The artificial intelligence in healthcare market was valued at US$ 3,991.23 million in 2019 and it is projected to reach US$ 107,797.82 million by 2027; it is expected to grow at a CAGR of 49.8% during 2020–2027.
The growth of the artificial intelligence in healthcare market is attributed to the rising application of artificial intelligence in healthcare, growing investment in AI healthcare start-ups, and increasing cross-industry partnerships and collaborations. However, dearth of skilled AI workforce and imprecise regulatory guidelines for medical software is the major factor hindering the market growth.
Cross-industry partnerships are resulting into the introduction of new machine learning models that predict risk and provide cognitive assistance. AI is mostly applied in the clinical trials to obtain accurate and valuable output. For instance, the AI-based tools, such as clinical decision support systems and voice recognition software, help streamline workflow processes in hospitals and improve medical care, thereby enhancing the patient experience. Cross-sector partnerships are among the most dynamic practice within corporate and society relations that bridge various sectors, such as public, private, and nonprofit.
The growing number of cross-industry partnerships is anticipated to boost AI adoption in the healthcare sector, which is further accountable for its lucrative growth rate. For instance, in September 2018, GNS Healthcare entered into a cross-industry partnership with Alliance and Amgen for clinical trials in oncology. The collaboration aimed at applying artificial intelligence (AI) to the data from clinical trials and to identify factors that expedite treatment responses in metastatic Colorectal Cancer (CRC) patients. Likewise, in March 2018, Microsoft entered into a partnership with Apollo Hospitals, one of India’s primary healthcare systems, to establish new machine learning models for predicting the risk of developing cardiac diseases and aid doctors in treatment planning.
In December 2020, Subsea Europe Services GmbH joined the Artificial Intelligence Center Hamburg eV (ARIC), a cross-industry initiative to foster acquisition, application-oriented research, drill, diffusion, and application of technologies, methods, and research results in the field of artificial intelligence (AI). Further, in November 2019, Thermo Fisher Scientific became a member of the Pistoia Alliance, a not-for-profit alliance of life science companies, to decrease life science barriers and healthcare R&D over pre-competitive collaboration.
Similarly, in March 2018, GE partnered with Intel on AI in medical imaging workflows and clinical diagnostic scanning, to find ways to diagnose a disease in the initial phases and transforming data into actionable insights. Moreover, in January 2017, Intel Corporation entered into a partnership with the University of California San Francisco for developing a deep learning analytics platform that will deliver clinical decision support and predictive analytics capabilities to its users. The platform pursues to connect the power of advanced significant data sources with information from genomic sequencing, the Internet of Things, and medical devices.
Therefore, the rising number of cross-industry partnerships is projected to improve AI adoption in the healthcare sector, which propels the market growth.
The artificial intelligence in healthcare market is expected to witness substantial growth post-pandemic. The global healthcare infrastructure has observed that, in order to develop and maintain sustainable healthcare setup, utilization of computational technologies such as artificial intelligence becomes crucial. Moreover, majority of the market players have focused on development of AI-powered models to fight against coronavirus pandemic. In addition, several number of research centers and governments have actively participated in the building of robust AI technologies which are assisting the healthcare professionals to work efficiently even under shortage of resources. These factors will eventually drive the market growth.
Based on component, the artificial intelligence in healthcare market is segmented into software solutions, hardware, and services. In 2019, the software solution segment held larger share of the market. Also, the same segment is estimated to register highest CAGR during the forecast period.
Based on application, the artificial intelligence in healthcare 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 clinical trials segment held the largest market share in 2019, and the robot assisted surgery segment is estimated to register the highest CAGR during the forecast period.
In terms of end user, the artificial intelligence in healthcare market is segmented into hospitals & healthcare providers, patients, pharma & biotech companies, healthcare payers, and others. The hospitals & healthcare providers segment held the largest share of the market in 2019, and it is further estimated to register the highest CAGR during the forecast period.
The World Health Organization, Food and Drug Administration, National Health Service, and Centers for Disease Control and Prevention are among the major primary and secondary sources referred to while preparing this report.