Global Generative AI in Healthcare Market By Application (Clinical Application and System Application), By Function (AI-Assisted Robotic Surgery, Virtual Nursing Assistants & Others), By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Generative AI in Healthcare Market was valued at USD 0.8 billion and is expected to be valued at USD 17.2 billion in 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 37%.

Generative AI is a new type of machine learning that creates data after learning the properties of real data. Artificially generated patient data has the prospective to revolutionize clinical research and help in the protection of patient privacy.

Generative has the potential to reduce the administrative burden on clinicians by auto-masking tasks such as writing referral letters, clinical coding, and clinical consultation. The increasing number of hospitals and the revolution in the healthcare sector are driving the need for generative AI in the healthcare sector.

Key Takeaways

• In 2022, the Global Generative AI in Healthcare Market was valued at USD 0.8 billion.
• Expected to reach USD 17.2 billion by 2032, with a CAGR of 37% from 2023 to 2032.
• Generative AI’s significant applications in virtual nursing assistants can save the healthcare sector USD 20 billion annually.
• Clinical applications dominate the market (65% of market revenue in 2022), used in various medical fields, including cardiovascular, dermatology, infectious diseases, and oncology.
• Clinical judgment/diagnosis holds the largest market share (32% in 2022). AI-assisted robotic surgery is the fastest-growing segment.
• Diagnostic centers are the dominant end-users (35% of market revenue in 2022). Hospitals and clinics are expected to grow at the fastest CAGR.
• North America leads the market (36% of market revenue in 2022) due to the prevalence of chronic diseases and the adoption of generative AI.
• Asia Pacific is expected to grow at the fastest CAGR, driven by technological advancements and the growth of healthcare technology in emerging economies.

Driving Factors

Significant Applications of Generative AI in Virtual Nursing Assistant Systems

The artificially intelligent cloud computing systems have significant applications in medical sciences. Generative AI techniques are used in end-to-end drug discovery, drug development, and disease diagnosis. It is essential to transcribe medical images and documents such as prescriptions and remotely treat patients.

Generative AI also plays an important role in virtual nursing assistants by interacting with patients with the most effective care and treatment. The virtual nursing assistant technique could save the healthcare sector USD 20 billion annually. The virtual nursing assistant provides more regular communication between patients and healthcare providers and saves visits of patients to hospitals. Thus, the demand for generative AI techniques in the healthcare industry is increasing, driving the growth of the generative AI market.

Technological Advancements and Governmental Investments in the Healthcare Industry

Image analysis is a very time-consuming process in the healthcare industry, the generative AI reduces the time required for image analysis and helps healthcare providers in the effective diagnosis of diseases. The machine learning algorithms analyze 3D scans up to 1,000 times faster by providing real-time information.

The healthcare industry is spending more on Electronic Health Records (HER) due to increasing digitalization. It allows access to healthcare providers in treatment and makes telemedicine more effective. Several government initiatives are investing more and more in the healthcare industry, which has boosted the research and development activities driving the market growth.

Restraining Factors

Increasing Issues of Privacy and Lack of Skilled Infrastructure

Increasing risks of bias and patient data privacy is a primary concern, which can restrain the market growth. Lack of transparency and vulnerability to hacking issues also have a negative impact on this market. Software in generative AI has high subscription costs and a lack of skilled infrastructure expected to hamper market growth during the forecast period.

Application Analysis

The Clinical Application Segment is Dominant in the Market, With the Largest Market Revenue Share

Based on application, the generative AI in the healthcare market is classified into clinical applications and system applications. The clinical application segment was dominant, with the largest market revenue share of 65% in 2022. The generative AI algorithms help in accurate diagnosis and risk stratifying patients with concerns for coronary artery diseases as an intelligent tool. AI in healthcare can help identify personalized treatment options for individual patients.

The clinical application segment is further classified into cardiovascular dermatology, infectious diseases, oncology, and other applications. The clinical applications of generative AI in cardiovascular diseases are significant. It can be used in predicting patient mortality, medication effect, and adverse events following the treatment for acute coronary syndrome. Various AI models have been used, potentially enabling early detection of cardiac diseases outside the hospital.

For Instance, In 2018, it was found that skin cancer could be detected more accurately using an artificial intelligence system that uses deep learning convolutional neural networks in diagnosis. AI also plays a vital role in the field of gastroenterology. By enhancing esophagogastroduodenoscopies (EGD) and colonoscopies procedures with AI, clinicians can more rapidly detect diseases and their severity.

The system application segment is expected to grow at the fastest CAGR during the forecast period. The system application segment is further classified into disease diagnosis, telemedicine, electronic health records, and drug interaction. The increasing use of telemedicine treatment of patients remotely has driven the need for generative AI in the healthcare sector.

Function Analysis

The Clinical Judgment/Diagnosis Segment has the Largest Market Revenue Share

By function, the generative AI in the healthcare market is segmented into AI-assisted robotic surgery, virtual nursing assistants, aid clinical judgment/diagnosis, workflow & administrative tasks, and image analysis.

The clinical judgment/diagnosis segment was dominant, with the largest market revenue share of 32% in 2022. Generative AI is used in the diagnosis of a patient, and some AI algorithms are used in the detection of skin cancers. Thus, dermatologists started adopting AI algorithms for effective treatment.

For instance, a Danish AI Software company has tested its deep learning program. This algorithm analyzes what a person says, the tone of voice, and background noise and detects cardiac diseases with a 93% accuracy compared to humans.

The AI-assisted robotics surgery segment is expected to grow at the fastest CAGR during the forecast period. The robots can analyze the data from pre-operated medical records, which guides the surgeon during the surgery, leading to a 21% reduction in a patient’s hospital stay.

End-User Analysis

Diagnostic Centers Segment is Dominant in the Market, with Largest Market Revenue Share

Based on end-user, the generative AI in the healthcare market is classified into hospitals & clinics, clinical research, healthcare organizations, diagnostic centers, and other end-users. The diagnostic center segment was dominant, with the largest market revenue share of 35% in 2022.

Artificial Intelligence model can assist provides a variety of patient care and intelligent health systems. Techniques such as deep learning and machine learning have significant applications in disease diagnosis and drug discovery processes. Numerous medical data sources require accurate diagnosis using artificial intelligence techniques such as genomics, magnetic resonance imaging, and mammography.

Generative AI in the healthcare ecosystem has significant applications in diagnosing diabetes, tuberculosis, hypertension, liver & skin diseases, and chronic heart diseases. The researchers use various AI-based techniques, such as machine and deep learning models, for early and effective diagnosis of chronic diseases. The hospitals and clinics segment is expected to grow at the fastest CAGR during the forecast period. Hospitals and clinics increasingly adopt generative AI techniques for better patient services and diagnosis.

Key Market Segments

By Application

• Clinical Application
  • Cardiovascular
  • Dermatology
  • Infectious Diseases
  • Oncology
  • Others
• System Application
  • Disease Diagnosis
  • Telemedicine
  • Electronic Health Records
  • Drug Interaction

By Function

• AI-Assisted Robotic Surgery
• Virtual Nursing Assistants
• Aid Clinical Judgment/Diagnosis
• Workflow & Administrative Tasks
• Image Analysis

By End-User

• Hospitals & Clinics
• Clinical Research
• Healthcare Organizations
• Diagnostic Centers
• Other End-Users

Growth Opportunity

Technological Advancements in AI

AI plays an important role in diagnosing diseases. The medical professional can make more accurate decisions based on accurate information. Increasing numbers of hospitals and diagnostic clinics and the rising prevalence of chronic diseases are expected to drive the market during the forecast period.

Increasing demand for generative AI techniques, such as deep learning and machine learning model in virtual nursing assistants, aid clinical judgment/diagnosis, workflow & administrative tasks, and image analysis techniques expected to create lucrative growth opportunities in the market.

The increasing application of AI in chatbot therapy is also driving the market growth. Recent developments in machine learning, inference algorithms, and statistical physics are expected to drive the market in the forecast period.

Latest Trends

Prevalence of AI in Clinical Research and Trials

The governmental bodies in several countries are investing more and more in the healthcare industry. Generative AI is already more integrated into diagnostic algorithms to screen cancer, cardiovascular diseases, and diabetes. Machine learning and deep learning algorithms analyze data and real patient history.

The prevalence of generative AI in clinical research and trials is increasing to identify potential targets of new drugs and their effectiveness. Healthcare providers and other healthcare organizations are partnering with AI expert companies. Also, automation in hospital pharmacies and clinical decision support systems is increasing, positively impacting the market growth.

Regional Analysis

North America Region is Dominant in the Market with Largest Market Revenue Share

North America dominated the market, with the largest market revenue share of 36% in 2022. The region’s growth is attributed to the increasing prevalence of chronic diseases. Developed countries such as the United States and Canada are adopting generative AI technology in the healthcare industry.

The US department of health and human services has issued guidance on the ethical use of AI in the healthcare sector, which enhanced the safety and privacy of personalized patient data. Healthcare providers in North America are using AI to support decision-making, predictive modeling, and business analytics. Prevalence of machine learning and deep learning techniques in healthcare sectors of North America driving the regional growth of the market.

Asia Pacific region is expected to grow at the fastest CAGR during the forecast period. The increasing technological advancements in emerging economies such as China, Japan, Singapore, and India drive the market’s regional growth. The growing need for big data and rapid growth in healthcare technology is expected to impact market growth positively.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The key players in the Generative AI in healthcare market mainly focus on research & development activities. These key players are primarily focused on using generative AI for clinical research and drug discovery processes.

By leveraging the power of machine learning, they are able to identify new drug candidates, predict drug efficacy, and optimize drug dosing regimens. This has the potential to significantly reduce the time and cost associated with drug development, while also improving patient outcomes.

Listed below are some of the most prominent key market players in generative AI in the healthcare market

Market Key Players

• IBM Watson
• Microsoft Corporation
• Google LLC
• Tencent Holdings Ltd.
• Neuralink Corporation
• Johnson & Johnson
• Other Key Players

Recent Developments

• In June 2020, Johnson & Johnson and the National Institute of Allergy and Infectious Diseases (NIAID) confirmed their intention to start clinical trials of the J&J vaccine using Generative AI techniques.
• In April 2021, Johnson & Johnson reported that its COVID-19 vaccine achieved USD 100 million in sales in the first quarter.

Report Scope