AI in Healthcare Market By Offering (Hardware, Software, and Services), By Technology (Machine Learning, NLP, Context-Aware Computing, and Computer Vision), and By Region, Trends, Analysis and Forecast till 2034

AI in Healthcare Market was valued at USD 29.2 Billion in 2024 and is projected to grow at a CAGR of 36.9% to reach USD 508.7 Billion by 2034.

Artificial intelligence (AI) is playing a constantly changing role in the healthcare industry, revolutionizing a number of areas including patient care, diagnosis, treatment planning, and administration. Major healthcare fields include diagnostics and imaging, drug development and discovery, early intervention and predictive analytics, chatbots and virtual health assistants, and remote patient monitoring can all benefit from the application of AI. Additionally, blockchain technology can be used to expand AI in healthcare. By offering a decentralized, impenetrable platform for managing and storing sensitive medical data, blockchain technology can be extremely helpful in guaranteeing the security of health data.

AI in Healthcare Market Key Drivers:

Increased in Demand of AI to Manage Complex Healthcare Data

Increasing adaptation of Artificial Intelligence in healthcare market by many big firms is expected to propel the Artificial Intelligence in Healthcare Market in forecasted years. Artificial Intelligence can ease many complex procedures associated with research and management stating prime example such as Data Integration and Aggregation to integrate and aggregate diverse healthcare data from multiple sources, including electronic health records (EHRs), medical imaging, genomic data, wearable devices and other Predictive Analytics in which AI-powered predictive analytics can forecast disease trends, patient outcomes, and resource needs based on historical data. Many startups going with the trend and concentrating of application of artificial intelligence specifically in field of healthcare which is expected to eliminate limited options application in healthcare and simultaneously boost the growth of AI in Healthcare Market in study years.

• For instance, in October 2023, according to Forbes, Microsoft Introduces New AI Tools To Help Harness the Potential of Medical Data. a way to aggregate data from several silos—such as image repositories, devices, claims management systems, and electronic health records—together. Additionally, the business is introducing new AI capabilities for healthcare with Azure AI, which will offer prebuilt models that may produce insights that physicians can actually use: clinical report simplification, which will assist in simplifying medical literature and terminology so that it can be shared with patients; patient timeline, which uses generative AI to analyze unstructured patient data to create a chronological timeline of the patient's medical history; and radiology insights, which offers quality checks and follow-up recommendations

Increase in Demand for AI based Tools in Healthcare

The demand for Artificial Intelligence based medical tools are increasing worldwide due to their minimal error while operating and fast results many healthcare firms and hospitals and small diagnostics centers are willing to switch to AI based machineries and tools in their facility which is expected to fuel the growth for AI in Healthcare Market in forecasted years. AI in hospitals and diagnostics centers can used for Radiology which can analyze image more accurately which comes with no human error as well as in Pathology AI tools help pathologists analyze pathology slides, aiding in the diagnosis of diseases like cancer. Additionally, increasing investment in the market to open up new options and to make healthcare related tools and machines accurate and cheaper can expand the customer base and may result in AI in Healthcare Market expansion.

• For instance, in March 2022, in collaboration with the Indian Institute of Science (IISc), Aster CMI Hospital has opened an artificial intelligence lab. According to the creator, the use of AI allows doctors to make more accurate diagnoses by analyzing patient patterns and treatment options. 

AI in Healthcare Market Restrains:

Lack of skilled workforce

As artificial intelligence (AI) is complicated, handling hardware or software that uses AI requires a professional team. Only institutions, hospitals, or healthcare companies with the capacity to make large capital investments are able to implement AI-based tools in their facilities, which could impede the growth of AI in the healthcare market in the years to come. This is because of the rapid development of AI algorithms worldwide, which has limited people's knowledge of handling and troubleshooting problems.

AI in Healthcare Market is segmented based on Offering, Technology, and region.

 Offering Insight

• Hardware: Hardware Segment is estimated to generate highest return on investment in study years due to lack of medical practitioners worldwide and increase in demand for accurate and fast tools for diagnostics purpose. Demand for AI based equipment are increasing due to low human errors and low chances of contamination during procedures.
• Software: software segment is estimated to witness highest revenue due to their ability to handle and solves complex data regarding healthcare. Healthcare sector is largest data producing sector worldwide and extraction and purification of data is the major step in every sector due to which demand for software in AI in Healthcare Market is Increasing.
• Services: Service Segment is expected to expand in study years due to increasing number of hospitals and healthcare companies. The need for handling and processing data is increasing as number of companies are increasing.

Technology Insights

• Machine Learning: machine learning segment is expected to generate highest revenue in digital healthcare due to its various advantages. ML is already implemented in healthcare chatbots and applications of ML are expected to increase as increase in research activities which may result In AI in Healthcare Market in study years.  
• NLP: NLP segment is estimated to witness highest revenue in forecasted years due to the expansion of hospitals and the shift from handwritten to digital medical records. Numerous public and commercial hospital organizations are working to improve hospital efficiency, which may increase the use of NLP in healthcare and lead to the Application of AI into the healthcare industry.
• Context-Aware Computing: Context-aware computing segment is estimated to generate highest revenue because This approach aims to improve patient care, optimize resource utilization, and enhance the efficiency of healthcare processes. By utilizing technology that can adapt and respond to its surroundings, hospitals can operate more efficiently, which may lead to an increase in demand for context-aware computing software and simultaneously expanding AI in Healthcare Market in forecasted years.
• Computer Vision: Computer Vision segment is estimated to witness high revenue in forecasted years due to their various application In Radiology, Pathology, Endoscopy and Surgical Assistance, Dermatology, Diagnostic Ophthalmology and Gesture Recognition for Rehabilitation which made it useful tool for investment in coming years.

Regional Insights:

AI in Healthcare Market Regional Insights

• North America market is estimated to witness a significantly high revenue share over the forecast period, owing to fact such as good hospital infrastructure and high investments. Moreover, growing disposable income to ability to afford expensive hospital services and digital healthcare products are expected to boost the demand for AI based Healthcare products in this region over the forecast period.
• Asia Pacific market is estimated to witness fastest revenue share due to increasing investments in region and presence of densely populated regions such as China and India and to overcome challenge for vast data and patients’ numbers. The demand for AI based tools is expected to increase during forecasted time.
• Europe Market is estimated to generate high return on investment during forecasted years due to presence of good medical facilities. Growing number of geriatric populations in region and rapid development of different treatment methods for them is expected to increase AI based tool in region in forecasted years.  
• Latin America is estimated to generate high revenue during forecasted years due to increasing investments by private firms and initiatives taken by government to promote healthcare industry with high end equipment can boost the demand for AI based tools in region.
• Middle East & Africa. Is expected to witness fastest revenue in forecasted years due to presence of major players such UAE, Israel and south Africa with high investments to set up high end medical facilities. Due to prevalence of some chronic diseases in some regions of Africa major private firms and government institutes are investing in region which is expected to fuel demand for AI based tools that are used in healthcare.  

Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2022 to 2032. For the purpose of this study, has segmented the AI in Healthcare Market report based on Type, Application and region:

AI in Healthcare Market, By Offering:

• Hardware
• Software
• Services

AI in Healthcare Market, By Technology:

• Machine Learning
• NLP
• Context-Aware Computing
• Computer Vision

AI in Healthcare Market, By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the AI in Healthcare Market includes, NVIDIA Corp., Intel Corp., IBM Corp., Google LLC, Microsoft Corp., AWS, Inc., General Vision Services, Inc., GE Healthcare, Inc., Siemens Healthineers, Inc., Medtronic PLC.

• In September 2023, Hint Health Introduces a Novel AI Product Driven by OpenAI to Strengthen Physician-Patient Bond. With the purpose of assisting practitioners in using technology to enhance rather than replace their treatment, this integration offers AI tooling to the thousands of Direct Primary treatment (DPC) physicians on the Hint platform. Direct Primary Care is bucking the decades-long trend of declining patient and physician access and satisfaction stemming from the insurance-based care models' technological arms race.

• NVIDIA Corp
• Intel Corp.
• IBM Corp.
• Google LLC
• Microsoft Corp.
• AWS, Inc.
• General Vision Services, Inc.
• GE Healthcare, Inc.
• Siemens Healthineers, Inc.
• Medtronic PLC