AI in Healthcare Market by Offering [Hardware, Software, and Services], Technology [Machine Learning, Context-Aware Computing, and Natural Language Processing], Application [Robot-Assisted Surgery, Virtual Nursing Assistants, Administrative Workflow Assistance, Dosage Error Reduction, Preliminary Diagnosis, and Automated Image Diagnosis], End User [Hospitals, Pharmaceuticals & Biotechnology Companies, and Patients] – Global Outlook & Forecast 2021-2031
According to the deep-dive market assessment study conducted by Growth+Reports, the global AI in healthcare market was pegged at ~US$ 5.07 billion in 2020. The market is expected to witness a CAGR of ~41% from 2021 to 2031.
Benefits provided by AI in the healthcare sector in terms of time, errors, and cost; growing adoption of precision medicine; government initiatives; and application of AI in diagnosis and robotic surgeries are some of the pivotal factors propelling the growth of AI in the healthcare market. However, factors such as ethical issues related to AI and lack of a skilled AI workforce are likely to restrain the market growth to a certain extent.
Government bodies and numerous organizations across the globe are implementing several initiatives to fast-track the development of AI technology by providing the necessary funding, grants, permissions, clearances, and approvals. For instance, in November 2020, the U.K. government announced the Turing AI Acceleration Fellowships awardees. A £20 million (~US$ 28 million) funding was announced to boost AI research. The funding was aimed to support 15 innovative AI projects ranging from early cancer detection to clinical support and wearable medical devices.
There is an increasing need by healthcare organizations to implement solutions that effectively improve treatment outcomes, manage rising costs, and navigate through the demands confronting the sprawling healthcare system. AI technology in healthcare is being increasingly adopted owing to its benefits such as reducing time and error costs in the drug discovery process, providing virtual assistance to patients, and improving the accuracy of diagnosis with medical imaging and diagnostic procedures. AI is also been adopted in many advanced cases in oncology to help detect abnormalities in X-rays and MRIs; in genomics – to perform complex processing, and in precision medicine to provide assistance in creating highly customized treatments for individual patients.
The prominent players are continuously focusing on collaborative initiative strategies to promote the adoption of AI technology in healthcare. For instance, in October 2020, Microsoft Azure, UC San Francisco’s Center for Digital Health Innovation (CDHI), Fortanix, and Intel collaborated to establish a confidential computing platform to boost the use of artificial intelligence (A) in healthcare. The platform will include privacy-preserving analytics to accelerate the development and validation of clinical algorithms with a “zero-trust” environment. The goal is to protect intellectual property and address data security concerns.
However, safety concerns regarding data privacy are expected to restraint the market to a certain extent. Despite the powerful capabilities that AI can offer, some physicians are skeptical about using AI in healthcare, especially in roles that can impact a patient’s health. Ethical challenges such as informed consent to the use, safety and transparency, algorithmic fairness and biases, and data privacy are expected to limit the adoption of AI in healthcare, thereby hampering the growth of the market.
The Asia Pacific region is projected to be the fastest-growing region in AI in the healthcare market. The region’s high growth can mainly be attributed to developing healthcare infrastructure, technological advancements, and the rising adoption of AI in the region. Countries such as India, China, and Japan in the APAC region are projected to offer significant growth opportunities due to the rising government initiatives for developing and adopting AI technology in healthcare.
Some prominent players operating in the AI in the healthcare market are Intel Corporation, IBM, Microsoft, Siemens Healthcare Private Limited, Koninklijke Philips N.V., Medtronic, General Electric, Johnson & Johnson Services, Inc., Precision Health AI, and Micron Technology, Inc., among others.