Healthcare Artificial Intelligence Market Size, Share, Opportunities, And Trends By Application (Medical Imaging And Diagnostics, Precision Medicines, Lifestyle Management, And Monitoring, Virtual Assistant, Wearables, Inpatient Care And Hospital Management, Drug Discovery And Development, Research), By Offering (Hardware, Software, Services), And By Geography - Forecasts From 2024 To 2029

The healthcare artificial intelligence market is expected to grow at a CAGR of 40.41%, reaching a market size of US$106.756 billion in 2029 from US$19.563 billion in 2024.

AI in healthcare is the application of artificial intelligence (AI) technologies and methodologies to enhance patient care, diagnosis, treatment, and overall operations within the healthcare industry. Continuous digitization of healthcare is the major factor driving the healthcare artificial intelligence market’s growth. This growth can also be attributed to increased investments in AI by pharmaceutical and MedTech companies interested in improving their operational efficiency.

AI makes early disease detection and diagnosis possible, which significantly helps medical practitioners. There are several reasons why the healthcare AI market is expanding at a very fast rate: the rising application of precision medicine, more emphasis on big data within healthcare service provision, a need for optimizing healthcare spending, and low hardware prices.

What are the healthcare artificial intelligence market growth drivers?

• Rising implementation of artificial intelligence and robotics is transforming the healthcare industry

AI has been rapidly changing the global healthcare sector in recent years. It has introduced previously unheard-of patient care, diagnosis, and treatment resources. In response to this increasing demand, healthcare providers are concentrating on technological developments that improve the identification and management of various clinical indications. In addition, several technologies, including virtual assistants, can be used to track patient health and send medication alerts, provide e-consultations, change patient symptom checking, and much more to enhance patient care. For example, "NVIDIA AI Enterprise," a new artificial intelligence tool from NVIDIA Corporation, aids in visualizing AI workload on NVIDIA Certified systems.

• Increased investments are anticipated to drive the market growth

The market is expected to grow due to increased investments made by MedTech and pharmaceutical companies in AI in healthcare to grow their businesses. Additionally, medical professionals can detect and diagnose diseases earlier due to AI. As a result, most healthcare providers in the sector have increased their investments. Moreover, in some countries worldwide, including developed and developing countries, the national spending on healthcare keeps increasing. This implies that several sectors, like healthcare, are increasingly embracing artificial intelligence technologies. For instance, the World Economic Forum projects an investment of USD 11.78 billion by India towards AI by 2025.

• High demand for remote patient monitoring

With remote patient monitoring, people can check their health from their homes to reduce frequent hospital trips. This is because it reduces travel, waiting room-related problems, and other inconveniences associated with health services, leading to increased patient satisfaction. It also improves access to healthcare, especially for residents in remote areas. Patients can now reach medical practitioners and receive the best medical services, regardless of their location. Medical professionals can easily detect any abnormalities or shifts in a patient’s condition using AI-powered medical equipment for instant supervision. The application of AI in healthcare enhances its effectiveness and efficiency, which are vital in remote patient monitoring.

• Increased occurrence of chronic disorders among the masses

Lately, sedentary lifestyles with increased sitting hours, decline in exercise, and bad diets have contributed to the rise in chronic diseases. These lifestyle factors are leading to obesity, diabetes, and various cardiovascular diseases. Chronic illness also results from poor nutrition that involves many processed foods, sweetened drinks, and high-fat diets. Consequently, rising hospitalizations have been observed, and this calls for urgent AI-enabled therapeutic approaches to combat the prevalence of chronic diseases. AI in healthcare is assisting in screening and diagnosing various chronic diseases. Additionally, it assists medical practitioners in making correct decisions and diagnoses.

Major challenges hindering the growth of the healthcare artificial intelligence market:

• Increased complexities and high cost is anticipated to impede market growth

Nonetheless, the healthcare sector has not fully embraced AI despite its numerous potential applications. This is due to the challenges encountered by healthcare providers. For example, AI could make mistakes that lead to differences between the prescription drugs a patient takes and their diagnosis. Amongst those issues raised regarding this subject are low-quality medical data, inapplicable performance indices, research design flaws, data collection problems, ethical considerations, and social aspects. Some factors, like data privacy concerns, deter AI from being accepted in the health sector. Many countries have established legislation meant to protect patient health information. Violation of this regulation can lead to financial or legal penalties.

What are the emerging markets for healthcare artificial intelligence globally?

• Asia Pacific is witnessing exponential growth during the forecast period

In the upcoming years, the healthcare AI market in Asia Pacific is expected to grow significantly. This growth is propelled by several factors, including fast technological advancements in information systems and an increase in companies based on artificial intelligence. Adoption rates within the region are typically driven by rising investments from private investors and venture capitalists whose objectives include improving clinical outcomes, enhancing data security and analysis, and cutting costs. Additionally, positive government initiatives encourage and support health practitioners' adoption of AI-based technologies; such measures are likely to spur further market expansion.

Recent developments in the healthcare artificial intelligence market

• In March 2024, Microsoft and NVIDIA collaborated to boost AI innovation and speed up computing power. Through this partnership, NVIDIA's Clara suite and DGX Cloud are combined with Microsoft Azure's worldwide reach and cutting-edge computing to spur innovation and enhance patient care.
• In September 2023, Leading science and technology company Merck announced two new strategic partnerships for drug discovery that will help the company advance its research by utilizing strong AI-driven design and discovery capabilities. The collaborations with Exscientia in Oxford, UK, and BenevolentAI in London, UK, are anticipated to produce several innovative clinical development drug candidates with best- and first-in-class potential in the important therapeutic domains of immunology, neurology, and oncology. Thanks to the convergence of science, data, and AI, they are committed to accelerating the development of fresh, truly innovative candidates to pave the way for hitherto unthinkable medical advancements.

Healthcare Artificial Intelligence Market Scope:

The Healthcare artificial intelligence market is analyzed into the following segments:

• By Application
  • Medical Imaging and Diagnostics
  • Precision Medicines
  • Lifestyle Management and Monitoring
  • Virtual Assistant
  • Wearables
  • Inpatient Care and Hospital Management
  • Drug Discovery and Development
  • Research
• By offering
  • Hardware
  • Software
  • Services
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Other