According to the new market research report by MarketsandMarkets™, the Artificial Intelligence in healthcare is estimated to be valued at USD 2.1 billion in 2018 and is expected to reach USD 36.1 billion by 2025, at a CAGR of 50.2% from 2018 to 2025.
The market has huge potential across various end users such as hospitals and providers, healthcare payers, and pharmaceutical and biotechnology companies. Large and complex data sets, growing need to reduce the healthcare cost, improving computing power and declining cost of hardware are the key factors driving the AI in the healthcare market.
Here are some of the key findings:
1. North America to lead AI in healthcare
North America, being a developed and technologically advanced region, is likely to be one of the key contributors to the overall AI in healthcare market growth during the forecast period. Moreover, high spending of GDP in healthcare, especially in the US and Canada, is likely to supplement the growth of next-gen technologies such as AI in the region. APAC is likely to closely pursuit the growth of North America and is expected to register the second-fastest growth rate. Improving IT infrastructure, demand for affordable healthcare, and favorable government norms are expected to boost the growth of healthcare AI in the region.
2. Processor to hold the largest market in the hardware segment
The increasing need for hardware platforms with high computing power to run various AI software is the key factor accelerating the growth for hardware devices in the AI in the healthcare market. Demand for high-computing processors to run AI algorithms continues to surge its growth in the hardware segment. The processor segment consists of MPUs, GPUs, FPGAs, and ASICs. In processors, GPUs are expected to foresee strong growth owing to highly parallel computing capabilities, and the same is expected to continue in the coming years.
3. Context-aware computing to witness higher growth
The development of more sophisticated hard and soft sensors has accelerated the growth of context-aware processing. Increased processing power, innovative sensing capabilities, and improved connectivity have resulted in the growth of context-aware processing systems. A few core healthcare applications include lifestyle management and monitoring, in-patient care and hospital management, and virtual assistant.
4. In-patient care & hospital management to hold significant market size
AI in planning and scheduling methods can offer substantial support to the management of hospitals and patient care, thereby improving administrative workflow assistance. AI-enabled bots is an AI application that patients can interact with through a chat window on a website or through a telephone. Applications such as scheduling appointments; checking insurance coverage parameters; instantly accessing information about drug interactions and side effects; collecting the latest information about patient medications, care team, and recent procedures; designing special diet plans for patients with dietary restrictions; and engaging with discharged patients to follow up on treatment plans and adherence are supported by these bots. These applications are expected to lead the growth of in-patient care and hospital management systems.
Key market players
A few companies in the AI in healthcare market are NVIDIA (US), Intel (US), IBM (US), Google (US), Microsoft (US), AWS (US), General Vision (US), GE Healthcare (US), Siemens Healthineers (Germany), Medtronic (US). The market has active participation of start-ups. A few emerging start-ups in the market are CloudMedx (US), Imagia Cybernetics (Canada), Precision Health AI (US), and Cloud Pharmaceuticals (US).
Key questions addressed in the report
- Which are the major applications of AI in the healthcare market? How big is the opportunity for their growth in the developing economies in the next 5 years?
- Which are the major companies in the AI in the healthcare market? What are their major strategies to strengthen their market presence?
- Which AI technology will find its major application in healthcare?
- Which are the leading countries in the AI in the healthcare market? What would be the share of North America and Europe in this market in the next 5 years?
- What will be the role of the standards and regulations by governments and associations in the adoption of AI in healthcare?