Artificial Intelligence (AI) in Healthcare Market

Industry Overview

The global AI in healthcare market is expected to grow from USD 19.27 billion in 2023 to USD 187.7 billion by 2030 at a CAGR of 38.5% during the projected period ranging from 2025 to 2030.

Artificial Intelligence (AI) in healthcare refers to the use of the sophisticated technology to help in diagnostics and designing personalized treatment plans. It helps in enhancing operational efficiencies with the help of complex AI algorithms that facilitates analysis of complex and huge data sets of patients and their diagnosis and treatment procedures. This helps in predictive analytics and improves disease detection to offer better treatment outcomes by extracting actionable insights that support clinical decision-making. In short, integration of AI in different aspects of healthcare including virtual health assistants and robotic surgeries helps innovation and improvement in patient care and address challenges with data-driven solutions with utmost precision.

The global Artificial Intelligence (AI) in healthcare market is growing at a fast rate due to the growing need to interpret huge and complex data set sourced from electronic health records (EHRs), medical imaging scans, wearable devices, and genomic sequencing with more refined computing power. It is also attributed to the reduction in hardware cost as well as the growing adoption of AI platforms and solutions by the healthcare providers and payers.

The notable unwillingness among medical practitioners to accept AI-based technologies is a significant setback to the growth of the global AI in healthcare market. The growth opportunities to the market are offered by the higher efficiency and ability of AI-based tools for geriatric care and the benefits offered by the unexploited market in emerging countries such as China and India.

Market Segmentation

Insight by Offerings

The global Artificial Intelligence (AI) in healthcare market is divided on the basis of offerings into hardware, services, and software. Out of these segments, the software segment will account for the largest share in the market during the forecast period due to higher adoption of AI platforms and solutions by the healthcare payers and providers and the rise in the number of software companies. On the other hand, the processor subsegment of the hardware segment apart from network and memory, which is further subdivided into MPU, ASIC, GPU, and FPGA, is expected to account for the largest share in the market during the forecast period due to higher demand and usage.

Insight by Technology

The global Artificial Intelligence (AI) in healthcare market is divided by technology into machine learning, context-aware computing, natural language processing, and computer vision segments. Out of these technological divisions, the machine learning segment will account for the largest share in the market during the forecast period due to higher acceptance of the technology in various healthcare uses. The machine learning segment is further subdivided into unsupervised learning, deep learning, reinforcement learning, supervised learning, and others where the deep learning segment will hold the larger share. On the other hand, the context-aware computing segment is also expected to grow at the fastest rate due to the expansion of sophisticated soft and hard sensors.

Insight by Application

According to different applications, the global Artificial Intelligence (AI) in healthcare market is divided into patient data and risk analysis, virtual assistant, precision medicine, medical imaging & diagnostics, research, wearables, inpatient care & hospital management, lifestyle management & monitoring, drug discovery, healthcare assistance robots, emergency room & surgery, and mental health. Among all these applications segmentations, the inpatient care & hospital management and patient data and risk analysis segments will account for the larger share of the market during the forecast period due to the growing patient base and adoption of healthcare IT solutions.

Insight by End User

The different end users also divide the global Artificial Intelligence (AI) in healthcare market into hospitals and providers, healthcare payers, patients, pharmaceutical and biotechnology companies, and others. Among all these end users segments, the hospitals and providers segment will hold the largest share due to growing concern over better in-patient care in hospitals and higher acceptance of EHR in hospitals.

Global Artificial Intelligence (AI) in Healthcare Market Report Coverage

Industry Dynamics

Industry Trends

There is a notable upsurge in the funding for artificial intelligence in healthcare by several government agencies which is helping in the establishment of healthcare AI startups. Apart from this notable trend, another significant movement is the rising awareness among the end users about the potential benefits of AI in improving patient care and enhancing operational efficiency along with the outcomes.

Growth Drivers

One primary factor driving the growth of the global AI in healthcare market is the growing demand in the healthcare sector for enhanced efficiency, accuracy, and better patient outcomes. Another significant factor is the higher return on investment (ROI) as AI technologies have the transformative potential in different areas such as medical imaging analysis, predictive analytics, personalized treatment planning, and drug discovery. It is also attributed to the growing demand for precision medicine, higher demand for improvised healthcare services, and a significant rise in thew number of cross-industry partnerships and collaborations. The growing need for effective coordination among patients and healthcare employees, growing geriatric population, and rising need to decrease healthcare costs along with the shortage of healthcare workers are also facilitating the growth for the artificial intelligence in the healthcare market.

Challenges

Some of the main factors that hinders the growth of the global AI in healthcare market include the lack of curated healthcare data and skilled AI workforce, unclear and strict regulatory rules for medical software, the issues with interoperability among AI solutions offered by different vendors, and the growing concerns over data privacy.

Opportunities

The rising emphasis on building human-aware AI systems, increase in the geriatric population that influences health, social, and economic outcomes of emerging economies, and strategic mergers & acquisitions play a significant role in shaping the healthcare AI market landscape and offers significant growth opportunities.

Geographic Overview

North America surpasses other regions in the global AI in the healthcare market due to the presence of a large number of major players of hardware and software providers in this region offering plenty of opportunities for end users to adopt technologically advanced solutions. In addition, the higher adoption of AI technologies across a wide range of care process is also facilitating the market growth in this region.

The Asia-Pacific market will also grow at a fast rate during the forecast period due to rising healthcare expenditure, growth in medical tourism, growing geriatric population, and improving healthcare infrastructure in the region.

Competitive Insight

Key players in AI in the healthcare market are catering to the demand of these devices by investing in technologically advanced products in their product portfolio across the globe.

Nvidia Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. AI-powered medical devices can help clinicians detect and measure anomalies, up-level surgical skills, enhance image quality, and optimize workflows. 

Medtronic develop and design AI-enabled technologies to empower users, including patients and healthcare. Artificial intelligence, data analytics, and sensors can help clinicians create individualized treatment plans, driving toward better patient outcomes.

NVIDIA Corporation, Google, Inc., Medtronic PLC, Intel Corporation, General Electric (GE) Company, IBM Corporation, Microsoft Corporation, and Micron Technology are the key players offering artificial intelligence in healthcare.

Recent Developments by Key Players

Amazon Web Services (AWS), an Amazon.com company and NVIDIA has announced that the new NVIDIA Blackwell GPU platform that is unveiled by NVIDIA . AWS will offer the NVIDIA GB200 Grace Blackwell Superchip and B100 Tensor Core GPUs, extending the companies’ long standing strategic collaboration to deliver the most secure and advanced infrastructure, software, and services to help customers unlock new generative artificial intelligence (AI) capabilities.

NVIDIA collaborated with Medtronic, the world’s largest healthcare technology provider, to accelerate the development of AI in the healthcare system and bring new AI-based solutions into patient care.

The Artificial Intelligence (AI) in Healthcare Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.

Segments Covered in the Report

• By Offerings
  • Hardware
  • Services
  • Software
• By Technology
  • Machine learning
  • Context-aware computing
  • Natural language processing
  • Computer vision
• By Application
  • Patient data and risk analysis
  • Virtual assistant
  • Precision medicine
  • Medical imaging & diagnostics
  • Research
  • Wearables
  • Inpatient care & hospital management
  • Lifestyle management & monitoring
  • Drug discovery
  • Healthcare assistance robots
  • Emergency room & surgery
  • Mental health
• By End User
  • Hospitals and providers
  • Healthcare payers
  • Patients
  • Pharmaceutical and biotechnology companies
  • Others

Region Covered in the Report

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Rest of the World (RoW)
  • Brazil
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Other Countries