PUBLISHER: Roots Analysis | PRODUCT CODE: 1817405
PUBLISHER: Roots Analysis | PRODUCT CODE: 1817405
As per Roots Analysis, the global generative AI in healthcare market is currently valued at USD 3.3 billion and is projected to reach USD 39.8 billion by 2035, growing at a CAGR of 28% during the forecast period.
The opportunity for generative AI in healthcare market has been distributed across the following segments:
Purpose
Type of Offering
Application Area
End-User
Key Geographical Regions
Market in North America
Market in Europe
Market in Asia-Pacific
Market in Middle East and North Africa
Market in Latin America
Generative AI in Healthcare Market: Growth and Trends
Generative AI is a part of artificial intelligence that utilizes generative models to create data-driven outputs, such as insights, images, videos, and other formats. In the healthcare sector, this technology is evolving rapidly, with the potential to transform patient care, research and treatment.
The healthcare industry is currently navigating a complex landscape marked by a number of challenges, including inefficiencies in clinical workflows, escalating treatment costs, staff shortages, and burnout of the healthcare workers. According to Medscape's 2024 Physician Burnout and Depression Report, nearly 49% of physicians reported feeling burnt out, with administrative burdens (62%) and long working hours (41%). In addition, the conventional drug discovery methods remain time-intensive with no focus on the personalized treatment approaches. Moreover, about 90% of drug candidates fail to progress to advanced clinical trial phases, despite significant time and financial investments. This high failure rate not only impedes innovation but also intensifies the financial strains on the global healthcare systems.
To address these challenges, several pharmaceutical and life sciences companies have increasingly shown interest in exploring the adoption of generative AI. Further, it is important to highlight that generative AI in healthcare industry holds great potential in automating administrative processes for improving the overall operational efficiency, enhancing diagnostic accuracy through advanced imaging, personalizing patient engagement, and accelerating drug discovery and development. Notably, the implementation of generative AI in administrative tasks alone could generate annual savings of approximately USD 150 billion across the healthcare sector. Additionally, studies suggest generative AI could reduce diagnostic errors by up to 85% and reduce nursing overtime by 21%, resulting in potential cost savings of nearly USD 469,000 over the span of three years per hospital. However, as healthcare organizations integrate generative AI into their systems, it is essential to establish robust governance frameworks that ensure ethical AI use and address key concerns, such as data privacy, algorithmic bias, and transparency.
In recent years, several pharmaceutical and healthcare companies have entered into strategic partnerships with various AI firms to explore applications of generative AI in healthcare. Simultaneously, several generative AI developers are securing significant funding in order to enhance their model capabilities for diverse medical applications. Given the growing interest of the investors and the expanding collaborative landscape, generative AI in healthcare market is poised for sustained growth in the coming years.
Generative AI in Healthcare Market: Key Insights
The report delves into the current state of the generative AI in healthcare market and identifies potential growth opportunities within industry. The key takeaways of the report are:
Generative AI in Healthcare Market: Key Segments
Generative AI used for Clinical-based Purposes is Likely to Hold the Largest Share of the Current Market During the Forecast Period
Based on purpose, the global market is segmented into clinical-based and system-based purposes. Amongst these types, the clinical-based purpose segment occupies the largest share of the current overall market. This can be attributed to their direct impact on patient care, as these would help the clinicians make informed decisions, increasing their adoption in the hospitals and clinics.
Based on the Type of Offering, Platform / Technology Segment Captures the Majority of the Current Market Share
Based on the type of offerings, the global generative AI in healthcare market is segmented into platform / technology and service. Presently, the platform / technology segment occupies the highest share in the overall market. However, it is important to note that the services segment is anticipated to grow at a relatively higher CAGR during the forecast period.
Treatment Segment is Likely to Hold the Largest Share in the Generative AI in Healthcare Market During the Forecast Period
Based on the application area, the global generative AI in healthcare market is segmented into drug discovery and development, diagnosis, treatment, administrative tasks and other application areas. Currently, the treatment segment leads generative AI in healthcare market. It is important to highlight that this trend is unlikely to change in the future as well. This can be attributed to the fact that generative AI boosts treatment efficacy and patient care, reducing administrative burdens, driving sustained growth in clinical applications.
Generative AI in Healthcare Market for Healthcare Providers is Likely to Grow at a Relatively Faster Pace During the Forecast Period
Based on the end-user, the global generative AI in healthcare market is segmented across pharmaceutical and life science companies, healthcare providers and other end-users. Presently, the market is dominated by the revenues generated through the systems intended for use by healthcare providers. Further, this market trend is unlikely to change in the future as well owing to the wider applicability of the gen AI solutions, such as enhanced patient care, improved operational efficiency, data driven insights and cost saving potential.
North America Accounts for the Largest Share in the Market
Based on key geographical regions, the market is segmented into North America, Europe, Asia-Pacific, Middle East and North Africa and Latin America. In the current scenario, North America is likely to capture the largest market share. Further, it is worth highlighting that Asia-Pacific is expected to grow at a relatively high CAGR during the forecast period.
The opinions and insights presented in this study were influenced by discussions conducted with multiple stakeholders. The research report features detailed transcripts of interviews held with the following industry stakeholders:
Generative AI in Healthcare Market: Research Coverage
The report on generative AI in healthcare market features insights into various sections, including:
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