Generative AI in Healthcare Market - Application (Personalized Treatment, Patient Assistance, Patient Monitoring & Predictive Analytics, Medical Image Analysis & Diagnostics, Drug Discovery & Development), End-use, Global Forecast 2024 - 2032

Generative AI in Healthcare Market Size

Generative Artificial Intelligence (AI) in Healthcare Market size was valued at USD 1.8 billion in 2023 and is expected to reach USD 22.1 billion by end of 2032 growing at a CAGR of 32.6% over the analysis period. The surging demand for AI in healthcare stemmed from the transformative impact in healthcare industry revolutionizing medical practices, enhancing efficiency, and improving patient outcomes.  
 

The market has been attracted to generative AI due to its capacity to create reliable and innovative data, thereby improving diagnostics, replicating patient responses, and providing synthetic datasets for testing and training purposes. As reported in the article 2024 Life Sciences and Health Care Generative AI Outlook Survey, the healthcare industry is investing heavily in exposing the transformative possibilities of generative AI, with approximately 75% of major healthcare companies currently experimenting or planning to scale generative AI. Thus, the increasing traction for generative AI is opening up new opportunities in the healthcare sector.
 

Generative AI in healthcare refers to the application of artificial intelligence (AI) techniques that involve the generation of new and original data. Also, in the healthcare sector, generative AI is used for tasks such as generating synthetic medical images, creating virtual patient data for training healthcare algorithms, simulating disease progression, and even designing novel molecules for drug discovery.
 

Generative AI in Healthcare Market Trends

Health-tech companies are continually responding by developing integrated software solutions to pioneer in the competitive market. For instance, in December 2023, Merck introduced Aiddison, a pioneering software-as-a-service for drug discovery. This platform integrated a virtual design and manufacturability through Synthia retrosynthesis software application programing interface (API) integration. The launch aimed to expedite drug development with the ability to speed up to about 70% process compared to traditional process.
 

• Similarly, in August 2023, Cognizant expanded collaboration with Google Cloud, utilizing generative AI to enhance administrative processes, aiming for cost optimization and improved user experiences. This collaborative partnership aimed to strengthen the healthcare solutions, improved business efficiencies, and enhanced user experiences.
   
• Therefore, as the industry prioritized data-driven decision-making, generative AI's predictive capabilities became increasingly vital, contributing to improved patient outcomes and revolutionizing healthcare delivery. The convergence of the aforementioned drivers highlighted the generative AI's demand in coming years.
   

However, a significant restraining factor for generative AI in the healthcare market is the formidable challenge of data privacy and regulatory compliance. Ensuring the responsible and unbiased use of AI in healthcare, along with navigating complex regulatory frameworks, demands meticulous attention impeding the market demand.
 

Generative AI in Healthcare Market Analysis

Based on application, the generative AI in healthcare market is classified into personalized treatment, patient assistance, patient monitoring & predictive analytics, medical image analysis & diagnostics, drug discovery & development and other applications. The medical image analysis and diagnostics segment is expected to dominate, contributing significantly to revenue of USD 612.7 million in 2023 and poised to exhibit dominance throughout the forecast period.
 

• Generative AI rendered a remarkable progress in medical imaging analysis that transformed the diagnostic and treatment approaches.
   
• Leveraging generative AI enhanced the image quality, refined the disease detection, and customized the treatment plans for patients. For instance, techniques such as generative adversarial networks (GANs) employed to boost the quality and resolution of medical images. Comprising a generator creating synthetic images and a discriminator evaluating authenticity, GANs exemplified the generative AI that reshaped the landscape of medical imaging, offering potential advancements in precision, diagnostics, and personalized healthcare.
   
• Thus, the market growth has been propelled by the prominent advantage of generative AI in image analysis and diagnostics, showcasing its pivotal role in advancing and shaping the healthcare industry.

Based on end-use, the generative AI in healthcare market is classified into healthcare providers, pharmaceutical and life science companies, and healthcare payers. In 2023, the healthcare providers segment is expected to reach USD 11.8 billion by 2032.
 

• Healthcare providers, including hospitals, clinics, and diagnostic centers, emerged as dominant players in the generative AI in healthcare market. Their prominence is attributed to leveraging generative AI to streamline medical processes, enhance diagnostics, and optimize patient care. Also, the application of generative AI technologies within these healthcare settings has led to improved efficiency, accuracy in diagnostics, and overall advancements in healthcare delivery, establishing healthcare providers as key drivers of innovation and progress in the evolving landscape of healthcare technology.

In 2023, North America secured a substantial market share in the global generative AI in healthcare market and is expected to dominate throughout the forecast period.
 

• The dominance is boosted by the robust technological landscape and a well-established healthcare infrastructure, fostering a conducive environment for the adoption and integration of advanced AI solutions.
   
• Substantial investments in R&D, supported by both government and private sectors, drive the rapid growth of generative AI applications. The region hosts leading research institutions and AI-focused tech companies, fostering an innovative ecosystem.
   
• Further, emphasizing healthcare efficiency and precision medicine, North America's intensified interest in generative AI solidifies its pivotal role and prominence in shaping the trajectory of this technology within the healthcare sector.
   

Generative AI in Healthcare Market Share

The generative AI in Healthcare industry featured a robust competition among key players. Leading companies are actively developing and deploying innovative generative AI solutions for personalized medicine, drug discovery, and medical imaging. The sector is marked by a dynamic interplay of expertise and innovation, each striving to shape the future of healthcare through the integration of generative AI technologies.
 

Generative AI in Healthcare Market Companies

Prominent players operating in the generative AI in healthcare industry are as mentioned below:

• Epic Systems Corporation
• DiagnaMed Holdings Corp.
• Syntegra Medical Mind
• IBM Watson Health Corporation
• Google LLC
• Oracle Corporation
• Microsoft Corporation
• Nvidia Corporation
• Insilico Medicine
• Abridge AI Inc.
• ELEKS
• Persistent Systems
   

Generative AI in Healthcare Industry News:

• In October 2023, Harman, a subsidiary of Samsung Electronics, introduced HealthGPT, an innovative Healthcare Private Language Model (LLM). The advancement aimed to harnessed generative AI in enhancing patient care, medical research, and decision-making, positioning Harman for a strategic edge in the competitive generative AI market.
   
• In September 2023, Oracle introduced a generative AI service transformed for healthcare organizations. The Oracle Clinical Digital Assistant, integrated with Oracle's EHR solutions, enables providers to streamline tasks through voice commands, enhancing patient care focus. The launch of new solution is expected to broaden the Oracle capabilities and efficiency to maintain its position in competitive AI market.
   

The generative AI in healthcare market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:

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By Application, 2018 – 2032 (USD Million)

• Personalized treatment plans
• Virtual patient assistance
• Patient monitoring and predictive analytics
• Medical image analysis and diagnostics
• Drug discovery and development 
• Other applications

By End-use, 2018 – 2032 (USD Million)

• Healthcare providers
  • Hospitals
  • Clinics
  • Diagnostic centers
  • Other healthcare providers
• Pharmaceutical and life science companies
• Healthcare payers

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Rest of Middle East & Africa