Global Artificial Intelligence in Healthcare Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

The Global Artificial Intelligence (AI) in Healthcare Market has been segmented into several key categories, including Offering, Technology, Application, and End-User, each contributing to the rapid growth and adoption of AI solutions in healthcare. By Offering, the market is divided into Software Solutions, Hardware, and Services. Software Solutions play a major role in the market, with AI-powered applications used for diagnostics, personalized medicine, medical imaging, and patient monitoring. These solutions leverage advanced algorithms like machine learning and natural language processing to improve the accuracy and efficiency of healthcare services. Hardware in the form of AI-enabled medical devices, diagnostic tools, and robotics is essential for gathering and processing data, especially in applications like robot-assisted surgery and imaging. The Services segment, which includes AI system integration, consulting, and maintenance, is also crucial for ensuring successful implementation and continuous support of AI technologies in healthcare settings.

In terms of Technology, the market is driven by innovations in Machine Learning, Context-Aware Computing, Natural Language Processing (NLP), Deep Learning, Querying Method, and Others. Machine Learning and Deep Learning are widely used for data analysis in applications such as medical imaging and predictive diagnostics, offering improved diagnostic accuracy and operational efficiency. Context-Aware Computing enables AI systems to adapt to real-time patient data, while NLP enhances the interpretation of unstructured clinical data, such as medical records, to streamline decision-making. Querying Methods help in real-time access to health data and clinical knowledge, empowering healthcare providers with timely insights. These technologies collectively enable AI solutions to deliver more personalized, precise, and efficient healthcare services.

By Application, AI is applied across a wide range of use cases in healthcare, including Robot-Assisted Surgery, Virtual Assistants, Administrative Workflow Assistants, Connected Machines, Diagnosis, Clinical Trials, Fraud Detection, Cybersecurity, and Dosage Error Reduction. Robot-Assisted Surgery and Connected Machines benefit from AI for precision and real-time decision-making, improving surgical outcomes and patient monitoring. Virtual Assistants and Administrative Workflow Assistants leverage AI to automate routine tasks like scheduling, patient communication, and billing, improving overall efficiency. AI is also making significant strides in Diagnosis and Clinical Trials, offering faster and more accurate results, while applications in Fraud Detection and Cybersecurity help safeguard sensitive health data. Dosage Error Reduction is a key focus of AI in healthcare, minimizing human error in prescribing treatments. Finally, the End-User segmentation, including Healthcare Providers, Pharmaceutical and Biotechnology Companies, Patients, and Others, illustrates the broad adoption of AI technologies across the healthcare ecosystem, with each end user benefiting from AI’s ability to enhance efficiency, improve patient outcomes, and drive innovation in drug discovery and clinical care. As AI adoption expands across these segments, the market is expected to see sustained growth, driving the evolution of healthcare delivery.

Global Artificial Intelligence in Healthcare Segment Analysis

In this report, the Global Artificial Intelligence in Healthcare Market has been segmented by Offering, Technology, Application, End User, and Geography.

Global Artificial Intelligence in Healthcare Market, Segmentation by Offering

The Global Artificial Intelligence in Healthcare Market has been segmented by Offering into Software Solutions, Hardware, and Services.

The Global Artificial Intelligence (AI) in Healthcare Market has been segmented by Offering into Software Solutions, Hardware, and Services, each contributing to the broad adoption and application of AI technologies in the healthcare sector. Software Solutions dominate the AI healthcare market, with AI-powered software being used for a variety of applications such as diagnostics, personalized treatment, medical imaging, and patient monitoring. These solutions leverage machine learning, natural language processing, and deep learning to provide healthcare professionals with more accurate insights, automate routine tasks, and assist in clinical decision-making. As the demand for digital health solutions grows, the software segment is expected to continue expanding, offering innovative tools to enhance healthcare delivery and improve patient outcomes.

Hardware plays an essential role in enabling AI technologies in healthcare by providing the necessary infrastructure for processing large volumes of data, especially in applications such as medical imaging and robotic surgery. This segment includes components such as AI-enabled medical devices, servers, and edge computing systems that facilitate real-time data analysis and decision-making. The increasing demand for wearable health devices, diagnostic tools, and robotic-assisted surgeries is driving the growth of the hardware segment. These devices are critical for collecting real-time data, such as vital signs or images, which AI systems then analyze to deliver actionable insights, thus improving the efficiency and effectiveness of healthcare services.

The Services segment within the AI in healthcare market covers a wide range of offerings, including AI system integration, consulting, data management, and maintenance services. These services are crucial for healthcare organizations looking to implement AI solutions effectively, ensuring that these systems are seamlessly integrated into existing workflows and provide continuous support. As AI technology evolves, the need for specialized services such as training, system optimization, and technical support is increasing. The services segment is particularly important for healthcare providers and pharmaceutical companies that are adopting AI technologies to enhance their operations and clinical processes. As AI adoption grows across healthcare sectors, the software, hardware, and services segments are expected to work in synergy, driving innovations and improving overall healthcare outcomes.

Global Artificial Intelligence in Healthcare Market, Segmentation by Technology

The Global Artificial Intelligence in Healthcare Market has been segmented by Technology into Machine Learning, Context-Aware Computing, Natural Language Processing, Deep Learning, Querying Method, and Others.

The Global Artificial Intelligence (AI) in Healthcare Market has been segmented by Technology into key categories, including Machine Learning, Context-Aware Computing, Natural Language Processing (NLP), Deep Learning, Querying Method, and Others, each playing a pivotal role in revolutionizing healthcare systems. Machine Learning (ML) is one of the most prominent technologies in AI healthcare applications. ML algorithms enable systems to learn from data patterns, making them invaluable for diagnostics, treatment planning, and predicting patient outcomes. By analyzing large datasets, machine learning models can assist healthcare providers in detecting diseases like cancer, predicting heart disease, and personalizing treatment regimens based on patient data, ultimately improving efficiency and accuracy in healthcare delivery.

Context-Aware Computing refers to systems that use sensors and real-time data to understand the context of patient situations, adapting AI responses based on environmental conditions or individual health statuses. This technology is particularly important for wearable health devices that monitor vital signs and provide real-time insights to both patients and healthcare providers. The use of Natural Language Processing (NLP) is also growing within the healthcare sector, where it is applied to extract valuable information from unstructured medical data, such as doctor’s notes, electronic health records (EHRs), and clinical documents. NLP helps automate administrative tasks, enhances clinical decision-making, and supports better communication by enabling systems to understand and interpret human language, making it easier for healthcare professionals to access pertinent patient information quickly.

Deep Learning, a subset of machine learning, is another crucial technology, particularly in medical imaging and diagnostics. Deep learning algorithms can analyze complex medical images, such as MRIs, CT scans, and X-rays, to detect anomalies that may be missed by the human eye. This technology aids radiologists in providing faster and more accurate diagnoses. The Querying Method segment refers to AI-driven data retrieval techniques that enable healthcare professionals to access large datasets and clinical knowledge databases in real time, improving decision-making and workflow efficiency. The Others category includes additional technologies that support AI applications in healthcare, such as robotics, AI-powered virtual assistants, and AI in genomics research. As AI technologies continue to evolve, their integration across various healthcare sectors is expected to enhance precision medicine, streamline administrative processes, and significantly improve patient care outcomes.

Global Artificial Intelligence in Healthcare Market, Segmentation by Application

The Global Artificial Intelligence in Healthcare Market has been segmented by Application into Robot-Assisted Surgery, Virtual Assistants, Administrative Workflow Assistants, Connected Machines, Diagnosis, Clinical Trials, Fraud Detection, Cybersecurity, and Dosage Error Reduction.

The robot-assisted surgery segment emerged as the dominant application area within the AI in healthcare market , capturing the largest revenue share. Forecasts suggest a rapid growth trajectory for this segment, with a projected fastest Compound Annual Growth Rate (CAGR). This acceleration is attributed to the escalating number of robot-assisted surgeries worldwide and the substantial investments directed towards the development of novel AI platforms tailored for surgical applications. Studies have illustrated a significant surge in robot-assisted procedures over the years, with a notable increase from around 1,000 procedures globally in 2000 to over 1 million in 2018. Furthermore, insights from research published in JAMA Network Open indicate a considerable rise in the proportion of robot-assisted surgeries within the landscape of general surgeries.

The establishment of the Clinical Robotic Surgery Association in India in August 2019 underscores the growing demand and interest in robotic surgeries, particularly in emerging markets. This association is dedicated to providing specialized training to young surgeons in the field of robotic surgery, indicating a concerted effort to address the demand for skilled professionals in this domain. The anticipated surge in AI adoption in robotic surgeries is further fueled by the scarcity of highly skilled surgeons globally, prompting healthcare institutions to turn towards AI-driven technologies to augment surgical capabilities and address the increasing demand for minimally invasive and precision-based surgical procedures.

Global Artificial Intelligence in Healthcare Market, Segmentation by End User

The Global Artificial Intelligence in Healthcare Market has been segmented by End User into Healthcare Providers, Pharmaceutical and Biotechnology Companies, Patients, and Others.

The Global Artificial Intelligence (AI) in Healthcare Market has been segmented by End User into Healthcare Providers, Pharmaceutical and Biotechnology Companies, Patients, and Others, each contributing to the growing adoption and application of AI technologies in healthcare. Healthcare Providers represent a significant segment of the market, as AI is increasingly integrated into clinical workflows, diagnostic tools, and patient management systems. Hospitals, clinics, and diagnostic centers use AI for tasks such as medical imaging analysis, predictive analytics for patient outcomes, and personalized treatment plans. The adoption of AI in healthcare providers' settings is driven by the need to improve operational efficiency, enhance clinical decision-making, and provide more accurate diagnoses, ultimately leading to better patient outcomes.

Pharmaceutical and Biotechnology Companies are another key end user of AI in healthcare, utilizing AI technologies for drug discovery, clinical trials, and genomics research. AI enables faster identification of potential drug candidates, optimization of clinical trial designs, and the prediction of drug efficacy and safety profiles. By leveraging AI in the research and development phase, pharmaceutical and biotechnology companies can significantly reduce the time and cost of bringing new drugs to market. Furthermore, AI's ability to analyze vast amounts of biological data, including genetic information, helps in the development of precision medicine, tailoring treatments to individual patients' genetic profiles for more effective outcomes.

The Patients segment is increasingly benefiting from AI through the development of consumer-facing healthcare applications such as virtual health assistants, AI-driven wearable devices, and personalized health monitoring tools. AI helps patients manage chronic conditions, track vital signs, and receive personalized health recommendations. These tools offer patients more autonomy and control over their health, making healthcare more accessible and proactive. The Others segment encompasses various other end users, including research institutions, government agencies, and insurance companies. These entities leverage AI for various applications, such as public health monitoring, claims processing, and health data analysis. As AI continues to evolve, its applications across diverse end-user segments are expected to expand, contributing to significant growth in the overall healthcare market.

Global Artificial Intelligence in Healthcare Market, Segmentation by Geography

In this report, the Global Artificial Intelligence in Healthcare Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Artificial Intelligence in Healthcare Market Share (%), by Geographical Region, 2023

North America emerged as the frontrunner in the market, commanding a significant revenue share. This dominance can be attributed to a confluence of factors including robust advancements in healthcare IT infrastructure, escalating healthcare expenditures, widespread integration of AI/ML technologies, supportive governmental initiatives, attractive funding opportunities, and the presence of key market players. Additionally, factors such as the burgeoning geriatric population, evolving lifestyles, surging prevalence of chronic ailments, increasing emphasis on value-based care models, and heightened awareness regarding the benefits of AI-driven technologies have collectively contributed to the robust market growth observed in North America.

The Asia Pacific region is poised to witness the most rapid Compound Annual Growth Rate (CAGR) . This accelerated growth trajectory is underpinned by dynamic innovations and advancements in IT infrastructure across the region, coupled with a burgeoning ecosystem of entrepreneurial ventures specializing in AI-based solutions. Substantial investments from private investors, venture capitalists, and non-profit organizations aimed at augmenting clinical outcomes, enhancing data analysis capabilities, fortifying data security measures, and driving cost efficiencies are fueling the adoption of AI technologies. Moreover, supportive governmental initiatives aimed at encouraging healthcare organizations and providers to embrace AI-based solutions further propel the market expansion in the Asia Pacific region.