AI in Healthcare Market Innovations, Investments and Future Outlook

AI in Healthcare Market Size

The global artificial intelligence (AI) in healthcare market was worth USD 32.51 billion in 2024 and is expected to reach around USD 374.19 billion by 2033, with a noteworthy CAGR of 31.18% from 2024 to 2033. The growing demand for therapeutics for rare diseases is driving the market’s growth. Additionally, the penetration of advanced technologies along with rapid adoption of AI-based services from healthcare providers create a substantial growth factor for the market to expand.

AI in Healthcare Market: Trends & Insights

While transforming the overall medical landscape, the integration of artificial intelligence is observed to streamline operations, enhance patient outcomes and reduce costs of healthcare systems. Artificial intelligence (AI) is potent to be utilized in the healthcare industry more and more due to its complexity and growth in data. Numerous AI systems are already in use by payers, healthcare providers, and life sciences businesses.

Administrative tasks, patient participation and adherence, and diagnosis and treatment suggestions are the main application areas. By creating more precise diagnoses and enabling more individualized therapy, this technology is significantly enhancing healthcare research and results. The global AI in healthcare market is expected to sustain at a significant rate with the driving investments by private healthcare providers for AI-powered disease detection systems. Whereas the rising emphasis over improving patient engagement is poised to support the market’s potential.

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Top Trends in AI in Healthcare Market

• India spent $665 million, or more than 109% of its total, on AI in 2018. By 2025, that amount is predicted to rise to $11.78 billion, boosting the country's GDP by $1 trillion.
• In June 2024, the SoftBank Group and Tempus AI formed a joint venture with the goal of using artificial intelligence (AI) to evaluate personal medical data and prescribe treatments. During Tempus's series G fundraising round, SoftBank contributed over $200 million.
• In October 2023, the prime minister said that the government would invest an additional £100 million in areas where the quick application of AI has the most potential to lead to ground-breaking discoveries in the treatment of diseases that were thought to be incurable. The UK's distinct advantages in safe health data and state-of-the-art AI will be used via the AI Life Sciences Accelerator Mission.

Top AI in Healthcare Solutions for Investors in 2024

Solution Form	Application	Appeal for Investors
Clinical Decision Support System	Diagnosing diseases, creating treatment plans and predicting patient outcomes	High demand due to reduced errors in patient care quality
Virtual Health Assistant	Patient disease management and mental health support	Rising demand for telemedicine and remote healthcare solutions
Genomics and Personalized Medicine	Tailored treatment for caner and risk prediction for hereditary diseases.	Breakthroughs in Personalized medicine and genomics

Emphasis on Precision Medicine: An Upcoming Opportunity for AI in Healthcare

AI will be a major component of healthcare services in the future. It is generally acknowledged that machine learning, which is the main technology driving the development of precision medicine, is a much-needed advancement in healthcare. A prime example of the same is IBM Watson recommend targeted therapies that are based on standard treatments and offer personalized approach using AI platforms for cancer patients. Additionally, players involving in investments for AI-based solutions for personalized or precision medicine are seen to supplement the market’s growth.

• In January 2024, The Collaboration Laboratory for AI in Precision Medicine between Siemens Healthineers and Computational Data Sciences (CDS) was officially opened by Siemens Healthineers and the Indian Institute of Science (IISc).

North America to Dominate: AI Driven Healthcare Solutions

North America dominated the AI in healthcare market in 2023, the region is observed to sustain the position in the upcoming years. AI-driven solutions in the region have notified improvements in patient care, operations and breaking overall advancements in medical technology. Considering government efforts, the U.S. government provides generous funding to healthcare enterprises. Furthermore, both the public and commercial sectors have successfully embraced AI technology early and established a coordinated partnership.

• The National Institutes of Health has acted as a major contributor for AI research in healthcare through various fundings in the United States. The government has supported multiple biomedical researches by offering grants and AI support in order to improve health outcomes.

The U.S. has remained a leader in AI thanks in large part to persistently high funding for basic, long-term AI research. For instance, decades of publicly supported basic research laid the foundation for many of the AI-enabled goods and services available today.

• AI is being used by the National Institutes of Health (NIH) to explore priority areas such as mental illness, Alzheimer's disease, and cancer. An anticipated $200 million was funded by NIH in FY2023 and $175 million in FY2022 to employ massive data sets on issues, including assisting researchers in understanding how to diagnose people with autism spectrum disorders.

Strategic Initiatives to Spark Asia’s Future for AI

Asia Pacific is estimated to grow at the fastest rate during the forecast period. Rapid improvements and breakthroughs in IT infrastructure, together with the rise of businesses specialized in AI-based solutions, are driving this expansion. Adoption rates in the region are being driven by rising investments from non-profit organizations, venture capitalists, and private investors with the goals of improving therapeutic results, strengthening data security and analysis, and cutting costs. Furthermore, positive government measures that encourage and assist healthcare providers and organizations' adoption of AI-based technologies are projected to accelerate AI in healthcare market expansion.

With the largest population in the world and the fastest-growing economy, India has a big interest in the AI revolution. One of India's most exciting and demanding industries is healthcare. The growing number of technological advancements combined with the enthusiasm and efforts of entrepreneurs present India with a chance to address some of its long-standing problems in delivering quality healthcare to a sizable portion of its populace. AI, in conjunction with robots and the Internet of Medical Things (IoMT), may become the new nervous system for healthcare, offering answers to issues in the field and assisting the government in achieving the aforementioned goals.

Recent Investments in Asia for AI in Healthcare Industry

• Ping, a prominent healthcare platform, in 2023 secured significant investment in order to increase its capabilities for AI-based consultation services and to expand in Asian region.
• Japan-based, Mitsui & Co, made an investment in Medmain, a startup fro AI-based pathology. The investment in the AI-powered platform is observed to expand the capabilities of diagnosing diseases.

Top Companies in the AI in Healthcare Market

• IBM Corporation
• Microsoft Corporation
• Google LLC (Alphabet Inc.)
• NVIDIA Corporation
• Intel Corporation
• Siemens Healthineers AG
• General Electric Company (GE Healthcare)
• Medtronic plc
• Philips Healthcare (Koninklijke Philips N.V.)
• Cerner Corporation
• Oracle Corporation
• Amazon Web Services, Inc. (AWS)
• Johnson & Johnson Services, Inc.
• Tencent Holdings Limited
• Nuance Communications, Inc.

Upcoming Developments for AI in Healthcare: Projects in Pipleline

• In July 2024, GE HealthCare announced that it would purchase Intelligent Ultrasound Group's clinical artificial intelligence division. According to the corporations, the software purchase will cost around $51 million.
• In May 2024, Owkin, the first end-to-end unicorn in the TechBio industry, announced an innovative AI-driven drug pipeline in immunology and oncology following an exclusive global licensing agreement with Idorsia. OKN4395 will be a best-in-class dual inhibitor of prostanoid receptors EP2 and EP4, ready for the clinic.

Better Health Outcomes to Drive the AI in Healthcare Market

Artificial intelligence has a lot of potential to help doctors learn important lessons and provide better patient care. Artificial intelligence (AI) may help digital communications by providing personalized health advice, scheduling reminders, and recommending next steps for patients. For instance, several AI algorithms can precisely act over detecting early signs of neurological disorders, cancer and heart-health concerns. Thereby, from a detection tool to acting as an accurate method for personalizing treatment plans, the penetration of AI in healthcare solutions is observed to offer better health outcomes while improving the overall quality of patient engagement.

• In August 2024, Bisam Pharmaceuticals introduced "Quick Vitals," the first health monitoring app in the world driven by AI and deep learning technology, in an attempt to improve digital health.

Security Concerns, to Hamper the Market’s Growth

AI-based systems give rise to privacy and data security problems. Hackers frequently target health records during data breaches because they are sensitive and vital information. For instance, breaches in AI platforms can lead to unauthorized access to patient records, which can easily bring malicious activities. Additionally, vulnerability to cyberattacks and adoption concerns across underdeveloped region create another hampering factors for the market to expand.

Segments Insights The Software Segment Dominated the Market in 2023

By component, the software segment dominated the AI in healthcare market in 2023. The healthcare industry is undergoing a rapid transformation because of AI healthcare software, which gives medical personnel access to cutting-edge solutions that can enhance patient care, diagnosis, and treatment. AI healthcare software analyzes patient data, makes predictions about outcomes, and customizes treatment regimens using machine learning (ML) and data analytics.

• In June 2024, with $3 million in funding, the AI-powered automation platform for healthcare called Keragon emerged from stealth.

The Clinical Trials Segment Dominated in 2023

By application, the clinical trials segment held the largest share of the AI in healthcare market in 2023. Artificial intelligence (AI), which includes machine learning, is becoming more and more prevalent in clinical research. It is also transforming the clinical trial landscape and finding its way into areas where the FDA is actively involved, such as digital health technologies, real-world data analytics, and clinical trial design.

By application, the virtual assistant segment is observed to expand

While the clinical trials segment becomes the largest one in the market, the virtual assistant segment is observed to witness a notable expansion in the upcoming years. The COVID-19 pandemic has shown requirement for telemedicine, which has enabled healthcare providers to interact efficiently. AI-based platforms offer improved patient engagement and operational efficiency while managing administrative tasks for both provider and receiver’s end.

• In 2023, a popular healthcare network in the U.S. Ada Health announced its collaboration with utter Health in order to offer AI-driven proactive steps for health assessments anf patient engagement.

AI in Healthcare Market News:

• In April 2024, the World Health Organization (WHO) announced the debut of S.A.R.A.H., a prototype digital health promoter that uses generative artificial intelligence (AI) to improve empathy. Sarah, also known as S.A.R.A.H., possesses the capacity to assist individuals in gaining a deeper comprehension of the risk factors associated with some of the world's most common causes of death, including diabetes, cancer, heart disease, and lung disease.
• In March 2024, Healthcare organizations across the globe may now benefit from the most recent developments in generative AI from any location and on any cloud thanks to NVIDIA's announcement of more than two dozen new microservices. In order to facilitate the development and implementation of cloud-native applications, NVIDIA has released a new suite of microservices for healthcare that combines optimized NVIDIA NIMTM AI models and workflows with industry-standard APIs.

Segments Covered in the Report

By Offering

• Hardware
• Processor
• MPU
• GPU
• FPGA
• ASIC
• Memory
• Network
• Adapter
• Switch
• Interconnect
• Software
• AI Platform
• AI Solutions
• Service
• Deployment and Integration
• Support & Maintenance

By Technology

• Machine Learning
• Deep Learning
• Supervised
• Reinforcement Learning
• Others
• Natural Language Processing
• IVR
• OCR
• Auto Coding
• Others
• Context-Aware Computing
• Computing Vision
• Predictive Analysis
• Others

By Application

• Patient Data & Risk Analysis
• Medical Imaging & Diagnostics
• Precision Medicine
• Drug Discovery
• Research
• Mental Health
• Cybersecurity
• Others

By End Users

• Hospital & Healthcare Providers
• Healthcare Payers
• Pharmaceutical & Biotechnology Companies
• Others

By Region 

• North America
• APAC
• Europe
• LAMEA

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