The global artificial intelligence market in healthcare is expected to grow at a CAGR of 43.5% from 2018 to reach USD 27.60 billion by 2025.
The high growth of artificial intelligence market in healthcare is attributed to factors such as rising funding in healthcare artificial intelligence, growing demand of precision medicines, effective cost reduction in the healthcare expenditure, and accurate & early diagnosis of the chronic diseases and disorders.
However, reluctance in adopting AI technologies among the end users and lack of trust & potential risks associated with AI in healthcare is restricting the growth of this market to a certain extent. On the other hand, the ability of artificial intelligence in healthcare to improve patient outcomes, the growing potential of AI-based tools for geriatric patients, and high growth prospects in emerging economies offer significant growth opportunity in this market.
Software segment commanded the largest share of the global artificial intelligence market in healthcare in 2018. However, services segment is expected to grow at the fastest CAGR during the forecast period, owing to the technology developments in the Healthcare IT industry. Moreover, many of the global healthcare IT companies, medical device companies, and technology providers are continuously focusing on developing AI-based solutions for the healthcare industry.
Hospital workflow management accounted for the largest share of the global market in 2018. The large share of this segment is mainly attributed to greater penetration of AI-powered chatbots and smart speakers among healthcare providers. Increasing adoption of AI-based solutions for managing various administrative tasks, such as scheduling appointments and checking insurance coverage parameters are some of the key factors driving the growth of this market.
An in-depth analysis of the geographical scenario of the industry provides detailed qualitative and quantitative insights about the five major geographies (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa) along with the coverage of major countries in each region. North America commanded the largest share of the global healthcare artificial intelligence market in 2018, followed by Europe and Asia Pacific. The large share of this region is mainly attributed to the factors such as established IT infrastructure in healthcare, the presence of innovative software vendors and venture capitalists, rising adoption of EHR, and largest biopharmaceutical and biotechnological pipeline. Moreover, a rise in funding for new product development and an increasing number of startups for AI in healthcare are expected to drive the AI in healthcare market during the forecast period.
4. Market Overview 4.1. Introduction 4.2. Drivers 4.2.1. Rising Funding in Healthcare Artificial Intelligence 4.2.2. Growing Demand for Precision Medicines 4.2.3. Large Pool of Healthcare Data 4.2.4. AI to Reduce the Healthcare Cost 4.2.5. AI to Lead Efficient Diagnosis 4.3. Market Restraints 4.3.1. Reluctance in Adopting AI Technologies 4.3.2. Lack of Trust for Data Security 4.4. Market Opportunities 4.4.1. Outburst in Artificial Intelligence for Home Care and Hospitals 4.4.2. Artificial Intelligence in Healthcare to Improve Patient Outcomes 4.4.3. Growing Potential of AI-Based Tools for Geriatric Patients 4.5. Market Challenges 4.5.1. Ethical and Legal Issues in Healthcare Artificial Intelligence 4.5.2. Lack of Access to Curated Data 4.5.3. Lack of Interoperability amongst AI Solution Provided by Different Vendors
5. Industry Insights 5.1. Value Chain Analysis 5.2. Case Studies 5.2.1. Cognizant Developed an AI-Driven Machine Learning Solution to Identify Potential Drug-Seeking Behavior in Patients 5.2.2. Under Armour Developed an App That Uses IBM Watson Cognitive Computing Platform 5.2.3. Tempus and Mayo Clinic Team Up to Personalize Care for Cancer Patients 5.2.4. AI Solutions for Mental Health Building a Strong Support System for Patients 5.2.5. AI-Powered Virtual Assistants Enabling Efficient Doctor-Patient Communications 5.2.6. Cleveland Clinic to Identify Patients at Risk in ICU Using Cortana Intelligence
6. Global Artificial Intelligence in Healthcare Market, by Product 6.1. Introduction 6.2. Software 6.3. Hardware 6.4. Services 6.4.1. Installation and Integration 6.4.2. Support and MAIntenance
7. Global Artificial Intelligence in Healthcare Market, by Technology 7.1. Introduction 7.2. Natural Language Processing (NLP) 7.3. Machine Learning 7.4. Context Aware Processing 7.5. Querying Method
8. Global Artificial Intelligence in Healthcare Market, by Application 8.1. Introduction 8.2. Hospital Workflow Management 8.3. Patient Data and Risk Analytics 8.4. Drug Discovery 8.5. Medical Imaging and Diagnosis 8.6. Patient Management 8.7. Precision Medicine 8.8. Other Applications
9. Global Artificial Intelligence in Healthcare Market, by End User 9.1. Introduction 9.2. Hospital & Diagnostic Centers 9.3. Healthcare Payers 9.4. Pharmaceutical and Biotechnology Companies 9.5. Patients 9.6. Other End Users
10. Artificial Intelligence in Healthcare Market, by Region 10.1. Introduction 10.2. North America 10.2.1. U.S. 10.2.2. Canada 10.3. Europe 10.3.1. Germany 10.3.2. U.K. 10.3.3. France 10.3.4. Italy 10.3.5. Spain 10.3.6. Rest of Europe 10.4. Asia Pacific 10.4.1. China 10.4.2. Japan 10.4.3. India 10.4.4. Rest of Asia Pacific 10.5. Latin America 10.6. Middle East & Africa
11. Competitive Landscape 11.1. Introduction 11.2. Company Rankings 11.3. Competitive Situations and Trends 11.3.1. Acquisitions and Mergers 11.3.2. Agreement and Collaborations 11.3.3. Product Launches 11.3.4. Other Developments
12. Company Profiles 12.1. Intel Corporation 12.2. IBM Corporation 12.3. Nvidia Corporation 12.4. Microsoft Corporation 12.5. Alphabet Inc (Google Inc.) 12.6. General Electric (GE) Company 12.7. Enlitic, Inc. 12.8. Verint Systems 12.9. General Vision, Inc. 12.10. Welltok, Inc. 12.11. iCarbonX