Artificial Intelligence in Medicine Market Report

Market Insights

The global artificial intelligence in medicine market is expected to grow from USD 3.89 billion in 2022 to USD 46.60 billion by 2029 at a CAGR of 42.6% during the forecast period.

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What is Artificial Intelligence in Medicine?

Artificial Intelligence (AI) is playing an increasingly important role in the field of medicine, from drug discovery to clinical decision-making. AI algorithms can analyze vast amounts of medical data, such as patient records and medical imaging, to provide insights that can inform diagnosis, treatment, and drug development.

In addition, AI can assist with tasks such as risk prediction, disease detection, and personalized medicine, improving the accuracy and effectiveness of medical interventions. AI-powered robots and devices can also assist with surgery and rehabilitation, enhancing patient outcomes. Overall, AI in medicine is transforming the field by making it more precise, efficient, and patient-centered. As the technology continues to advance, even more innovative applications of AI in medicine are expected in the future.

Key Players

The major players operating in the global artificial intelligence in medicine market are:

• Atomwise Inc.
• Novo Nordisk A/S
• Nano-X Imaging Ltd
• Modernizing Medicine Inc.
• Berg LLC
• Medasense Biometrics Limited
• Sense.ly Corporation.
• AiCure LLC
• Cyrcadia Health

Market Dynamics

Various factors are fueling the growth of the market, such as the requirement for improved data management and cost optimization in healthcare, the proliferation of public-private collaborations, and augmented healthcare spending in certain regions. Furthermore, the market is expected to expand due to the emergence of prospects in senior citizen healthcare that utilize AI technology, as well as the use of imaging and diagnostic tools to produce data for research and development purposes.

AI is providing four key advantages to small-molecule drug discovery: it enables access to new biological insights, facilitates improved or unique chemistry, increases success rates, and accelerates and reduces the cost of the discovery process. For example, in 2021, the FDA's Center for Drug Evaluation and Research (CDER) granted approval for 50 new pharmaceutical and biological products.

Of these, 33 were novel medications based on small molecules, while 17 were large molecules like monoclonal antibodies. However, there has been a consistent rise in the number of biological approvals in recent years. The significant number of drug approvals is expected to drive the growth of the market.

Over the last decade, the healthcare industry has undergone a significant transformation as a result of the digital revolution. The most noticeable areas that have benefited from innovation and integration are care delivery and system performance. The next phase of revolution in healthcare is already being prepared, focusing on a customer-driven business model, facilitated by the seamless integration of new technologies like AI, IoT, and ML as digital convergence continues to progress.

The utilization of AI and related technologies is increasingly widespread in business and society and is now being implemented in healthcare. These technologies have the potential to transform numerous aspects of patient care and internal administrative procedures at payer, provider, and pharmaceutical organizations.

As the demand for healthcare services continues to grow, many countries are facing a shortage of healthcare professionals, particularly doctors. Additionally, healthcare organizations are under pressure to keep up with the latest technological advancements and meet high standards for service and results.

AI represents one of the most promising and potentially transformative opportunities for the life sciences industry, making it a key investment target in the years ahead. Many organizations are seeking to capitalize on its potential, and the number of applications is expected to continue growing, with investors expected to enter the AI industry early.

However, AI investment can pose a risk to a company's growth during the start-up phase. Developing robust AI products requires significant cash injections, and the sector cannot be monetized quickly or easily. These products often require the expertise of R&D teams and specialized machine learning engineers, which can be costly.

Market Segment

By Application Type: Patient Management Application to Grow Significantly

The management of patients involves the organization of administrative tasks and the storage of patient records. Its primary objective is to enhance the efficiency of medical practices, ensure prompt delivery of care, and enhance the experience and results of patients. This encompasses a range of functions such as scheduling appointments, managing billing information, and recording patient diagnoses. With the growing prevalence of electronic health data and advanced analytical techniques, there is enormous potential for AI and various machine learning methods to provide superior services at reduced costs.

The healthcare industry is undergoing a significant transformation, and smart wearables are playing a crucial role in this evolution. These devices are employed in a variety of functions, including heart rate monitoring, step counting, and blood pressure monitoring, among others. These activities generate a vast amount of data that must be analyzed and processed to provide users with interactive feedback. This is where AI comes into play, as it aids in the speedy analysis and processing of data.

The shortage of physicians in the United States is becoming more severe, with the Association of American Medical Colleges (AAMC) projecting a potential shortfall of 37,800 to 124,000 doctors by 2034. This significant decline in the healthcare workforce highlights the need for improvements in patient management.

AI has the potential to enhance the productivity of healthcare providers while also improving patient outcomes by identifying those at the greatest risk. Additionally, AI can enable real-time tracking of various biometric indicators, dietary and fitness patterns, mental well-being, and genomic screening.

Regional Analysis: North America to Hold Significant Market Share

The healthcare and pharmaceutical industries have witnessed a significant uptake of AI technologies, with the presence of well-established AI software and system suppliers further fueling this trend. Both government and private organizations have invested heavily in research and development activities, which is expected to drive market demand in the US.

The country's developed infrastructure provides an ideal setting for the deployment of advanced medical solutions, and as such, it is anticipated that the US will dominate the regional market over time. Additionally, the influx of investments in startups focused on AI implementation is expected to further accelerate market growth.

The healthcare industry is increasingly interested in the role of AI in assessing the condition and progress of patients across multiple stages of illness. This interest is the primary driver behind the adoption of real-time remote patient monitoring systems, which can not only provide numerous benefits but also lead to a paradigm shift in healthcare improvement in the long run.

Many players in the healthcare industry are promoting the use of AI technology, as it has the potential to vastly enhance the services provided. The integration of AI is particularly crucial for functions such as accessing data, collecting patient symptoms, and communicating complementary treatments.

With ongoing advancements in technology, healthcare is undergoing a transformation, and software incorporating AI, specifically the subset of AI known as machine learning (ML), is becoming an integral part of an increasing number of medical devices. One of the most significant benefits of ML is its ability to generate new and critical insights from the massive amounts of data generated during the delivery of healthcare every day.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

Recent Developments

• In September 2022, Novo Nordisk partnered with Microsoft for AI-driven drug discovery. Under the partnership, AI is being leveraged for detecting new targets and validating disease biomarkers.
• In August 2022, Atomwise and Sanofi entered into a strategic and exclusive research partnership to use the former’s AI-driven AtomNet platform to research up to five drug targets computationally.