AI in Healthcare — Market Size, Growth Statistics

In 2022, the global market for artificial intelligence (AI) in healthcare was valued at approximately USD 15.1 billion[1].

However, it is projected to reach a staggering USD 187.95 billion by 2030, with a remarkable compound annual growth rate (CAGR) of 37% during the forecast period from 2022 to 2030.

Key Statistics

AI in Healthcare

Starting Valuation in 2022	$1,070 Million
Projected Reach by 2032	$21,740 Million
Global AI Healthcare Market Expectations by 2023	$272.91 Billion
Healthcare AI Market Reach Anticipated by 2023	$20.65 Billion
Compound Annual Growth Rate in the US	36.1%
US Revenue Share in the Global AI Market	58%

AI Healthcare Market Overview

The worldwide market for generative AI is projected to grow steadily in the healthcare industry.

Year	Valuation (Million)
2032	$21740
2031	$16090
2030	$11900
2029	$8810
2028	$6520
2027	$4820
2026	$3570
2025	$2640
2024	$1950
2023	$1450
2022	$1070

Starting at a valuation of USD 1,070 million in 2022, it is anticipated to reach approximately USD 21,740 million by 2032. This impressive growth is attributed to a healthy compound annual growth rate (CAGR) of 35.1% from 2023 to 2032 [2].

According to a study published by Towards Healthcare, a sister firm of Precedence Research, the global generative AI in the healthcare market is expected to reach USD 8,810 million by 2029. Currently, North America dominates the global market with the largest market share.

By 2025, more than 30% of newly discovered drugs are anticipated to result from generative AI.

The healthcare sector is witnessing significant expansion in the market for generative AI. As the industry strives for innovative approaches to enhance patient outcomes, streamline operations, and optimize resource utilization, generative AI plays a crucial role.

It uses algorithms and models to create fresh and unique content, including images, text, and comprehensive patient profiles.

Growth of AI in Healthcare: Market Size and Statistics

The growth of AI in healthcare has witnessed a significant surge, with the market expanding rapidly as innovative applications such as diagnostic tools, personalized medicine, and predictive analytics continue to revolutionize the industry. Recent statistics highlight the profound impact of AI in transforming healthcare practices, enhancing efficiency, and improving patient outcomes.

1. By 2030, the global AI in healthcare market will surge to a staggering $272.91 billion.

The forecast shows a compound annual growth rate of 51.87% over eight years, making it nearly impossible to predict the exact AI market growth in healthcare. AI can also achieve significant breakthroughs post-implementation [3].

AI’s implementation in healthcare is poised for significant expansion, with projected growth rates surpassing other sectors.
The rapid growth underscores the importance of AI in addressing healthcare challenges and improving patient outcomes.
Uncertainty in predicting the exact growth reflects the dynamic nature of AI technology and its vast untapped potential in healthcare.

2. The healthcare AI market is expected to reach $20.65 billion by 2023.

Healthcare AI Market Size is Expected to Reach By 2030

The massive escalation in the market size represents the transformative role of AI in streamlining healthcare services. Such impressive growth statistics underscore AI’s potential to revolutionize patient care, predictive diagnostics, and medical research.

The market grew from $11.06B in 2021 to $15.1B in 2022.
The total market value is projected to reach $187.95B by 2030.
37% annual growth rate from 2021 to 2022.
Lack of efficiency in data management and accurate diagnoses drove growth.
Digitization of industries, including healthcare, contributed to growth.
AI & ML replaced legacy systems in healthcare.
AI integration in healthcare is among the top industry trends [4].

3. The AI compound annual growth rate in US healthcare is 36.1%.

The US has a highly advanced healthcare infrastructure. The recent advancements in US healthcare have led to significant growth in AI adoption. Deep learning software, NLP tools, and predictive analytics contribute to improved treatment of conditions [5].

ML algorithms detect and diagnose COVID-19 via PubMed’s Best Match algorithm.
Global and US market share may exceed the projected compound annual growth rate.
Accelerated deployment of newer solutions leads to exponential innovation in a growing market.
China and India are examples of developing markets making significant progress in AI development.
Development in the service and administration sector, including healthcare, is prominent.

4. The US holds a 58% revenue share in the global AI healthcare market.

The US leads in revenue generated from AI in healthcare. This is due to highly favorable government initiatives, lucrative funding options, and a growing number of key market players. The US provides a thriving environment for software and tech innovation [5].

Rising awareness towards AI implementation in healthcare processes and treatments.
Increasing prevalence of chronic conditions and changing lifestyles on the patient front.
Generally lax attitudes toward self-contained healthcare.
AI solutions can address these issues.
AI solutions need to be administered and monitored effectively.
Asia-Pacific region has the second-largest share at 40.9%.
Primary drivers in the region are mostly the same as in the US.

Insights on Different AI Healthcare Markets

Exploring diverse AI applications in healthcare markets reveals a dynamic landscape encompassing drug discovery, life sciences, diagnostics, and genomics markets. Analyzing specific market trends and adoption patterns provides valuable insights into AI’s varied roles in reshaping different facets of the healthcare industry.

AI in the Drug Discovery Market

In 2021, the market size of artificial intelligence in drug discovery was estimated to be around US$ 1153.6 million. It is expected to reach approximately US$ 11,914 million by 2030, with a growth rate of 29.62% from 2022 to 2030[6].

The integration of AI in drug discovery is revolutionizing the pharmaceutical industry. AI accelerates the time taken to bring new drugs to market by hastening the drug discovery process and enhancing prediction accuracy.

Machine learning algorithms analyze vast biomedical and genetic data sets to pinpoint potential drug candidates, cutting costs and boosting efficiency. This tool shapes drug development, driving progress in personalized medicine and therapeutic innovations.

AI in the Life Sciences Market

The market for artificial intelligence in life sciences was valued at approximately $1.3 billion in 2021. It is projected to grow at a compound annual growth rate (CAGR) of 20% from 2022 to 2030, reaching a market size of around $6.7 billion by 2030[7].

AI’s application in the life sciences is expanding beyond drug discovery to diagnostics, preventive medicine, and patient care. It facilitates the efficient interpretation of complex biological data, real-time patient health monitoring, and disease progression prediction.

AI in life sciences is revolutionizing precision medicine, enhancing personalized and effective treatments. With growing investment, it reshapes the future of healthcare and medical research.

AI in the MRI Market

The market for artificial intelligence in magnetic imaging (MRI) had a valuation of approximately USD 5.77 billion in 2022. It is projected to reach around USD 9.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.85% from 2022 to 2030 [8].

AI in MRI technology is primarily used to enhance image quality, reduce scan time, and diagnose medical conditions. Rapid advancements in AI algorithms enable more accurate image reconstructions and quantitative imaging, thereby improving diagnostic confidence.

As AI integrates into MRI technology, it is expected to revolutionize imaging diagnostics, enabling faster and more accurate diagnoses. By streamlining workflow and enhancing patient experience, AI in MRI technology can transform healthcare delivery.

AI in the Genomics Market

The market for AI in genomics is projected to experience significant growth, with an estimated value of $397.64 million in 2022. This market is expected to grow at a CAGR of 40.31% from 2023 to 2030, reaching an estimated value of $5,972 million by 2030.[9]

AI in genomics combines modern computational technologies with genetic research, enabling scientists to analyze massive volumes of genetic data faster and more precisely. This technology paves the way for personalized medicine, predicting disease susceptibility and discovering new drug targets.

The increasing demand for personalized medical approaches and the declining cost of sequencing drive the market’s exponential growth. With advancing technology, AI applications in genomics will expand, opening up new opportunities for medical research and treatment strategies.

Conclusion

Artificial intelligence is poised to reshape the healthcare landscape, from enhancing MRI diagnostics to revolutionizing genomics. As these technologies evolve, we can anticipate a future where personalized medicine and predictive healthcare become the norm. The journey ahead is marked with great promise and potential for groundbreaking transformations.

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