Globally, artificial intelligence in healthcare is expected to expand at a compound annual growth rate of 43.5 percent from 2018 to reach $27.6 billion by 2025, finds ResearchandMarkets.com.
The high growth of the artificial intelligence market in healthcare is attributed to factors such as rising funding in AI, the growing demand of precision medicine, effective cost reduction in healthcare expenditure, and accurate and early diagnosis of chronic diseases and disorders.
End user reluctance in adopting AI technologies, lack of trust and potential risks associated with AI in healthcare, are all restricting the growth of this market to a certain extent, the report found.
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On the other hand, the ability of healthcare AI to improve patient outcomes, the growing potential of AI-based tools for older patients, and high growth prospects in emerging economies are leading to significant growth opportunity in the market.
The software segment commanded the largest share of the global artificial intelligence market in healthcare in 2018. But the services segment is expected to grow at the fastest CAGR during the forecast period, owing to technology developments in the healthcare IT industry.
Moreover, many of the global healthcare IT companies, medical device companies, and technology providers are continuously focusing on developing AI-based solutions for the healthcare industry.
Hospital workflow management accounted for the largest share of the global market in 2018. A majority of this segment is mainly attributed to greater penetration of AI-powered chatbots and smart speakers among healthcare providers. The increasing adoption of AI-based solutions for managing various administrative tasks, such as scheduling appointments and checking insurance coverage parameters, are some of the key factors driving the growth of the market, the report found.
North America commanded the largest share of the global healthcare AI market in 2018, mainly due to factors such as an established IT infrastructure, the presence of innovative software vendors and venture capitalists, rising adoption of electronic health records, and the largest biopharmaceutical and biotechnological pipeline.
Plus, an uptick in funding for new product development, and an increasing number of AI startups in healthcare, are expected to drive the market during the forecast period.
Ninety-one percent of 500 healthcare leaders voiced confidence that they will see an ROI on AI, according to a November 2018 OptumIQ survey.
Hospital executives expect to see a positive ROI in four years -- while 38 percent of employers and 20 percent of health plan executives anticipate ROI sooner, in three years or less.
Ninety-four percent of respondents said their organizations are investing in and making progress in implementing AI. And the same percent agree that AI technology is the most reliable path toward accessible and affordable healthcare.