Generative AI in Healthcare Global Market Report 2024

The generative AI in healthcare market size has grown exponentially in recent years. It will grow from $1.72 billion in 2023 to $2.36 billion in 2024 at a compound annual growth rate (CAGR) of 37.2%. The growth observed during the historical period can be attributed to several factors, including the increased utilization of healthcare data analytics, rising demand for personalized medicine, growing interest in AI-enabled healthcare solutions, heightened demand for personalized treatment plans, and advancements in drug discovery and development processes.

The generative AI in healthcare market size is expected to see exponential growth in the next few years. It will grow to $8.44 billion in 2028 at a compound annual growth rate (CAGR) of 37.5%. The forecasted growth can be attributed to several factors expected in the upcoming period, including the expansion of medical imaging techniques, the proliferation of AI-powered monitoring systems, globalization trends, growing patient populations, advancements in modern medical treatments, and the increasing adoption of virtual patient simulation. Key trends anticipated in the forecast period encompass enhancements in medical imaging technology, the rise of telemedicine and remote monitoring practices, the focus on robustness and generalization in AI algorithms, advancements in generative AI techniques, advanced cardiac data analysis methods, the utilization of healthcare data analytics, and the development of real-time health monitoring solutions.

The growth of the generative AI in healthcare market is expected to be driven by the increasing demand for personalized medicine in the future. Personalized medicine, also referred to as precision medicine, revolutionizes medical treatment by considering individual differences in genes, environment, and lifestyle for each patient. This demand surge for personalized medicine is propelled by various factors, including advancements in genomics, a deeper understanding of disease mechanisms, and the quest for more efficient and targeted therapies. Generative AI in healthcare employs algorithms to analyze extensive patient data, encompassing genetic profiles and medical histories, to craft personalized treatment options and predictions tailored to individual patient characteristics and needs. For instance, according to the Personalized Medicine Coalition in February 2024, the FDA's CDER approved 16 new personalized treatments for rare disease patients in 2023, marking a notable increase from 6 approvals in 2022. Among these treatments, seven were tailored for cancer therapy, with an additional three designed for addressing various other diseases and conditions. Hence, the rising demand for personalized medicine is propelling the growth of the generative AI in healthcare market.

Key players in the generative AI in healthcare market are concentrating on establishing strategic partnerships to drive innovation and gain a competitive advantage. These partnerships play a pivotal role in advancing generative AI in healthcare by harnessing the strengths and resources of multiple organizations to develop groundbreaking solutions, enhance clinical workflows' efficiency, and tackle critical healthcare challenges. For example, in June 2023, Google partnered with Mayo Clinic to integrate generative AI into healthcare. This collaboration aims to leverage generative AI's potential to streamline operations, enhance healthcare delivery, and enable real-time personalized interactions by unlocking previously inaccessible information. Initially focusing on Enterprise Search in Gen App Builder, the partnership aims to improve clinical workflows and patient outcomes while ensuring compliance with HIPAA regulations.

In March 2022, Microsoft Corporation acquired Nuance Communications for approximately $19.7 billion. Through this acquisition, Microsoft aims to bolster its presence in the enterprise software market, particularly in healthcare, and advance its cloud computing business. Nuance Communications specializes in providing generative AI in healthcare and is known for its expertise in the field.

Major companies operating in the generative AI in healthcare market are Alphabet Inc., Microsoft Corporation, Amazon Web Services Inc., Johnson & Johnson Services Inc., Siemens AG, Intel Corporation, IBM Watson Health Corporation, Ernst & Young Global Limited, Oracle Corporation, Nvidia Corporation, Harman International Industries Inc., Epic Systems Corporation, Persistent Systems Private Limited, Tempus Labs Inc., Eleks Inc., NioyaTech LLC, Saxon Global Inc., Verge Genomics Inc., PathAI inc., BenevolentAI Ltd, Abridge AI inc., Absci Corporation, Atomwise Inc., Syntegra, Insilico Medicine, Neuralink Corporation, DiagnaMed Holdings Corp.

North America was the largest region in the generative AI in healthcare market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in healthcare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative AI in healthcare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative AI in healthcare encompasses the utilization of advanced artificial intelligence models specifically tailored to address the distinctive requirements and complexities of medical practice. These models have the capability to generate detailed simulations based on real-world data, enabling researchers and medical professionals to test hypotheses within a safe environment. This technology is leveraged to generate novel insights and data aimed at enhancing patient outcomes, expediting medical research, and improving the delivery of healthcare services.

The primary components of generative AI in healthcare consist of solutions and services. Services refer to intangible, non-physical components of the economy, in contrast to tangible goods that can be physically touched or handled. These encompass various functions including AI-assisted robotic surgery, virtual nursing assistants, support for clinical judgment or diagnosis, assistance with workflow and administrative tasks, and image analysis, all serving diverse applications such as clinical and systems. Generative AI in healthcare caters to a broad spectrum of end-users including hospitals and clinics, clinical research institutions, healthcare organizations, diagnostic centers, among others.

The generative AI in healthcare market research report is one of a series of new reports that provides generative AI in healthcare market statistics, including the generative AI in healthcare industry global market size, regional shares, competitors with generative AI in healthcare market share, detailed generative AI in healthcare market segments, market trends, and opportunities, and any further data you may need to thrive in the generative AI in healthcare industry. This generative AI in healthcare market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative AI in healthcare market includes revenues earned by entities by providing services such as drug discovery process, medical imaging, medical research, personalized treatment plans, medical simulations, and detecting billing fraud. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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