Global AI in healthcare diagnosis market size to reach USD 5.8B by 2026

As per our research report, the size of the global AI in healthcare diagnosis market is estimated to be growing at a CAGR of 20.2% from 2021 to 2026 and worth USD 5.8 billion by 2026.

The COVID-19 pandemic has increased reliance on advances in AI, opening several opportunities to use these tools to improve healthcare services. Using AI technologies in X-rays and CT scans, doctors could detect COVID-19 infection with these advanced imaging tools. Artificial intelligence data has helped perform chest X-rays, which has facilitated the implementation of large-scale screening programs. Hospitals are using AI-powered technology to detect COVID-19 and assist with telemedicine and the use of AI-powered robots to collect vital signs and care for COVID-19 patients.

Factors such as the increasing adoption of artificial intelligence in disease identification and diagnosis and increasing investment in AI healthcare start-ups are driving the growth of global AI in the healthcare diagnosis market. China, the United States, and the United Kingdom are emerging as a popular hub for healthcare innovations in the medical sector. China-based healthcare AI start-ups have benefited from the government’s AI-driven development strategy, inspiring investments, and public-private partnerships. For instance, the UK government has announced a National Artificial Intelligence Laboratory to work with UK universities and tech companies to investigate cancer, dementia, and heart disease. In addition, many UK-based small companies have benefited from the government’s robust patient data library, as UK citizens share their anonymized health data with the British National Health Service.

The increasing focus on developing human-aware AI systems, along with the growing potential of AI-based tools for elderly care, further accelerates the expansion of artificial intelligence healthcare diagnosis and provides significant growth opportunities for the market. The adoption of AI has increased in hospitals with the rise in the prevalence of chronic diseases such as cancer and rare diseases, as the technology helps provide better treatments. For instance, in 2018, cancer led to nearly 9.65 million deaths across the globe, with more than 1.7 million new cancer cases and more than 606,000 cancer deaths expected to be analyzed in 2019. In addition, the benefits offered by AI to differentiate between cancerous cells and normal cells will further increase the adoption of AI in hospitals and clinics.

The market for artificial intelligence in healthcare diagnosis is driven by the ability of AI to improve outcomes; Additionally, the growing need for improved coordination between healthcare professionals and patients is driving the growth of the market. The increasing importance of big data in healthcare, the adoption of precision medicine, and growing venture capital investments are driving the market’s growth.

Artificial intelligence in healthcare is currently one of the most significant technological advancements in the world. This led to the rapid increase in the number of start-ups developing AI-based diagnostic and imaging solutions; these major factors were responsible for the market growth over the study period. Advanced AI programs and devices can dramatically change the landscape of the healthcare sector following the need for digitalization and rapid growth in urbanization. In addition, the growing potential in emerging economies provides significant opportunities for the future development of artificial intelligence in the healthcare diagnosis market. For instance, AI is heavily integrated into smart devices for assisted living, fall detection, virtual companions, and empathetic robots who care for aged people or patients with physical and mental disabilities. Also, industrial robots such as robots are used to perform various routine tasks in healthcare facilities. All these factors will support the growth of AI in the healthcare diagnosis market during the assessment period.

However, various factors such as the lack of AI-skilled labor, ambiguous regulatory guidelines for medical software, and the reluctance by physicians to adopt AI-based technologies restrains the market’s growth rate. At the same time, inadequate organized healthcare data and growing data privacy concerns may challenge the growth of artificial intelligence in the healthcare market during the mentioned forecast period.

KEY MARKET INSIGHTS:

• In terms of revenue, software was the most profitable segment in 2020, accounting for nearly 44.35% of the share of the global AI in the healthcare diagnosis market. This high percentage can be attributed to developing AI-based software for health diagnostics with growing demand for augmented AI-based and cloud-based diagnostic solutions. In addition, the implementation of more advanced AI software in diagnosis with multiple data sources such as MRI, CT, genomics, and proteomics, and patient data has improved diagnostic accuracy assess disease progression. Hardware is also analyzed to grow at a steady CAGR during the forecast period.
• In 2021, the clinical trials segment dominated AI in the healthcare diagnosis market and accounted for 24.22% market share due to the rising number of patent expirations, growing demand for clinical trials, need for new drug discoveries. Owing to AI-based technologies, there has been decreased time required to conduct clinical trials, and improved accuracy and reliability of clinical trials are expected to drive the market growth. In addition, government regulatory authorities and emerging healthcare start-ups boost AI-based technologies in the virtual assistant segment. Furthermore, the growing shortage of skilled professionals, growing smartphone penetration, and improving internet connectivity will help the segment grow. Apart from the virtual assistant segment, the robot-assisted surgery segment is estimated to witness lucrative growth and promising potential in the coming years. This significant growth rate is due to the growing partnerships between surgical robot manufacturers and AI technology companies.
• In 2021, the hospital segment occupied the largest share of the market, accounting for 65.35%, owing to the growing number of diagnostic imaging procedures performed in hospitals, increased adoption of minimally invasive procedures, demand by hospitals to automate and digitize radiology patient workflow is helping this segment grow. In hospitals, there is a high need to improve the quality of patient care and increase the adoption of advanced imaging modalities to improve workflow efficiency.
• With a revenue share of 42.88% in 2021, North America led the AI in the healthcare diagnosis market, which can be attributed to the growing use of healthcare IT solutions for diagnosis, the presence of established healthcare industry, and significant funding for the development of AI-based diagnostic software. In North America, the United States dominates the market with the increased growth and implementation of innovative, large mobile and network companies, availability of advanced medical diagnostic software, and a large number of players.
• During the forecast period, Asia-Pacific is projected to be the most lucrative market with a significant growth rate of 38.95% CAGR. Increasing government initiatives encouraging healthcare providers, improving the adoption rate of AI in healthcare organizations for diagnostic technologies, growing investments, positive government collaborations, and successful clinical outcomes are driving the market’s growth in the APAC region.
• Some major companies in the AI healthcare diagnosis market are Koninklijke Philips NV, General Electric Company, Aidoc, Google LLC, Microsoft, General Vision Inc., Johnson & Johnson Services, Inc., Arterys Inc., Icometrix, IDx Technologies Inc., MaxQ AI Ltd., NVIDIA Corporation, Intel Corporation, IBM, Caption Health, Inc., Zebra Medical Vision Inc., Siemens Healthineers AG,

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