Artificial Intelligence in Healthcare Global Market Report 2024

The artificial intelligence in healthcare market size has grown exponentially in recent years. It will grow from $13.48 billion in 2023 to $17.96 billion in 2024 at a compound annual growth rate (CAGR) of 33.3%. During the historical period, growth was driven by several factors. These include the increasing number of collaborations and partnerships within the healthcare sector, a rising incidence of chronic diseases, greater utilization of AI in radiology, the expanding adoption of artificial intelligence for cost-effective drug discovery, and a noticeable increase in funding directed toward artificial intelligence in healthcare.

The artificial intelligence in healthcare market size is expected to see exponential growth in the next few years. It will grow to $52.2 billion in 2028 at a compound annual growth rate (CAGR) of 30.6%. Forecasted growth in healthcare is attributed to a rising elderly population, increased adoption of digital healthcare transformation, and government support for AI in healthcare. Major trends include AI applications in clinical trials, rare disease treatments, drug adherence, target selection, AI-driven pre-clinical studies, investments in AI-based biotech firms, heightened merger and acquisition activities, expanding roles of CROs in AI ecosystems, and the introduction of new AI tools and innovation labs.

The proliferation of precision medicine is a key driver fueling the growth of artificial intelligence in the healthcare market. Precision medicine leverages information about an individual's genetic makeup, environmental factors, and lifestyle changes to enhance the diagnosis and therapeutic approaches tailored to the patient. Widely applied in oncology cases, the increasing prevalence of cancer and its impact on a growing population are expected to drive the demand for AI in precision medicine. Research published in the Lancet Oncology indicates a projected 75% global increase in the cancer burden by 2030, further emphasizing the significance of AI in advancing precision medicine for improved healthcare outcomes.

Government initiatives aimed at supporting artificial intelligence in healthcare are poised to contribute significantly to the market's growth. Notably, the governments of India and China have embarked on comprehensive initiatives to foster the integration of artificial intelligence into healthcare systems. In April 2022, the Indian government underscored its commitment to leveraging AI for disease outbreak monitoring. A tool, developed in collaboration with a private company and the National Centre for Disease Control (NCDC), is being designed to scan media reports related to health, creating a comprehensive database for monitoring outbreaks of 33 diseases, including those with epidemic potential, under the Integrated Disease Surveillance Program (IDSP). In 2021, the AI iLab initiative was introduced to collaborate with government bodies, industry partners, healthcare institutions, and researchers, incubating patient-centric AI healthcare solutions. AstraZeneca's support for the government's AI industry development strategy includes the establishment of the Medical Healthcare AI Innovation Center in Shanghai, demonstrating a commitment to fostering innovation in AI healthcare solutions. As a result, the increasing support from governments for artificial intelligence in healthcare is expected to be a significant catalyst for market growth.

Entities within the artificial intelligence (AI) for the healthcare market are observing the introduction of innovative AI tools with significant benefits for pharmaceutical companies. Prominent corporations are strategically launching new AI-enabled tools in the drug discovery sector. Scientific communities within major enterprises are diligently developing novel tools to contribute to the global efforts in COVID-19 treatment development. In a notable example, the Aster Innovation and Research Centre, the innovation hub of the Aster DM Healthcare Group, collaborated with Intel Corporation and AI platform provider CARPL.AI in July 2022 to create an AI-powered health data platform in India.

Pharmaceutical and biopharmaceutical companies are actively pursuing acquisitions of firms possessing expertise in data science and AI. This strategic approach aims to drive innovation within the healthcare industry by enhancing decision-making processes, optimizing research and clinical trials efficiency, and creating valuable tools for stakeholders such as physicians, consumers, insurers, and regulators. In January 2022, RadNet, a provider of fixed-site outpatient diagnostic imaging services, acquired Aidence, a radiology AI company specializing in AI-enabled clinical solutions for pulmonary nodule management and lung cancer screening. In February 2022, OnlineDoctor, a leading teledermatology provider, expanded its capabilities by acquiring A.S.S.I.S.T (Automated Scientific Skin Infection Search Technology), a German startup with expertise in AI for dermatology. OnlineDoctor operates as one of Europe's premier teledermatology providers, with a presence in Switzerland, Germany, and Austria, collaborating with dermatologists, pharmacies, hospitals, and health insurance companies.

In August 2021, Nurosene Health Inc., headquartered in Toronto, Canada, a health technology company specializing in mental wellness, acquired Netramark Corp. This acquisition aims to enhance Nurosene's brain health products by leveraging the machine learning technologies developed by Netramark Corp. Netramark Corp. focuses on AI and pharma tech, creating AI and machine learning solutions specifically tailored for pharmaceutical companies.

Major companies operating in the artificial intelligence in healthcare market report are IBM Watson Health, Nuance Communications, Inc., Alphabet Inc., Concreto HealthAI, Nvidia Corporation, PathAI, XtalPi, Benevolent AI, Exscientia, OWKIN, LiveHealth, ChironX, Consure Medical, Predible Health, Lybrate, Artelus, OncoStem Qure.AI, Jiaxing Taimei Medical Technology, Ping An Health Medical Technology, YITU, iCarbonX, Insilico, Skin Analytics, Babylon Health, Cambridge Cognition, Renalytix AI, Iktos, Novartis, Gero, Ardigen, Botkin, Webiomed, Care Mentor AI, Diagnocat, Atomwise Inc., Cloud Pharmaceuticals, Bioage, NuMedii, Envisagenics, Aria Pharmaceuticals, Verge Genomics, Berg LLC, Deep Genomics, Cyclica, IQVIA, Roche, Pfizer, PRA Healthscience, Gesto, Intensicare, Didoc, Betterfly, Deenty, Examedi, Dentalink, Cero, MedPass, Pixeon, Hi Technologies, Conexa Saude, Wuru, Yerbo, BioScience, Caecus, Epitrack, GE Healthcare, Oncora Medical, Recursion Pharmaceuticals Inc., Nucleai, Pepticom, AstraZeneca, Rology, HearX Group, DilenyTech, iNNOHEALTH Technology Solutions.

North America was the largest region in the Artificial Intelligence in the Healthcare market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in healthcare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence in healthcare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

AI in healthcare offerings primarily comprises hardware and software. Within these offerings, AI products leverage diverse algorithms including deep learning, querying methods, natural language processing, and context-aware processing. Medical device manufacturers harness AI-based technologies to innovate hardware products, aiding healthcare providers and enhancing treatments. Technology firms focus on developing AI algorithms tailored for healthcare solutions. The applications of AI in healthcare are widespread, encompassing robot-assisted surgery, virtual nursing aides, support in administrative workflows, fraud detection, dosage error reduction, identification of clinical trial participants, and preliminary diagnoses. Key users of AI in healthcare span hospitals, diagnostic centers, pharmaceutical and biopharmaceutical companies, healthcare payers, and individual patients.

The Artificial Intelligence in healthcare market research report is one of a series of new reports that provides artificial intelligence in healthcare market statistics, including artificial intelligence in healthcare industry global market size, regional shares, competitors with artificial intelligence in healthcare market share, detailed artificial intelligence in healthcare market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence in healthcare industry. This artificial intelligence in healthcare market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The AI in healthcare market includes revenues earned by entities by discovering links between genetic codes, powering surgical robots and maximizing hospital efficiency. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.