DUBLIN--(BUSINESS WIRE)--The "Artificial Intelligence (AI) in Healthcare Market - Focused Insights 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Artificial Intelligence (AI) in Healthcare Market was valued at USD 14.33 billion in 2023, and is expected to reach USD 153.61 billion by 2029, rising at a CAGR of 48.49%.
The global AI in healthcare market report contains exclusive data on 40 vendors. The market is highly fragmented. Large corporations dominate the market. However, there are significant growth opportunities for new entrants. Though the market is dominated by major players, many investigational and small companies are coming into existence with innovative AI health solutions.
Google Health, Amazon Web Services, Microsoft Corporation, Medtronic, NVIDIA Corporation, Siemens Healthineers, Intel Corporation, Merative, and Augmedix are some of the leading companies accounting for major market share in the global AI in the healthcare market. These vendors continuously develop and invest in AI-based health tools and are expected to dominate the market with continued engagement.
North America accounted for the largest market share and the fastest-growing region of global AI in healthcare. The U.S. dominates the regional market landscape due to the high advancement in healthcare infrastructure, digitalization and IoT adoption in health facilities, increasing surge of telemedicine and telehealth, and wide acceptance of technologies in healthcare management.
Over 35% of North American healthcare professionals look forward to AI in healthcare services. In the US, over 38% of health professionals and patients think integrating AI in medicine and health can lead to better patient healthcare outcomes. The shift from hospital to home care delivery is increasing the adoption of telehealth/telemedicine services, accelerating AI's integration rate. The majority of healthcare professionals show a positive thumb for using AI. The use of AI by healthcare professionals has rapidly increased after the COVID-19 pandemic.
MARKET TRENDS & DRIVERS
Emergence of New AI Startups for Healthcare
AI in healthcare is an emerging trend that has led to an increased number of new startups across the global market. The emergence of new startups in the healthcare industry offers innovations, new tools, and new technologies, revolutionizing the healthcare industry landscape. Every year, many new AI startups are registered for healthcare solutions. These startups' increasing ability to treat patients remotely has become a significant factor in areas lacking medical facilities. This decade is expected to see more startups in AI healthcare. In the last decade, 12 to 15 startups were recorded annually, increasing to more than 70 to 110 new AI healthcare startups worldwide.
Thus, this increasing number of new startups is expected to deliver lucrative market growth opportunities. There has been a huge increase in healthcare investor funding over the past 10 to 13 years, with over $20 billion invested in 2021 alone. It attracts many startup companies to develop new AI healthcare platforms. According to the AI Index Report 2023 by Standford University, in 2022 alone, the AI focus with the highest investment was healthcare ($6.1 billion) registered worldwide. In 2019, the total investment in healthcare AI startups was $4 billion, with over 350 deals. This sudden increase in investment in AI healthcare startups witnessed this investment, and the number of new startups will continuously increase.
Furthermore, the increasing digitalization, government support, and advancement in the healthcare industry are attracting huge opportunities for AI in healthcare startups and are expected to deliver huge market growth opportunities. Most new startups come from the US, Israel, India, and Europe.
Rising Automation & Robotics in Clinical Surgeries
There is growing automation and robotics in the clinical field specifically targeted to surgical procedures. Continues entrance of surgical robots and associated automated procedures, reducing human errors and delivering high efficacy after the procedures. With this revolutionary factor in surgical care, surgical robots are becoming a perfect place for AI model integration to improve surgical capabilities further and reduce health workers' burden.
The increasing use of AI models to automate surgical tasks has been clinically proven to increase intraoperative safety. In addition, artificial intelligence is used to enhance the field of robotics surgeries through education, automated skills assessment tools, and intraoperative feedback delivery. It led to a rapid expansion of AI in robotics surgery and is expected to hold lucrative opportunities.
Shortage of Healthcare Workers and Emergence of AI
The global healthcare industry is currently facing a huge shortage of health workers. In addition, this situation was exacerbated due to the COVID-19 pandemic. Healthcare settings face two major issues: a dwindling workforce and a high patient population. The World Health Organization stated there will be a shortage of more than 10 million people in the healthcare workforce by 2030. furthermore, the retirement of the aging healthcare workforce, rising demand for field professionals and specialists and their shortage, emergency cases, and associated challenges created a huge demand for advancement in healthcare infrastructure that rescued the burden.
According to some studies, in 2024, around 48% of health systems will be using AI solutions to tackle health workforce challenges, as revealed by TechTarget & Health IT blogs 2023. The emergence of AI in healthcare settings is leveraging new ways to monitor the shortage of the health workforce while enhancing processes and efficiencies, backlog management, replacement of repetitive tasks, and managing unpredictable capacity demands. The increasingly widespread use of AI in healthcare settings can reduce healthcare costs by $200 billion to $300 billion.
Furthermore, it can increase report analysis procedures by around 150 times compared to traditional methods. These factors significantly drive the demand for AI in healthcare. Around 55% of healthcare workers experience a huge burden. Of these, the highest burden experienced by health workers is experienced by nurses (56%) and clinical staff (55%). Based on that, these healthcare workforces stated that leveraging AI in healthcare services reduces their burnout by 70% to 90%. Moreover, AI helps to reduce administrative burden, automate documentation, increase diagnosis accuracy, augment decision support, and enhance preventive care for patient purposes. It indicates that AI is emerging as a promising tool and is expected to achieve significant growth in the healthcare industry.
INDUSTRY RESTRAINTS
High Installation & Integration Cost
The adoption of AI technology is dramatically increasing - however, the cost of AI implementation is relatively high. AI technology comprises many solution platforms/factors, and these platforms influence cost, which has become a challenge for healthcare IT vendors. This challenging factor is mostly impacting in developing markets. With changing technological advancements, the cost of implementing AI fluctuates. The incurred expenses will vary depending on the platform the company builds. The need for a high intelligence level also decides the cost structure.
Some programs are designed to perform a particular task with less human interruption. So, the level of intelligence is high, and adopting such technologies is quite expensive. Additionally, to perform operations, AI needs some data in the system, but it is more complex and costly to work on unstructured data than structured data. On the other side, some factors responsible for the high development cost of AI are data quantity, data storage capacity and format, and structured and unstructured data; furthermore, the customized demand again induced high costs, challenging the adoption of AI in healthcare sectors.
KEY QUESTIONS ANSWERED:
- How big is the global AI in the healthcare market?
- Which region dominates the global AI in the healthcare market?
- What is the growth rate of the global AI in the healthcare market?
- What are the opportunities in the global AI healthcare market?
- Who are the major global AI players in healthcare?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 159 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $14.33 Billion |
| Forecasted Market Value (USD) by 2029 | $153.61 Billion |
| Compound Annual Growth Rate | 48.4% |
| Regions Covered | Global |
SEGMENT INSIGHTS
By Component
- Software & Services
- Hardware
By Application
- Hospital Workflow Management
- Patient Management
- Medical Imaging and Diagnosis
- Drug Discovery and Precision Medicine
By Technology
- Machine Learning
- Deep Learning
- Natural Language Processing
- Vision AI
- Other Technologies
By End-user
- Healthcare Providers
- Pharma & Biotech and Medical Device Companies
- Payers
- Other End-users
By Geography
- North America
- Europe
- APAC
- Latin America
- Middle East & Africa
VENDOR LANDSCAPE
Key Vendors
- Google Health
- Intel Corporation
- Medtronic
- Microsoft
- NVIDIA Corporation
- Siemens Healthineers
- Amazon Web Services
- Merative
- Augmedix
Other Prominent Vendors
- CloudMedx Health
- BioSymetrics
- Corti
- Butterfly Network, Inc.
- Enlitic
- TEMPUS
- Behold.ai
- oxipit.ai
- Clarius
- General Vision
- Koninklijke Philips N.V.
- Stryker
- Shimadzu Recursion Pharmaceuticals
- GE Healthcare
- Subtle Medical
- Sensely
- InformAI
- Clario
- Owkin
- Binah.AI
- Oncora Medical
- Qure.ai
- Lunit
- Caresyntax
- Anju Software
- DEEP GENOMICS
- MDLIVE
- Qventus
- WorkFusion
- Salesforce
- LeenTaaS
For more information about this report visit https://www.researchandmarkets.com/r/d5dnwm
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