Global Market Insights on AI in Healthcare, to attain market value of US$ 26,599.5 Million by 2025, growing at a CAGR of 41.1%. US to be the dominant market
AI in healthcare market is anticipated to reach the market valuation of US$ 26,599.5 Million by 2025, expanding at a CAGR of 41.1% in the course of forecast period (2018-2025) on account of increasing tremendous requirement of AI in the field of healthcare. Artificial Intelligent technologies facilitates medical practitioners to streamline administrative and clinical healthcare processes, thereby increasing efficiency and effectiveness of the outputs. Artificial Intelligence is a way of making a computer an intelligent machine that work, think and act like human beings. This brings together the intelligence and thought process of humans with precision, accuracy and speed of computers. In the healthcare sector, there has been a paradigm shift in the way patients are treated by doctors as they now have inordinate amounts of data in their hands, and a good amount of this data can be put to good use. As per a report published by Accenture, results from the report estimated that AI applications in health care could save up to $150 billion annually expenses on healthcare in the U.S. economy by 2025.
According to a survey conducted by the West Health Institute and NORC at the University of Chicago, it was found that in 2017, 44% of Americans refused to go to a doctor due to cost concerns. Such delays then compromise the health of people thereby pushing them towards something that is even more terrifying but could have been avoided if timely intervention was done. Thus, it is very important to reduce the health costs so that people are healthy and move towards a prosperous future. Artificial intelligence can decrease the cost of healthcare in numerous ways. Artificial intelligence (AI) and Machine Learning (ML) have great potential to help healthcare providers identify opportunities to optimize their operations and realize cost savings. For example, AI could be used to predict the length of stay of patients which will then streamline operations by ensuring that the hospital has adequate, but not excessive staffing, and asset allocation for the duration of the patient stay. AI can increase the speed of the practice of evidence-based medicine, in which clinical studies and other evidence are focused to find the best course of clinical action that has the potential for savings. Apart for this, there are many other ways in which AI can decrease the healthcare costs.
Doctors, medical practitioners, technologists and patients are all influenced by new ways to monitor personal health. Both, practitioners and patients, can monitor different health related dimensions including daily sleep patterns, calorie intake count, research treatment options, heart rate and other related characteristics using this device. All these aspects are a resultant of improved and increased computing power in the healthcare sector. This process is going to increase further thereby making it imperative to make AI an unrepeatable part of healthcare sector. The AI will further strengthen the industry since it will both supplement and compliment the increasing computing power in the industry. Various studies globally have estimated that the market for AI in healthcare applications would grow at a CAGR of 42% until 2021. The healthcare industry is ripe for disruption, which Microsoft and IBM are exploiting through their offerings.
Imbalance in the health workforce is a major challenge for the healthcare sector. There can be observed shortage of different kinds of clinical and non-clinical staff who are responsible for making interference between patients and public health service. Apart from this, the personnel specialized in a specific branch are also missing. Further, physicians retire or leave the profession. This is a clear indication that the number of health professionals are less than the requirement. For example, India has less than one doctor for every 1,000 population which is less than the World Health Organization standard. As per the World Health Organization, there should be one doctor per 1,000 population. Similar trend can be observed for other health professionals as well. Thus, this gap and imbalance can be bridged through involvement of AI in healthcare. Also, the 65-and-older population who are the main users of surgical services, is expected to double by 2060. This will further stress the healthcare system. Also, clinicians spend 17% of their working time on admin tasks. When machines take on these tasks, clinicians can spend more time caring for people.
There are many surgeries that require precision which is difficult to be achieved by human hands. For such surgeries, AI brings in AI powered robotics surgeries. Robots enabled with artificial intelligence are increasingly assisting microsurgical procedures to help reduce surgeon variations that could affect patient recovery. Robots help guide surgical instruments to precise treatment locations. They can repeat the same movements over and again without fatigue, or remain completely stationary for long periods of time. Robots go where traditional surgical tools can’t reach, and perform tasks unimaginable without computer assistance, sophisticated algorithms, and advanced motion control technology. Robotic technology allows a doctor that has limited experience or is new at a procedure to deliver treatment at a level that otherwise they would not be able to do for potentially years until they have that experience. Further, automated robots are not humans and work and learn through patterns and duplicate results. This completely takes away the risk of human error associated with surgery. AI is capable of adding value to the product and services of healthcare sector which is another driver for the growth and development of AI in healthcare.
Artificial intelligence in healthcare market in North America has been on an up-surging trend due to the high adoption rate of AI in countries such as the US and Canada, paired with development and growth of research & development activities that combine the investments by government and private organizations. Nearly two-thirds of the total spending on AI in healthcare is driven by North America. Currently, North America holds the major market share for AI in healthcare and is expected to show increased exponential growth in the future as well. In Europe, AI could help its health care systems to save more than US$196 billion by improving prevention, diagnostics and treatment of childhood obesity, dementia and breast cancer in near future. Nearly all the countries in the region are big supporters and adopters of AI in healthcare. Estonia was the first country in Europe to bring AI on the European political agenda, during the presidency of the Council in the second half of 2017. Bulgaria, that holds the Presidency of the Council since January, has also been pushing the AI agenda at European level. Belgium, the Netherlands, Ireland, the UK and the Nordic countries are also supporters of a European AI Strategy. Healthcare organizations across the Asia-Pacific region have seen significant improvements in healthcare sector over the past decade. In the past years, the Asia-Pacific region has lagged behind North America and Europe in terms of technology adoption. However, AI is one technology area where Asia-Pacific can stand apart, compared to other region. The Asia-Pacific region holds 60% of the world’s population and, therefore, any major technological shifts like those backed by AI are likely to shape the future of the region.
Some of the major companies operating in the global healthcare AI market are Medtronic Plc, Abbott Laboratories, Johnson and Johnson, Bcton Dickinson, Boston Scientific Corporation, Koninklijke Philips N.V, Roche Holding AG, Siemens Healthineers AG, Stryker Corporation and Oracle Corporation. These company are partnering up with technology leaders and are investing heavily to come up with new and innovative AI backed healthcare equipment to treat patients.
Market Insights by Technology
- Machine learning
- Dep learning
- Intelligent agent
- Neural networks
Market Insights by Application
- Robotic surgery
- Virtual Nursing assistance
- Administrative workflow assistance
- Advances analytics and research
Market Insights by Region
- North America AI in Healthcare Market
- Europe AI in Healthcare Market
- Asia-Pacific AI in Healthcare Market
- Rest of the world
Top 10 Company Profiled
- Medtronic Plc
- Abbott Laboratories
- Johnson and Johnson
- Bcton Dickinson
- Boston Scientific Corporation
- Koninklijke Philips N.V
- Roche Holding AG
- Siemens Healthineers AG
- Stryker Corporation
- Oracle Corporation