by Artificial Intelligence in healthcare involves development and application of computational and algorithm based tools and techniques that analyze complex medical and health data to help medical professionals facilitate improved medical diagnosis and treatment outcomes.
Artificial intelligence can help advance healthcare by analyzing patterns in large amounts of medical data, including symptoms, treatment plans, medical histories and patient information to help doctors make better informed decisions. AI tools are also being used in precision medicine, by providing clinicians real-time, patient-specific recommendations that can help them deliver personalized care.
Global artificial intelligence in healthcare market is estimated to be valued at USD 20.81 Bn in 2024 and is expected to reach USD 205.12 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 38.7% from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the Artificial Intelligence in Healthcare are Microsoft, IBM Corporation, NVIDIA Corporation, Intel Corporation, Google Inc., General Vision Inc., Siemens Healthineers AG, andGE Healthcare.
Growing demand: The Artificial Intelligence in Healthcare Market Demand is mainly driven by factors such as rising demand for precision medicine, increasing investments in AI healthcare startups, higher diagnostic accuracy, and improved patient outcomes provided by AI. AI tools can help deliver more precise and personalized clinical decisions at scale by leveraging deep learning and advanced analytics.
Global expansion: North America dominates the global artificial intelligence in the healthcare market due to growth in investment and funding for AI projects, the presence of key players in the region, and increasing application of AI in clinical trials. However, Asia Pacific is expected to grow at a high CAGR during the forecast period due to rising healthcare expenditure, increasing disposable income.
Market Key Trends
One of the key trends in the artificial intelligence in healthcare market is targeted therapies. AI is helping pharmaceutical companies develop targeted medicines by analyzing tumor gene sequencing and expression. Using AI, pharmaceutical firms can gain insights into biomarkers and develop customized drugs for specific gene mutations and molecular signatures in tumors. This is accelerating the shift toward precision medicines that are tailored for individual patients’ genetic profiles. With AI, pharmaceutical companies can optimize clinical trials, boost R&D productivity and develop targeted therapies directed at the molecular origins of cancer and other complex diseases.
Porter’s Analysis
Threat of new entrants: Due to large investment requirement in R&D and resources the threat of new entrants is low in this market. However, cloud based services are lowering the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate in this market. It is moderate as there are number of solution providers and buyers can easily switch to alternative solutions if not satisfied.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate in this market. There are many technology and platform providers and switching cost is also low.
Threat of new substitutes: There is very low threat of substitution as artificial intelligence is becoming integral part of healthcare sector. No other technology can fully substitute AI in areas like disease detection, drug discovery and precision medicine.
Competitive rivalry: The competitive rivalry in Artificial Intelligence In Healthcare Market News is very high in this market due to presence of technology giants and startups. All major players are investing heavily in R&D to develop new applications and stay ahead of competition.
Geographical Regions:
North America region currently holds the largest share of artificial intelligence in healthcare market and is expected to remain the top revenue generating region. This is mainly due to presence of large healthcare IT companies, huge healthcare spending and active government support for adoption of AI.
Asia Pacific region is poised to grow at the fastest pace during the forecast period. This is owing to rapidly increasing healthcare expenditure, large patient pool, growing internet penetration and focus of governments to adopt digital health solutions to provide cost effective and improved care. Countries like China and India offer massive growth opportunities for AI players.
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
