The global AI in medical diagnostics market is projected to grow at a CAGR of 50.2% from USD 505 million in 2020 to USD 3.87 billion by 2025, driven primarily by government initiatives to increase adoption of AI-based technologies, increasing demand for AI tools in the medical field, growing focus on reducing the workload of radiologists, influx of large and complex datasets, growth in funding for AI-based start-ups, and growing number of cross-industry partnerships and collaborations.
These are the latest findings of MarketsandMarkets Research (Pune, Maharashtra, India), a market research and management consulting firm.
Pandemics such as COVID-19 require investments for additional manpower, equipment, consumables, and other resources to ensure 100% preparedness for safety in hospitals and, if needed, eventual treatment of patients. The COVID-19 pandemic is an accelerator for AI technology by creating opportunities for leveraging these tools for healthcare advancement. AI and radiomics, which are being applied to X-ray and CT scans as advanced imaging tools in the detection and follow-up of COVID-19, have been able to diagnose the presence of the infection. This is because AI algorithms and radiomics used for chest X-rays can help undertake massive screening programs.
The growing awareness of the benefits offered by AI techniques and their wide application areas has led to the increased adoption of these products and services in the healthcare market. Various leading companies in the healthcare market are entering into partnerships and collaborations with leading AI technology providers to come up with innovative AI-based solutions for applications in healthcare. Such strategies enable these market players to offer advanced solutions to their customers and strengthen their position in this dynamic market space. Due to the growing demand for novel AI-based techniques in the medical diagnostics market, such developments are helping companies gain momentum in terms of developing advanced products and tools.
Extensive growth in digital health has enabled healthcare providers to assist patients through novel treatment approaches. AI technologies offer doctors with tools that help them better diagnose and effectively treat patients. However, there is an observed reluctance among doctors about new technologies. For instance, there is a misconception among medical practitioners that AI will replace doctors in the coming years. Doctors and radiologists believe that skills such as empathy and persuasion are human skills, and thus, technologies cannot completely rule out the presence of a doctor. Additionally, there is a concern that patients may show an excessive inclination toward these technologies and may forgo necessary in-person treatments, which might also challenge long-term doctor-patient relationships.
Currently, many healthcare professionals have doubts about the capabilities of AI solutions in terms of accurately diagnosing patient conditions. Considering this, it is challenging to convince providers that AI-based solutions are cost-effective, efficient, and safe solutions that offer convenience to doctors as well as better care for patients. However, healthcare providers are increasingly accepting the potential benefits of AI-based solutions and the spectrum of applications they serve. Hence, there is a possibility that in the coming years, doctors and radiologists will show more inclination toward AI-based technologies in healthcare.
In 2019, North America accounted for the largest share of 37.6% of the global AI in medical diagnostics market. However, the APAC market is projected to register the highest CAGR of 53.2% during the forecast period, primarily due to the growth strategies adopted by companies in emerging markets, improved medical diagnostic infrastructure, increasing geriatric population, rising prevalence of cancer, favorable government initiatives for AI in healthcare, and the increasing number of COVID-19 positive patients. Emerging markets such as India, China, and Brazil are expected to offer significant growth opportunities for players operating in the AI in medical diagnostics market. This can majorly be attributed to the rising patient population in these countries. Furthermore, the healthcare sectors in emerging economies, such as India and China, are rapidly growing, resulting in the introduction of new medical technologies with a special focus on advanced imaging equipment. All these factors, coupled with the growing population in these countries, are expected to increase the medical imaging data volumes in their respective healthcare systems. This provides a great untapped development opportunity for AI-based solutions in emerging countries.