Europe Healthcare Artificial Intelligence (AI) Market size surpassed USD 700 million in 2020 and is anticipated to register a growth rate of 43.9% from 2021 to 2027.
Artificial intelligence (AI) is a collection of technologies that encompasses the programming in machines that can simulate human intelligence and apply it in host of activities including learning, digitization, problem solving, automation, etc. Artificial intelligence has extensive applications in several industries such as finance, automotive, information communication & technology, healthcare, among others. With ongoing research and advancements, these technologies are increasingly being applied in medical field, for research, administrative activities, diagnosis & treatment, and patient engagement & adherence. These technologies possess the potential to improve certain aspects of healthcare industry, and accelerate administrative functions within payer, provider, and pharmaceutical companies.
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Healthcare artificial intelligence can be implemented in a variety of activities such as clinical documentation, claims processing and managing revenue cycle & medical records. Growing data complexity, rise in availability of data and expedite progress of data analytics in healthcare will further drive the usage of artificial intelligence in healthcare. Moreover, implementation of artificial intelligence tools in diagnosis, treatment, prediction, and prognosis evaluation of major disease areas such as include cardiology, cancer, and neurology might further benefit the Europe healthcare AI market expansion.
Increasing range of future applications for healthcare artificial intelligence will amplify the demand for AI-enabled technologies. Emergence of information communication technology in healthcare sector has been shifting from products to services to solutions at a rapid pace. Past decades emphasized on product innovation offering evidence-based care. The present decade focuses on medical platforms that supports outcome-based and real-time care. The coming decade is anticipated to harness the potential poised by AI, augmented & virtual reality, machine learning and robotics to provide efficient medical solutions, incorporating evidence, as well as outcome-based healthcare. According to a recent research journal, a number of research are inferring that healthcare artificial intelligence can perform key healthcare tasks including disease detection and diagnosis. Additionally, the AI-enabled algorithms are outperforming radiologists in detecting malignant tumours and are also aiding researchers in clinical trials cost management.
Furthermore, implementation of artificial intelligence in offering tailored precision medicine and genetic testing can enhance detection of genetic mutations. For instance, Deep Genomics, a health technology company, is involved in identifying patterns in genetic dataset and electronic medical records to link them with disease markers. The company makes use of AI technologies in target discovery, lead optimization, toxicity evaluation, and others to design personalized genetic medicines.
Favourable funding scenario to deliver precise and effective healthcare solutions using artificial intelligence would drive the market revenue. Growing significance of artificial intelligence has promoted the number of venture capital investors along with start-ups to invest in healthcare. Enormous potential and wide range of application provided by AI technologies for enhancing patient care and reducing health expenditure may further expedite the market growth. Investments in artificial intelligence as well as machine learning applications in healthcare have surged recently. According to a published report, the funding for health technology start-ups is increasing robustly, over the past few years. The number of deals was 800 and the funding accounted for a total of USD 15 billion as of 2018. This number rose significantly with emerging AI organizations accounting for USD 26.6 billion in funding in 2019 with 2,235 deals.
Ongoing investment trends in healthcare AI in developed markets, include growing emphasis on operational activities including automating booking systems and patient data collection, records management, and others. Moreover, supporting government initiatives for promoting healthcare AI start-ups will amplify the industry growth. For instance, the National Health Research Institute (NIHR) of UK offers funding for artificial intelligence related to health research. It also provides the NHS Long Term Plan that assists expedition of development of promising AI technologies.
Europe Market, By Application
The medical imaging & diagnosis segment in the healthcare artificial intelligence (AI) market will grow at more than 45.9% CAGR till 2027. The significant expansion of the segment is due to rising use of artificial intelligence in medical imaging and diagnosis. It has showcased better accuracy and sensitivity in detection of abnormalities during medical imaging and promises improvised tissue-based identification and characterization. For instance, as per the article published in the National Centre for Biotechnology Information (NCBI), AI involves computer vision that interprets videos and images.
This interpretation with the help of machines is at par or better than human-level capabilities. Image-based diagnosis and surgery are the major areas where in, computer vision is advancing. According to the HHS Public Access report, a video review of laparoscopic surgery in real time provided around 93% accuracy in detecting all the steps of the surgery.
Europe Market, By Country
Germany healthcare artificial intelligence market size was over USD 118 million in 2020 led by ongoing research and technological advances coupled with favourable government initiatives supporting the integration of AI in the medical field across the region. The German Research Center for Artificial Intelligence (DFKI) along with Fraunhofer institutes are developing technologies that might reduce healthcare expenditure by over USD 200 billion in Europe in the coming years.
Furthermore, the Fraunhofer Institute for Intelligent Analysis and Information Systems (IAIS) is working in collaboration with the Fraunhofer Institute for Medical Image Computing (MEVIS). This collaboration aims to implement medical image computing and developing a digital system to accurately detect abnormalities in diagnostic images by itself. Technological advances would strengthen the emerging AI capabilities. Additionally, the German government is pursuing incorporation of artificial intelligence in healthcare. The government launched its artificial intelligence strategy developed jointly with other ministries in the country.
Competitive Industry Landscape
Some of the major companies involved in the Europe healthcare AI market include IBM Watson Health, Modernizing Medicine, NVIDIA Corporation, and Zebra Medical Vision, among others.
These market players are implementing a host of strategies such as novel product developments, mergers, and collaborations for capturing maximum market share and strengthening business portfolio. For instance, in March 2020, Babylon Health launched COVID-19 care assistant in UK. This new service offered by the company offers latest information about COVID-19, monitors symptoms and assists the users to get appropriate help. It also enables the users to update their symptoms and offers recommendations to infected people to prevent them from spreading the virus. This strategic move assisted the company in expanding its customer base and strengthening its product portfolio.