Artificial Intelligence in Healthcare Market Analysis

Artificial Intelligence in Healthcare Market Analysis

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Based on the offering, the market is classified into software and services. The software segment dominated the market with revenue of USD 11.7 billion in 2023.
 

• Continuous improvements in machine learning algorithms enable more accurate predictions and analysis of medical data. Also, natural language processing (NLP) advancements enable AI software to interpret and generate human-like text, facilitating tasks such as medical transcription, clinical documentation, and patient communication. Such advantages associated with software segment is expected to spur the market growth.
   
• Furthermore, AI-driven software enhances medical imaging analysis, aiding in early disease detection and accurate diagnostics through techniques like computer vision and pattern recognition. These advancements enhance patient compliance and satisfaction, thereby augmenting the segmental growth.
   

Based on the application, the global artificial intelligence in healthcare market is classified into medical imaging & diagnosis, drug discovery, therapy planning, hospital workflow, wearables, virtual assistants, and other applications. The drug discovery segment dominated the market with market share of 28.1% in 2023.
 

• The traditional drug discovery process is time-consuming and expensive. AI can streamline this process by reducing the time and cost associated with bringing new drugs to market. Therefore, ccontinuous improvements in machine learning algorithms, deep learning, and natural language processing are enhancing the capabilities of AI systems in drug discovery.
   
• Furthermore, pharmaceutical companies are increasingly partnering with tech firms and academic institutions to leverage AI technology in drug discovery. These collaborations are driving innovation and accelerating the development of new therapies, thereby supplementing the market growth.
   

In 2023, North America secured a substantial market share of 46.2% in the global artificial intelligence in healthcare market and is expected to dominate throughout the forecast period.
 

• The region is expected to maintain its dominance owing to robust adoption trends witnessed by digital technologies in healthcare. Also, implementation of big data analysis in healthcare services is also observed in the U.S. market to prevent opioid abuse. Furthermore, increasing need to reduce fraud and enhance data security in healthcare sector is augmenting the adoption of healthcare AI services. Thus, the demand to enhance the quality-of-care delivery is anticipated to drive the industry growth in the coming years.
   
• Furthermore, Increased funding for big data analytics is a key aspect for improving healthcare artificial intelligence in the region. For instance, artificial intelligence has started transforming the healthcare by leveraging big data analytics to optimize better healthcare services. Similarly, IBM Watson examines patient’s data and provides treatment plans by combining attributes from external research, patient’s file, and clinical expertise.
   
• Such encouraging use of data analytics to improve cost, quality, and overall healthcare ecosystem is expected to supplement the regional market growth.  
   

Europe AI in healthcare market is expected to experience the second hight growth rate during the analysis period.
 

• Numerous efforts undertaken by European Union to stimulate use of healthcare artificial systems are expected to favor industry growth. For instance, European Union introduced an innovative technology to develop EHR across Europe and named as the European Health Records Organization (EHRO). Similarly, in October 2016, the executive body of the EU, organized workshop “Big data in health research” as a European action plan aimed at big data revolution for European funding in healthcare research. Therefore, supportive government policies and initiatives aimed at promoting digital health technologies and AI adoption in healthcare contribute significantly to market growth.
   

The Asia Pacific AI in healthcare market is expected to grow with a significant CAGR of 39.8% during the forecast period.
 

• The region has seen significant advancements in technology infrastructure, including 5G deployment and improved data connectivity. This supports the implementation of AI-powered healthcare solutions such as telemedicine, remote patient monitoring, and AI diagnostics. Therefore, the developing healthcare infrastructure will support Asia Pacific healthcare artificial intelligence market growth.
   
• Further, continuous R&D activities in Japan focused on developing new artificial intelligence-based solutions will optimistically impact healthcare artificial intelligence market growth. Similarly, in China, developments of big data analysis and increasing use of artificial intelligence technology in healthcare sector is expected to potentially drive the regional healthcare artificial intelligence market.