“Global Artificial Intelligence (AI) in Healthcare Market to reach a market value of USD 237.9 Billion by 2031 growing at a CAGR of 41.3%”
The Global Artificial Intelligence (AI) in Healthcare Market size is expected to reach $237.9 billion by 2031, rising at a market growth of 41.3% CAGR during the forecast period.
AI-powered cybersecurity solutions can analyze vast amounts of data to detect and prevent cyber threats like malware, ransomware, and phishing attacks. By analyzing patterns and anomalies in network traffic, AI algorithms can identify suspicious behavior and take proactive measures to mitigate cybersecurity risks. Consequently, the cybersecurity segment would acquire nearly, 7% of the total market share by 2031. AI algorithms can analyze user behavior and network activity to detect anomalous behavior that may indicate a cybersecurity threat.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, in March, 2024, NVIDIA Corporation released NVIDIA NIM, a new suite of healthcare microservices and workflows containing industry-standard APIs for building and deploying cloud-native applications. Moreover, in November, 2023, Koninklijke Philips N.V. released a suite of AI-powered healthcare solutions. The new suite consists of EPIQ Elite 10.0 and Philips Affiniti ultrasound systems, two new AI-powered ultrasound systems that come with a single-user interface integrated with shared transducers and an automation facility for a better user experience. Additionally, Philips launched Philips HealthSuite Imaging, a cloud-based version of Philips Vue PACS that allows clinicians to enhance operational efficiency.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Market. In December, 2023, Google LLC announced the launch of MedLM, a suite of foundation models for facilitating healthcare organizations in streamlining their operations. The MedLM models are powered by AI and are based on previous Med-PaLM to provide flexibility in operations. Companies such as NVIDIA Corporation, Amazon Web Services, Inc. and Oracle Corporation are some of the key innovators in Market.
AI-powered diagnostic tools played a crucial role in rapidly and accurately detecting COVID-19 cases. AI algorithms analyze medical imaging data such as chest X-rays and CT scans to identify patterns indicative of COVID-19 infection, assisting radiologists and clinicians in triaging patients, prioritizing resources, and making timely treatment decisions. The COVID-19 pandemic fueled the adoption of remote monitoring and telemedicine solutions, driven by social distancing measures and the need to minimize in-person interactions. AI-enabled remote monitoring devices and telemedicine platforms support virtual consultations, remote patient monitoring, and digital health interventions, ensuring continuity of care while reducing the risk of virus transmission. Thus, the COVID-19 pandemic had a positive effect on the market.
Surgical robots with AI capabilities enhance precision, dexterity, and control during minimally invasive procedures, such as robotic-assisted surgery and image-guided interventions. Robotics and AI-powered assistive technologies support rehabilitation and mobility for patients with neurological, musculoskeletal, and mobility impairments. Thus, because of the healthcare robotics and automation, the market is anticipated to increase significantly.
AI-based tools enable remote monitoring of elderly individuals' health status and daily activities. Wearable devices, smart home sensors, and AI-powered monitoring systems can track vital signs, detect falls, and monitor medication adherence, providing real-time alerts and assistance to ensure the safety and well-being of elderly individuals living alone or with limited caregiver support. Fall detection and emergency response tools powered by AI help reduce the likelihood of falls and incidents among the elderly, particularly those who struggle with mobility or balance. Therefore, the market is expanding significantly due to the growing potential of AI-based tools for elderly care.
Regulatory frameworks for AI in healthcare are still evolving, with regulators grappling with novel challenges posed by AI-driven technologies, such as algorithmic transparency, accountability, and liability. Costs associated with regulatory compliance, such as conducting clinical trials, obtaining regulatory approvals, and maintaining documentation and quality management systems, can be prohibitive, particularly for startups, small businesses, and research initiatives with limited resources or funding. Thus, regulatory, and legal challenges can slow down the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of offering, the market is segmented into hardware, software, and services. The hardware segment acquired 30% revenue share in the market in 2023. Edge computing devices, such as IoT devices, wearables, and medical devices, provide the processing power needed to run AI algorithms at the point of care. By processing data locally on edge devices, AI-powered healthcare applications can provide real-time insights and decision support to healthcare providers without relying on a centralized cloud infrastructure, improving speed, security, and privacy.
By technology, the market is classified into machine learning, natural language processing, context-aware computing, and computer vision. The context-aware computing segment acquired 29% revenue share in the market in 2023. Context-aware AI systems analyze various data sources, including patient health records, real-time patient monitoring data, medical imaging, and historical treatment outcomes. These systems consider the specific context of each patient, including their medical history, current condition, and environmental factors, to provide tailored and timely interventions.
By end-use, the market is divided into healthcare providers, healthcare payers, healthcare companies, patients, and others. The healthcare payers segment covered a 23% revenue share in the market in 2023. Healthcare payers are using AI to optimize their provider networks and improve the quality and efficiency of healthcare services. AI algorithms can analyze provider performance data, patient outcomes, and other relevant metrics to identify high-performing providers, streamline network management, and improve the quality of care for members.
Based on application, the market is categorized into patient data & risk analysis, precision medicine, drug discovery & development, lifestyle management & remote patient monitoring, virtual assistants, wearables, in-patient care & hospital management, research, mental health, healthcare assistance robots, connected machines, and cybersecurity. The research segment garnered 14% revenue share in the market in 2023. AI enables large-scale genomic and clinical data analysis to identify patient subgroups and tailor treatments to individual patients. Machine learning algorithms identify biomarkers, predict treatment responses, and optimize treatment plans, ultimately improving treatment efficacy and patient outcomes.
Free Valuable Insights: Global Artificial Intelligence (AI) in Healthcare Market size to reach USD 2.5 Billion by 2031
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region led the market by generating 40% revenue share. North America has a thriving ecosystem of AI startups and innovation hubs focused on healthcare. Hospitals, clinics, and healthcare systems across North America are increasingly adopting AI technologies to improve patient care, enhance clinical workflows, and optimize healthcare operations.
The competition in the market is intense and dynamic, driven by technological advancements, regulatory changes, and growing demand for innovative healthcare solutions. Key players such as Google LLC and Microsoft Corporation are investing heavily in AI-driven healthcare platforms, clinical decision support systems, and predictive analytics tools. Startups and niche players are also making significant strides with specialized AI applications in medical imaging, drug discovery, and patient care management. This competitive landscape fosters innovation and pushes the boundaries of AI's potential in transforming healthcare delivery and outcomes.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 15.5 Billion |
| Market size forecast in 2031 | USD 237.9 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 41.3% from 2024 to 2031 |
| Number of Pages | 553 |
| Number of Tables | 823 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Offering, Technology, Application, End-use, Region |
| Country scope |
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| Companies Included | Koninklijke Philips N.V., Microsoft Corporation, Siemens Healthineers AG (Siemens AG), Intel Corporation, NVIDIA Corporation, Google LLC (Alphabet Inc.), GE HealthCare Technologies, Inc., Medtronic PLC, Amazon Web Services, Inc. (Amazon.com, Inc.) and Oracle Corporation |
By Offering
By Technology
By End-use
By Application
By Geography
This Market size is expected to reach $237.9 billion by 2031.
Healthcare robotics and automation are driving the Market in coming years, however, Significant regulatory and legal challenges restraints the growth of the Market.
Koninklijke Philips N.V., Microsoft Corporation, Siemens Healthineers AG (Siemens AG), Intel Corporation, NVIDIA Corporation, Google LLC (Alphabet Inc.), GE HealthCare Technologies, Inc., Medtronic PLC, Amazon Web Services, Inc. (Amazon.com, Inc.) and Oracle Corporation
The expected CAGR of this Market is 41.3% from 2024 to 2031.
The Healthcare Providers segment led the Market by End-use in 2023; thereby, achieving a market value of $88.5 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $92 billion by 2031.
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