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:

  • In June 2018, EarlySense acquired cardiac predictive analytics (eCART) developed by Dana Edelson – at University of Chicago. The tool algorithm will help in prediction and treatment of inpatients – thereby improving patient safety and raising quality of life.

Acquisition will help EarlySense to boost its AI based patient monitoring technology and enhance business presence in U.S.

  • 3M is also actively enhancing its AI capability in medical sector. Recently, in April 2018, the company entered in partnership with C3 IoT to develop data analytics and artificial intelligence for medical industry. 3M is expected to use the AI for supply chain analytics in healthcare.
  • In April 2018, U.S. based Welltok raised US$ 75 million in Series E2 funding round. The funding will help company to expand its business footprint and invest further in product development.
  • In January 2018, Athenahealth partnered with NoteSwift to offer AI powered EHR (electronic health record) documentation. The technology is termed – Samantha – and is designed to help healthcare personnel to save charting time via automation. The company has previously acquired Praxify Technologies in 2017 to bolster its presence in AI based EHR technology.
  • In January 2018, CLEW Medical developed healthcare based predictive analytics software to prevent life threatening complications. The software is deployed at intensive care unit. The company is primarily operational in Israel and Eastern Europe.
  • In 2017, IBM partnered with University of California to develop AI project for improving quality of life in geriatrics.
  • Another company – Nuance – launched virtual assistant to automate clinical workflows for over 500 thousand clinicians.
  • In 2017, Analytics 4 Life – received US$ 25 million through funding to support its AI based cardiac imaging technology.
  • Israel based startup- Beyond Verbal – developed emotional analytics tool. The company is working on developing tool that can predict chronic illness through voice. Successful commercialization will help company to generate revenue in millions. This could be breakthrough in the AI healthcare industry.

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 Offerings:

  • Hardware
  • Software
  • services

By Organization Size:

  • Large Scale Enterprises
  • Mid-Scale Enterprises
  • Small Scale Enterprises

By Application:

  • Medical Imaging and Diagnostics
  • Therapy Planning
  • Hospital Workflow
  • Drug Discovery
  • Others

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Alex Werner

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Alex Werner
Joined: December 7th, 2017
Articles Posted: 25

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