Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Artificial Intelligence in Healthcare market.
Trusted Business Insights presents an updated and Latest Study on Artificial Intelligence in Healthcare Market 2019-2026. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Artificial Intelligence in Healthcare market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Artificial Intelligence in Healthcare Market
The global artificial intelligence in healthcare market size was valued at USD 2.5 billion in 2018 and is anticipated to grow at a CAGR of 41.5% over the forecast period. The growing need for lowering healthcare costs, growing importance of big data in healthcare, rising adoption of precision medicine, and declining hardware costs are some factors driving growth. In addition, increasing applicability of AI-based tools in medical care and rise in venture capital investments can be attributed to the surge in demand for this technology. For instance, CarePredict, Inc. uses AI technology to monitor changes in behavior patterns and activity for early detection of health issues.
Increasing number of cross-industry partnerships is expected to boost adoption of AI in the healthcare sector, which is further responsible for its lucrative growth rate. In September 2018, GNS Healthcare entered into a cross-industry partnership with Alliance and Amgen for clinical trials in oncology. The collaboration was aimed at applying data from clinical trials and Artificial Intelligence (AI) to identify factors that expedite treatment responses in metastatic Colorectal Cancer (CRC) patients. Likewise, Microsoft announced partnership with Apollo Hospitals, one of the prominent healthcare systems in India, in March 2018. The partnership is focused on developing and deploying new machine learning models for predicting the risk of developing cardiac diseases and aid doctors in treatment planning.
Number of artificial intelligence start-ups in healthcare sector has significantly grown in past few years, and the trend is expected to be the same in the coming years, which will in turn, will positively impact the market. Rise in venture capital funding in this domain is a key factor accountable for increase in the number of these start-ups. For instance, in July 2018, Kleiner Perkins and GV invested USD 21 million in Viz.ai-an AI in healthcare start-up. Similarly, HealthPlix Technologies Pvt. Ltd. raised USD 3 million in a Series A funding round led by Kalaari capital and IDG Ventures India in July 2018. Some of the prominent venture capitalist firms operating in this sector are ACCEL PARTNERS, Data Collective, General Catalyst Partners, Khosla Ventures, and others.
Adoption of AI in healthcare is growing, with rise in focus on improving quality of patient care by utilizing artificial intelligence in various aspects of healthcare services, such as virtual assistants & surgeries. The AI-based tools, such as clinical decision support systems & voice recognition software, aid in streamlining workflow processes in hospitals and improving medical care, thereby enhancing patient experience.
Moreover, shortage of physicians in some countries is anticipated to increase the demand for AI technology. Few companies are engaged in developing such virtual assistants. For instance, in September 2017, Nuance Communications unveiled an AI-based virtual assistance designed specifically for healthcare providers and patients. The incorporation of AI in healthcare has various benefits for both patients as well as healthcare providers. For instance, AI enables personalized care, based on health condition and past medical history. Moreover, AI-based apps can be used for continuous monitoring of health, which would in turn ensure timely care & treatment and can eventually reduce hospital stay.
Component Insights of Artificial Intelligence in Healthcare Market
Software solutions segment held the largest share in the artificial intelligence in healthcare market in 2018. The development of AI-based software solutions for healthcare is one of the key factors boosting segment growth. For instance, Nuance Communications develops a software named Dragon Medical One. According to Nuance Communications, this software can help healthcare companies as well as providers transcribe a physicians speech into an Electronic Health Record (EHR) via natural language processing. Companies such as Google, IBM, and Microsoft are develop and offer machine learning framework.
Hardware segment is expected to grow with a CAGR 40.0% over the forecast period. The growing need for hardware platforms with high computing power to operate several AI-based software is one of the major factors contributing to segment growth. Processers such as ASICs, MPUs, GPUs, and FPGAs are used in AI-based platforms designed for use in healthcare.
The growth of services segment can majorly be attributed to the rising need for integration and deployment of AI solutions. Moreover, the rise in adoption of AI platforms in the healthcare sector has increased the need for maintenance and support services, which are imperative to keep the devices functional.
Application Insights of Artificial Intelligence in Healthcare Market
Clinical trials emerged as the largest segment in terms of application and was valued at USD 620.5 million in 2018. Unsuccessful clinical trials generally lead to delay/failure of launch of drug candidates in the market. In order to automate clinical trial processes, pharmaceutical companies are focusing on integrating them with artificial intelligence. According to an analysis published by Accenture, the annual value for clinical trial participant identifier is estimated to reach USD 13 billion by 2026 on using this technology.
The adoption of artificial intelligence in robotic-assisted surgery platforms is anticipated to grow at significant pace and the segment is expected to show a lucrative CAGR over the forecast period. Such robots can integrate information from actual surgical experiences to form new improved insights. Such improvement is expected to enhance overall surgical outcome, thereby, enhancing consumer trust on AI integration across surgery centers. Virtual assistant is another lucrative healthcare application of AI technology. AI-enabled virtual assistant can lower the number of physician visits required by a patient, as it can assist by remotely monitoring a patients symptoms and delivering alerts to the respective healthcare professional. In addition, these virtual assistants can save about 20% of the time a nurse by omitting unnecessary visits.
In 2018, North America dominated the global market. Rising adoption of healthcare IT solutions, well-established healthcare sector, and availability of funding for developing AI capabilities are some of the factors contributing to the growth of the market in the region. The U.S. held the largest revenue share in North America, and is anticipated to maintain its position over the forecast period. Advancements in technology and several government initiatives are aiding adoption of digital platforms in life sciences, which can also be attributed to this share.
Asia Pacific is expected to emerge as the fastest growing region. Improving infrastructure for healthcare IT, rising number of AI start-ups, and gradually increasing adoption of advanced technologies are some of the factors contributing to market growth. Rise in number of government initiatives for AI technology in this region is also expected to support growth. For instance, in March 2019, in South Korea, the Ministry of Science and ICT announced that it would initiate a trial service of an AI-based precision medicine service named Dr. Answer, in December 2019.
Market Share Insights of Artificial Intelligence in Healthcare Market
IBM Corporation; NVIDIA Corporation; Nuance Communications, Inc.; Microsoft; Intel Corporation; and DeepMind Technologies Limited are among the major players. Investments in R&D, collaborations with other industry participants, and service differentiation are among the key strategies adopted by these players for gaining a competitive edge. For instance, in February 2019, IBM Corporation announced a 10-year partnerships, including an investment of USD 50 million in AI research, with Vanderbilt University Medical Center and Brigham and Womens Hospital.
p2 Segments covered in the report
This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented global artificial intelligence in healthcare market report on the basis of component, application, and region:
Component Outlook (Revenue, USD Million, 2019 – 2030)
Application Outlook (Revenue, USD Million, 2019 – 2030)
Administrative Workflow Assistants
Dosage Error Reduction
Quick Read Table of Contents of this Report @ Artificial Intelligence in Healthcare Market, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)
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