Did you know that the AI in medicine market size is projected to grow from $20.9 billion in 2024 to over $164.12 billion in 2030?
Yes, despite the pushback against the use of artificial intelligence in most sectors, the estimated growth trajectory is astounding. This rising adoption rate can be attributed to the speed at which Artificial Intelligence is revolutionizing the medical field by offering innovative solutions across data management systems, diagnostics, telemedicine, individual care, and other applications.
Want to find out more about how AI is impacting the healthcare industry? Keep reading. This article will examine the different AI in medicine statistics, from marker statistics to adoption statistics, investment trends, and future projections.
Let’s get right to it.
AI in Medicine Market Statistics
Despite different sources estimating different numbers for the current and projected market size for AI in healthcare, the numbers are still shocking.
The AI in Medicine market is estimated to be over $20 billion in 2024, up from $1.1 billion in 2016.
North America is the biggest contributor to AI in the medical market, with about 59.1% market share.
The AI Healthcare industry is projected to reach over $148 billion in market size by 2029.
The market size of AI in drug discovery applications is estimated to reach more than $4 billion by 2028, with a 40.2% CAGR during this period.
The healthcare chatbot market is projected to reach over $300 million by 2026 at a 14.5% CAGR.
The virtual assistants market is projected to grow at over 40% CAGR from 2024 to 2030.
China is estimated to see revenue growth of about 40% between 2023 (§ $1,585 million) and 2030($18,883 million) due to AI in medicine.
The market value for generative AI in medicine is estimated to exceed $10 billion, and it is expected to grow further in the following two years to reach $21.74 billion.
The market for robot-assisted surgery is estimated to be worth $40 billion by 2026.
By 2030, the AI in precision market share is expected to grow to $14.5 billion.
AI in Medicine Adoption Statistics
These statistics reveal the increasing integration of AI into healthcare practices. From drug discovery to patient monitoring, AI is being adopted across various applications, transforming the way healthcare is delivered and managed.
Drug discovery (clinical trials) is the top AI application scenario that dominated the healthcare market 2023.
In the EU, disease diagnosis is the leading use of AI in medicine, with over 40% of healthcare organizations using AI for this application.
25% of US hospitals use AI-driven predictive analysis.
Around 80% of life and pharmaceutical professionals used AI in drug discovery at the start of 2024.
As of May 2024, the FDA had approved over 800 AI-powered medical devices in the US, a huge step up from the 13 devices approved in 2010 (source).
The use of AI-powered medical imaging solutions has increased over the years.
Over 50% of the global AI drug discovery companies were based in the US in 2023.
Over 80% of US medical professionals are increasing spending on AI-powered software and IT.
25% of US healthcare professionals believe that using AI for predictive analytics and risk management is the top application to prioritize.
More than 70% of healthcare organizations in the EU are projected to use AI for patient monitoring.
Over 30% of AI applications in the NHS are diagnostic.
The use of AI aided Moderna to improve its COVID-19 vaccine.
Approximately 10% of medical professionals use AI-powered tools like Med-palM2 to offer helpful solutions.
More than three-quarters of the AI-enabled devices authorized to date were in radiology.
Clinicians believe that the majority of their decisions will be influenced by AI in the next 10 years (source).
Market Drivers for AI in Medicine Statistics
A shortage of medical staff, an ageing population, widespread burnout among medical professionals, and the ever-increasing amount of health data drive the adoption of AI in medicine.
The global shortage of healthcare workers in 2020 was estimated at 15 million.
The World Health Organization projects a lack of 10 million healthcare workers by 2030.
The US is projected to have a shortage of over 4 million healthcare workers by 2026.
Japan is projected to have a shortage of 960,000 healthcare and welfare workers by 2040.
The EU region will need more than 1.5 million healthcare workers by 2050.
The National Health Service in the UK has a deficit of over 150,000 healthcare workers, and the figure is projected to rise to 570,000 by 2036.
Over 66% of physicians showed signs of burnout in 2024, compared to 53% in 2023.
The global healthcare sector is projected to generate over 10 zettabytes of data by 2025.
AI in Medicine Investment Trends
In Q1 2024, AI-based digital health startups received 40% of the total digital health funding, up from 33% in 2023 and 29% in 2022.
Over 25% of healthcare leaders are currently investing in generative AI technology, with over 50% more planning to invest in the coming years.
The Impact of AI in Medicine
The impact of AI in medicine is profound and far-reaching. From reducing costs to improving healthcare quality, AI is revolutionizing the healthcare industry. It is not just a tool for automation, but a catalyst for better patient outcomes and more efficient healthcare delivery.
AI technology creates an economic value of over $60 billion and a possible cost reduction of about 70% for the medical and pharmaceutical industries (source).
AI helps to reduce the impact of medical staff shortages by automating repetitive tasks, aiding diagnostics, and facilitating remote patient monitoring.
8 in 10 Americans believe that AI has the potential to reduce healthcare costs, improve healthcare quality, and encourage accessibility.
AI is impactful in tackling the huge data volumes that the global healthcare sector generates.
AI has the potential to reduce hospitalizations and emergency room visits by over 70%.
AI can detect early signs of dementia with 90% accuracy.
Implementation of AI can improve the time physicians spend on treating patients, from 50% before execution to 67% afterwards.
AI models can predict the survival rate of cancer patients with 80% accuracy.
AI models can predict the development of food allergies before they develop with 83% accuracy.
Learn more: Risk of food allergies in infants
Challenges Involved in AI in Medicine Statistics
60% of Americans are uncomfortable with their healthcare provider relying on AI, while 39% feel comfortable with the idea.
75% of American adults believe the adoption of AI in medicine is moving too fast.
89% of people in the EU believe that AI will help speed up the working process in healthcare facilities, while 50% believe AI will enhance the quality of treatment.
33% of Americans believe that the use of AI in medicine will lead to worse healthcare outcomes.
AI biases identified in studies have highlighted the need for diverse datasets.
Future AI in Medicine Projections
AI solutions in healthcare are forecast to eliminate more than 85% of errors made by healthcare workers.
AI applications can potentially cut annual healthcare costs in the US by $150 billion in 2026.
Oncology and Neurology are predicted to dominate with AI-based precision medical applications.
Predictive AI solutions are projected to reduce hospital admissions by 50%.
Wrapping It Up
The statistics show that AI is not just a trend but a technology-backed force that can revolutionize the medical industry as we know it. At the same time, there are still challenges, like the cost of implementation and lack of trust, but the future of AI in medicine looks promising. While stakeholders are continuing to invest in this field, it is important to address the existing adoption barriers and biases.
Sources
Markets and Markets
Vention teams
Grand View Research
Fortune Business Insights
Philips
Global Market Insights
Food and Drug Administration
Statista
CB Insights
Allied Market Research
Healthtech guide
World Health Organization
Deloitte
National Library of Medicine
Pew Research Centre