Artificial Intelligence (AI) in Healthcare Market Analysis, Size, and Share by 2031

The artificial intelligence (AI) in healthcare market size is projected to reach US$ 519.73 billion by 2031 from US$ 25.64 billion in 2023. The market is expected to register a CAGR of 53.4% during 2023–2031.

Development of AI‐powered autonomous service robots, humanoid robots, real-time disease monitoring, analysis and visualization of spreading trends, an estimate of infection rate and infection trend, and rapid decision‐making to identify effective treatments are likely to remain key trends in the artificial intelligence (AI) in healthcare market during the forecast period.

Artificial Intelligence (AI) in Healthcare Market Analysis

The increasing influx of large and complex healthcare data sets drives the artificial intelligence (AI) in healthcare market. In addition, there is an increasing need to simultaneously reduce healthcare costs and increase computing power by minimizing hardware costs. Furthermore, the market is fuelled by growing government initiatives and their collaboration to promote the implementation of AI in healthcare and increasing mergers and acquisitions and portfolio expansions by market players. There is an imbalance between health workers and patients. Artificial intelligence restores this balance and drives the artificial intelligence (AI) in healthcare market growth. The increasing use of precision medicines and clinical trial processes requires AI, further driving the market. Increased funding for research and development in this area contribute to the artificial intelligence (AI) in healthcare market growth.

Artificial Intelligence (AI) in Healthcare Market Overview

AI has various applications in healthcare. It allows doctors to retrieve information, interpret images captured during scans, and make treatment plans. In addition to the clinical aspect, AI is beneficial in research activities. Advances in medicine, supported by advances in public health, innovation, research, and technology, significantly reduce morbidity and mortality. The healthcare sector is evolving significantly by leveraging AI to boost productivity while reducing the enormous burden on healthcare professionals. Government and private organizations incorporate AI into their research efforts to accelerate development.

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Artificial Intelligence (AI) in Healthcare Market: Strategic Insights

Artificial Intelligence (AI) in Healthcare Market Drivers and Opportunities

Increasing Cross-Industry Partnerships and Collaborations

Cross-industry partnerships are resulting in the introduction of new machine learning (ML) models that predict risk and provide cognitive assistance. The partnerships are among the most dynamic practices in corporate and society relations that bridge various sectors, such as public, private, and nonprofit. In October 2023, Siemens and Microsoft partnered to advance the adoption of AI across industries. The companies are introducing Siemens Industrial Copilot, a jointly developed AI-powered assistant to improve human-machine collaboration in manufacturing. Additionally, the integration of Siemens Teamcenter product lifecycle management software and Microsoft Teams would pave the way for the further development of the industrial metaverse. In January 2023, AstraZeneca collaborated with Qure.ai, a developer of deep-learning algorithms for interpreting radiological images. The collaboration will specifically focus on overcoming barriers that limit access to diagnostic tools, supporting early detection of lung cancer, reducing mortality rates, and improving patient outcomes, particularly in low- and middle-income countries.

Rising Potential in Emerging Economies

In developing countries where access to medical technology, medical professionals, and resources is limited, the impact of AI applications is likely to provide a disruptive path to solving current major challenges. For instance, researchers at the Indian Institute of Technology (IIT), Delhi, developed an AI-powered system to diagnose tuberculosis (TB) using chest X-rays. The system can analyse X-rays for signs of tuberculosis in less than a minute, making it a valuable tool for diagnosing tuberculosis in remote areas where access to healthcare professionals may be limited. In Brazil, there is a shortage of dermatologists in most cities, even in the outskirts of large cities. Top hospitals are narrowing access gaps by offering teledermatology services powered by AI screening tools. Further, the use of AI technology can reduce the cost of healthcare and make it affordable for people in developing countries.

Artificial Intelligence (AI) in Healthcare Market Report Segmentation Analysis

Key segments that contributed to the derivation of the artificial intelligence (AI) in healthcare market analysis are component, application, and end user.

• Based on component, the artificial intelligence (AI) in healthcare market is segmented into software solution, hardware, and services. The software solution segment held the largest market share in 2023.
• By application, the market is segmented into robot-assisted surgery, virtual assistants, administrative workflow assistants, connected machines, diagnosis, clinical trials, fraud detection, cybersecurity, dosage error reduction, and others. The robot-assisted surgery segment held the largest share of the market in 2023.
• In terms of end user, the market is segmented into hospitals & healthcare providers, patients, pharma & biotech companies, healthcare payers, and others. The hospitals & healthcare providers segment dominated the market in 2023.

Artificial Intelligence (AI) in Healthcare Market Share Analysis by Geography

The geographic scope of the artificial intelligence (AI) in healthcare market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

North America dominated the artificial intelligence (AI) in healthcare market. The market growth in North America is attributed to the evolving digital infrastructure in healthcare, the well-established healthcare sector, and rising patient awareness regarding the benefits of AI. The artificial intelligence (AI) in healthcare market in North America is also likely to spur with the presence of various key players in the market. In addition, the adoption of digital tools in healthcare operations for improving quality and reducing costs contributes to the dominance of North America in the artificial intelligence (AI) in healthcare market. Asia Pacific is anticipated to register the highest CAGR in the coming years.

Artificial Intelligence (AI) in Healthcare Market Regional Insights

The regional trends and factors influencing the Artificial Intelligence (AI) in Healthcare Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Artificial Intelligence (AI) in Healthcare Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Artificial Intelligence (AI) in Healthcare Market Report Scope

Artificial Intelligence (AI) in Healthcare Market Players Density: Understanding Its Impact on Business Dynamics

The Artificial Intelligence (AI) in Healthcare Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Artificial Intelligence (AI) in Healthcare Market News and Recent Developments

The artificial intelligence (AI) in healthcare market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes corporate publications, association data, and databases. A few of the developments in artificial intelligence (AI) in healthcare market are listed below:

• Bayer and Google Cloud announced a collaboration on the development of AI solutions to support radiologists and ultimately better serve patients. As part of the collaboration, Bayer would develop its innovation platform to accelerate the development and deployment of AI-powered healthcare applications with a clear focus on radiology, using Google Cloud's technology, including its generative AI (gen AI) tools. The collaboration aims to help organizations overcome many of the challenges to building scalable and compliant AI-powered medical imaging software products using leading data security capabilities and accelerate the development of potentially groundbreaking and impactful solutions that ultimately benefit patients. (Source: Google Cloud, Press Release, 2024)
• OM1 launched PhenOM, an AI-powered platform for personalized medicine. Calibrated using OM1’s longitudinal health history datasets, PhenOM uses AI to identify unique digital phenotypes associated with conditions and outcomes and compare patients’ records to highlight risks and opportunities. PhenOM powers personalized healthcare insights at scale across the entire healthcare ecosystem, from life science research to point-of-care clinical decision making. (Source: OM1, Press Release, 2023)
• Responding to rapid advances in AI and the urgent need to define its responsible use in health and medicine, Stanford Medicine and the Stanford Institute for Human-Centered Artificial Intelligence (HAI) announced the launch of RAISE-Health (Responsible AI for Safe and Equitable Health). This pioneering initiative seeks to address critical ethical and safety issues surrounding AI innovation and help others navigate this complex and evolving field. (Source: Stanford Medicine, Newsletter, 2023)
• Google Cloud announced two new AI-powered life sciences solutions to boost drug discovery and precision medicine for pharmaceutical firms, biotech companies, and public sector organizations. Available across the world, the Target and Lead Identification Suite helps researchers predict the structure of proteins and identify the function of amino acids, and the Multiomics Suite accelerates the discovery and interpretation of genomic data, helping companies design precision treatments. (Source: Google Cloud, Press Release, 2023)

Artificial Intelligence (AI) in Healthcare Market Report Coverage and Deliverables

The “Artificial Intelligence (AI) in Healthcare Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Artificial intelligence (AI) in healthcare market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Artificial intelligence (AI) in healthcare market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Artificial intelligence (AI) in healthcare market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the artificial intelligence (AI) in healthcare market
• Detailed company profiles