Number of pages: 120 | Report Format: PDF | Published date: 21 February, 2020
Historical Years – 2018 & 2019 | Base Year – 2020 | Forecasted Years – 2021-2031
The global AI in healthcare market was pegged at ~US$ 5.07 billion in 2020 and is expected to witness a CAGR of ~41% during the forecast period.
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The term may also be applied to any machine that exhibits traits associated with the human mind such as learning and problem-solving. Artificial intelligence in healthcare mimics human cognition in the analysis, presentation, and comprehension of complex medical and health care data with the use of machine-learning algorithms and software, or AI. The primary aim of AI in healthcare is to analyze the relationship between prevention or treatment techniques and patient outcomes. AI programs are applied to practices such as diagnosis processes, treatment protocol development, drug development, personalized medicine, and patient monitoring and care.
The global AI in the healthcare market is mainly driven by 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 & robotic surgeries. Furthermore, an increasing number of collaborations and partnerships among prominent players are also likely to play a pivotal role in contributing to the growth of the market. However, ethical issues related to AI and the lack of a skilled AI workforce are likely to restrain the market growth to a certain extent.
The global AI in the healthcare market has been analyzed from five perspectives: Offering, Technology, Application, End-User, and Region.
AI in Healthcare Market by Offering
The AI in the healthcare market has been segmented into hardware, software, and services based on offering. The hardware segment is further categorized into processor, memory, and network. Whereas the software segment is further categorized into AI solutions and AI platforms. The software segment dominated the market with the largest share in 2020. The growth of the segment can be attributed to an increase in the launch of advanced AI software for healthcare applications and their adoption in different healthcare settings. For instance, in November 2020, Google Cloud launched new artificial intelligence tools for healthcare users intended to combat challenges with healthcare data and unstructured digital text during the COVID-19 pandemic.
AI in Healthcare Market by Technology
Based on technology, AI in the healthcare market has been segmented into machine learning, context-aware computing, natural language processing, and others (speech recognition, computer vision, etc.). The machine learning segment dominated the market with the largest share in 2020. The growth of the segment can be attributed to the growing adoption of the technology in different areas such as medical imaging, disease diagnostics, and drug discovery. Machine learning technology can lead to better clinical outcomes when used for diagnosis and surgical procedures.
AI in Healthcare Market by Application
Based on application, the AI in the healthcare market has been segmented into robot-assisted surgery, virtual nursing assistants, administrative workflow assistance, dosage error reduction, preliminary diagnosis, automated image diagnosis, and others (cybersecurity, fraud detection, connected machines, etc.). The robot-assisted surgery segment dominated the market with the largest share in 2020. Robot-assisted surgery is considered minimally-invasive, so patients won't need to heal from large incisions. Robots can analyze data from pre-op medical records with real-time operating metrics to physically guide and enhance the physician's instrument precision and reduce the patient's hospital stay by 21%. With the help of artificial intelligence, robots can use data from past operations to inform new surgical techniques. According to a study, AI-assisted robotic procedures resulted in five times fewer complications compared to surgeons operating alone.
AI in Healthcare Market by End User
Based on end-user, the AI in the healthcare market has been segmented into hospitals, pharmaceuticals and biotechnology companies, patients, and others (healthcare payers, CROs, etc.). Hospitals dominated the market with the largest share in 2020. Artificial intelligence simplifies the lives of patients, doctors, and hospital administrators by performing tasks that are typically done by humans, but in less time and at a fraction of the cost. It is used to predict ICU transfers, improve clinical workflows, and even pinpoint a patient's risk of hospital-acquired infections.
AI in Healthcare Market by Region
Based on region, the global AI in the healthcare market has been segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). North America dominated the AI in the healthcare market in 2020, followed by the Asia Pacific. The large share of North America in the global market can be attributed to advanced healthcare infrastructure, rising demand for digital health systems, technological advancements, and presence of the prominent players.
Some of the prominent players operating in the AI in the healthcare market includes:-