The “Artificial Intelligence (AI) in Medical Diagnostics Market by Component (Software, Service), Application (In Vivo, Radiology, OBGY,MRI, CT, Ultrasound, IVD), End User (Hospital, Diagnostic Laboratory, Diagnostic Imaging Center)- Global Forecast to 2025″ report has been added to ResearchAndMarkets.com’s offering.
The global AI in medical diagnostics market is projected to reach USD 3,868 million by 2025 from USD 505 million in 2020, at a CAGR of 50.2% during the forecast period.
Growth in this market is primarily driven by government initiatives to increase the 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 the growing number of cross-industry partnerships and collaborations.
Software segment is expected to grow at the highest CAGR
On the basis of component, the AI in medical diagnostics market is segmented into software and services. The services segment dominated this market in 2020, while the software segment is estimated to grow at a higher CAGR during the forecast period. Software solutions help healthcare providers gain a competitive edge despite the challenges of being short-staffed and facing increasing imaging scan volumes. This is a key factor driving the growth of the software segment.
Hospitals to establish the largest market size of AI in medical diagnostics market
Based on end user, the AI in medical diagnostics market is segmented into hospitals, diagnostic imaging centers, diagnostic laboratories, and other end users. The hospitals segment commanded the largest share of 64.1% of this market in 2019. The large share of this segment can be attributed to the rising number of diagnostic imaging procedures performed in hospitals, the growing inclination of hospitals toward the automation and digitization of radiology patient workflow, increasing adoption of minimally invasive procedures in hospitals to improve the quality of patient care, and the rising adoption of advanced imaging modalities to improve workflow efficiency.
North America To Witness Significant Growth From 2020 to 2025
The AI in medical diagnostics market has been segmented into four main regional segments, namely, North America, Europe, the Asia Pacific, and the Rest of the World. In 2019, North America accounted for the largest market share of 37.6%. 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, and the implementation of favorable government initiatives.
Market Dynamics
Drivers
- Influx of Large and Complex Datasets
- Growing Number of Cross-Industry Partnerships and Collaborations
- Increasing Demand for AI Tools in the Medical Imaging Field and Rising Focus on Reducing the Workload of Radiologists
- Government Initiative to Increase the Adoption of AI-Based Technologies
- Growth in Funding for AI-Based Start-Ups
Restraints
- Reluctance Among Medical Practitioners to Adopt AI-Based Technologies
- Lack of Skilled AI Workforce and Ambiguous Regulatory Guidelines for Medical Software
Opportunities
- Untapped Emerging Markets
- Growing Potential of AI-Technology in Imaging & Diagnostics to Fight COVID-19
- Increasing Focus on Developing Human-Aware AI Systems
Challenges
- Budgetary Constraints
- Lack of Curated Healthcare Data
- Concerns Regarding Data Privacy
- Lack of Interoperability Between AI Solutions Offered by Different Vendors
Companies Mentioned
- Aidence
- Butterfly Network, Inc.
- Day Zero Diagnostics
- Digital Diagnostics (Formerly Known as Idx)
- Enlitic
- GE Healthcare
- Google (Subsidiary of Alphabet, Inc.)
- Heartflow
- IBM
- Informai
- Intel
- Microsoft Corporation
- Nvidia
- Prognos
- Quibim
- Qure.AI
- Siemens Healthineers
- Therapixel
- Viz.AI
- Xilinx
- Zebra Medical Vision
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