelligence is the ability of a computer-controlled robot or computer to carry out the work of a human being. Artificial intelligence has its application in healthcare to improve healthcare services. AI is used by healthcare professionals to predict, diagnose, describe, and prescribe elements of healthcare.

“Increasing Volume of Healthcare Data Fuels the Market”

 

The market expansion for the hardware sector is anticipated to be boosted by the advent of cutting-edge hardware systems that would aid in improving the efficiency and effectiveness of AI software. For instance, Nvidia released graphics processing units in 2016, which were 20–50 times more efficient than central processing units and increased the efficiency of deep learning. The adoption of AI in healthcare by numerous pharmaceutical and biotechnology companies worldwide to speed up vaccine or drug development procedures for COVID-19 is another significant reason driving the market's present expansion.

                                                           

SEGMENT OUTLOOK:

The global artificial intelligence in healthcare market is segmented based on Type, Application, Component, and End User.

By Type:

Based on type, the artificial intelligence in healthcare market is segmented into machine learning, natural language processing, rule-based expert systems, physical robots, and robotic process automation. The natural language processing segment has shown significant growth in the market. This is because of the rise in the use of data mining, signal reduction, and image recognition, these are vital components of the majority of AI protocols.

The machine learning segment is expected to show the fastest growth in the coming future. Use of machine learning is a type of AI that has wide applications in the healthcare sector. It uses historical data to anticipate future outcomes. This helps in predicting the future results and also the probable condition.

 

By Application:

 

Based on the application, the artificial intelligence in healthcare market is segmented into robot-assisted surgery, virtual nursing assistant, administrative workflow assistance, fraud detection, dosage error reduction, clinical trial participant identifier, preliminary diagnosis, and others. The robot-assisted surgery segment holds the greatest share in the market. The rise in demand for minimally invasive surgeries in which the AI is utilized is the major contributing factor to the segment growth. The accuracy and the increasing adoption of robots in surgeries are also the driving factors for the market segment.

The preliminary diagnosis segment is one of the fast-growing segment in the global artificial intelligence in healthcare market. The use of AI to diagnose diseases and anticipate probable treatment are the major factors boosting the segment adoption. The early diagnosis of disease makes the treatment of the disease possible and makes it easy to manage and treat. Owing to these advantages the adoption of this segment is growing at a significant pace.

 

By Components:

Based on components, the global market is divided into software solutions, hardware, and services. The software segment is anticipated to show the highest growth in the forecast period. Owing to the high number of companies working on developing software solutions in healthcare applications. One of the key elements supporting the expansion of the AI platform within the software industry is the high demand among software developers (particularly at universities and medical institutions), as well as the growing uses of AI in the healthcare industry. Some of the leading AI platforms include Microsoft Azure, Lumiata, Premonition, TensorFlow, Watson Studio, and Infrared.

By End-users:

Based on end-users, the market is segmented into healthcare providers, pharmaceutical & biotechnology companies, and patients. The healthcare providers segment is the major sub-segment in the end-user segment. The major contributing factor to the growth of this segment is the rise in the adoption of AI in the healthcare and increase in the use of this technology to improve patients life. Healthcare providers are using AI as a potential tool to utilize huge data and draw the meaningful conclusion to better manage the condition and improve patient health.

The pharmaceutical & biotechnology companies segment is the fastest-growing segment owing to the use of automated machines in these companies for better efficacy and results. Also, the use of data and applications of AI in the operation of these companies saves cost and gives better results, with significant accuracy.

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By Regional Outlook:

Based on geography, the artificial intelligence in healthcare market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Due to its well-established healthcare infrastructure and favorable government laws for product type commercialization, North America held the highest share of artificial intelligence in healthcare market in 2020. The extensive research in the field of AI in the region contributes majorly to the growth of the market in the region. For instance, in February 2018, Microsoft Corporation and the University of Pittsburgh Medical Center introduced a virtual AI helper. The major factors propelling the growth of the North American market are rising healthcare spending coupled with the onset of the COVID-19 pandemic, increasing adoption of AI technology across the continuum of care, particularly in the US, and increasing adoption of AI in hospitals and clinics across the region.

The Asia-Pacific region is estimated to demonstrate considerable growth in the global market during the forecast period. A rise in the adoption of healthcare IT solutions, rising investments for the development of AI expertise, and major players working with universities and research institutions to develop cutting-edge AI algorithms that could be applied in the healthcare industry are all contributing to Asia-Pacific's growth in the market. This is because of the rising adoption of 5G in South Korea, China, India, Japan, and Singapore. In the meantime, the European AI market is likely to grow at a significant pace owing to the rising federal funding for AI technology.

By Key Competitors and Market Share Analysis:

 

As a result, leading firms are focused on maintaining long-term operations and developing manufacturing and distribution capabilities to increase their market position.

The competition among the players is based on numerous parameters including quality, innovation, product offerings, price, and corporate reputation.

 

Recent Developments:

• In May 2022, IBM corporations announced the collaboration with MZUAI. This collaboration was done to improve the AI application in the healthcare industry, natural language processing systems, and sustainability.
• In November 2021, Virgin Pulse acquired Welltok, Inc. to enhance the health engagement of patients and improve the health plans and system of healthcare with a cost reduction.
  
  

The following are some of the major market players operating across the globe:

• Welltok, Inc.
• Intel Corporation
• Nvidia Corporation
• Google Inc.
• IBM Corporation
• Microsoft Corporation
• General Vision, Inc.
• Enlitic, Inc.
• Next IT Corporation
• iCarbonX