North America AI in Healthcare Market size exceeded USD 1.15 billion in 2020 and is predicted to witness over 44.2% CAGR from 2021 to 2027.
Artificial intelligence (AI) is the broad-ranging division of computer science involved in developing smart machines competent in executing tasks that ordinarily need human intelligence. AI technologies are enhancing ongoing developments in the medical field, modern business, and everyday life practices in healthcare. Artificial intelligence in healthcare can support healthcare providers in multiple sectors of patient care and organizational management processes. Different applications of healthcare AI such as early diagnosis, lessen therapeutic errors, increase patient safety, and decision support are accelerating the market demand.
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Recent significant advancement in healthcare technology including big data analytics that is used to characterize enormous volumes of data records and support in handling hospital performance will boost the market epansion. Investment in AI is increasing in the healthcare industry owing to different players emphasizing on advantages of deep neural networks and diverse forms of data-driven analysis. For instance, according to the October Optum survey of 500 U.S. healthcare industry players, around 22% of respondents are in the ultimate phase of AI implementation in the health system. In addition, artificial intelligence in healthcare market growth is significantly driven by the increasing application of AI in medical research coupled with the ability to tackle the several constraining medical challenges of traditional time.
Increase in the application of artificial intelligence to upsurge the quality-of-care delivery will drive the market growth across the region. As per the Becker's healthcare, AI has had a positive impact on the U.S. healthcare system owing to several interrelated trends including digitization, cloud computing platforms, commercial AI/ML frameworks, etc. AI allows providers to strongly engage patients in the appropriate ways while filling care gaps and encouraging patients to recover their health. Additionally, the geriatric population and shortage of the healthcare workforce in the region is increasing demand for an improved health care delivery system.
Increasing range of future applications for healthcare artificial intelligence across the region will stimulate the demand for AI-enabled health systems. The future of AI in healthcare sector comprises simple to complex techniques. These significant applications involve several tasks, including medical record review, therapeutic drug design, population health analytics, treatment suggestions, etc. Healthcare professionals, start-ups, and healthtech firms are exploring novel ways to integrate AI into the healthcare sector.
Start-ups in the region are continuously emphasizing on applying AI To transform healthcare. For instance, several start-ups have come up over the past few years to automate medical imaging. Among others, the more prominent are Zebra Medical Vision, Caption Health, PathAI, etc. The future of AI in health care comprises a healthcare-oriented analysis of AI machine learning and natural language processing. The future of technology is sustainability, with health systems searching for long-term virtual health solutions. Thus, AI coupled with machine learning technology will be centered on developing a more extensive set of virtual team and patient collaboration capacities.
The medical imaging & diagnosis segment is projected to expand at 46% CAGR through 2027 owing to the several benefits of AI in medical imaging & diagnosis integrated with automatic identification of complicated patterns in imaging data and quantitative assessments of radiographic features. For instance, as per the article published in the National Centre for Biotechnology Information (NCBI), AI has significant clinical applications that can be successfully applied in thoracic imaging, colonoscopy, mammography, and radiation oncology among others.
Therefore, the demand for AI-enabled medical imaging & diagnosis is augmenting at a rapid pace. The growth is attributed to increasing radiologist workload, large R&D expenditures, and growing complications in clinical decision-making. Moreover, as per the journal of the American College of Radiology, the survey reported increased workload on radiologists in the U.S. across healthcare settings. AI which includes machine learning can benefit and address these concerns and has the potential to enhance clinical results coupled with improving the quality of medical imaging. Thus, several industry players are engaged in the development of several kinds of emerging AI technology to improve the quality of medical imaging & diagnosis. Furthermore, emerging indications for effective and potential results in treatment and diagnosis are uplifting the demand for AI-enabled medical & diagnosis solutions.
U.S. artificial intelligence in healthcare market value was more than USD 1 billion in 2020 will. The large market size is attributed to the recent advancements in technology along with several government initiatives supporting the acceptance of digital platforms in life sciences. Venture capital (VC) investors are realizing the huge potential that AI solutions can provide for promoting patient care, extending the reach of services, and cutting down healthcare expenses. For instance, as per the recent research article in 2019, U.S. was at the fore front in AI venture capital investment, with 220 deals and a total of around USD 16 billion.
Also, as stated in a recent research study, significant clinical AI applications could generate approximately USD 150 billion in yearly savings for the U.S. healthcare economy by 2026. AI can benefit from decreasing preventable and rectifiable system incapability. In addition, strong economic growth in the U.S. has led the industry to witness strong growth in both value and current terms. This growth can be credited to the well-established healthcare area and availability of funding for emerging AI capabilities.
Some of the major North America AI in healthcare market players include IBM Watson Health, Modernizing Medicine, NVIDIA Corporation, and Zebra Medical Vision, among others.
These companies are adopting various organic and inorganic strategies such as product launches and partnerships for garnering maximum market share and strengthening their industrial presence. For instance, in August 2019, Sophia Genetics and ADC Therapeutics announced a partnership for biomarker discovery in a pivotal phase II clinical trial. This association aimed to determine genomic markers linked with clinical response to ADCT-402.