According to a new report published by Allied Market Research, titled, “AI in healthcare Market by Offering, Algorithm, Application and End User: Opportunity Analysis and Industry Forecast, 2019–2027,"the AI in healthcare market was valued at $4,836.87million in 2019 and is projected to reach $99,491.58 million by 2027, registering a CAGR of 42.8% from 2020 to 2027.
Artificial intelligence assists the machines to perform any task without human interventions. It uses different algorithm and software that help the machine to inculcate perception and reasoning for various situations. AI is widely applicable in the healthcare sector for various purposes such as drug discovery and precision medicine. In addition, it is used to analyze patient’s medical data, predict disease onset, and personalize treatment provided to the patient.
Artificial intelligence is rapidly being adopted by government agencies, research industries among others so as to find a treatment against the viral infection. AI has emerged as a boon to control the COVID-19 pandemic and is widely being employed by policy makers, and medical professionals to manage the outbreak effect and accelerate its early detection, prevention, response, recovery and to pace the research.
Major factors that supplement the growth of the AI market in healthcare are the ability of AI to improve patient outcomes, need to increase coordination between healthcare workforce and patients, surge in adoption of precision medicine, and a significant rise in venture capital investments. In addition, increase in significance of big data in healthcare is expected to fuel the market growth. However, unclear regulatory scenario and reluctance among healthcare professionals to adopt AI-based technologies are expected to impede this growth. On the contrary, potential of AI-based tools for elderly care and the untapped potential of emerging markets, such as China and India, are expected to present various opportunities for market expansion.
By offering segment, market is divided in to hardware, software, and services. In terms of offerings, the software segment occupied the highest share in 2019, owing to continuous software innovation that caters to the requirement in the healthcare sector. An AI software is capable of learning things in real sense, and recognizes patterns in digital representations of sounds, images, and other data. The hardware segment is projected to witness the highest growth rate of during the forecast period.
By algorithm, the market is bifurcated intodeep learning, querying method, natural language processing, and context aware processing. The natural language processing segment occupied the highest share in 2019, as it plays a vital role in decision-making process of the healthcare professionals. As machine learning and deep learning capabilities of artificial intelligence achieve better clinical outcomes during diagnosis and surgical procedure, it is expected to grow at the highest CAGR during the forecast period.
The AI in healthcare market is segmented based on offering, algorithm, application, end user, and region. On the basis of offering, the market is divided into hardware, software, and services. By algorithm, it is classified into deep learning, querying method, natural language processing, and context aware processing. The application segment includes robot-assisted surgery, virtual nursing assistant, administrative workflow assistance, fraud detection, dosage error reduction, clinical trial participant identifier, preliminary diagnosis, and others. Depending on end user, the market is fragmented into healthcare providers, pharmaceutical & Biotechnology Companies, patients, and payer. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key findings of the study
By offerings, the software segment occupied 64.4% share of the AI in healthcare market in 2019.
By algorithm, the natural language processingsegment is anticipated to grow with the highest CAGR throughout the forecast period.
By region, the Asia-Pacific AI in healthcare market is anticipated to experience growth at 48.0% during the forecast period.
Prominent players in the AI in healthcare market have adopted various strategies such as developing advanced AI in healthcare thereby addressing the evolving healthcare needs among patients and healthcare
providers.The report provides extensive competitive analysis and profiles of key market players, such as Alphabet Inc., Enlitic Inc, General Vision, iCarbonX, Intel Corporation, IBM Corporation, Microsoft Corporation, Nvidia Corporation, Next IT Corp and Welltok Inc.