Artificial intelligence (AI) in healthcare involves the use of advanced analytical techniques such as machine learning and deep learning on large healthcare data sets to assist healthcare professionals in diagnosis, treatment, and drug development. AI tools are being utilized for a variety of healthcare applications such as predictive modeling and risk assessment to help identify individuals at high risk, personalized medicine through precision diagnosis, treatment recommendations, drug discovery, and clinical trial recruitment.
Global artificial intelligence in healthcare market is estimated to be valued at USD 20.81 Bn in 2024 and is expected to reach USD 205.12 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 38.7% from 2024 to 2031.
Key Takeaways
Key players operating in the Artificial Intelligence in Healthcare are IBM Corporation, NVIDIA Corporation, Microsoft, Intel Corporation, Google Inc., Siemens Healthineers, General Electric (GE) Company, Medtronic plc, and Digital Reasoning Systems, Inc.
There are various good things in the Artificial Intelligence in Healthcare Market Trends such as precision diagnosis and treatment through integration of novel data sources, development of AI-powered wearable devices for remote patient monitoring, use of AI for drug discovery and clinical trial recruitment. The rising focus on personalized healthcare is expected to further fuel the demand.
Globally, North America holds the major share of the AI in healthcare market owing to large healthcare spending, high focus on research and development activities. However, Asia Pacific region is anticipated to witness the highest growth over the forecast period owing to growing healthcare expenditure, increasing elderly population, rising focus on quality healthcare by emerging economies in the region.
Market Drivers
The primary driver for the high growth of AI in healthcare market is the increasing demand for error-free diagnosis and precision treatment. AI tools are enabling faster and more accurate diagnosis of chronic diseases including cancer by processing huge amounts of data such as medical imaging scans. Moreover, AI is helping reduce healthcare costs through improved resource optimization and clinical workflow. The ability of AI to streamline drug discovery process is further propelling the demand.
PEST Analysis
Political: Healthcare is a heavily regulated industry. Laws and regulations regarding data privacy, insurance coverage, and new technologies will impact how artificial intelligence can be adopted in this field.
Economic: The rising healthcare costs and need for improved outcomes are driving increased investment in artificial intelligence tools. These tools have the potential to reduce costs through improved diagnostics, personalized treatment plans, and remote monitoring of patients.
Social: An aging population and rising customer expectations are increasing demands on healthcare systems. Artificial intelligence can help address these challenges by enhancing access to care, improving quality of life, and enabling independent living. However, some may see new technologies as intrusive or impersonal.
Technological: Rapid advances in areas such as machine learning, neural networks, computer vision, and natural language processing are making artificial intelligence more powerful and able to assist in tasks like diagnosing diseases and optimizing treatment plans. Wider adoption will depend on developing user-friendly applications and interfaces.
Geographical regions
North America currently dominates the Artificial Intelligence In Healthcare Market Regional Analysis in terms of value, led by the United States. This is due to factors like large healthcare budgets and healthcare IT adoption, presence of leading AI technology companies, and supportive regulatory environment for new technologies. China, Japan and Western European countries also represent major markets given their focus on integrating new solutions to address issues around cost, quality and access to healthcare.
Fastest growing region
The Asia Pacific region is expected to experience the fastest growth in the artificial intelligence in healthcare market over the coming years. This is because countries like China and India are investing heavily in digitizing their healthcare sectors and adopting new technologies. Also, a large patient population and increasing burden of chronic diseases are driving demand for more efficient and accessible care models supported by artificial intelligence.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191 )