North America Artificial Intelligence In Healthcare Market Size (2024 - 2029)

The North America Artificial Intelligence in Healthcare market is poised for significant growth, driven by the increasing integration of AI into medical applications and its crucial role in enhancing clinical decision-making and patient care. The market's expansion is supported by a rising demand for innovative healthcare solutions, the uptake of digital healthcare, and government initiatives aimed at promoting digital health and AI technologies. Strategic collaborations among key players further contribute to market growth, although challenges such as resistance from traditional practitioners may impede progress.

Market Size of North America Artificial Intelligence In Healthcare Industry

North America Artificial Intelligence In Healthcare Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 4.62 Billion
Market Size (2029) USD 14.84 Billion
CAGR (2024 - 2029) 26.27 %
Fastest Growing Market North America
Largest Market North America

Major Players

North America Artificial Intelligence In Healthcare Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Artificial Intelligence In Healthcare Market Analysis

The North America Artificial Intelligence In Healthcare Market size is estimated at USD 4.62 billion in 2024, and is expected to reach USD 14.84 billion by 2029, growing at a CAGR of 26.27% during the forecast period (2024-2029).

Artificial intelligence (AI) in healthcare leverages data-driven insights and advanced algorithms to enhance clinical decision-making, optimize operations, and deliver more personalized, cost-effective healthcare solutions that improve patient outcomes. Factors such as growing demand for innovative healthcare solutions, rising uptake of digital healthcare, and increased emphasis on patient-centric care are projected to accelerate market growth over the forecast period.

Artificial intelligence has driven the healthcare space and is increasingly integrated into various medical applications like patient management, monitoring, and drug development. In addition, several benefits of artificial intelligence (AI) in healthcare operations are expected to accelerate market expansion over the forecast period. For instance, according to an article published by Clinical Pathology in January 2024, AI has a proven role in helping healthcare professionals in accurate, quick diagnosis and developing effective treatment plans as per patient’s condition. Thus, the important role of AI in healthcare is expected to fuel market growth over the forecast period.

In addition, the growing importance of artificial intelligence (AI) in healthcare decision-making is further projected to accelerate industry expansion over the study period. For instance, according to an article published by Health Service Research and Managerial Epidemiology in March 2024, AI plays a significant role in healthcare decision-making, including organizational, clinical, and shared decision-making, and increases the effectiveness of healthcare decisions. Thus, such an increased role of AI in healthcare is expected to foster industry uptake over the study period.

Moreover, several government initiatives to foster the uptake of digital health and artificial intelligence in healthcare are expected to accelerate market growth over the projection period. For instance, in May 2024, the US Department of Health and Human Services (HHS) announced funding programs for AI in healthcare for the fiscal year 2024. The funding will be aimed at developing innovative ways to improve healthcare data with the help of artificial intelligence (AI).

The presence of key players and several strategic initiatives undertaken by them are expected to drive market growth in North America. For instance, in April 2024, Google Cloud and Bayer AG collaborated to develop artificial intelligence (AI) based healthcare applications for radiologists. These applications help radiologists sophisticate their work and facilitate accurate diagnosis. Thus, such strategic events are expected to accelerate market expansion over the forecast period.

Furthermore, the introduction of advanced technological products by the market players is expected to propel the growth of the market. For instance, in September 2022, AGS Health, a revenue cycle management (RCM) solutions provider, launched the AGS AI Platform. This connected solution combined artificial intelligence (AI) and automation with human-in-the-loop services and professional support to maximize revenue cycle performance.

Thus, due to the increase in government initiatives to support digital health in North America and the rise in strategic activities by the key players, such as agreements and collaborations, the market studied is expected to witness significant growth over the forecast period. However, reluctance among traditional practitioners to adopt AI-based technologies is likely to hinder market growth over the forecast period.

North America Artificial Intelligence In Healthcare Industry Segmentation

Artificial intelligence in healthcare is an umbrella phrase for the use of machine-learning algorithms and software or artificial intelligence (AI) to simulate human cognition in the analysis, display, and comprehension of complicated medical and healthcare data. AI is the ability of computer algorithms to estimate conclusions based purely on input data.

The North American artificial intelligence in the healthcare market is segmented by technology, application, offering, end user, and geography. Based on technology, the market is segmented into natural language processing (NLP), deep learning, context-aware processing, querying methods, and other technologies. Based on application, the market is segmented into robot-assisted surgery, virtual nursing assistants, fraud detection, drug discovery and research, dosage error reduction, medical imaging and diagnostics, wearables, and other applications. By offering, the market is segmented into hardware, software, and services. Based on end user, the market is segmented into healthcare payers, healthcare providers, pharmaceutical and biotechnology companies, and patients. The report also covers the market sizes and forecasts for the market studied in major countries across North America. For each segment, the market size and forecast are provided in terms of value (USD).

By Technology
Natural Language Processing (NLP)
Deep Learning
Context Aware Processing
Querying Method
Other Technologies
By Application
Robot-assisted Surgery
Virtual Nursing Assistants
Fraud Detection
Drug Discovery and Research
Dosage Error Reduction
Medical Imaging and Diagnostics
Wearables
Other Applications
By Offering
Hardware
Software
Services
By End User
Healthcare Payers
Healthcare Providers
Pharmaceutical and Biotechnology Companies
Patients
Geography
United States
Canada
Mexico
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North America Artificial Intelligence In Healthcare Market Size Summary

The North American artificial intelligence in healthcare market is poised for substantial growth, driven by the increasing integration of AI technologies into various medical applications. This market expansion is fueled by the growing demand for innovative and patient-centric healthcare solutions, the rise in digital healthcare adoption, and the emphasis on enhancing clinical decision-making and operational efficiency. The role of AI in improving patient outcomes through data-driven insights and advanced algorithms is becoming increasingly significant. Strategic initiatives by key players, such as collaborations and the introduction of advanced technological products, are further propelling market growth. Additionally, government initiatives and funding programs aimed at fostering digital health and AI adoption are expected to contribute to the market's expansion over the forecast period.

The United States is anticipated to be a major contributor to the market's growth, supported by its advanced healthcare infrastructure, presence of major industry participants, and supportive government legislation. The country's market growth is further bolstered by significant investments and funding aimed at integrating AI into healthcare services. Key players in the market are actively engaging in partnerships, collaborations, and the launch of AI-based healthcare services to maintain their competitive edge. The medical imaging and diagnostics segment is also expected to witness significant growth due to the increasing adoption of AI-based tools and regulatory approvals for advanced imaging technologies. Overall, the North American market for artificial intelligence in healthcare is characterized by a fragmented landscape with numerous companies pursuing strategic initiatives to capitalize on the burgeoning opportunities in this sector.

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North America Artificial Intelligence In Healthcare Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growing Need to Reduce Increasing Healthcare Costs

      2. 1.2.2 Technological Advancements

      3. 1.2.3 Ability of AI to Improve Patient Outcomes and Growing Importance of AI-assisted Robot Surgery

    3. 1.3 Market Restraints

      1. 1.3.1 Reluctance Among Traditional Practitioners to Adopt AI-based Technologies

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size by Value - USD)

    1. 2.1 By Technology

      1. 2.1.1 Natural Language Processing (NLP)

      2. 2.1.2 Deep Learning

      3. 2.1.3 Context Aware Processing

      4. 2.1.4 Querying Method

      5. 2.1.5 Other Technologies

    2. 2.2 By Application

      1. 2.2.1 Robot-assisted Surgery

      2. 2.2.2 Virtual Nursing Assistants

      3. 2.2.3 Fraud Detection

      4. 2.2.4 Drug Discovery and Research

      5. 2.2.5 Dosage Error Reduction

      6. 2.2.6 Medical Imaging and Diagnostics

      7. 2.2.7 Wearables

      8. 2.2.8 Other Applications

    3. 2.3 By Offering

      1. 2.3.1 Hardware

      2. 2.3.2 Software

      3. 2.3.3 Services

    4. 2.4 By End User

      1. 2.4.1 Healthcare Payers

      2. 2.4.2 Healthcare Providers

      3. 2.4.3 Pharmaceutical and Biotechnology Companies

      4. 2.4.4 Patients

    5. 2.5 Geography

      1. 2.5.1 United States

      2. 2.5.2 Canada

      3. 2.5.3 Mexico

North America Artificial Intelligence In Healthcare Market Size FAQs

The North America Artificial Intelligence In Healthcare Market size is expected to reach USD 4.62 billion in 2024 and grow at a CAGR of 26.27% to reach USD 14.84 billion by 2029.

In 2024, the North America Artificial Intelligence In Healthcare Market size is expected to reach USD 4.62 billion.

North America Artificial Intelligence in Healthcare Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)