Artificial Intelligence in Healthcare Market Analysis Report By Component, By Application, By Region, Competitive Insights And Segment Forecasts From 2019 To 2025

Industry Insights

The global artificial intelligence in the healthcare market size has generated a revenue of USD 2.5 billion in 2018. It is also estimated to register a 41.5% CAGR from 2019 to 2025. The increasing need for enhancing the efficiency of healthcare procedures and services coupled with the rising importance of big data for predicting outcomes is projected to drive market growth.

Huge investments to conduct R& D activities are being undertaken by the key players operating across the healthcare domain. There has also been an exponential rise in the number of venture capital investments across the healthcare IT sector owing to their increasing demand. For example, CarePredict, Inc. makes use of AI technology for behavioral monitoring to detect diseases at early stages.           

Thus, the players operating in this market have started establishing partnerships for developing AI-based solutions. Such initiatives are expected to open new avenues for the market growth of AI-based healthcare solutions. For example, GNS Healthcare had partnered with Alliance and Amgen in 2018 to perform clinical trials related to oncology. This partnership was aimed at gaining insights from the expedite response on metastatic CRC (Colorectal Cancer) patients.

There has been a significant rise in the number of AI-based healthcare IT startups for the last few years. They are leveraging AI-based models and tools to support clinical decisions, predict the outcomes of the surgical procedures, and assist medical practitioners in the treatment based on the patient's medical history.

Component Insights

In 2018 the software component segment accounted for the largest share across the global artificial intelligence in the healthcare market. The innovation, development, and deployment of software solutions that are based on AI are projected to propel the growth of this segment. For example, Nuance Communications has developed a software named Dragon Medical One which would transcribe the speech of physicians into EHR (Electronic Health Records) via the NLP technique.

The segment of hardware is projected to witness a 40.0% CAGR from 2019 to 2025. The rising demand for hardware that can provide more computing power for the smooth operation of AI-based software is expected to drive market growth. Also, the development of technologically advanced processors like MPUs, FPGAs, GPUs, and ASICs especially for AI-based platforms is projected to augment the market growth.

Application Insights

The clinical trial application segment accounted for the largest share across the global market. It generated a revenue of USD 620.5 million in 2018. The need for curbing the financial loss caused due to unsuccessful trials and delays in drug launches across the market is expected to trigger the demand for AI solutions. These solutions help in reducing the downtime and predicting the results and thus are gaining wide popularity worldwide.

The robot-assisted surgery segment is expected to register significant growth in the upcoming years. This can be associated with the features of robots like the gathering and integration of information from real surgical experiences. These recorded experiences can provide improved insights to surgeons and patients.

Regional Insights

North America held the dominant share across the global market in 2018. Increasing adoption of IT solutions across the healthcare sector and rapid technological advances across the AI sector undertaken by several organizations is expected to drive market growth across this region. Moreover, favorable initiatives undertaken by governing authorities of the U.S. and Canada for promoting the usage of digital platforms across the life science sector are projected to propel market growth.

The Asia Pacific is anticipated to witness the highest growth in the upcoming years. Surging healthcare IT infrastructure, rising adoption of advanced technologies, and an increase in the number of several AI startups are projected to augment the market growth across this region.

COVID-19 Impact Analysis

Artificial intelligence in the healthcare market has been positively impacted due to the COVID-19 pandemic. A large number of the infected population require medical treatment either at home or at hospitals. Thus, several countries across the globe have started increasing their healthcare expenditure and are adopting several technological solutions for virus tracking. For instance, the ‘Arogya Setu’ mobile app prescribed by the Government of India provides information about the number of active patients in our vicinity. Moreover, the increasing need to perform preliminary trials of medicines, vaccines, and immunity boosters is projected to propel market growth over the post-pandemic period.

Artificial Intelligence in Healthcare Market Share Insights

The global market includes key players such as IBM Corporation, Microsoft, NVIDIA Corporation, Intel Corporation, DeepMind Technologies Limited, and Nuance Communications, Inc. Continuous innovation is carried out by these players to enhance the user experience of healthcare facilities.

Strategies like collaborations, mergers, partnerships, and acquisitions are undertaken by the key players to gain a competitive advantage over other players. For example, IBM Corporation had announced a 10-year partnership with Brigham and Women’s Hospital and University Medical Center in 2019 for conducting AI research.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For this study, Million Insights has segmented the global artificial intelligence in the healthcare market based on component, application, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)
    • Software Solutions
    • Hardware
    • Services

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • Robot-assisted Surgery
    • Virtual Assistants
    • Administrative Workflow Assistants
    • Connected Machines
    • Diagnosis
    • Clinical Trials
    • Fraud Detection
    • Cybersecurity
    • Dosage Error Reduction

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
        • Spain
        • Italy
        • Russia
        • France
    • The Asia Pacific
        • Australia
        • Japan
        • South Korea
        • India
        • China
        • Singapore
    • Latin America
        • Brazil
        • Mexico
        • Argentina
    • Middle East & Africa
        • South Africa
        • UAE
        • Saudi Arabia