AI in Medical Devices Global Market Opportunities and Strategies to 2033

This report describes and explains the AI in medical devices market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AI in medical devices market reached a value of nearly $8.4 billion in 2023, having grown at a compound annual growth rate (CAGR) of 21.99% since 2018. The market is expected to grow from $8.4 billion in 2023 to $27.7 billion in 2028 at a rate of 26.96%. The market is then expected to grow at a CAGR of 22.49% from 2028 and reach $76.39 billion in 2033.

Growth in the historic period resulted from the rising prevalence of chronic diseases, rising adoption of cloud-based applications and services and increasing aging population. Factors that negatively affected growth in the historic period were low healthcare access in developing countriesand incompatible legacy health IT infrastructure.

Going forward, government initiatives in developed and developing economies and continuous monitoring of patients' health parameters will drive the growth. Factor that could hinder the growth of the AI in medical devices market in the future include stringent regulatory processes and compliance requirements and high development costs for smaller healthcare facilities.

The AI in medical devices market is segmented by deployment into cloud and on-premises. The cloud market was the largest segment of the AI in medical devices market segmented by deployment, accounting for 64.8% or $18.8 billion of the total in 2023. Going forward, the cloud segment is expected to be the fastest growing segment in the AI in medical devices market segmented by deployment, at a CAGR of 28.15% during 2023-2028.

The AI in medical devices market is segmented by technology into context awareness, deep learning, machine learning, natural language processing, predictive analytics and other technologies. The deep learning market was the largest segment of the AI in medical devices market segmented by technology, accounting for 35% or $ 2.94 billion of the total in 2023. Going forward, the deep learning segment is expected to be the fastest growing segment in the AI in medical devices market segmented by technology, at a CAGR of 28.50% during 2023-2028.

The AI in medical devices market is segmented by offerings into hardware, software and services. The software market was the largest segment of the AI in medical devices market segmented by offerings, accounting for 50.2% or $4.22 billion of the total in 2023. Going forward, the software segment is expected to be the fastest growing segment in the AI in medical devices market segmented by offerings, at a CAGR of 28.27% during 2023-2028.

The AI in medical devices market is segmented by end-user into hospitals and healthcare providers, home care settings, pharmaceuticals and biotechnology companies and other end users. The hospitals and healthcare providers market was the largest segment of the AI in medical devices market segmented by end-user, accounting for 66.6% or $5.59 billion of the total in 2023. Going forward, the hospitals and healthcare providers segment is expected to be the fastest growing segment in the AI in medical devices market segmented by end-user, at a CAGR of 28.07% during 2023-2028.

The AI in medical devices market is segmented by application into patient care, treatment, diagnosis and monitoring and other applications. The diagnosis and monitoring market was the largest segment of the AI in medical devices market segmented by application, accounting for 59.5% or $ 5.0 billion of the total in 2023. Going forward, the diagnosis and monitoring segment is expected to be the fastest growing segment in the AI in medical devices market segmented by application, at a CAGR of 28.12% during 2023-2028.

North America was the largest region in the AI in medical devices market, accounting for 38.2% or $3.2 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the AI in medical devices market will be Asia-Pacific and North America where growth will be at CAGRs of 28.62% and 27.58% respectively. These will be followed by Western Europe and Eastern Europe where the markets are expected to grow at CAGRs of 26.25% and 23.97% respectively.

The global AI in medical devices market is highly concentrated, with a few large players operating in the market. The top ten competitors in the market made up 77.2% of the total market in 2022. Koninklijke Philips N.V. was the largest competitor with a 14.1% share of the market, followed by GE HealthCare Technologies Inc with 12.9%, Siemens Healthineers AG. with 11.6%, NVIDIA Corporation with 9.6%, Intuitive Surgical, Inc. with 8.8%, Zimmer Biomet Holdings, Inc. with 7.8%, Medtronic Plc with 5.8%, Stryker Corporation with 4.4%, Canon Inc. with 1.6% and CMR Surgical Ltd with 0.7%.

The top opportunities in the AI in medical devices market segmented by deployment will arise in the cloud segment, which will gain $13.36 billion of global annual sales by 2028. The top opportunities in the AI in medical devices market segmented by technology will arise in the deep learning segment, which will gain $7.36 billion of global annual sales by 2028. The top opportunities in the AI in medical devices market segmented by offerings will arise in the software segment, which will gain $10.43 billion of global annual sales by 2028. The top opportunities in the AI in medical devices market segmented by application will arise in the diagnosis and monitoring segment, which will gain $12.26 billion of global annual sales by 2028. The top opportunities in the AI in medical devices market segmented by end-user will arise in the hospitals and healthcare providers segment, which will gain $13.67 billion of global annual sales by 2028. The AI in medical devices market size will gain the most in USA at $6.0 billion.

Market-trend-based strategies for the AI in medical devices market include integration of AI technology in imaging medical devices, increasing research and development in biomedical research, focus on developing innovative and advanced products and strategic partnerships and collaborations to drive innovation and expansion.

Player-adopted strategies in the AI in medical devices market include focus on strengthening its business capabilities through the launch of new products, strengthening its business operations through the launch of new solutions and expanding its business capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the AI in medical devices companies to focus on AI integration for enhanced medical imaging systems, focus on innovative AI product development for enhanced medical care, focus on deep learning and machine learning technology segments, focus on cloud solutions for optimal growth, expand in emerging markets, continue to focus on developed markets, focus on collaborative research for AI integration in medical devices, provide competitively priced offerings, focus on value-based pricing for strategic advantage, participate in trade shows and events, continue to use B2B promotions, focus on educational marketing for enhanced market visibility, focus on diagnosis and patient care segments and focus on hospitals & healthcare providers and home care settings for strategic growth.