The AI in healthcare market is expected to grow from $2.1 billion in 2018 to $36.1 billion by 2025, according to a report by Markets and Markets.
The forecasted period is expected to see a compound annual growth rate (CAGR) of 50.2 percent. North America is expected to see the highest CAGR between 2018 and 2025 thanks to the United States, which is considered one of the major contributors in the North American AI in healthcare market.
“The [United States] is one of the leading countries in the world to adopt AI technology across the continuum of care,” the report stated. “Moreover, high consumerization of personal care products—routine check-up medical tools and wearable devices—is further complementing the growth of AI in healthcare market.”
The findings are on par with an earlier prediction that total revenue for the AI in the healthcare market could surpass $34 billion by 2025. In another recent report, Forbes predicted the market for AI healthcare IT applications would cross $1.7 billion by the end of 2019.
Additionally, the market’s growth is expected to be driven by the availability of large and complex datasets, the need to reduce increases healthcare costs, improvements in computing power and declining costs of hardware. The report also predicted that machine learning followed by natural language processing will hold the largest market shares in the AI healthcare marketplace.
“Machine learning’s ability to collect and handle big data and increasing adoption of ML by hospitals, research centers, pharmaceutical companies, and other healthcare institutions to improve patient health are fueling its growth in AI in healthcare market,” the report stated. “The growing adoption of NLP is applications such as patient-data and risk analysis, lifestyle management and monitoring, and mental health is propelling the growth of this technology in the market.”