Artificial Intelligence in Healthcare Market is Estimated to Witness High Growth Owing to Increased Usage in Medical Diagnostics
Artificial intelligence (AI) in healthcare refers to the use of advanced analytical techniques—including machine learning, neural networks, and natural language processing—to analyze physiological, environmental, and genetic factors and help physicians and healthcare providers deliver quality healthcare services. AI has a wide range of applications, including medical imaging diagnosis, drug discovery, precision medicine, genome analysis, and public health monitoring. The growing need to improve healthcare quality and accessibility while reducing costs has led to increased adoption of AI-powered solutions across medical applications.
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 operating in the Artificial Intelligence in Healthcare are IBM Corporation, Google LLC, Medtronic Plc, Koninklijke Philips N.V., Nvidia Corporation, Microsoft Corporation, iCarbonX, CloudMedx Inc., Atomwise Inc., and Next IT Corporation.
The key opportunities in the market include scope for enhanced healthcare services and improved patient outcomes through precision diagnostics and effective disease management. Growing investments by startups in developing AI-powered apps and platforms present lucrative growth opportunities.
Technological advances such as development of deep learning models, advanced algorithms, and improved computing power are fueling innovations in AI for medical imaging analysis, drug discovery, and personalized therapy development.
Market Drivers
The growth of the Artificial Intelligence In Healthcare Market Size can be attributed growing need to reduce rising healthcare costs, increasing investments by pharmaceutical companies in drug discovery and precision medicine, and shortage of healthcare professionals which is boosting adoption of AI systems for improved decision making. The development of innovative AI and machine learning solutions for critical healthcare applications will continue to drive market growth over the forecast period.
Current Challenges in Artificial Intelligence in Healthcare Market
The artificial intelligence in healthcare market is still in a nascent stage and faces several challenges. Healthcare data is complex with a lot of sensitive patient information which requires heightened security and privacy protocols. Integrating AI technologies with existing healthcare IT infrastructure is also a challenge due to technological and operational differences between the two domains. Lack of quality data, small datasets and data silos continue to limit the potential of AI. There is a clinical skills gap where physicians and nurses need to undergo extensive training to work with AI tools optimally. Regulatory frameworks are still evolving around key issues like algorithmic transparency, explainable AI, and liability in case of diagnostic or treatment errors. Wider acceptance and adoption of AI tools also require overcoming concerns around job disruption and skills obsolescence.
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