Artificial Intelligence (AI) in Healthcare Market Revenue to Hit USD 20.65 Bn In 2023

Published Date : 11 May 2023

The global artificial intelligence (AI) in healthcare market revenue will hit USD 20.65 billion in 2023 and is expected to attain around USD 187.95 billion by 2030, growing at a remarkable CAGR of 37% between 2022 and 2030.

Artificial intelligence in the healthcare market is being strongly influenced by the rising demand for personalized medications and the requirement to preserve digital health data.

Market Overview:

Artificial intelligence is defined as an intelligent system that uses numerous human intelligence-based functions in fields including biology, computer science, mathematics, linguistics, psychology, and engineering. These functions include reasoning, learning, and problem-solving abilities. Algorithms and software are used in artificial intelligence in the healthcare industry to assess intricate medical data.

Furthermore, the market growth for the hardware segment is anticipated to be boosted by the development of advanced hardware systems that would aid in enhancing the efficiency and effectiveness of AI software. For instance, Nvidia released graphics processing units in 2016, which were 20–50 times more efficient than central processing units and boosted the efficiency of applying deep learning. The adoption of AI in healthcare by numerous pharmaceutical and biotechnology companies worldwide to speed up vaccine or drug development procedures for COVID-19 is another significant reason driving the market's present expansion.

Regional Snapshot:

In 2022, North America dominated the global artificial intelligence in the healthcare market with a revenue share of about 62.31%. North America is known for its increased preference for the most cutting-edge digital technologies. The market for artificial intelligence in healthcare has expanded thanks to North America's robust and well-developed healthcare, IT, and telecommunications infrastructure. Additionally, there are supportive government regulations that promote the use of cutting-edge, digital technologies in the healthcare industry. There is a sizable patient pool in North America. For instance, in February 2018, Microsoft Corporation and the University of Pittsburgh Medical Center introduced a virtual AI helper. The US market is the global leader, with the increased volume of medical data and the growing need to retain existing customers. The United States is leading the way in the region with the high adoption of cloud services.

During the forecast period, Asia Pacific is anticipated to have the quickest growth. This is a result of increased government spending on the construction of smart hospitals, expanding IT and healthcare infrastructure spending, and an increase in the number of patients in the area. The use of cell phones is increasing, and internet usage is spreading throughout the Asia Pacific. It is anticipated that the use of artificial intelligence in healthcare in this region will be accelerated by technological breakthroughs in digital technologies to meet the needs of data security and privacy in the healthcare industry. The medical care artificial intelligence market in the Asia Pacific will profit at a quicker ratio across the given span, taking into account the rising dispute amongst the players to hold their consumers and their concentration on involvement in associations, fusions, and commodity innovators. The upgrade healthcare infrastructure and the remarkable growth of the healthcare IT field will also increase the market size in the Asia Pacific in the coming years.

Artificial Intelligence (AI) in Healthcare Market Report Scope:

Report Coverage Details
Market Revenue in 2023 USD 20.65 Billion
Projected Forecast Revenue in 2030 USD 187.95 Billion
Growth Rate from 2022 to 2030 CAGR of 37%
Largest Market North America
Base Year 2022
Forecast Period 2022 to 2030
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Report Highlights:

Artificial intelligence and robotics usage in diagnosing and treating pharmacologic problems has foreseen the growth of AI in the healthcare market. AI in the healthcare zone is seeing the substantial need and use. AI enables doctors, nurses, and other healthcare professionals to increase their productivity by making it easier to treat better with a better quality of life. Many health professionals worldwide are already using AI to improve data analytics, allowing them to detect diseases accurately and make compelling treatment predictions by saving a significant amount of time typically spent on administrative operations. The advancement of AI in healthcare has been immense over a long period. The increased expenditure by the private sector and government agencies on the healthcare sector and the advances in pharmaceutical, research and development, high-tech and innovation.

Covid-19 Impact:

The introduction of AI/ML technology was sparked by the growing lack of healthcare workers. As a result, it is possible to train AI algorithms to assess patient health data, which will help medical professionals diagnose patients' conditions swiftly and come up with effective treatment plans. The ongoing Covid-19 pandemic, growing numbers of mergers and acquisitions and technical partnerships, and supportive government initiatives all played a vital part in advancing the application of AI in healthcare. Following their initial deployment in the detection of Covid-19 positive individuals utilizing individualized patient information and data consolidation, AI/ML algorithms are now widely used in the quick and accurate diagnosis of medical problems.

Market Dynamics

Market Drivers: Rising demand for personalized treatment and reducing healthcare costs

Increasing patient health-related digital data sets, expanding desire for tailored treatment, and rising demand for lowering healthcare costs are some of the key factors propelling market expansion. The rise in demand for early disease diagnosis and better understanding is a result of a number of factors, including an aging population worldwide, changing lifestyles, and an increase in the prevalence of chronic diseases. In order to effectively anticipate diseases in their early stages based on previous health records, artificial intelligence (AI) and machine learning (ML) algorithms are being increasingly used and integrated into healthcare systems.

Also helping healthcare practitioners diagnose patients' underlying medical issues early are deep learning technology, predictive analytics, content analytics, and Natural Language Processing (NLP) applications. The Covid-19 outbreak increased demand for AI technology and revealed the promise that these cutting-edge technologies offered.

Market Restraints: Lack of professional 

Global artificial intelligence in the healthcare industry is predicted to grow slowly due to a lack of professional acceptance and the danger of damage and misinterpretation.

Market Opportunities: AI technology adoption in healthcare is increasing

Key market players concentrated on product innovation and technology partnerships to expand their product portfolios and satisfy the escalating demand during the pandemic as a result of the increased adoption of AI technologies in healthcare applications.

As an illustration, the MIT-IBM Watson AI Lab supported the use of AI technologies in research projects exploring the health and financial effects of the pandemic in May 2020. In a similar vein, Qventus introduced AI-based patient flow automation tools for its healthcare facilities that encompass essential resource control, hospitalization duration optimization, Covid-19 scenario planning, and ICU capacity generation.

Component Insights:

Based on the component, the software solutions market share in 2022 was around 43.26%. The high expansion of this market can be attributed to the rising usage of artificial intelligence-powered software solutions by healthcare organizations, healthcare professionals, patients, and payers. The expansion of the software market is being driven by the increasing investments being made in the use of AI-based software solutions in the healthcare industry.

During the projected period, the software solutions segment is also anticipated to grow the fastest. The increased use of AI and machine learning-based software in many healthcare applications around the world is responsible for this growth. Due to the COVID-19 pandemic outbreak in 2020, telehealth and telemedicine technologies have emerged quickly and are being adopted more widely in the global healthcare sector. This trend is expected to continue. Artificial intelligence software solutions have grown significantly in the healthcare sector.

Application Insights:

The clinical trial application dominated the global artificial intelligence in the healthcare market in 2022, with revenue of approximately 34.98%. The market for artificial intelligence in healthcare is experiencing increased revenue production in the clinical trials segment as a result of rising investments in research, drug discovery, development, and clinical trials of newly created pharmaceuticals. This market has expanded globally as a result of the rising number of patent expirations, the growing demand for quick clinical trial data, and the rising demand for innovative medication innovations.

During the projected period, the virtual assistant segment is anticipated to be the most opportune. The dearth of qualified personnel improved internet connection, and the growing adoption of smart devices are all contributing to the acceleration of AI integration in the virtual assistant market. The healthcare industry's increasing investments in the use of automated technologies are anticipated to drive the virtual assistant market's expansion.

End-User Insights:

Healthcare providers, pharmaceutical and biotechnology firms, patients, and payers make up the four segments of the AI in the healthcare market by end user. The category of healthcare providers, which currently dominates the end-user segment, is anticipated to expand at a CAGR of 47.56% throughout the course of the projected period. The market is anticipated to expand as a result of increased usage and applications of AI technologies to enhance patient outcomes and uphold EHR & patient records.

Recent Development:

  • In August 2021, Two HealthSuite solutions, which can be scaled based on needs, were created by Philips to make it easier to integrate informatics with health systems.
  • In May 2021, IBM unveiled its chip technologies for nanometers. Chip performance and efficiency can be improved with the use of artificial intelligence and cloud technologies.
  • In April 2021, Nvidia released the A10 and A30 GPU for business servers. Additionally, Morpheus was introduced, which enables cybersecurity developers to find cyberattacks using AI.
  • In April 2021, In order to make data easier to retrieve and available for cloud applications and artificial intelligence, IBM created its advanced storage solutions.
  • In September 2019, to collaborate on the creation of the Edison AI platform, GE Healthcare formed a partnership with five Chinese software developers.
  • In 2021, Intel Teams with Leidos and Fortanix will drive clinical trials faster.
  • In August 2021, Philips introduced two HealthSuite solutions to facilitate IT integration with healthcare systems, which can be scaled as required.
  • In April 2021, IBM introduced its advanced storage systems, facilitating streamlined data access and availability for AI and cloud application.

Major Key Players:

  • Intel
  • Koninklijke Philips
  • Microsoft
  • IBM
  • Siemens Healthineers
  • Nvidia
  • Google
  • General Electric Company
  • Medtronic
  • Micron Technology
  • Amazon Web Services
  • Johnson & Johnson
  • General Vision
  • CloudmedX
  • Oncora Medical
  • Enlitic
  • Lunit

Market Segmentation:

By Component

  • Software
  • Hardware
  • Services

By Application

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

By Technology

  • Machine Learning
  • Natural Language Processing
  • Context-aware Computing
  • Computer Vision

By End User

  • Hospital & Healthcare Providers
  • Patients
  • Pharmaceuticals & Biotechnology Companies
  • Healthcare Payers

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