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AI in Healthcare Market Overview
The global artificial intelligence (AI) in healthcare market is expected to observe an extensive growth in the coming years, led by growing need for precision medicine, increasing application of big data in healthcare industry, and rising need for coordination between healthcare workforce and patients. The products in the global market are categorized as hardware, software and services, with software being the largest contributor in 2016 and the category is also projected to witness significant growth during the forecast period. Growing number of software companies and increasing demand of software based AI solutions are the key factors driving the growth of this product category.
Deep learning, natural language processing (NLP), querying method and context aware processing are some of the technologies used for AI in healthcare. The demand for NLP in healthcare has been growing mainly due to rise in unstructured clinical data. Since NLP technology extracts important clinical information from unstructured data and analyze it for enhancing processing and analytics.
AI in healthcare industry finds application in medical imaging and diagnostic, patient data and risk analysis, precision medicine, drug discovery, virtual assistant, inpatient care and hospital management, wearables, research, robot assisted surgery, fraud detection and others. Patient data and risk analysis application is projected to register considerable growth during the forecast period. Growing number of patient base and increasing adoption of healthcare IT solutions such as EHR in healthcare settings is expected to foster the growth of AI in patient data and risk analysis.
The key end user of AI in healthcare market include healthcare providers, pharmaceutical and biotechnology companies, healthcare payers and patients. AI in healthcare is mostly utilized by the healthcare providers, mainly due to increasing concern towards improving hospital in-patient care, growing adoption of EHR in hospitals, small to medium sized clinics and ambulatory care centers.
AI in Healthcare Market Dynamics
Growth Drivers and Restraints
The key factors that drive the growth of the industry include rise in need for coordination between healthcare workforce and patients, increasing application of Big Data in healthcare industry, ability of AI to improve patient outcomes, growing demand for precision medicine and increase in venture capital investments.
With the increasing use of big data in healthcare sector, the vast amount of data can be stored systematically, as big data makes it easier for hospital staff to work efficiently. In order to monitor blood pressure, heartbeat and respiratory rate sensors are used besides patient beds which alert the doctors and hospital staff if any change is observed in the patient condition. Big data also help to fight cancer and mapping the 3 billion DNA base pairs during treatment of cancer. Big data improves hospital administration by reducing the cost of care measurement and provide best clinical support.
Healthcare payers are also inclined towards the use of big data, as it helps in preventing the wide range of fraudulent claims of insurance. Due to various application of big data in healthcare sector, it has been continuously adopted by healthcare provider and payers Increasing volume of data helps AI to improve performance measurement by using related clinical and non-clinical data, leading to the growth of the AI in healthcare market.
Reluctance among healthcare providers for the use AI based solutions and stringent regulations for medical software are the factors impeding the growth of the global market.
Opportunities and Trends
AI solutions for elderly care and growing emerging economies provide immense opportunities for players in the AI in healthcare market. AI solution for senior care help them to stay in their home longer, with the use of smart sensors their movement can be tracked, and vital signs can be monitored by nurse or a family member. Also, if any change in health conditions is observed the smart sensors alert the concerned members. Such technological solutions have high potential in the market due to growing aging populations which in turn spurs the demand of advanced solutions.
Increase in funding for AI in healthcare is the key trend observed in the global market. For instance, iCarbonX, Welltok, Butterfly network, Apixio, and Pathway Genomics are some of the companies, that are being funded by different investors for providing AI based solutions in healthcare industry.
AI in Healthcare Insights by Geography
North America leads the global market due to presence of major AI providers including Intel Corporation, Google, Inc., IBM Corporation in the region. Other factors leading the market growth include, developed healthcare infrastructure, and growing aging population. Asia-Pacific is expected to witness the fastest growth during the forecast period. Increasing healthcare expenditure, continuously improving healthcare infrastructure due to growing medical tourism and growing aging population are the factors expected to support the growth of the Asia-Pacific AI in healthcare market.
AI in Healthcare Market Competitive Landscape
The competition is quite high in the global market as the players are focusing on developing advanced AI solutions for different healthcare application through partnership and collaborations.
In September 2017, IBM Corporation announced to make investment of $240 million in new laboratory with Massachusetts Institute of Technology to advance AI software, hardware in healthcare and cyber security. Through this investment, IBM Corporation will create the MIT-IBM Watson AI lab in partnership with MIT.
Key players in the global AI in healthcare market include Intel Corporation, IBM Corporation, Microsoft Corporation, Google, Inc., General Electric Company, NVIDIA Corporation, Medtronic Plc, Koninklijke Philips N.V., iCarbonX, Next IT Corp., Welltok, Inc., General Vision, Inc, Recursion Pharmaceuticals, Enlitic, Inc. Stryker Corporation, Deep Genomics, Inc., and Oncora Medical, Inc.
By Offering Type
By End User