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Artificial Intelligence has a great demand in the healthcare industry. For now, 86% of healthcare providers, life science companies, and tech vendors use AI (source ). This number is crucial proof to demonstrate the possibilities of AI in healthcare and how significant it is for the industry.
However, there are still some issues that are slowing down the adoption of AI in healthcare. One of them is the lack of experienced specialists, leading to development delays, mistakes, increased costs in healthcare. Healthcare providers turn to tech companies for expertise in adopting AI, and naturally, demand for such expertise makes competition among the latter highly intensive.
AI healthcare market overview
The global artificial intelligence in the healthcare market was valued at USD 16.3 billion in 2022 and is expected to grow at a CAGR of 40.2% to reach USD 173.55 billion by 2029. The healthcare AI market is experiencing a remarkable and significant surge in its growth and acceptance. Here are some insights about AI and the healthcare market:
- North America controls the market and has a strong presence of key players.
- Using AI-powered medical imaging technologies is a huge trend among healthtech companies.
- Medical businesses continue to grow and expand, so mergers and acquisitions are becoming very common. Larger players are acquiring smaller companies to enhance their AI capabilities or extend their market coverage.
- The integration of AI with complementary technologies like robotics or blockchain promotes precision medicine and transforms healthcare delivery.
- Generative AI-powered virtual assistants and chatbots are experiencing rising requests due to their 24/7 support opportunities.
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AI healthcare market segmentation: by application
By application of AI in healthcare, the top segments dominating are Robot-Assisted Surgery, Clinical Trials, and Connected Machines. Cybersecurity, Dosage Error Reduction, and Diagnostics are developing slower.
AI-powered robots make surgical procedures more precise. Complicated surgeries in cardiovascular or neurology need absolute accuracy, and AI robotics can ensure it. AI algorithms are also changing clinical trials processes. The power of rapid data analysis at every stage of clinical trials makes them more accurate, cost-effective, and patient-centric.
Besides, AI has a crucial role in using connected machines in healthcare. AI integrates data from IoT devices and sensors into a single healthcare system. This gives an opportunity to gather, exchange, and analyze huge amounts of data.
To understand which therapeutic areas have most AI support, let’s take a look at the FDA-approved list of AI-enabled applications. FDA approved 521 devices using AI, according to the last update (source ). Radiology has 75%, or 391 FDA cleared devices. This report shows us that radiological imaging has become very promising and usable in practice.
AI healthcare market segmentation: by technology
Based on components, the global AI in the healthcare market can be divided into software, hardware, and services. The software segment has the largest share and is expected to have the fastest growth.
This segment includes Machine Learning platforms, Natural Language Processing (NLP) and text analysis tools, Deep Learning Platforms, Computer Vision, Speech and Audio Recognition, Integrated Development environments (IDEs) and AI frameworks. Global trend of digital transformation , and capabilities of AI software solutions made it the leading component in healthcare.
Finally, based on technology, the AI healthcare market can be divided into Machine Learning, Natural Language Processing (NLP), Computer Vision , and Context-Aware Computing. Machine Learning is a leader now, but NLP has the potential to be the market leader in the future. The AI in healthcare statistics shows the demand for analyzing human language data will soon be more than for images and contextual information.
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4 drivers affecting AI in the healthcare market
- The growing amount of medical data: According to the DATCON index, the healthcare data explosion will exceed 10 trillion gigabytes by 2025 (source ). Now AI algorithms can help operate it and give important insights.
- Emerging global issues: COVID-19 has become a litmus test for identifying problems in healthcare. Medical AI can enable healthcare providers to do more with less. Moreover, it can revolutionize AI and the healthcare market and pay more attention to prediction than treatment.
- Population aging: With the increase in life expectancy, people need more medical help and care. AI-enabled technologies can help people to live healthier and longer lives.
- Lack of medical staff: With a shortage of medical workers, the duties and burden on existing employees increase. That leads to mistakes and negatively affects performance and patient care. AI can help automate routine tasks and give new opportunities for treatment.
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Regional analysis
North America has a dominant position in the healthcare artificial intelligence market. Healthcare companies in the USA have great support from the government. Moreover, the public and private sectors have built a coordinated collaboration and managed to adopt AI technologies earlier.
The second-largest region in the AI healthcare market is Europe. Germany, the United Kingdom, France, Spain, Ireland, Switzerland, and Belgium are key players in life sciences (source ). They are focusing on R&D activity and biotechnology drug discovery.
Asia-Pacific region is a quickly growing market and is expected to register a CAGR of 8.5% by 2028. Because of the rising geriatric population, medical tourism, and the growing research activities, Asian countries accelerated the adoption of medical AI.
The healthcare artificial intelligence market in South America is focusing on developing Remote Patient Monitoring (RPM) and telehealth. The Middle East and Africa will grow more slowly than other regions. Their focus is AI-based telehealth services and increasing collaborations between healthcare facilities.
Tech giants in a competitive landscape
Big tech giants have been accelerating their pursuit of the AI healthcare market for the last several years. They make collaborations, develop AI-powered solutions, and invest in AI startups intensively.
- Google is building its life science brand and actively uses AI for its purpose. DeepMind, the artificial intelligence company owned by Google, is the key player in this market. Google focuses on AI pharmaceutical R&D, radiology, and imaging. Also, it is interested in healthcare search and unstructured data analysis.
- Microsoft is a leader in health IT services. Azure Cloud is becoming the leading environment for enterprises' provider-focused software. Besides, Microsoft Corporation is competing to collect and sell medical data.
- Amazon has its HIPAA -appropriated cloud service for healthcare data processing. It is also focused on AI precision medicine, medical supply chain, insurance, and care delivery.
- Apple holds the largest share of wearable devices. iPhone and Apple Watch are mainly used for gathering patients' data for further processing with AI. Besides, Apple's Health App offers a patient-doctor environment with multiple functions via iPhone.
Top 10 AI healthcare companies
- DeepMind (US) is Google's daughter company famous for its breast cancer screening tool, radiological solutions for eye disease detection, and so on.
- Augmedix (US) is a medical documentation expert. They developed an AI-based solution to extract data from doctor-patient conversations, convert it into text notes, and insert it into the EHR system.
- CloudMedX Health (US) uses NLP and Deep Learning to analyze data EMRs and clinical notes to give clinicians insights about a patient's health state and new approaches to disease treatment.
- Babylon Health (UK) gives remote consultation services, gathering patients' complaints and organizing voice or video calls with the relevant doctors round-the-clock.
- Corti (Denmark) is an AI-powered assistant that can identify a heart attack by analyzing a patient's voice, comparing it with his medical history, and informing medical staff.
- Butterfly Network (US) has developed a portable ultrasound imaging system. It uses Ultrasound-on-Chip technology and combines semiconductors, AI, and cloud technology in pocket form.
- Enlitic (US) is a medical company that uses deep learning to analyze huge amounts of medical images and other data for new insights.
- Arterys (US) has invented an AI-powered solution for examining radiologic images. It is also cloud-based and FDA-cleared.
- Caption Health (US) focuses on early disease detection using their ultrasound interpreting device. The AI-backed diagnostic tool lets every physician examine any part of the body.
- Behold.ai (UK) helps radiologists examine radiology images using AI. They trained an algorithm that can detect anomalies in various types of medical images and scans with 90% accuracy.
Conclusion
Statistics demonstrate the growing use of artificial intelligence in healthcare. We observe remarkable results, growing trust of medical providers in AI, and investors' interest in developing AI-enabled healthcare solutions.
It seems like we can expect great advances soon, and only a lack of skilled specialists and inefficient cooperation between the public and private sectors are slowing down the development of the healthcare AI market.
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