Artificial Intelligence in Healthcare Market Outlook 2032
The global artificial intelligence in healthcare market size was USD 18.5 Billion in 2023 and is likely to reach USD 415.4 Billion by 2032, expanding at a CAGR of 41.3% during 2024–2032. The market growth is attributed to the rising demand for improved efficiency and accuracy and increasing adoption of Electronic Health Records (EHRs).
AI is increasingly being used in healthcare due to the complexity and rise of data. Applications include diagnosis, treatment recommendations, patient engagement, and administrative tasks. Research shows AI outperform humans in healthcare tasks such as disease diagnosis and malignant tumor detection, outperforming radiologists, and guiding clinical trials cohort construction.
Numerous businesses concentrate exclusively on the diagnosis and therapy suggestions for particular tumors according to their genetic profiles. Human clinicians have found it difficult to comprehend all genetic variations of cancer and how they respond to new medications and treatments, as many tumors have a genetic basis. This strategy is specialized in companies such as Foundation Medicine and Flatiron Health, which are currently owned by Roche.
The potential automation of jobs and significant workforce displacement due to AI has garnered significant attention in the healthcare sector. For instance,
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Deloitte and Oxford Martin Institute in a study suggest 35% of UK jobs could be automated by AI in the next 10 years to 20 years. However, external factors such as cost, labor market, benefits, and regulatory acceptance could limit job loss to 5% or less.
Scope of the Artificial Intelligence in Healthcare Market Report
Major Drivers
Growing demand for improved efficiency and accuracy in healthcare is driving the market. AI automates the vast amount of data and assists in fast and accurate diagnosis for improved treatment decisions. Increasing adoption of electronic health records (EHRs) to provide necessary data to function effectively. Rising healthcare costs and advancements in technology in all the AI subfields lead to sophisticated solutions that address complex healthcare challenges.
Existing Restraints
Increasing data privacy and security concerns is expected to restrain the global market. Healthcare data is highly sensitive and concerns about the methods used by AI systems to collect, store, and use this data. Stringent data privacy regulations such as GDPR add complexity. Increasing reliance on digital data makes healthcare systems vulnerable to cyberattacks. Thus impeding the market.
Emerging Opportunities
AI-powered automation of administrative tasks is expected to improve healthcare system efficiency by freeing up healthcare professionals' time for patient care, optimizing resource allocation, improving workflows, and reducing healthcare costs. AI-integrated robotic surgery systems enhance precision and minimally invasive procedures, while AI-powered remote patient monitoring tools enable continuous health tracking and early intervention for potential complications.
Scope of the Artificial Intelligence 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.
| Attributes |
Details |
| Report Title |
Artificial Intelligence in Healthcare Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
| Base Year |
2023 |
| Historic Data |
2017–2022 |
| Forecast Period |
2024–2032 |
| Segmentation |
Offering (Hardware, Software, and Services), Application (Patient Data & Risk Analysis, Medical Imaging & Diagnostics, Precision Medicine, Drug Discovery, Lifestyle Management & Remote Patient Monitoring, Virtual Assistants, Wearables, In-patient Care & Hospital Management, Research, Emergency Room & Surgery, Mental Health, Healthcare Assistance Robots, and Cybersecurity), Technology (Machine Learning, Deep Learning, and Natural Language Processing), and End-user (Healthcare Providers and Healthcare Payers) |
| Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
| Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
| Key Players Covered in the Report |
Enlitic, Inc.; General Vision, Inc.; Google Inc.; IBM Corporation; iCarbonX; Intel Corporation; Microsoft Corporation; Next IT Corporation; Nvidia Corporation; and Welltok, Inc. |
Artificial Intelligence in Healthcare Market Segment Insights
Offering Segment Analysis
Based on offering, the artificial intelligence in healthcare market is divided into hardware, software, and services. The software segment held the largest share of the global market in 2023. Software is the core of AI in healthcare. The AI algorithms and applications are fundamental to this field. Software embodies these functionalities that drive diagnosis, treatment, and other healthcare tasks. Moreover, the increasing adoption of AI across various healthcare applications signifies a high demand for the core software component, thus driving the segment.
The services segment is anticipated to expand at a substantial CAGR during the forecast period due to it being a successful option. Integrating AI solutions within healthcare systems is complex. Services encompassing implementation, training, and support become crucial for successful adoption. Furthermore, the lack of in-house expertise to manage and maintain AI systems is expected to propel the segment.
Application Segment Analysis
On the basis of application, the global market is segregated into patient data & risk analysis, medical imaging & diagnostics, precision medicine, drug discovery, lifestyle management & remote patient monitoring, virtual assistants, wearables, in-patient care & hospital management, research, emergency room & surgery, mental health, healthcare assistance robots, and cybersecurity. The medical imaging & diagnostics segment is anticipated to register a considerable CAGR during the forecast period owing to its widespread applicability. Additionally, the enhanced accuracy, increased efficiency, and reduced costs are anticipated to drive the segment during the forecast period.
The drug discovery segment is projected to register a robust growth during the assessment years owing to increased efficiency and speed. Traditional drug discovery is a slow and costly process. AI analyzes vast amounts of data to identify potential drug targets, design new drug candidates, and optimize their properties, significantly speeding up the process and reducing costs. Furthermore, improved success rate is shifting the massive datasets to identify promising drug candidates with high likelihood, thereby fueling the segment. Additionally, the ability to develop targeted therapies based on individual patient needs holds immense promise for improving treatment efficacy and reducing side effects.
Technology Segment Analysis
In terms of technology, the artificial intelligence in healthcare market is segmented into machine learning, deep learning, and natural language processing. The machine learning segment registered robust growth in 2023 due to broad applicability. Machine learning encompasses a wider range of algorithms compared to deep learning (DL) and natural language processing (NLP). This allows it to address a diverse set of tasks in healthcare, from patient risk prediction to medical image analysis. Moreover, the maturity and flexibility of machine learning makes it adaptable and implementable across various healthcare applications, and increasing investments in R&D to create a robust technological ecosystem. For instance,
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In April 2021, Microsoft has launched an open database for various fields, including health, genomics, transportation, labor, and population safety, to enhance machine learning model accuracy and boost ML-as-a-services sales by utilizing Azure Open Datasets and data analytics.
The deep learning segment is expected to expand at a significant pace during the forecast period due to its advanced capabilities and increased data availability. Deep learning excels at complex tasks such as image recognition and natural language processing, making it ideal for applications such as medical image analysis and automated report generation. The growing availability of large healthcare datasets is fueling the development and application of deep learning techniques.
End-user Segment Analysis
Based on end-user, the global market is segregated into healthcare providers and healthcare payers. The healthcare providers segment is anticipated to register a considerable CAGR during the forecast period owing to diagnostics, treatment, workflow efficiency, and improved patient outcomes. AI aids in analyzing medical images, identifying risk factors, and suggesting treatment options, impacting patient care decisions. AI streamlines administrative tasks, automates scheduling, and generates reports, freeing up provider time to focus on patients. AI-powered tools potentially lead to early diagnoses, accurate treatment plans, and superior patient outcomes.
The healthcare payer segment is projected to register a robust growth during the assessment years due to the cost reduction. AI help analyze claims data to identify fraud, predict patient risk, and manage costs associated with chronic diseases. AI helps in analyzing claims data to identify fraud, predict patient risk, and manage costs associated with chronic diseases. Payers are increasingly interested in AI for tailoring insurance plans and care management programs based on individual patient needs.
Regional Analysis
In terms of region, the global artificial intelligence in healthcare market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominates the global market in 2023 owing to presence of strong market players. Moreover, the frequent developments and product launches are expected to drive the regional market. The region boasts a robust healthcare sector with significant financial resources. Furthermore, North America's advanced technological infrastructure, including high-performance computing resources and widespread EHR adoption, is crucial for training complex AI models and ensuring efficient AI algorithm functionality. For instance,
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In March 2022, Microsoft Corporation announced the availability of Azure HealthData services and technological advancements in the healthcare cloud. Superior clinical workflow integration, enhanced health bot templates, and new patient insight features are among the new improvements.
The market in Europe is projected to grow at a significant pace in the coming years to increase drug discovery process and use of AI for it. Additionally, increasing government initiatives and presence of skilled workforce & research expertise are expected to propel the regional market. Europe boasts a highly skilled workforce in fields such as computer science, engineering, and life sciences. This talent pool fuels research and development efforts in AI healthcare. Renowned universities and research institutions across Europe contribute significantly to advancements in AI technology and its applications in healthcare.
Segments
The artificial intelligence in healthcare market has been segmented on the basis of
Offering
- Hardware
- Software
- Services
Application
- Patient Data & Risk Analysis
- Medical Imaging & Diagnostics
- Precision Medicine
- Drug Discovery
- Lifestyle Management & Remote Patient Monitoring
- Virtual Assistants
- Wearables
- In-patient Care & Hospital Management
- Research
- Emergency Room & Surgery, Mental Health
- Healthcare Assistance Robots
- Cybersecurity
Technology
- Machine Learning
- Deep Learning
- Natural Language Processing
End-user
- Healthcare Providers
- Healthcare Payers
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global artificial intelligence in healthcare market are Enlitic, Inc.; General Vision, Inc.; Google Inc.; IBM Corporation; iCarbonX; Intel Corporation; Microsoft Corporation; Next IT Corporation; Nvidia Corporation; and Welltok, Inc.
These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,
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In March 2024, Microsoft and NVIDIA worked together to improve AI innovation and speed up computing power. Through this partnership, NVIDIA's Clara suite and DGX Cloud are combined with Microsoft Azure's worldwide reach and cutting-edge processing to spur innovation and enhance patient care.
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In March 2022 - NVIDIA Corporation, with long-term software support, introduced the Clara Holoscan MGX, a device that pushed the boundaries of real-time artificial intelligence (AI). The medical device industry experienced a surge in innovation.
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In January 2022, Acquia, Inc. increased client lifetime value for their consumer data platform by implementing sophisticated retail machine learning models. The group aimed to give merchants a thorough insight of their business with this launch. Acquia, Inc. assists companies in determining the levers influencing their sales and marketing campaigns.
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