Global Artificial Intelligence in Diagnostics Market to Surpass USD 5.6 Billion by 2027

By LabMedica International staff writers
Posted on 08 Mar 2022

Image: AI in diagnostics market to grow more than 33% by 2027 (Photo courtesy of Unsplash)

The global artificial intelligence (AI) in diagnostics market was valued at USD 300 million in 2020 and is expected to register a CAGR of around 33.5% over the period 2022 to 2027 to surpass USD 5.6 billion by 2027. The market growth will be driven by increasing interest in lowering the cost of disease determination, improving patient consideration, reducing machine personnel time, growing interest in AI, and the need for cost effective symptomatic advancements and approaches, as well as proficient report investigation.

These are the latest findings of Precedence Research (Ottawa, ON, Canada), a market research services provider.

AI is the building of unique systems using algorithms and software that can complete activities without the need for human interaction or instructions. Natural language processing, machine learning, and reasoning are some of the technologies that make up AI. In diagnostics, AI is utilized to approximate human cognition and to analyze complicated diagnostic imaging and medical data. Image analysis for tumor diagnosis, biochemical tests for diabetes, video detection for gait problems and fall prediction, and voice analysis for emotional state and psychiatric illnesses are just some of the many applications of AI in medical diagnostics. As a result, AI will significantly alter the current medical diagnosing approach.

The healthcare sector is increasingly integrating AI-powered solutions in multiple verticals to improve clinical and operational outcomes, which is a critical contributor to the growth of the AI in diagnostics market. The desire for innovative and automated processes is being driven by overwhelmed healthcare systems having to cope with the fast-expanding global prevalence of chronic disorders. Moreover, a scarcity of caregivers is fueling the demand for AI technologies. Advances in healthcare information technology infrastructure as well as ongoing technological developments are enabling the integration of AI-powered diagnostic systems to provide precise and effective diagnosis, enabling healthcare providers to devise timely and appropriate diagnostic plans. AI-based algorithms are increasingly being used in radiology and pathology services on a large scale.

Based on component, the software and services segment dominated the global AI in diagnostics market in 2020 with the highest market share. The segment’s growth can be attributed to the growing demand for AI-enabled diagnostics systems that can provide correct diagnoses as soon as possible. A wide range of chronic and acute disorders are being rapidly detected in the worldwide population, which is projected to boost demand for improved AI-enabled solutions. Based on diagnosis type, the neurology segment dominated the global AI in diagnostics market in 2020 with the highest market share. The expanding trend of using value-based care to combat the burden of neurological illnesses is propelling market growth. The segment’s expansion is being fueled by the development of deep entangled neural networks and advanced algorithms trained on different image datasets obtained for various diagnosis.

Geographically, North America holds the largest share in the global AI in diagnostics market due to constant technological developments, robust healthcare information technology infrastructure, favorable government initiatives, increasing digital literacy, and the presence of major market players in the region. However, Asia-Pacific is the world’s fastest growing AI in diagnostics market due to a rise in the number of private and public initiatives supporting the adoption of AI-based diagnostic solutions, the introduction of startups as well as increasing visibility and funding in the region.

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