AI in Healthcare Market Analysis - Global Industry Size, Share, Trends and Forecast 2023 - 2032

The Artificial Intelligence in Healthcare Market Size is valued at USD 11.2 Billion in 2022 and is estimated to achieve a market size of USD 427.5 Billion by 2032; growing at a CAGR of 44.0%.

Artificial Intelligence in Healthcare Market Report Statistics

• Global artificial intelligence in healthcare market revenue is projected to reach USD 427.5 billion by 2032 with a CAGR of 44% from 2023 to 2032
• North America artificial intelligence in healthcare market share generated over US$ 6.5 billion in revenue in 2022
• Asia-Pacific artificial intelligence in healthcare market growth will record noteworthy CAGR from 2023 to 2032
• Based on application, the clinical trials sub-segment achieved 24% shares in 2022
• Among end-user, the hospitals sub-segment occupied 30% shares in 2022
• Growing adoption of AI-integrated solutions across numerous verticals is a prominent artificial intelligence in healthcare market trend that drives the industry demand

Artificial intelligence has found a wide array of applications in healthcare. It has not only sophisticated the various activities but also increase the efficiency of the work. The introduction has also reduced the time of the treatment and reduced the labor cost. Similar to everyday lives, artificial intelligence and robotics are increasingly a part of the healthcare sector. They are used in patient data & risk analysis, lifestyle management & monitoring, precision medicine, inpatient care & hospital management, medical imaging & diagnostics, Virtual Assistants, virtual assistant, research, and others. One of the major advantages of AI is to help people stay healthy. Technology applications and apps encourage healthier behavior in individuals and help with the proactive management of a healthy lifestyle. Moreover, it increases the ability of healthcare professionals to better understand the day-to-day patterns and from this information, the professional help in understanding better feedback, guidance, and support for staying healthy.

Global Artificial Intelligence (AI) in Healthcare Market Dynamics

Market Drivers

• Growing need to reduce healthcare costs
• Improving computing power and declining hardware cost
• Increase in processing power of AI systems leading to enhanced AI capabilities
• Application of AI for novel surgeries and screening

Market Restraints

• Reluctance among medical practitioners to adopt AI-based technologies
• Limitations of AI decision-making

Market Opportunities

• Increasing focus on developing human-aware AI systems
• The growing potential of AI-based tools for elderly care 

AI in Healthcare Market Report Coverage:

Artificial Intelligence in Healthcare Market Insights

The major driving factors for the market are accuracy of the result, continuously development in healthcare technology, and rising penetration of IT in healthcare. Growing need to reduce healthcare cost also fuels the AI in healthcare industry. Additionally, rapidly developing infrastructure, increasing government support for research & development, and introduction of the advanced technology have supported the growth of the market. However, high cost and lack of funding is also the major hurdle for the market growth. Furthermore, increasing focus on developing human-aware AI system creates numerous growth opportunities for the market in the coming years. Then again, growing application of AI-based tools for elderly care is also generating several growth prospects in the healthcare artificial intelligence market.

Artificial Intelligence in Healthcare Market Segmentation

The worldwide market for artificial intelligence is split based on application, technology, end-user, and geography.

AI in Healthcare Market by Application

• Robot-Assisted Surgery
• Virtual Assistants
• Administrative Workflow Assistants
• Connected Machines
• Diagnosis
• Clinical Trials
• Fraud Detection
• Cybersecurity
• Dosage Error Reduction

As per the AI in healthcare industry analysis, clinical trials are one of the prominent applications of artificial intelligence (AI) in healthcare, revolutionizing the way new medical treatments and therapies are developed and tested. AI's role in clinical trials is multifaceted and transformative. It streamlines the traditionally complex and time-consuming process of recruiting eligible participants by leveraging data analytics and natural language processing to identify suitable candidates based on their medical histories and profiles. Additionally, AI enhances the design of clinical trials by analyzing vast datasets to determine optimal trial parameters, such as sample size and duration, leading to more efficient and cost-effective studies.

During the course of a clinical trial, AI plays a crucial role in monitoring patient outcomes and identifying potential adverse events in real-time. By continuously analyzing patient data, including vital signs and laboratory results, AI can swiftly detect any deviations from expected patterns, enabling early intervention and ensuring the safety of trial participants.

AI in Healthcare Market By Technology

• Speech Recognition
• Natural Language Processing
• Machine Learning
• Deep Learning
• Others

In terms of technology, machine learning accounted for significant share in 2022 and is gradually growing up in coming future. Machine learning, particularly in the form of predictive analytics and data-driven decision support systems, had a significant impact on healthcare. It was widely used in tasks such as disease prediction, patient risk assessment, and personalized treatment recommendations.

NLP played a crucial role in healthcare for extracting insights from unstructured clinical notes, medical literature, and patient records. It enabled the conversion of text data into structured information, facilitating better clinical decision-making and research.

Deep learning, a subset of machine learning, gained prominence in medical imaging and diagnostics. Convolutional Neural Networks (CNNs) and other deep learning models showed remarkable capabilities in image analysis tasks such as identifying tumors in medical images like X-rays and MRIs.

Speech recognition technology was employed in healthcare for tasks like transcribing medical dictations and enabling voice-controlled interfaces for electronic health record (EHR) systems. It improved documentation accuracy and efficiency.

The "Others" category likely encompasses various AI technologies, including robotics, predictive modeling, and reinforcement learning, which also found applications in healthcare but may not have been as dominant in specific subfields.

AI in Healthcare Market by End-User

• Hospitals
• Pharmaceutical Organizations
• Diagnostic Centers
• Clinics
• Other

According to the artificial intelligence in healthcare market forecast, hospitals, including both large medical centers and smaller regional facilities, have been at the forefront of adopting AI technologies in healthcare. They use AI for a wide range of applications, including electronic health record (EHR) optimization, medical imaging and diagnostics, predictive analytics for patient outcomes, and resource allocation. AI has been instrumental in improving patient care, streamlining operations, and reducing costs for hospitals.

Pharmaceutical companies have also been substantial users of AI, primarily in drug discovery and development. AI is used to analyze vast datasets, identify potential drug candidates, predict their efficacy, and streamline clinical trials. AI-driven drug discovery has the potential to significantly accelerate the process of bringing new drugs to market.

Artificial Intelligence in Healthcare Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)