AI in Healthcare Market

This study intends to analyse diverse aspects of the global AI in healthcare market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Market Analysis in Brief

The Artificial Intelligence (AI) in healthcare market involves the application of machine learning algorithms and software to perform medical tasks that traditionally require human intelligence. This includes analysing medical data and images, providing diagnoses and treatment recommendations, as well as developing personalized treatment plans. This market has indexed significant growth in recent years, as AI technologies continue to improve and their potential benefits in healthcare become more widely recognized and clear. The use of AI in healthcare has the potential to reduce costs, improve patient outcomes, and enhance efficiency in healthcare delivery. This is expected to drive the revenue growth of the global AI in healthcare market.

Key Report Findings

• The global AI in healthcare market was valued at over US$4 Bn in 2020
• The diagnostic imaging application segment accounted for the largest market share in 2020
• North America is the largest AI in healthcare market
• In 2020, IBM Watson Health was one of the largest AI in healthcare companies
• Asia Pacific is projected to be fastest growing market

Growth Drivers

Personalized Medicine, and Patient-Centric Care, and Healthcare Costs Reduction

In recent years, there has been an increase in the demand for personalized medicine and patient-centric care. With advances in genomics and other areas of precision medicine, there is a growing need for tools that can aid healthcare providers in tailoring treatments to individual patients based on their unique genetic and clinical profiles. This has the potential to immensely better patient outcomes and improve healthcare delivery solutions. As per a comprehensive study conducted by Fairfield Market Research, the global AI in healthcare market was valued at over US$4 Bn in 2020, and this market is projected to expand at an exponential rate over the forecast period.

Additionally, the market is also being driven by the increasing adoption of telemedicine and remote monitoring technologies. These tools allow patients to receive care outside of traditional healthcare settings, which in turn can significantly reduce overall costs and improve access to care. Factors such as these are expected to have a profound impact on the growth trajectory of the global AI in healthcare market in the future.

Healthcare Data Volumes, Increasing Computing Power and Data Storage

As a result of AI in healthcare, there is an increasing amount of healthcare data being generated. The growing use of medical imaging and other diagnostic tools, as well as the increasing adoption of electronic health records (EHRs), is leading to a vast amount of data being made available to healthcare providers. The use of this technology in contrast to traditional approaches will allow healthcare professionals make more informed decisions about patient care and improve overall efficiency.

Moreover, the increasing availability of computing power and data storage capabilities are also contributing to the further augmentation of the AI in healthcare market. In time, as the capabilities of this technology improve, AI algorithms are expected to be developed and deployed more effectively and efficiently, thus allowing for new and innovative applications in healthcare. The factors such as these are slated to positively influence potential growth opportunities for the AI in healthcare market.

Growth Challenges

Lack of Standardization, and High Implementation Costs AI Technologies

There is a lack of standardization and interoperability in healthcare data. Generally, data generated by healthcare systems are often siloed and fragmented. This makes it difficult to meaningfully analyse and aggregate this data, thus limiting the effectiveness of AI algorithms and potentially hindering their ability to deliver value.

Additionally, the implementation of AI technologies in healthcare can be an expensive affair. The development and deployment of AI solutions, in terms of software, hardware, and expertise, requires significant investment, which could ultimately hinder their adoption by many healthcare providers. Factors such as these may restrain the further progression of the global AI in healthcare market.

Growth Opportunities Across Regions

Asia Pacific to Become the Fastest Growing Regional Market

North America is presently the largest market for AI in healthcare. This can be attributed to the region’s high adoption rate of advanced technologies in healthcare applications, as well as significant investments in R&D initiatives. Europe also accounted for a considerable part of the global AI in healthcare market due to the increasing prevalence of chronic diseases and the growing demand for personalized healthcare services.

However, the Asia Pacific region is slated to index the fastest rate of growth over the forecast timeline owing to its booming geriatric populations, the adoption of advanced technologies, as well as a greater demand for effective healthcare services.

Key Market Players – AI in Healthcare Landscape

Some key companies in the global AI in healthcare market include IBM, Google, Microsoft, Amazon, Nvidia, General Electric, Siemens Healthineers, and Phillips, to name a few. Key players in the market have been involved in new product launches and are implementing other growth strategies such as collaborations and acquisitions to strengthen their respective market position.

AI in Healthcare Market: Key Developments

• In 2021, Microsoft announced the acquisition of Nuance Communications, a leading provider of AI-powered speech recognition and transcription software. This was done to enhance Microsoft’s offerings in the healthcare space
• In January 2021, NVIDIA announced the launch of Clara AGX. This new AI platform is designed to accelerate the development and deployment of AI models for medical imaging and other healthcare applications
• In 2020, Phillips acquired BioTelemetry, a leading provider of remote cardiac monitoring services
• In December 2020, IBM launched IBM Watson Health Imaging, a new AI-powered imaging platform that implements machine learning to help radiologists detect and diagnose diseases more efficiently and accurately
• In November 2020, Google announced the launch of Healthcare Natural Language API, a new AI-powered tool designed to aid healthcare providers extract meaningful insights from unstructured clinical notes and other medical records

Regional Classification of the Global AI in Healthcare Market is Listed Below:

North America

• U.S.
• Canada

Europe

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

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global AI in Healthcare Market

• AI in Healthcare Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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