Healthcare has undergone a transformation over the past several years, shifting from paper-based records systems to electronic records, as well as incorporating digital health monitoring devices and other advanced patient screening systems. These advances have led to an explosion of data, which can best be manipulated and analyzed by artificial intelligence (AI) technology. In healthcare, according to a new report from Tractica, AI is largely being implemented as a tool to more efficiently and accurately review data, and uncover patterns in the data that can be used to improve analyses, uncover inefficiencies, and streamline care, from both a clinical and an operational perspective. The market intelligence firm finds that the overarching driver in these AI implementations is to provide better care for patients, while reducing costs and administrative headaches and bottlenecks.
Tractica forecasts that global software revenue from 21 key healthcare AI use cases will grow from $165 million in 2017 to $5.6 billion annually by 2025. Including the hardware and services sales that will be driven by these software implementations, the firm anticipates that the total revenue opportunity for the healthcare AI market will reach $19.3 billion by 2025.
“Controlling and reducing cost is a major driver of many healthcare initiatives, and the incorporation of AI technology is no exception,” says principal analyst Keith Kirkpatrick. “AI applications generally are designed to address specific, real-world use cases that make the diagnosis, monitoring, and treatment of patients more efficient, accurate, and available to populations around the world.”
Tractica’s report, “Artificial Intelligence for Healthcare Applications”, focuses on 21 healthcare-focused use cases for artificial intelligence, including an assessment of the market opportunity for AI software, hardware, and services in the healthcare market. The market analysis and forecasts within the study cover industry dynamics in five major world regions and are based on an in-depth assessment of major companies as well as startup-level activity in the healthcare AI space. Revenue forecasts for each use case are segmented by world region, and the study also includes profiles of 16 key industry players. An Executive Summary of the report is available for free download on the firm’s website.