Artificial Intelligence In Healthcare Industry Overview
The global AI in healthcare market size was estimated at USD 19.27 billion in 2023 and is expected to grow at a CAGR of 38.5% from 2024 to 2030.
One primary factor driving market growth is the increasing demand in the healthcare sector for enhanced efficiency, accuracy, and better patient outcomes. According to a March 2024 Microsoft-IDC study, 79% of healthcare organizations are presently utilizing AI technology. In addition, the return on investment (ROI) is realized within 14 months, generating USD 3.20 for every USD 1 invested in artificial intelligence (AI). AI technologies hold transformative potential in various areas including medical imaging analysis, predictive analytics, personalized treatment planning, and drug discovery, potentially transforming conventional healthcare practices.
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The exponential growth in healthcare data, sourced from electronic health records (EHRs), medical imaging scans, wearable devices, and genomic sequencing, presents significant opportunities for AI-powered solutions to extract actionable insights and support clinical decision-making. The shortage of healthcare workers is also driving the adoption of AI and machine learning (ML) technologies. According to the World Economic Forum estimates from May 2023, there will be a global health worker deficit of 10 million by 2030. Hence, AI algorithms can be trained to analyze patient health data, aiding care providers in rapid diagnosis and treatment planning. Supportive government initiatives and the COVID-19 impact along with a rise in technological collaborations & M&A activities have contributed to the market's growth and accelerated the adoption of AI in healthcare.
AI and ML algorithms are increasingly being used for rapid and accurate diagnosis, including the detection of COVID-19-positive cases using personalized patient data. For instance, a 2020 NCBI study found that AI-based algorithms accurately detected 68% of COVID-19-positive cases in a dataset of 25 patients initially diagnosed as negative by healthcare professionals. The implementation of AI and ML technologies aims to enhance patient care, reduce machine downtime, and lower care expenses, driving market growth. The pandemic has further accelerated the adoption of AI-based technologies, particularly in diagnostics, patient and medication management, claims processing, workflow optimization, machine integration, and cybersecurity within healthcare settings.
Browse through Grand View Research's Healthcare IT Industry Research Reports.
- The global electronic health records market size was estimated at USD 32.23 billion in 2023 and it is anticipated to grow at a CAGR of 4.43% from 2024 to 2030.
- The global cyber security market size was estimated at USD 222.66 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 12.3% from 2023 to 2030.
Artificial Intelligence In Healthcare Market Segmentation
Grand View Research, Inc. has segmented the global AI in healthcare market on the basis of component, application, technology, end-use, and region:
Artificial Intelligence (AI) In Healthcare Component Outlook (Revenue, USD Million, 2018 - 2030)
- Hardware
- Software Solutions
- Services
Artificial Intelligence (AI) In Healthcare Application Outlook (Revenue, USD Million, 2018 - 2030)
- Robot-assisted Surgery
- Virtual Assistants
- Administrative Workflow Assistants
- Connected Medical Devices
- Medical Imaging & Diagnostics
- Clinical Trials
- Fraud Detection
- Cybersecurity
- Dosage Error Reduction
- Precision Medicine
- Drug Discovery & Development
- Lifestyle Management & Remote Patient Monitoring
- Wearables
- Others (Patient Engagement, etc.)
Artificial Intelligence (AI) In Healthcare Technology Outlook (Revenue, USD Million, 2018 - 2030)
- Machine Learning
- Natural Language Processing
- Context-aware Computing
- Computer Vision
Artificial Intelligence (AI) In Healthcare End-user Outlook (Revenue, USD Million, 2018 - 2030)
- Healthcare Providers (Hospitals, Outpatient Facilities, and Others)
- Healthcare Payers
- Healthcare Companies (Pharmaceutical, Biotechnology, Medical Devices)
- Patients
- Others
Artificial Intelligence (AI) In Healthcare Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- US
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
- Russia
- Asia Pacific
- China
- India
- Japan
- Australia
- Singapore
- South Korea
- Thailand
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- South Africa
- Saudi Arabia
- UAE
- Kuwait
Key Companies profiled:
- Microsoft
- IBM
- NVIDIA Corporation
- Intel Corporation
- Itrex Group
- GE Healthcare
- Medtronic
- Oracle
- Medidata
- Merck
- IQVIA
Key Artificial Intelligence In Healthcare Company Insights
Market players are utilizing innovative product development strategies, partnerships, and mergers and acquisitions to expand their presence in response to the increasing demand for early and accurate disease detection, cost containment, addressing the shortage of healthcare providers, and providing value-based care.
AI Startup Ecosystem:
The AI healthcare industry is teeming with startups driven by the funding, investment and innovations. These startups leverage AI and machine learning to address various healthcare challenges, from medical imaging and diagnostics to drug discovery and telemedicine.
Recent Developments
- In March 2024, Microsoft collaborated with NVIDIA to enhance AI innovation and accelerate computing capabilities. This collaboration leverages Microsoft Azure's global scale and advanced computing along with NVIDIA’s DGX Cloud and Clara suite to accelerate innovation and improve patient care
“Microsoft is building on its longstanding collaboration with NVIDIA to empower the healthcare and life sciences industry with the power of Azure and generative AI, helping unlock new horizons for clinical research, drug discovery, and patient care worldwide. Through this collaboration, we aim to help the industry unlock breakthroughs in healthcare, making care more precise, accessible, and effective to deliver a meaningful difference in the lives of patients globally.”
- Peter Durlach, corporate vice president, Health & Life Sciences, Microsoft
- In March 2024, NVIDIA introduced new Generative AI Microservices to transform medical technology (MedTech), drug discovery, and digital health. This innovative approach aims to reshape healthcare technology by harnessing advanced AI capabilities
“For the first time in history, we can represent the world of biology and chemistry in a computer, making computer-aided drug discovery possible. By helping healthcare companies easily build and manage AI solutions, we’re enabling them to harness the full power and potential of generative AI.”
- Kimberly Powell, vice president of healthcare at NVIDIA
- In September 2023, Merck KGaA entered into a strategic collaboration with Exscientia and BenevolentAI to drive accelerated drug discovery with the integration of high-end AI platforms
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