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North American Healthcare AI Market revenue to reach $14.3 Bn by 2027
Published Date: 2021-05-08
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North American Healthcare Artificial Intelligence (AI) Market size is projected to cross USD 14.3 billion by 2027, according to a latest forecast report by Graphical Research.
Growing shortage of healthcare workers across the region will stimulate the healthcare artificial intelligence market growth. The shortfall in public health workforce has been a longstanding issue at the forefront of healthcare sector. The problem has mainly aroused owing to the increase in elderly population, including the age-group called ‘Baby Boomer’ generation. As per a press release by the new article in 2017, the U.S. elderly population aged 65 and above estimated to increase by around 55% by the end of 2030. A forecast by the article highlighted the need for over 250,000 healthcare workers to meet the rising demand by the end of 2020.
Furthermore, the Center for State & Local Government Excellence showcased the healthcare workers shortfall, informing that several governments reported vacancy rates surging up to 20%. Additionally, the Association of American Medical Colleges (AAMC) estimated shortage of almost 105,000 physicians by the year 2030. Rural areas are anticipated to experience more problems relatively. As per the Healthcare Professional Shortage Areas (HPSAs) data, rural states such as Tennessee, Vermont, Utah along with remote territories such as the Northern Mariana Islands and Guam indicate the highest shortfalls in healthcare professionals. Artificial intelligence in healthcare can assist in healthcare data management, assistance to patient and hospital management that alleviates workforce shortage concerns.
Adoption of healthcare artificial intelligence has been growing rapidly in the past years due to emergence in healthcare management software, algorithms, and applications. Moreover, rising chronic ailments, healthcare infrastructure developments, transforming healthcare models, and higher medical labor costs might promote the use of artificial intelligence. The implementation of artificial intelligence technologies in healthcare industry has potential to aid healthcare facilities in several aspects including enhanced patient care, digitization in business processes and better administration.
A recent survey associated with adoption of artificial intelligence in healthcare revealed that around 47% of respondents and their companies have incorporated at least one AI capability in the business operations. The number has increased in comparison with 20% in a 2017 study that stated they are incorporating artificial intelligence technologies in their companies. Artificial intelligence can be used in multiple areas of interests in healthcare management as it enhances healthcare operations. It can be used to aid in detection of specific cancers by offering intervention, further leading to high survival chances, predict risk of hospital admissions, and also finds application in pharmacovigilance and healthcare R&D.
Browse detailed statistical insights from the report, “North America Artificial Intelligence (AI) in Healthcare Market Size By Application (Medical Imaging & Diagnosis, Drug Discovery, Therapy Planning, Hospital Workflow, Wearables, Virtual Assistants), Research Report, Country Outlook (U.S., Canada), Price Trends, Growth Prospects, Competitive Industry Share & Forecasts, 2021– 2027” along with the table of contents (ToC) @
The drug discovery segment accounted for over USD 446 million revenue in 2020. Increasing need to bring down costs coupled with reducing the research path dead ends in drug discovery and development will drive the market demand. According to a recent research journal, an average cost of discovering, developing, and introducing a new drug into market is around USD 2.6 billion. Furthermore, as per the Biotechnology Innovation Organization report, lower than 10% of drug candidates are cleared and introduced in the market following Phase I trials. Artificial intelligence assists in pharmaceutical R&D activities by enabling early applications for target assessment, effective clinical dosing, lead selection and optimization, among others. These factors benefit the organization and reduces R&D expenditure as well as time. For instance, AstraZeneca announced collaboration with Schrödinger and BenevolentAI to expedite drug discovery with the help of machine learning.
Canada healthcare artificial intelligence market is anticipated to expand at over 42.5% CAGR from 2021 to 2027. The higher market growth in the country is owing to the emergence of artificial intelligence startups. For instance, Vector Institute, a research institute engaged in the field of artificial intelligence partnered with University of Toronto’s. They launched Temerty Centre for AI Research and Education in Medicine (T-CAIREM) to facilitate the development of data governance and infrastructure in healthcare. T-CAIREM aims to offer advanced educational curriculums, support R&D activities and design better data platforms to store datasets for artificial intelligence in medicine. In addition, collaborations among scientists, government agencies, and public health organizations to integrate AI tools and improve patient experience along with health care delivery is fueling the market growth.
Some of the major players involved in North America healthcare AI market include IBM Watson Health, Modernizing Medicine, NVIDIA Corporation and Sophia Genetics among others. Novel product development & launch and strategic collaborations are the commonly adopted strategies to strengthen market position. Moreover, the significant investments by these companies are offering global expansion opportunities for the market. For instance, in December 2020, Zebra Medical Vision announced FDA clearance for its AI solution to extract bone measurements from X-ray scans, at the same quality as CT scans, for planning orthopedic surgical procedures. This strategy is expected to enhance their service offerings and customer base.
The North American healthcare artificial intelligence market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2016 to 2027, for the following segments:
North America Market, By Application
- Medical Imaging & Diagnosis
- Drug Discovery
- Therapy Planning
- Hospital Workflow
- Virtual Assistants
The above information has been provided for the following countries:
- North America