The healthcare artificial intelligence market is expected to grow from $2.1 billion in 2018 to $36.1 billion by 2025, at a compound annual growth rate of 50.2 percent during the forecast period, according to market research published by ReportLinker.
Increasingly large and complex data sets available in the form of big data, and a growing need to reduce increasing healthcare costs, are driving the growth of the market.
Improving computing power and the declining cost of hardware are other key factors in the projected market growth.
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Despite the emerging data/technology picture, challenges remain. There's a reluctance among medical practitioners to adopt AI-based technologies, and a lack of skilled workforce and ambiguous regulatory guidelines for medical software also conspire to restrain the growth of the healthcare AI market.
Still, growing adoption of AI solutions is expected to propel the growth of the services segment, which is projected to witness the highest growth.
For the successful deployment of AI, there is a need for deployment and integration, and support and maintenance services. Most companies that manufacture and develop AI systems and software provide both online and offline support, depending on the applications.
Machine learning's ability to collect and handle big data, and its increasing adoption by hospitals, research centers, pharmaceutical companies and other healthcare institutions, are fueling its growth in healthcare AI market.
The hospital and provider segment is expected to hold the largest size of the market in terms of the end user.
A few major factors responsible for the high share of the hospital and provider segment include a large number of applications of AI solutions across provider settings; ability of AI systems to improve care delivery, patient experience, and bring down costs; and growing adoption of electronic health records by healthcare organizations.
WHAT ELSE YOU SHOULD KNOW
North America to likely to witness the highest growth rate during the forecast period. The U.S. is considered one of the major contributors in the North American healthcare AI market.
It's also one of the leading countries in the world to adopt AI technology across the continuum of care. Moreover, high consumerization of personal care products -- routine check-up medical tools and wearable devices -- is further complementing market growth.
AI has already penetrated healthcare in areas such as radiology and cancer detection, poising it to become ever more prevalent. Perhaps due to this, some are worried that AI is coming to replace their jobs -- fears that experts say are largely unfounded.
Artificial intelligence and machine learning algorithms tend to rely on large quantities of data to be effective, and that data needs human hands to collect it and human eyes to analyze it. And since AI in healthcare is currently utilized mainly to aggregate and organize data -- looking for trends and patterns and making recommendations -- a human component is very much needed.