Artificial Intelligence (AI) in Healthcare Market by Component (Hardware, Software, and Service), Technology (Machine Learning-neural Networks and Deep Learning, Rule-based Expert Systems, Physical Robots, Natural Language Processing, Robotic Process Automation, Context-aware Computing, Computer Vision, and Others), Application (Patient Data and Risk Analysis, Clinical Trials, Lifestyle Management and Monitoring, Precision Medicine, Robot Assisted Surgery, In-patient Care and Hospital Management, Medical Imaging and Diagnosis, Virtual Assistance, Virtual Nursing Assistant, Administrative Workflow Assistance, Fraud Detection, Dosage Error Reduction, Clinical Trial Participant Identifier, Preliminary Diagnosis, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

The global artificial intelligence (AI) in healthcare market size was USD 15.6 Bn in 2022 and is likely to reach USD 209.3 Bn by 2031, expanding at a CAGR of 37.7% during 2023–2031. The market growth is attributed to the ­­increasing demand for in-patient care and hospital management, and the growing requirement for reducing care expenses.

Artificial intelligence (AI) is the simulation of human intelligence processed by a machine, which includes computer-enhanced learning, reasoning, and perception. It enables the system to learn and develop problem-solving abilities similar to human intelligence. AI can process large amounts of data and perform tasks such as reasoning, learning, speech recognition, and problem-solving in a way that humans cannot.

The use of AI in healthcare has made developments more cost-effective, innovative, and time-efficient as it employs various software with complex algorithms that can simulate human senses in the analysis, interpretation, and comprehension of data. It aids in evaluating symptoms, detecting diseases faster, and predicting health issues.

Apart from clinical diagnosis, it is widely used for drug development, monitoring patients' conditions and data, providing appropriate treatment plans for the ailment detected, and providing personalized medicine. It improves patient outcomes, increases safety, and reduces costs associated with healthcare delivery.

AI assists to manage work effectively that enables healthcare operators to take care of patients beyond clinics. It optimizes nursing activity and provides several benefits including securely preserving information and providing accurate and real-time data.

“According to an NCBI study in 2020, AI-based algorithms detected 17 COVID-19-positive cases in a dataset of 25 patients, which were diagnosed as negative by professionals.”

The market report finds that the COVID-19 pandemic offers potential growth opportunities for the market. The market growth increased, due to the rising usage of AI tools among research institutes, hospitals, and laboratories to diagnose and detect the virus. However, the demand for robotically assisted medical surgeries and AI-based virtual assistance has increased to curb the virus spread, which boosted the market growth during the pandemic.

Artificial Intelligence (AI) in Healthcare Market Dynamics

Major Drivers

Growing demand for AI-enabled healthcare services is a major factor driving the market growth during the projection period. AI has emerged as an advantage to the healthcare industry as it helps to cope with several health-related issues by enhancing safety. The implementation of AI-based diagnosis devices detects disease before symptoms are apparent, enhances patient care, and reduces machine downtime. The increasing prevalence of chronic diseases demands for diagnosis and improved understanding of diseases at the initial stages.

Increasing requirements for analyzing and interpreting large volumes of data, due to the rising datasets of patients’ health-related digital information, which boosts the market during the forecast period. Moreover, rising efforts to reduce healthcare costs and supportive government initiatives are expected to fuel the market.

Existing Restraints

Lack of a skilled AI workforce is anticipated to hinder the market in the coming years. AI is a complex system, which requires a workforce with specific skill sets for developing and managing complex algorithms. Furthermore, the absence of professional standards and the limited access to data in AI technology restraints the market.

Emerging Opportunities

Rising funding in healthcare technology creates immense opportunities in the market. Healthcare providers demand for advanced medical devices for diagnosing and treatment. Thus, market players are focusing on developing advanced solutions at low cost. Moreover, the developing healthcare sector in emerging countries and the rapid expansion of technologies in the field of surgery are expected to fuel the market.

Scope of Artificial Intelligence (AI) in Healthcare Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Artificial Intelligence (AI) in Healthcare Market Segment Insights

Based on component, the artificial intelligence (AI) in healthcare market is divided into hardware, software, and service. The software segment is expected to expand at a significant pace during the projection period, due to the ability to accelerate data analysis with accuracy and reduce operational complexity. Increasing software launches and various mHealth apps are likely to boost the segment. However, the hardware segment is expected to grow at a rapid pace, owing to the rising demand for advanced medical devices.

On the basis of technology, the market is segmented into machine learning-neural networks and deep learning, rule-based expert systems, physical robots, natural language processing, robotic process automation, context-aware computing, computer vision, and others. The natural language processing segment is projected to register a considerable CAGR during the projected period. The segment growth is further attributed to the rising adoption of signal reduction, image recognition, and data mining. Natural language processing (NLP) is the study of programs that can easily recognize and analyze human language. It is widely used for information extraction and summarization.

In terms of application, the market is segregated into patient data and risk analysis, clinical trials, lifestyle management and monitoring, precision medicine, robot assisted surgery, in-patient care and hospital management, medical imaging and diagnosis, virtual assistance, virtual nursing assistant, administrative workflow assistance, fraud detection, dosage error reduction, clinical trial participant identifier, preliminary diagnosis, and others.

The in-patient care and hospital management segment is expected to hold a key share of the market in the coming years, due to the rising amount of healthcare data. AI software has the ability to manage medical records, assemble, and evaluate patient data generated in hospitals. The growth of the segment is attributed to the rising requirement for enhanced patient care and reduces human operation.

The medical imaging and diagnosis segment is estimated to expand at a rapid pace during the assessment period, owing to the increasing demand for AI-based image processing solutions. The growth of the segment is attributed to the growing need for surveillance and primary diagnosis of disease.

In terms of region, the global artificial intelligence (AI) in healthcare market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period, due to the rising government funding for improving the healthcare and research sectors. Rising adoption of precision medicine and growing prevalence of diseases in the region boost the demand for AI-enabled medical devices for diagnosis.

Segments

The artificial intelligence (AI) in healthcare market has been segmented on the basis of

Component

• Hardware
• Software
• Service

Technology

• Machine Learning-Neural Networks and Deep Learning
• Rule-Based Expert Systems
• Physical Robots
• Natural Language Processing
• Robotic Process Automation
• Context-aware Computing
• Computer Vision
• Others

Application

• Patient Data and Risk Analysis
• Clinical Trials
• Lifestyle Management and Monitoring
• Precision Medicine
• Robot Assisted Surgery
• In-patient Care and Hospital Management
• Medical Imaging and Diagnosis
• Virtual Assistance
• Virtual Nursing Assistant
• Administrative Workflow Assistance
• Fraud Detection
• Dosage Error Reduction
• Clinical Trial Participant Identifier
• Preliminary Diagnosis
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• NVIDIA Corporation
• IBM
• Microsoft
• Butterfly Network, Inc
• Enlitic, Inc
• Arterys Inc
• Atomwise Inc
• Freenome Holdings, Inc
• JVION
• Apixio
• DeepMind Technologies Limited
• Intel Corporation

Competitive Landscape

Key players competing in the global artificial intelligence (AI) in healthcare market are NVIDIA Corporation; IBM; Microsoft; Butterfly Network, Inc; Enlitic, Inc; Arterys Inc; Atomwise Inc; Freenome Holdings, Inc; JVION; Apixio; DeepMind Technologies Limited; and Intel Corporation.

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, and product launches to expand their consumer base worldwide. For instance,

• On November 14, 2022, NVIDIA and Nuance Communications entered into a strategic partnership to integrate AI-based diagnostic tools directly into the hands of radiologists and other clinicians, which enables the delivery of improved patient care at lower costs.