Artificial Intelligence in Healthcare Market by Offering (Hardware, Software, Services), Technology (Machine Learning, NLP, Context-aware Computing, Computer Vision), Application, End User and Region - Global Forecast to 2028
[300 Pages Report] The AI in Healthcare Market is projected to grow from USD 14.6 Billion in 2023 to USD 102.7 Billion by 2028; it is expected to grow at a CAGR of 47.6% during the forecast period.
Rising need for improvised healthcare services due to the disparity between patients and the healthcare workforce will drive the AI in Healthcare market growth in coming years. Increasing efforts to reduce healthcare costs and the generation of large and complex healthcare datasets have allowed the development of AI in Healthcare, further strengthening the market growth. Integrating AI technology in healthcare operations enhances data-driven support to medical professionals. Using data and algorithms, AI efficiently identifies the pattern and delivers automated insights for applications such as managing medical records, health monitoring, digital consultation, and treatment design.
The objective of the report is to define, describe, and forecast the AI in Healthcare market based on offering, technology, application, end user, and region.
Artificial Intelligence in Healthcare Market Forecast to 2028
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AI in Healthcare Market Dynamics
Drivers: Generation of large and complex healthcare datasets
In the healthcare industry, large and complex data, often called big data, comprises information generated from clickstream and web & social media interactions; readings from medical devices, such as sensors, electrocardiogram (ECGs), X-rays, and pulse oximeters; healthcare claims and other billing records; and Electronic medical records (EMRs), prescriptions, and biometric data, among other sources. Big data and emerging analytical solutions have grown exponentially in sophistication and adoption in the last decade as healthcare providers turned to Electronic Health Records (EHRs), digitized laboratory slides, and high-resolution radiology images. With the increasing digitization and the adoption of information systems in the healthcare industry, big data is generated at various stages of the care delivery process. As a result, healthcare is one of the top five big data industries, especially in the US. Increasing government initiatives to accelerate AI innovations in healthcare will further boost the market growth in the US. In June 2021, the National Science Foundation (NSF) and White House Office of Science and Technology Policy (OSTP) announced the establishment of the National Artificial Intelligence (AI) Research Resource Task Force, which will work on the roadmap of the expansion of educational tools and critical resources that will spur AI innovation nationwide.
Restraints: Lack of skilled AI workforce and ambiguous regulatory guidelines for e-medical software
AI is a complex system, and for developing, managing, and implementing AI systems, companies require a workforce with specific skill sets. For instance, personnel dealing with AI systems should be aware of technologies such as cognitive computing, ML and machine intelligence, deep learning, and image recognition. In addition, integrating AI solutions into existing systems is a challenging task requiring extensive data processing for replicating human brain behavior. Even a minor error can result in system failure or can adversely affect the desired result. Furthermore, the absence of professional standards and certifications in AI/ML technologies is restraining the growth of AI. Additionally, AI service providers are facing challenges regarding deploying/servicing their solutions at their customer sites. This is because of the lack of technology awareness and fewer AI experts.
Opportunities: Growing potential for AI based tools for elderly care
With the growth in the geriatric population, the incidence of various age-related diseases is expected to increase worldwide. To counter this and efficiently handle the growing burden on their respective healthcare systems, governments in several countries are increasingly focusing on adopting novel technologies. AI is one such technology that provides enhanced services, such as real-time patient data collection and monitoring for emergency care, as well as offers preventive healthcare recommendations. Moreover, AI-based tools can use health and wellness services, such as mobile applications, to monitor the movement and activities of ss. Also, the efficient implementation of in-home health monitoring and health information access, personalized health management, and the use of treatment devices (such as better hearing aids and visual assistive devices) and physical assistive devices (such as intelligent walkers) are possible with the implementation of AI-based tools. Thus, there is a growing interest in the use of AI-based technologies to support the physical, emotional, social, and mental health of the elderly across the world.
Challenges: Lack of curated healthcare data
The performance of AI algorithms majorly depends on the quality and availability of data. Therefore, limited access to data in healthcare acts as a barrier for the AI in Healthcare market. As medical data is more often difficult to access and collect, medical professionals do not prefer the data collection process as it might interrupt their workflow. Thereby, the collection of data is often incomplete. Electronic healthcare record (EHR) systems are mostly incompatible with government-certified providers offering their services to various healthcare facilities and hospitals. Therefore, it results in the collection of data that is localized instead of integrating patients’ medical history across healthcare providers. Without high-quality and large data sets, it isn't easy to build useful AI algorithms.
Services to witness highest demand in the AI in Healthcare market
AI is a complex method as it requires the implementation of sophisticated algorithms for a wide range of applications in patient data and risk analysis, lifestyle management and monitoring, precision medicine, in-patient care and hospital management, medical imaging and diagnostics, drug discovery, and virtual assistants, among others. Hence, for the successful deployment of AI, there is a need for deployment and integration, and support and maintenance services. Most companies that manufacture and develop AI systems and software provide both online and offline support, depending on the applications. The companies operating in the AI services in Healthcare market include Microsoft (US), Johnson & Johnson Services, Inc. (US), Medtronic (US), Siemens Healthineers (Germany), and Koninklijke Philips (Netherlands). These companies offer assistance for the installation, training, and support of AI systems, along with online assistance and post-maintenance of software, and provide required services.
Medical Imaging & diagnostics segment to create lucrative growth opportunities in AI in Healthcare Market during the forecast period
Multiple leading technology players and healthcare companies are developing AI solutions for applications in healthcare. Philips Healthcare (Netherlands), Agfa-Gevaert (Belgium), GE Company (US), and Siemens Healthineers (Germany) have started integrating AI into their medical imaging software systems. For instance, in collaboration with NVIDIA Corporation, GE has 500,000 imaging devices in use worldwide. These devices use AI to speed up the process of analyzing CT scans with improved accuracy. Siemens Healthineers’ AI Rad Companion Chest CT is a software assistant that uses AI for CT. The software measures and identifies organs and lesions in thorax CT scans, and automatically generates a quantitative report to help increase the efficiency and correct diagnosis in radiology. Higher automation, increased productivity, standardized processes, and more accurate diagnosis can be achieved by integrating AI in traditional medical imaging methods. The computational capabilities can process images with greater speed and accuracy at scale.
Hospitals & Healthcare Providers to cater majority of the share in AI in Healthcare Market
In care provider settings, AI can be utilized to predict and prevent readmissions, manage chronic diseases, drive clinical decision support tools, and improve operations. AI-based tools, such as voice recognition software and clinical decision support systems, help streamline workflow processes in hospitals, lower cost, improve care delivery, and enhance the patient experience. Clinical decision support systems (CDSS) were one of the first successful applications of AI, focusing primarily on the diagnosis of a patient's condition based on symptoms and demographic information. Hospitals in the US and Europe have begun using AI to assist hospitalized patients. These tools enable patients to request periodic check-ups on the status of their recovery. There is a significant increase in the adoption of technologies, especially Electronic Medical Records (EMR) systems, by healthcare organizations, thus generating ample patient data.
AI in Healthcare market to witness the highest demand in North American region
The US is considered one of the major contributors to the North American market as it is one of the leading countries in the world to imbibe AI technology across its healthcare system. Cross-industry participation in the healthcare domain, along with a significant increase in venture capital investments, is encouraging several new players to enter the AI in Healthcare market in the region. For instance, in October 2021, Navina (US) a startup company developing AI-driven platform for primary care, secured USD 15 million in its series A funding round. To date, the company has raised USD 22 million. These investments help the company to accelerate its development in AI and ML technology.
Artificial Intelligence in Healthcare Market by Region
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Key Market Players
Major vendors in the AI in Healthcare market include Intel Corporation (US), Koninklijke Philips N.V., (Netherlands), Microsoft (US), Siemens Healthineers (Germany), and NVIDIA Corporation (US) among others.
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Report Metric |
Details |
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Market size available for years |
2019—2028 |
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Base year |
2022 |
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Forecast period |
2023—2028 |
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Units |
Value (USD Million/USD Billion), Volume (Million Units) |
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Segments covered |
Offering, Technology, Application, End User, and Geography |
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Geographic regions covered |
North America, Europe, APAC, and RoW |
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Companies covered |
Intel Corporation (US), Koninklijke Philips N.V. (Netherlands), Microsoft (US), Siemens Healthineers (Germany), NVIDIA Corporation (US), Google Inc. (US), General Electric Company (US), Medtronic (US), Micron Technology, Inc. (US), Amazon Web Services (AWS) (US), Johnson & Johnson Services, Inc. (US) are the major players in the market. |
Artificial Intelligence in Healthcare Market Highlights
This report categorizes the AI in Healthcare market based on offering, technology, application, end user, and geography.
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Subsegment |
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AI in Healthcarer Market, by Offering: |
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AI in Healthcare Market, by Technology: |
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AI in Healthcare Market, by Application: |
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AI in Healthcare Market, by End User: |
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AI in Healthcare Market, by Region: |
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Recent Developments
- In December 2022, Amazon Web Services, Inc. announced its Strategic Collaboration Agreement (SCA) with Slalom, LLC to develop vertical solutions and accelerators on AWS for their customers in healthcare, life sciences, financial services, energy, and media and entertainment industries.
- In November 2022, GE Healthcare at Radiological Society of North America’s (RSNA) 2021 Annual Meeting unveiled its 60 innovative technology solutions for diagnostics, patient screening, guidance, therapy planning, and monitoring. With this, the company has accelerated its healthcare innovation with artificial intelligence (AI) and digital solutions.
- In November 2022, Google Inc. announced its partnership with iCAD, which operates in mammography artificial intelligence (AI). Through this partnership, the company will integrate its AI technology into iCAD’s breast imaging AI solutions portfolio. This strategic initiative will help the company advance its innovation and expand mammography technology through cloud-based solutions.
- In October 2022, Google Inc announced the launch of its new Medical Imaging Suite, which helps in the accessibility and interoperability of radiology and other imaging data. It is designed to offer flexible options for cloud on-prem or edge deployment, which allows the organizations to achieve diverse sovereignty, privacy requirements, and data security
Frequently Asked Questions (FAQs):
Which are the major companies in the AI in Healthcare market? What are their major strategies to strengthen their market presence?
Intel Corporation (US), Koninklijke Philips N.V., (Netherlands), Microsoft (US), Siemens Healthineers (Germany), and NVIDIA Corporation (US) — are the top players in the market. Product launches and developments, acquisitions, collaborations, and expansions were among the major strategies adopted by these players to compete in the market.
Which is the potential market for AI in Healthcare market in terms of the region?
North America held the largest share of AI in the healthcare market in 2022. The market in this region is expected to grow at the second-highest rate during the forecast period. The wide-scale adoption of AI technologies across the continuum of care, especially in the US, is the key factor supporting the AI's growth in this region's healthcare market.
What are the opportunities for new market entrants?
In the coming years, due to the growth in demand for AI-based healthcare solutions, many small, medium, and big companies are likely to enter the market space. Furthermore, the AI in Healthcare market does not have imposing regulatory restrictions, making it easier for new players to enter and operate in the market.
Which applications are expected to drive the growth of the market in the next six years?
Medical imaging & diagnostics is one of the prominent applications and is expected to drive the growth of the market in the forecast timeline. Higher automation, increased productivity, standardized processes, and more accurate diagnosis can be achieved by integrating AI in traditional medical imaging methods. The computational capabilities can process images with greater speed and accuracy at scale.
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The research process for this study included the systematic gathering, recording, and analysis of data about customers and companies operating in the AI in Healthcare market. This research study involved the extensive use of secondary sources, directories, and databases (Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource) for identifying and collecting information useful for this extensive technical, market-oriented, and commercial study of AI in Healthcare market. In-depth interviews have been conducted with various primary respondents, including experts from core and related industries and preferred manufacturers, to obtain and verify critical qualitative and quantitative information, as well as to assess growth prospects. Key players in the AI in Healthcare market have been identified through secondary research, and their market rankings have been determined through primary and secondary research. This research included studying annual reports of top players and interviewing key industry experts, such as CEOs, directors, and marketing executives.
Secondary Research
In secondary research, various sources have been referred to for identifying and collecting information important for this study. Secondary sources included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers, AI in healthcare products-related journals, and certified publications; articles by recognized authors; directories; and databases.
Primary Research
Extensive primary research was conducted after understanding and analyzing the AI in Healthcare market through secondary research. Several primary interviews were conducted with key opinion leaders from both the demand- and supply-side vendors across four major regions—North America, Europe, APAC, and RoW. RoW comprises the Middle East, Africa, and South America. Approximately 25% of the primary interviews were conducted with the demand-side vendors and 75% with the supply-side vendors. This primary data was mainly collected through telephonic interviews/web conferences, which consist of 80% of total primary interviews, as well as questionnaires and e-mails.
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Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been used, along with several data triangulation methods, to estimate and forecast the size of the market and its segments and subsegments listed in the report. Extensive qualitative and quantitative analyses have been carried out on the complete market engineering process to list the key information/insights pertaining to AI in Healthcare market.
The key players in the market have been identified through secondary research, and their rankings in the respective regions have been determined through primary and secondary research. This entire procedure involved the study of the annual and financial reports of top players, as well as interviews with industry experts such as chief executive officers, vice presidents, directors, and marketing executives for both quantitative and qualitative key insights. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and enhanced with detailed inputs and analysis from MarketsandMarkets and presented in this report.
AI in Healthcare Market: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the market size estimation process explained earlier, the total market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the AI in healthcare market has been validated using both top-down and bottom-up approaches.
Report Objectives
- To describe and forecast the artificial intelligence (AI) in Healthcare market, in terms of value, by offering, technology, application, and end user
- To describe and forecast the AI in Healthcare market, in terms of value, for four main regions— North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To provide a comprehensive overview of the value chain of the AI in Healthcare market ecosystem
- To provide a detailed impact of the recession on the AI in Healthcare market, its segments, and the market players
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the AI in Healthcare ecosystem
- To profile key players and comprehensively analyze their market position in terms of ranking and core competencies2, and provide a detailed competitive landscape of the market
- To analyze the competitive developments, such as joint ventures, collaborations, agreements, contracts, partnerships, mergers & acquisitions, new product developments, and research and development (R&D), in the AI in Healthcare market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Detailed analysis and profiling of additional market players
Growth opportunities and latent adjacency in Artificial Intelligence in Healthcare Market
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