Generative AI in Healthcare Market Growth

Demand for Timely Diagnosis, Treatment and Patient Care is Likely to Drive Generative AI in Healthcare Market Growth; Size to Reach USD 39.8 billion by 2035 | Roots Analysis

According to a recently published report by Roots Analysis, the growing prevalence of chronic diseases, rising demand for personalized medicine, and the substantial benefits of integrating generative AI solutions in several healthcare applications are key drivers of generative AI in healthcare market growth

Global Generative AI in Healthcare Market Overview

The global generative AI in healthcare market is expected to reach USD 39.8 billion by 2035, growing at a CAGR of 28% during the forecast period, till 2035.

Generative AI is a part of artificial intelligence that leverages generative models to produce insights, videos, images and other forms of data. In the realm of healthcare, gen AI is a rapidly evolving technology that has shown promise to revolutionize patient care, research and treatment.

The healthcare industry is currently navigating a complex landscape marked by a multitude of challenges, including inefficiencies in clinical workflow, high treatment costs, workforce shortages and burnout of healthcare providers. Further, traditional methods for drug discovery and development have led to prolonged timelines, with no focus on tailored treatment options. It has also been observed that, despite the extensive cost and time investment, approximately 90% of the drug candidates fail to reach advanced phases of clinical trials.

In order to overcome these challenges and enhance various healthcare processes, several pharmaceutical and life sciences companies have shown interest towards utilization of generative AI in the healthcare industry. Notably, gen AI holds the potential to streamline operations by automating administrative tasks, improving diagnostic accuracy through advanced imaging techniques, augmenting patient engagement by delivering personalized medicine, and accelerating drug discovery and development processes. Furthermore, it is worth highlighting that implementing generative AI in pharma for administrative tasks can lead to substantial annual savings across the healthcare sector.  

Browse 85+ figures and 115+ market data tables spread across 265+ pages and detailed Table of Content on “Generative AI in Healthcare Market: Industry Trends and Global Forecasts, till 2035” by Distribution by Purpose (Clinical-based Purpose and System-based Purpose), Type of Offering (Technology / Platform and Service), Application Area (Drug Discovery and Development, Diagnosis, Treatment, Administrative Tasks and Other Application Areas), End-User (Pharmaceutical and Life Science Companies, Healthcare Providers and Other End-users), Key Geographical Regions (North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America) and Leading Players” here: https://www.rootsanalysis.com/reports/generative-ai-in-healthcare-market.html

Market Drivers

Several factors are propelling generative AI in healthcare market growth, such as the rising administrative burden in healthcare, advancements in AI and ML, and increased funding and investment activity. By continuously automating routine tasks, such as note-taking, appointment scheduling and patient inquiries, generative AI systems have significantly reduced the time clinicians spend on paperwork, allowing them to focus more on direct patient care.

Further, increasing advancements in artificial intelligence and machine learning have enabled the generative AI companies to optimize (by leveraging vast amounts of healthcare data) their gen AI solutions / technologies, consequently driving their adoption in the healthcare industry. These advancements assist the healthcare providers in early diagnosis of diseases, personalizing treatment plans and enhancing overall patient care.

Furthermore, despite the funding squeeze in the overall healthcare industry, the rise in investment activity in this domain can be attributed to the ability of these innovative solutions to overcome various healthcare challenges. As generative AI continues to evolve, it holds the potential to reshape the healthcare industry though necessitating careful oversight to ensure safe and effective implementation.

Market Restraints

While the generative AI in healthcare market is experiencing substantial growth, there are certain restraints that can hinder the growth of this industry. One of the primary factors include inaccuracy and human dependency, along with patient’s medical data privacy and security concerns. Additionally, due to the lack of expertise and skilled workforce, the end-users in the healthcare domain may struggle to optimize and harness generative AI models complete potential across different healthcare applications.

To address these restraints, various stakeholders and professionals involved in this domain are required to collaborate and invest in innovative solutions, along with developing robust encryption techniques, implementing strict access controls and ensuring compliance with data protection frameworks. Further, generative AI companies should also focus on delivering training sessions for supporting healthcare professionals to effectively make data-driven decisions.

Growth Factors

The generative AI in healthcare market is experiencing significant growth, attributing to several key factors. One such factor is increasing demand for precision treatment and value-based care. Additionally, generative AI has the ability to enhance the information captured by digital healthcare solutions and generate insights that can be directly used by the healthcare providers to meet the changing expectations of patients, including personalized care. This has led to the growing interest of healthcare organizations in generative AI integration into healthcare systems.

Further, the cost optimization and advanced analytics capabilities offered by gen AI platforms contribute to the market opportunity for generative AI companies in the healthcare domain. Moreover, the growing need for predictive analytics in healthcare is also an important factor. Generative AI can be considered extremely crucial for identifying potential healthcare issues and avoiding the progression of life-threatening conditions. These growth factors are likely to contribute to the expansion of generative AI in the healthcare market.

Generative AI in Healthcare Market Segments

Based on the purpose, the market is segmented into clinical-based purpose and system-based purpose

• The clinical-based purpose segment is likely to capture the largest revenue share of around 70% in the generative AI in healthcare market, in 2025.
• The system-based purpose segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 29.2% during the forecast period.

Based on the type of offering, the market is segmented into technology / platform and service

• The technology / platform segment is likely to capture the largest revenue share of more than 75% in the generative AI in healthcare market, in 2025.
• The service segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 33% during the forecast period.

Based on the application area, the market is segmented into drug discovery and development, diagnosis, treatment, administrative tasks and other application areas

• The treatment segment is likely to capture the largest revenue share of over 25% in the generative AI in healthcare market, in 2025.
• The diagnosis segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 29.8% during the forecast period.

Based on the end users, the market is segmented into healthcare providers, pharmaceutical and life-science companies and other end-users

• The healthcare providers’ segment is likely to capture the largest revenue share of around 55% in the generative AI in healthcare market, in 2025.
• The pharmaceutical and life science companies’ segment is anticipated to be the fastest growing segment in this industry, with an annualized rate (CAGR) of 28.8% during the forecast period.

Based on geographical region, the market is segmented North America, Europe, Asia-Pacific, Middle East and North Africa, and Latin America

• North America dominated the generative AI in healthcare market and is likely to account for the largest revenue share of 56%, in 2025.
• In Asia-Pacific, generative AI in healthcare market is anticipated to demonstrate lucrative growth during the forecast period with a growth rate of 29.2%.

Key Companies Profiled

The generative AI in healthcare market report also includes detailed and short profiles of key players (listed below) that offer generative AI solutions in the healthcare industry:

• Amazon Web Services
• C3 AI
• Exscientia
• Google
• Huma
• IBM
• Iktos
• LeewayHertz
• Medical IP
• Microsoft
• NVIDIA
• OpenAI
• Oracle
• PhamaX
• Syntegra

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