Artificial Intelligence in Healthcare Market – By Offering (Software {Machine Learning, NLP, Computer Vision}, Service), Application (Medical Imaging & Diagnosis, Drug Discovery, Hospital Workflow, Therapy Planning, Wearable) - Global Forecast (2024 – 2032)

Artificial Intelligence in Healthcare Market – By Offering (Software {Machine Learning, NLP, Computer Vision}, Service), Application (Medical Imaging & Diagnosis, Drug Discovery, Hospital Workflow, Therapy Planning, Wearable) - Global Forecast (2024 – 2032)

Artificial Intelligence in Healthcare Market Size

Artificial Intelligence in Healthcare Market size was valued at USD 14.4 billion in 2023 growing at a CAGR of 39.2% between 2024 and 2032, driven by factors such as advancement in AI techniques such as machine learning and deep learning that have become increasingly sophisticated, allowing for more accurate diagnostics, predictive analytics, and drug discovery.

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For instance, in February 2024, Elsevier Health, a global leader in medical information and data analytics launched ClinicalKey AI, the first and most advanced clinical decision support tool that combines the medical content with generative artificial intelligence (AI) to help clinicians at the point of care. Thus, growing application of artificial intelligence in drug discovery, medical imaging, precision medicine and genomics coupled with increasing personalized treatments is anticipated to drive the market growth.
 

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Further, technological advancement in machine learning & deep learning, growing application of AI in telemedicine and increase in demand for remote patient monitoring devices are the major factors that is expanding the demand for AI-based healthcare tools, thereby anticipated to foster the growth of the market.

AI in healthcare refers to the application of artificial intelligence techniques, such as machine learning, deep learning, natural language processing, and computer vision, to analyse complex medical data and assist healthcare professionals in making informed decisions. AI in healthcare encompasses a wide range of applications, but not limited to medical imaging analysis, support personalized treatment, helps in drug discovery and development and remote monitoring and telemedicine.

Artificial Intelligence in Healthcare Market Trends

Advancements in big data analytics tools have significantly propelled the growth of the AI in healthcare industry. These tools enable healthcare providers to efficiently manage and analyze vast amounts of medical data, including patient records, genomic data, clinical trials, and more.

• For instance, in March 2024, Quibim launched automated AI tool QP-Liver for MR diagnosis of diffuse liver diseases through accurate quantification of tissue fat and iron levels. Similarly, DeepCare, an AI-based platform for end-to-end processing of EMR data. It uses a deep dynamic memory neural network to read and store experiences and in memory cells. Thus, the introduction of advanced analytical tools along with increasing usage of artificial intelligence in several areas of application is anticipated to propel the growth of artificial intelligence in the healthcare market.

Moreover, the use of artificial intelligence and its broadening horizons in research areas is further observed to drive the market growth.

Artificial Intelligence in Healthcare Market Analysis

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Based on the offering, the market is classified into software and services. The software segment dominated the market with revenue of USD 11.7 billion in 2023.

• Continuous improvements in machine learning algorithms enable more accurate predictions and analysis of medical data. Also, natural language processing (NLP) advancements enable AI software to interpret and generate human-like text, facilitating tasks such as medical transcription, clinical documentation, and patient communication. Such advantages associated with software segment is expected to spur the market growth.
• Furthermore, AI-driven software enhances medical imaging analysis, aiding in early disease detection and accurate diagnostics through techniques like computer vision and pattern recognition. These advancements enhance patient compliance and satisfaction, thereby augmenting the segmental growth.

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Based on the application, the global artificial intelligence in healthcare market is classified into medical imaging & diagnosis, drug discovery, therapy planning, hospital workflow, wearables, virtual assistants, and other applications. The drug discovery segment dominated the market with market share of 28.1% in 2023.

• The traditional drug discovery process is time-consuming and expensive. AI can streamline this process by reducing the time and cost associated with bringing new drugs to market. Therefore, continuous improvements in machine learning algorithms, deep learning, and natural language processing are enhancing the capabilities of AI systems in drug discovery.
• Furthermore, pharmaceutical companies are increasingly partnering with tech firms and academic institutions to leverage AI technology in drug discovery. These collaborations are driving innovation and accelerating the development of new therapies, thereby supplementing the market growth.

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In 2023, North America secured a substantial market share of 46.2% in the global artificial intelligence in healthcare market and is expected to dominate throughout the forecast period.

• The region is expected to maintain its dominance owing to robust adoption trends witnessed by digital technologies in healthcare. Also, implementation of big data analysis in healthcare services is also observed in the U.S. market to prevent opioid abuse. Furthermore, increasing need to reduce fraud and enhance data security in healthcare sector is augmenting the adoption of healthcare AI services. Thus, the demand to enhance the quality-of-care delivery is anticipated to drive the industry growth in the coming years.
• Furthermore, Increased funding for big data analytics is a key aspect for improving healthcare artificial intelligence in the region. For instance, artificial intelligence has started transforming the healthcare by leveraging big data analytics to optimize better healthcare services. Similarly, IBM Watson examines patient’s data and provides treatment plans by combining attributes from external research, patient’s file, and clinical expertise.
• Such encouraging use of data analytics to improve cost, quality, and overall healthcare ecosystem is expected to supplement the regional market growth.  

Europe AI in healthcare market is expected to experience the second hight growth rate during the analysis period.

• Numerous efforts undertaken by European Union to stimulate use of healthcare artificial systems are expected to favor industry growth. For instance, European Union introduced an innovative technology to develop EHR across Europe and named as the European Health Records Organization (EHRO). Similarly, in October 2016, the executive body of the EU, organized workshop “Big data in health research” as a European action plan aimed at big data revolution for European funding in healthcare research. Therefore, supportive government policies and initiatives aimed at promoting digital health technologies and AI adoption in healthcare contribute significantly to market growth.

The Asia Pacific AI in healthcare market is expected to grow with a significant CAGR of 39.8% during the forecast period.

• The region has seen significant advancements in technology infrastructure, including 5G deployment and improved data connectivity. This supports the implementation of AI-powered healthcare solutions such as telemedicine, remote patient monitoring, and AI diagnostics. Therefore, the developing healthcare infrastructure will support Asia Pacific healthcare artificial intelligence market growth.
• Further, continuous R&D activities in Japan focused on developing new artificial intelligence-based solutions will optimistically impact healthcare artificial intelligence market growth. Similarly, in China, developments of big data analysis and increasing use of artificial intelligence technology in healthcare sector is expected to potentially drive the regional healthcare artificial intelligence market.

Artificial Intelligence in Healthcare Market Share

The competitive landscape of the artificial intelligence in healthcare industry is characterized by the presence of established pharmaceutical & healthcare IT companies that manufacture AI-based healthcare products vying for market share. Key players are engaging in strategic initiatives such as collaboration, service launch, investment, and partnerships to strengthen their product portfolio. The companies are actively adopting a multi-pronged approaches to address the rising demand for artificial intelligence in healthcare.

Artificial Intelligence in Healthcare Market Companies

Prominent players operating in the artificial intelligence in healthcare industry are as mentioned below

• Aidoc
• AiCure
• APIXIO, Inc.
• Atomwise, Inc.
• Butterfly Network
• Dassault Systemes (Medidata)
• Enlitic Inc.
• Koninklijke Philips N.V.
• IBM Corporation
• iCarbonX
• Insilico Medicine Inc
• Itrex Group
• IQVIA
• NVIDIA Corporation
• Sophia Genetics

Artificial Intelligence in Healthcare Industry News

• In October 2023, ZS, announced the launch of the AI-powered ZAIDYN Connected Health solution. ZAIDYN Connected Health helps pharmaceutical companies, healthcare providers and payers for better engagement with patients and improve health outcomes. This launch strategy is expected to help the company expand its service offerings.  "
• In August 2023, Softheon, announced the development of Artificial Intelligence Management for Enterprise (AIME) in its Softheon +AI platform. AIME is designed to support Softheon customers across a range of challenges, from enhancing call center employee knowledge to making it easier to understand and analyse health plan data. This approval aimed to broaden the treatment availability, complementing existing services to analyse patient health.

The artificial intelligence in healthcare market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments

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Market, By Offering

• Software
  • Machine learning
  • Natural language processing
  • Context-aware computing
  • Computer vision
• Services

Market, By Application

• Medical imaging & diagnosis
• Drug discovery
• Therapy planning
• Hospital workflow
• Wearables
• Virtual assistants
• Other applications

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Netherlands
  • Sweden
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudia Arabia
  • UAE
  • Rest of Middle East and Africa