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Artificial Intelligence (AI) in Healthcare Market Overview
The artificial intelligence (AI) in healthcare market is predicted to observe extensive growth in the coming years, driven by the surging demand for affordable healthcare, precision medicine, and coordination between healthcare workforce and patients as well as the expanding use of big data in the industry.
Software, services, and hardware are the various offerings of the industry, among which software has held the largest AI in healthcare market share historically. This was due to the surging requirement for AI solutions based on software in the healthcare industry and rising number of IT firms offering the same. For instance, Nuance Communications offers the Dragon Medical One software, which uses natural language processing (NLP) to create an electronic health record (EHR) from a physician’s speech. Apart from Nuance Communications, global IT giants such as IBM, Google, and Microsoft also offer AI solutions for the medical sector.
The major technologies on which healthcare AI solutions are based are NLP, querying method and context aware processing, and deep learning. The AI in healthcare market is currently led by NLP, owing to the increase in unstructured patient data, where the technology proves helpful in identifying and extracting the useful information, thereby leading to smoother and more-efficient analysis and processing.
Patient data and risk analysis, medical imaging and diagnostics, drug discovery, precision medicine, inpatient care and hospital management, virtual assistant, research, wearables, fraud detection, and robot-assisted surgery are the major applications of AI. Among these, the fastest AI in healthcare market growth is expected to be witnessed by the patient data and risk analysis application in the coming years. This would be due to the increasing pool of patients, as a result of the increase in the prevalence of several chronic diseases. Additionally, the surging adoption of IT solutions, such as EHRs, would also drive the growth of this application in the industry.
The AI in healthcare market comprises numerous end users, such as healthcare payers and patients, pharmaceutical and biotechnology companies, and healthcare providers. Among these, healthcare providers generate the highest revenue in the industry, as they heavily utilize such solutions for improving the in-patient care provided at healthcare settings. Additionally, the use of EHRs is increasing in ambulatory care centers, small and mid-scale clinics, and hospitals, which is further driving the adoption of AI technologies in the sector.
Presently, North America holds the largest AI in healthcare market share, due to the advanced healthcare sector, surging usage of healthcare IT (HIT) solutions, and growing funding for the development of such solutions. Among the regional countries, the U.S. has been the larger revenue contributor to the industry, and the situation in the coming years would be the same. This is primarily owed to the supportive government initiatives for the usage of digital platforms in the life sciences niche, and technological enhancements.
In the coming years, Asia-Pacific (APAC) would observe the highest CAGR in the AI in healthcare market, due to the bettering HIT infrastructure, rising adoption of improved medical technologies, and escalating number of IT start-ups. Additionally, the government of various regional nations is undertaking initiatives to advance the healthcare technology, which is further driving the industry progress. For instance, in March 2019, the Ministry of Science and ICT of South Korea announced that it would conduct trials of Dr. Answer, an AI-based precision medicine service, in December that year.
AI in Healthcare Market Dynamics
One of the key AI in healthcare market trends is the rise in the number of IT start-ups offering solutions for the medical sector. This is itself a result of the availability of increased venture capitalist funding for such firms. For instance, in 2018, Viz.ai-an, a start-up in the healthcare niche, received $21 million from Kleiner Perkins and GV. That year, $3 million was invested by IDG Ventures India, Kalaari Capital, and several other venture capitalists in HealthPlix Technologies Pvt. Ltd. Data Collective, Accel Partners, Khosla Ventures, and General Catalyst Partners are some other firms providing funds for HIT start-ups.
The rising adoption of big data tools in medical settings is among the most significant factors helping the AI in healthcare market advance. With big data, the storing of huge volumes of data, such as that generated by the multiparameter sensors at patients’ bedside, becomes easy. Additionally, with the technology, over 3 billion deoxyribonucleic acid (DNA) base pairs can be effectively mapped, which improves cancer treatment. Big data thus reduces the cost of healthcare, offers clinical support to medical professionals, and helps track and deal with fraudulent insurance claims.
Lucrative AI in healthcare market opportunities are being offered by the economic growth in developing countries and the increasing population of the elderly across the world. As the elderly are prone to illnesses and they cannot always go to a doctor, AI solutions help track their movement and vital signs, such as heart rate, blood pressure, oxygen saturation, body temperature, and respiratory rate. In the event of any anomaly in these parameters, sensors alert the caregivers about the same. According to the 2019 World Population Ageing report by the United Nations, the number of people above the age of 65 will rise from 703 million in 2019 to 1.5 billion by 2050.
AI in Healthcare Market Competitive Landscape
To stay on top of the competition, the major AI in healthcare market players are adopting technological research and development (R&D), collaborations, and mergers and acquisitions as the key business strategies. For instance, IBM Corporation announced 10-year partnerships with Brigham and Women’s Hospital and Vanderbilt University Medical Center, for the advancement of AI applications in the healthcare niche, in February 2019.
Other key players in the domain are Microsoft Corporation, Intel Corporation, General Electric Company, Google LLC, Medtronic PLC, NVIDIA Corporation, iCarbonX, Koninklijke Philips NV, Welltok Inc., Next IT Corp., Recursion Pharmaceuticals, General Vision Inc., Stryker Corporation, Enlitic Inc., Oncora Medical Inc., and Deep Genomics Inc.
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