Global Artificial Intelligence in Healthcare Market Size Analysis, 2018-2028
Posted by Alex Werner on June 10th, 2018
Global Artificial Intelligence in Healthcare Market Size Analysis
Global Artificial Intelligence in Healthcare market is estimated to account for over 750 million in 2018. The move to streamline the medical facilities for patients and rise in digitization will help turn AI in healthcare to reach over US$ 10 Billion by 2025. It will account for 6% of total AI revenue by end of the forecast period.
Artificial intelligence (AI) is rightly called as fourth industrial revolution that is revolutionizing all spheres of industry through digital transformation. Healthcare is one such lucrative industry where AI is gaining higher traction. There are tons of data flowing in the healthcare industry that has become hard to analyze and thus pose a significant challenge to healthcare players. Data collection through clinical trials and longitudinal studies is highly expensive. This is where AI has been a boon to overall healthcare industry. The platform not only helps in systematic data crunching but also plays various key roles in upliftment of healthcare industry. AI is set to offer responsive health service with good healthcare outcomes.
In the last two years, over 250 startups emerged in the AI healthcare industry with most of them backed by venture capitalists to develop innovative products and systems. Nearly 70% of these are headquartered in U.S. with prime focus on patient data & risk analytics and medical imaging & diagnosis analysis. Rightly, the healthcare AI market has become hyper-competitive in last two years. The industry is expected to consolidate with multinational companies turning to inorganic growth model in later phase of forecast period.
Artificial intelligence in healthcare market is driven by various factors with most important advancement in technology and increase in healthcare spending. Global healthcare spending will touch US$ 9.5 Trillion by 2025, which in turn will drive the AI in healthcare industry.
AI to help Structure the 5 Trillion Gigabytes Healthcare Data
Each year over thousands of clinical reports are published and the numbers are set to increase in coming years. In 2016, health data crossed 5 trillion gigabytes. 75% of these data is unstructured. AI will help structure these into meaningful information.
There are various developments that took place in in Artificial Intelligence in Healthcare Market in last few years:
Acquisition will help EarlySense to boost its AI based patient monitoring technology and enhance business presence in U.S.
Artificial intelligence in healthcare market will be driven by mergers and acquisitions and product development in next five years. Companies are investing heavily in R&D citing future profitability. For instance, NVidia is spending 27% of its revenue on R&D. Several other companies will be investing in innovation to ensure long term sustainability and profitability in healthcare AI market.
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Global Artificial Intelligence in Healthcare Market, By Application
By application, drug discovery will account for 31% of global share in 2018. Pharmaceutical drug development involves high cost and takes more than a decade to complete clinical trials. Most pharmaceutical eliminated from Phase III FDA process. Elimination costs a huge loss to the concerned company. According to recently conducted study by Tuffs CSDD, cost to developing prescription drugs that gains market approval is over USD 2 billion. AI could help companies to predict the developmental stage for trial drug and could analyze the success rate. Thus, AI can actually help companies to lower their operational and R&D cost. Many companies have already emerged in the arena to capture this growing market.
Global Artificial Intelligence in Healthcare Market Size and Forecast: Regional Analysis
Globally, North America accounted for over 58% share in artificial intelligence in healthcare market. This is mainly attribute to presence of large number of startups, higher healthcare expenditure and early adopter of AI based technology.
Europe is another key region for AI in healthcare market. Germany, UK and France will account for over 73% of regional share. Growth in the region is driven by large scale AI project implementation and rising demand to meet shortage of healthcare personnel. Various companies are also undertaking projects in the region to scale their business revenue. Recently, NVidia entered in partnership with GE to bring AI to GE’s 500 thousand imaging devices. Similar such initiative can be seen in the region on large scale.
In Europe, EU is targeting US$ 23 billion investment in AI by 2020. This could significantly bolster the regional growth in artificial intelligence in healthcare market.
Global Artificial Intelligence in Healthcare Market Size and Forecast: Competition Landscape
Global Artificial Intelligence in Healthcare market outlook is substantially fragmented. Some key leading players are Enlitic, Inc., Alphabet Inc., Atomwise, Inc., Cyrcadia Health, Inc., Lifegraph Ltd., Microsoft Corporation, Modernizing Medicine Inc., General Vision, Inc., Icarbonx Co. Ltd., Intel Corporation, IBM Corporation, Next It Corp., Nvidia Corporation, Oncora Medical, Inc., Welltok, Inc., and Zebra Medical Vision Ltd.
Artificial Intelligence in Healthcare Market Industry Segmentation
By Organization Size:
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About the AuthorAlex Werner
Joined: December 7th, 2017
Articles Posted: 25
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