[Research] Healthcare AI market to be worth $176.4 billion by 2031

According to a new market report by Meticulous Research titled, 'Healthcare Artificial Intelligence Market by Offering (Software, Services), Technology (ML, NLP), Application (Hospital Workflow Management, Patient Management), End User (Hospitals & Diagnostic Centers), and Geography - Global Forecast to 2031', the global healthcare artificial intelligence (AI) market is projected to reach $176.4 billion by 2031, at a CAGR of 31.3% from 2024–2031.

Healthcare is one of the most critical sectors in the broader landscape of big data because of its fundamental role in a productive, thriving society. AI in healthcare is a term used to describe the application of machine learning (ML) algorithms and other cognitive technologies in medical settings. AI helps to assist doctors, nurses, and other healthcare workers in their daily work. AI in healthcare enhances preventive care and quality of life, produces more accurate diagnoses and treatment plans, and leads to better patient outcomes overall. AI in healthcare helps to predict and track the spread of infectious diseases by analyzing data from government, healthcare, and other sources.

The growth of the healthcare artificial intelligence market is driven by the growing demand for personalized therapy, the rise in the volume and complexities associated with healthcare datasets, and the rising need to reduce healthcare costs. However, reluctance to adopt AI technologies due to a lack of trust restrains the growth of this market. Moreover, the growing potential of AI-based tools in the treatment of chronic and infectious diseases and the rising incorporation of AI in clinical trials to accelerate new drug launches are expected to generate market growth opportunities. However, discrepancies arising due to upgrades and human barriers to AI adoption are major challenges for market stakeholders. Additionally, growing AI-based clinical decision support systems (CDSS) to identify patient risk are prominent trends in this market.

The global healthcare artificial intelligence market is segmented by offering (software, hardware, and services [installation & integration and support & maintenance]), technology (machine learning, natural language processing, context-aware processing, and querying method), application (drug discovery, hospital workflow management, patient data & risk analytics, medical imaging & diagnosis, patient management, precision medicine, and other applications), end user (hospitals & diagnostic centers, pharmaceutical & biotechnology companies, healthcare payers, patients, and other end users). The study also evaluates industry competitors and analyzes the market at geographical levels.

Based on offering

In 2024, the software segment is expected to account for the largest share of the global healthcare artificial intelligence market. However, the services segment is projected to register the highest CAGR during the forecast period due to the rising incorporation of AI services in clinical trials to accelerate new drug launches, the rising adoption of AI services to help reduce human error, assist medical professionals and staff, the increasing need for analyzing data to identify potential health issues.

Based on technology

In 2024, the natural language processing segment is expected to account for the largest share of the global healthcare artificial intelligence market. The segment's large share is attributed to the growing ability to collect large amounts of data and handle big data, the rising need to organize physician documentation, and the increasing use of efficient back-end coding to optimize billing procedures. Additionally, this segment is expected to register the highest CAGR during the forecast period.

Based on application

In 2024, the hospital workflow management segment is expected to account for the largest share of the global healthcare artificial intelligence market. The segment's large share is attributed to the increasing use of chatbots for customer service engagement, the growing adoption of automated tasks, improved patient care coordination, reduced costs, and the increasing use of AI in hospitals to improve patient experience and care. Additionally, this segment is expected to register the highest CAGR during the forecast period.

Based on end user

In 2024, the hospitals & diagnostic centers segment is expected to account for the largest share of the global healthcare artificial intelligence market. The segment's large share is attributed to the growing need to improve the speed and accuracy of patient visits, leading to faster and more personalized care and the growing adoption of AI to improve accuracy, reduce costs, and save time compared to traditional diagnostic methods. Additionally, this segment is expected to register the highest CAGR during the forecast period.

Based on geography

In 2024, North America is expected to account for the largest share of the global healthcare artificial intelligence market. The healthcare industry in North America has swiftly used AI to increase efficiency, productivity, and consumer experiences. The rising incorporation of AI in clinical trials to accelerate new drug launches and the growing demand for personalized therapy support the growth of this regional market.

However, the Asia-Pacific region is projected to register the highest CAGR during the forecast period. This region's growth is driven by the growing need for coordination between the healthcare workforce and patients, remarkable growth in venture capital investments, the significant use of big data in the healthcare sector, and rising technological innovation.

Read the full report here.

www.meticulousresearch.com

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