The global artificial intelligence (AI) in healthcare market size reached USD 19.27 billion in 2023 and is anticipated to cross around USD 613.81 billion by 2034 with a significant CAGR of 36.83% from 2024 to 2034.
Artificial intelligence in healthcare market refers to the segment of the healthcare industry that focuses on the development, deployment, and use of AI technologies to enhance medical services, treatment outcomes, and administrative processes. AI in healthcare employs machine learning, natural language processing, and deep learning to improve the experiences of healthcare personnel and patients. It improves resource management, allowing for faster diagnostics and more targeted treatments.
The Complete Study is Now Available for Immediate Access | Download the Sample Pages of this Report@ https://www.precedenceresearch.com/sample/1616
AI can also accelerate medication development, design pharmaceuticals, anticipate adverse effects, and choose clinical trial participants. It improves the patient’s experience by enabling digital communications, increasing visit speed and accuracy, and streamlining data administration. Robotic surgery, which involves doctors controlling a robot’s mechanical limbs, has resulted in fewer problems, less discomfort, and faster recovery periods.
Artificial Intelligence in Healthcare Market Highlights:
- North America dominated artificial intelligence in healthcare market with the largest market share of 45% in 2023.
- By component, the software segment contributed the biggest market share of 40.5% in 2023.
- By application, the clinical trials segment has generated the biggest market share of 24.6% in 2023.
North America led the artificial intelligence in healthcare market with the highest market share of 45% in 2023.
Artificial intelligence (AI) is reshaping the healthcare business in the United States, providing innovative solutions across several industries. AI is particularly useful in diagnostic imaging, where algorithms evaluate medical pictures with high accuracy and speed, allowing for early diagnosis of illnesses such as cancer.
AI is also utilized in personalized medicine, where treatment regimens are tailored to individual characteristics, improving treatment efficacy and patient satisfaction. AI-powered healthcare management solutions are also gaining popularity since they simplify administrative work, optimize hospital operations, and improve patient scheduling and resource allocation. For instance, SK Telecom has partnered with Nuon Imaging and Nikki Health Solutions to offer ‘X Caliber,’ an AI-based veterinarian diagnostic support service, in North America. The service will be offered in more than 100 Canadian veterinary facilities, with enhanced imaging provided by Nuon Nikki’s Skyline PACS software.
Asia Pacific is expected to expand at a solid CAGR during the forecast period.
The Asia-Pacific area, which includes over 40 countries and is home to 53% of the world’s population, has various health systems, resulting in a wide variety of health outcomes among its citizens. Japan is one of the region’s best performers, with health spending accounting for a sizable part of each country’s GDP. However, the region’s robust economic growth brings both benefits and problems to the healthcare business.
Despite the growing number of hospitals, access and affordability difficulties remain in both rural and urban regions. As individuals live longer lives, there is a greater need for enhanced healthcare, which leads to better health outcomes. According to a recent IDC survey, 49.6% of healthcare providers want to invest in GenAI use cases, showing an increasing trend across Asian/Pacific healthcare firms. The paper emphasizes the potential influence of GenAI technologies in improving clinician efficiency and redefining patient experiences, with a focus on important use cases in the healthcare industry.
Artificial Intelligence in Healthcare Market Report Coverage
| Report Attribute | Key Statistics |
| AI in Healthcare Market Size in 2024 | USD 26.69 Billion |
| AI in Healthcare Market Size by 2034 | USD 613.81 Billion |
| AI in Healthcare Market Growth Rate 2024- 2034 | CAGR of 36.83% |
| North America AI in Healthcare Market Size in 2023 | USD 8.67 billion |
| Base Year | 2023 |
| Historical Year | 2021-2022 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | Component, Application, Technology, End User, and Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Analysis by Component
The software segment dominated has generated the highest market share of 40.5% in 2023. Artificial intelligence (AI) is transforming business by speeding decision-making and strategy development. AI bespoke healthcare software development provides applications such as virtual assistants, tailored solutions, and therapy to help enhance care and manage patient portals. AI improves patient care and enables healthcare practitioners to spot signs earlier.
Healthcare firms that use AI medical software solutions may improve system accuracy, increase patient involvement, and develop innovative features. This modernizes obsolete procedures and enables healthcare providers to give effective treatment for fatal symptoms, resulting in enhanced hospital management practices and clinical decision support systems.
Analysis by Application
The clinical trials segment accounted for the largest market share of 24.6% in 2023. AI can assist in managing enormous volumes of data in decentralized clinical trials, hence minimizing patient compliance concerns and informative mistakes. It can analyze patient data, make decisions, and assess data quality prior to approval. Data mining can help find potential volunteers and study venues, whilst AI systems can generate eligibility requirements. Biosimulation is a computer-based approach for conducting human experiments and measuring reactivity to pharmaceutical substances.
Bio-simulation models employ AI algorithms for pattern identification and analysis, allowing researchers to investigate optimal dosage, medicine interactions, and population effectiveness. For instance, in June 2024, Medidata, a major clinical trial solution supplier, introduced Medidata Clinical Data Studio, a tool that improves data quality management and allows faster, safer trials for patients under the Dassault Systèmes brand.
Read Also: Video Streaming Market Size Expected to Cross USD 865.85 Bn by 2034
Artificial Intelligence (AI) in Healthcare Market Dynamics
Driver
AI is rapidly being utilized in healthcare to give more precise diagnoses by effectively sorting both unstructured and structured data. Structured learning approaches include Machine Learning (ML), Neural Network Systems, and Modern Deep Learning. Unstructured data is sorted using Natural Language Processing (NLP). ML uses analytical algorithms to extract unique patient characteristics such as physical exam findings, drugs, symptoms, and disease-specific information. This information is then utilized to assess patient outcomes.
In research, Neural Networking was utilized to sort 6,567 genes and texture information from mammograms, resulting in more specific tumor indication outcomes. The most prevalent sort of machine learning in clinical contexts is supervised learning, which makes use of physical characteristics and an information database.
Restraint
Artificial intelligence (AI) has sparked ethical problems since its debut, notably in medicine. The primary concern is accountability, especially when terrible judgments are made. The “black box” problem makes it difficult to understand how algorithms reach results. The absence of standardized criteria for the ethical application of AI and ML in healthcare has exacerbated the dilemma.
The Food and Drug Administration (FDA) and the NHS are working to develop standards for evaluating the security and efficacy of AI systems, but their efforts make it harder for courts and regulatory authorities to accept AI-based acts. A public discussion about these ethical quandaries is critical to developing a universal ethical standard that helps patients.
- For instance, in January 2024, WHO publishes advice on the ethics and governance of large multi-modal models (LMMs), making 40 suggestions to governments, technology firms, and healthcare practitioners to guarantee their acceptable use for population health promotion.
Opportunity
Pain management and personalized care
AI and machine learning can examine individual patient reactions to medicines and recommend changes to treatment strategies. Harvard Pilgrim has joined with Kaia Health to provide patients with back pain treatment. Kaia’s AI platform measures and monitors pain sites, resulting in a 35% decrease in pain and a 59% improvement in sleep quality.
Patients may also access an AI “motion coach” on their cellphones, which functions as a digital personal trainer suited to their individual movement requirements. These technologies can help patients improve their quality of life, as musculoskeletal disorders are the leading cause of disability claims.
Key Market Developments
The artificial intelligence in healthcare market is highly fragment owing to the presence of numerouskey market players. These key players are constantly engaged into various developmental strategies such as mergers, acquisitions, partnerships, collaborations, and new product launches to strengthen their position and expand their market share.
- In January 2023, Terumo and Siemens Healthineers India worked together to strengthen heart care in India. As a result of this collaboration, more people will be able to access better cardiac care.
- In November 2022, Nuance Communications and NVIDIA are integrating AI models in medical imaging right into the clinical context. Nuance’s strategic partnership with NVIDIA facilitates the deployment of diagnostic imaging AI models trained in existing large-scale clinical applications for all.
- In August 2021, Philips introduced two HealthSuite solutions that facilitates in the integration of the informatics with the health systems, which can be scaled as per the requirements.
- In May 2021, IBM introduced its nanometer chip technologies. With the healp of the artificial intelligence and cloud technologies, the efficiency and performance of the chips can be increased.
- In April 2021, Nvidia introduced A10 and A30 GPU for the enterprise servers. It also introduced Morpheus that allows the cybersecurity developers to detect cyber breaches suing AI technology.
- In April 2021, IBM introduced its advanced storage systems that facilitated in the simplification of access to data and its availability for artificial intelligence and cloud application.
- In September 2019, GE Healthcare entered into partnership with five software developers in China to work on the development of Edison AI platform.
