Artificial Intelligence (AI) in Healthcare – Market: Current Analysis and Forecast (2019-2025)

Report Description

Artificial Intelligence is the development of computer systems that are able to perform tasks that would require human intelligence with much higher precisions and error control than that done by humans. AI facilitates in creation of intelligent agents where an intelligent agent is a system that recognizes its environment of operation and takes actions which maximizes its likelihood of success. The importance of AI in healthcare was realised in early 1980s when the absence of proper data management and requirement of extreme precision along with importance of minimal invasive methods was recognised. Artificial intelligence is a branch of computer science and information technology that is capable of analysing complex medical data. Today, in the age of breakthrough of technology and automation, the research and implementation of AI in healthcare is at its best. Healthcare sector is one of the most important sectors that is a priority for the human race. Owing to its amalgamation with the IT industry, the growth and development of healthcare industry has increased and reached the next level.

Recent Developments under Computing Power in Healthcare

The outburst of technology that is digitally enabled, wireless connectivity across increasingly mobile devices has created an increasing democratisation of access for healthcare. Some of the most powerful AI tools are already embedded in Android or iOS. This technology is providing consumers with the data and information they need to proactively manage their own health and wellness, and to make better, more informed decisions in partnership with their healthcare providers. AI can prove to be a boom in the field of diagnosis. The high cost involved in diagnostic processes, over-testing of low-risk patients, and limited capability for early detection of chronic diseases are driving the adoption of AI in diagnostics. This is because AI is capable of bridging the gap between doctor-centric diagnosis and AI-based diagnosis through pattern recognition and machine learning technologies.

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Coming to drug development, it requires lots of time, investment and resources. Owing to this, the pharma companies are keen to embrace digital transformation and AI. According to Deloitte, in 2017, 12 largest biopharma companies received just 3.2% returns from their drug-research units, as against 10% in 2010. The use of AI in drug discovery is expected to expedite the overall process. Applied intelligence can improve drug discovery success rates by 8-10%, resulting in savings worth billions of dollars for the industry. Finding drug discovery compounds and precision medicine are the major trending applications over other pharma based AI applications.

“Machine learning technology of AI dominated the market globally in 2018 and is expected to maintain its lead in 2025”

Based on technology, the global AI in healthcare market has been segmented into machine learning, deep learning and artificial neural network. Out of these technologies, in 2018, machine learning dominated the market globally and is expected to maintain its lead in 2025. The increasing power of machine learning in diagnosing disease and in categorisation and classifying health data is empowering physicians and speed-up decision making across the medical facilities including hospitals or clinic.

“Amongst application, robotic surgery holds the major share globally in 2018 but diagnosis has been estimated to lead the market during the forecast period.”

Based on technology, the global AI in healthcare market has been segmented into robotic surgery, diagnosis, Virtual Nursing assistance and Administrative workflow assistance. In 2018, robotic surgery dominated the application segment of global AI in healthcare market, generating revenue of US$8589 million, followed by virtual nursing assistance and administrative workflow. The segment is expected to grow at a CAGR of XX% during the forecast period by 2025. However, the diagnosis segment is expected to witness the highest CAGR of XX% during the analysed period.

Global Healthcare AI Market Share, by Application, 2018 & 2025 (%)

“Amongst end users, hardware segment has been anticipated to dominate the AI in healthcare sector by 2025.”

Based on the type of offering, the global AI in healthcare market is segmented into hardware, software or services. Currently, services segment dominates the market. However, hardware segment is expected to witness the highest CAGR growth during the forecast period 2018-2025.

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“North America region holds the highest market share in 2018 but Asia Pacific market has been expected to witness the highest market growth in the forecast period”

Artificial intelligence in healthcare market in North America has been on an up-surging trend due to the high adoption rate of AI in country such as the US and Canada, paired with development and growth of research & development activities that combine the investments by government and private organizations. As far as Asia-Pacific region is concerned, it 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 and has been expected to witness the highest growth in the forecast period.

Competitive Landscape-Top 10 Market Players

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 are the major players operating in the AI in healthcare market. 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.

Reasons to buy:

• The Artificial intelligence in healthcare market study presents the current market size, trend, forecast until 2024. The analysis presented in the report is a combination of deep dive secondary research and input from Key Opinion Leaders of the industry
• The report presents a quick review of overall industry performance at one glance
• The report covers in-depth analysis of prominent industry peer with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination on drivers, restraints, key trends and opportunities prevailing in the industry
• Examination of industry attractiveness with the help of Porter’s Five Forces analysis
• The study comprehensively covers the market across different segments and sub segments
• Deep dive regional level analysis of the industry

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The Artificial intelligence in healthcare market can be customized to the country level or any other market segment. Besides this, UMI understands that you may have your own business need, hence we also provide fully customized solutions to clients.

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Research Methodology

Research Methodology for AI in Healthcare Market

Analysing historical market, estimation of the current market and forecasting the future market for AI in healthcare were the three major steps to create and analyse the overall market of AI in healthcare sector in different regions/countries. Exhaustive secondary research was done to collect the historical market of the technology and overall estimation of the current market. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted with industry experts across value chain of the AI market in healthcare. After all the assumption, market sizing and validation of market numbers through primary interviews, top-down approach was employed to forecast the complete market size of AI technology market in healthcare sector at global scale. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyse the market size of segments and sub-segments of the technology. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the AI technology market in healthcare sector through company internal sources such as annual report & financial statements of top players, performance presentations, press releases, inventory records, sales figures etc. and external sources including trade journals, news & articles, government publications, economic data, competitor publications, sector reports, regulatory bodies publications, safety standard organizations, third-party database and other creditable publications. For economic data collection, sources such as World Bank, IMF, Trading Economics, Trade Map, and UN Comtrade among others were used.

Step 2: Market Segmentation:

After obtaining historical market size of the overall market, detailed secondary analysis was done to gather historical market insights and share for different segments & sub-segments for the AI technology in healthcare sector. The major segments included in the report are technology, application, and end-users. Further analysis was also done for sub-segments of the major segments of AI technology in healthcare sector.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, detailed factor analysis was conducted to estimate the current market size of the AI technology in healthcare sector. Factor analysis was conducted using dependent and independent variable such as the different technologies  being implemented in the healthcare sector like machine leaning, deep learning and neural network, adoption rate of AI technology on healthcare, investments made by the company in the sector etc. Historical trends of the AI technology in healthcare and its year-on-year impact on the market size and share in the recent past were analyzed. The demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at current market size, key players in major applications and markets, market shares of these players, industry’s supply chain, and value chain of the industry. All the required percentage shares, splits, and market breakdowns were determined using the above mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weightage was assigned to different factors including market dynamics such as drivers & trends, restraints, and opportunities. After analyzing these factors, relevant forecasting techniques i.e. Bottom-up/Top-down was applied to arrive at the market forecast pertaining to 2025 for different segment and sub-segments in different regions/countries. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value and rate of adoption AI technology in healthcare sector.
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in major applications and markets as well as market share of each players. Also the growth strategies adopted by these players to compete in the ever growing AI technology in healthcare sector.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head etc.). Primary research findings were summarized and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants

Market Engineering

Data triangulation technique was employed to complete the overall market engineering process and to arrive precise statistical numbers of each segment and sub-segment pertaining to the AI technology in healthcare sector. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of application of AI in healthcare sectors that is Robotic surgery, Diagnosis, Virtual Nursing assistance and Administrative workflow assistance. Further, offerings of AI in health care sector was also taken into consideration that included software, hardware and services along with technologies of AI in healthcare like machine learning, deep learning and neural network.

Main objective of the AI in health care sector Market Study

The current & future market trends of the AI in healthcare sector are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market, providing a platform for the industrial participant to exploit the untapped market to benefit as the first mover advantage. Other quantitative goal of the studies includes:

• Analyse the current and forecast market size of global AI in healthcare sector in terms of value
• Analyse the current and forecast market size of different segments and sub-segments of AI in healthcare sector Segments  in the study include application, technology and end-users
• Define and describe the technologies and protocols used in AI in health care sector
• Anticipate potential risk associated with the technology.
• Customer and competitor analysis, etc.
• Define and analysis of the government regulations for AI in healthcare sector in different regions
• Analyse the current and forecast market size of AI in health care sector, in terms of value for regions including North America, Europe, Asia Pacific (APAC), Middle East and Latin America

• Define and analyse the competitive landscape of the AI in health care sector and the growth strategies adopted by the market players to sustain in the ever growing market