DUBLIN: The "Generative AI in Healthcare Market: Industry Trends and Global Forecasts to 2035: Distribution by Purpose, Type of Offering, Application Area, End-User, Key Geographical Regions and Leading Players" report has been added to ResearchAndMarkets.com's offering.

The global generative AI in healthcare market is currently valued at USD 3.3 billion and is projected to reach USD 39.8 billion by 2035, growing at a CAGR of 28% during the forecast period.

Generative AI is a part of artificial intelligence that utilizes generative models to create data-driven outputs, such as insights, images, videos, and other formats. In the healthcare sector, this technology is evolving rapidly, with the potential to transform patient care, research and treatment.

The healthcare industry is currently navigating a complex landscape marked by a number of challenges, including inefficiencies in clinical workflows, escalating treatment costs, staff shortages, and burnout of the healthcare workers. According to Medscape's 2024 Physician Burnout and Depression Report, nearly 49% of physicians reported feeling burnt out, with administrative burdens (62%) and long working hours (41%). In addition, the conventional drug discovery methods remain time-intensive with no focus on the personalized treatment approaches. Moreover, about 90% of drug candidates fail to progress to advanced clinical trial phases, despite significant time and financial investments. This high failure rate not only impedes innovation but also intensifies the financial strains on the global healthcare systems.

To address these challenges, several pharmaceutical and life sciences companies have increasingly shown interest in exploring the adoption of generative AI. Further, it is important to highlight that generative AI in healthcare industry holds great potential in automating administrative processes for improving the overall operational efficiency, enhancing diagnostic accuracy through advanced imaging, personalizing patient engagement, and accelerating drug discovery and development.

Notably, the implementation of generative AI in administrative tasks alone could generate annual savings of approximately USD 150 billion across the healthcare sector. Additionally, studies suggest generative AI could reduce diagnostic errors by up to 85% and reduce nursing overtime by 21%, resulting in potential cost savings of nearly USD 469,000 over the span of three years per hospital. However, as healthcare organizations integrate generative AI into their systems, it is essential to establish robust governance frameworks that ensure ethical AI use and address key concerns, such as data privacy, algorithmic bias, and transparency.

In recent years, several pharmaceutical and healthcare companies have entered into strategic partnerships with various AI firms to explore applications of generative AI in healthcare. Simultaneously, several generative AI developers are securing significant funding in order to enhance their model capabilities for diverse medical applications. Given the growing interest of the investors and the expanding collaborative landscape, generative AI in healthcare market is poised for sustained growth in the coming years.

Generative AI used for Clinical-based Purposes is Likely to Hold the Largest Share of the Current Market During the Forecast Period

Based on purpose, the global market is segmented into clinical-based and system-based purposes. Amongst these types, the clinical-based purpose segment occupies the largest share of the current overall market. This can be attributed to their direct impact on patient care, as these would help the clinicians make informed decisions, increasing their adoption in the hospitals and clinics.

Based on the Type of Offering, Platform / Technology Segment Captures the Majority of the Current Market Share

Based on the type of offerings, the global generative AI in healthcare market is segmented into platform / technology and service. Presently, the platform / technology segment occupies the highest share in the overall market. However, it is important to note that the services segment is anticipated to grow at a relatively higher CAGR during the forecast period.

Treatment Segment is Likely to Hold the Largest Share in the Generative AI in Healthcare Market During the Forecast Period

Based on the application area, the global generative AI in healthcare market is segmented into drug discovery and development, diagnosis, treatment, administrative tasks and other application areas. Currently, the treatment segment leads generative AI in healthcare market. It is important to highlight that this trend is unlikely to change in the future as well. This can be attributed to the fact that generative AI boosts treatment efficacy and patient care, reducing administrative burdens, driving sustained growth in clinical applications.

Generative AI in Healthcare Market for Healthcare Providers is Likely to Grow at a Relatively Faster Pace During the Forecast Period

Based on the end-user, the global generative AI in healthcare market is segmented across pharmaceutical and life science companies, healthcare providers and other end-users. Presently, the market is dominated by the revenues generated through the systems intended for use by healthcare providers. Further, this market trend is unlikely to change in the future as well owing to the wider applicability of the gen AI solutions, such as enhanced patient care, improved operational efficiency, data driven insights and cost saving potential.

North America Accounts for the Largest Share in the Market

Based on key geographical regions, the market is segmented into, Europe, Asia-Pacific, Middle East and North Africa and Latin America. In the current scenario, North America is likely to capture the largest market share. Further, it is worth highlighting that Asia-Pacific is expected to grow at a relatively high CAGR during the forecast period.

Generative AI in Healthcare Market: Key Insights

• More than 45% of the companies engaged in offering generative AI solutions in the healthcare industry are mid-sized firms; of these, 79% of the firms are headquartered in North America.
• >85% of the companies offer gen AI technology / platforms to streamline various healthcare processes; of these, 27% of the gen AI companies cater to the evolving needs of both, healthcare providers and P / B companies.
• The rising interest in this domain is reflected by the rise in partnership activity; notably, close to 90% of the deals were inked in the last two years.
• Based on our analysis, in the generative AI in healthcare market, we expect the buyers to have a very high bargaining power; any initiative taken must be carefully evaluated, considering the likely future market dynamics.
• The increasing administrative burden in healthcare, rising funding and investments, and advancements in AI and ML are likely to drive the market for gen AI in healthcare, leading to steady growth in the foreseeable future.
• The technology / platform segment dominates the current market with close to 75% of the market share; notably, generative AI in healthcare market is anticipated to grow at a lucrative growth rate (CAGR of 28%) till 2035.

Generative AI in Healthcare Market: Research Coverage

• Generative AI in Healthcare Providers Landscape: The report features a list of generative AI in healthcare providers engaged in this domain, along with analyses based on [A] year of establishment, [B] company size [C] location of headquarters, and [D] type of generative AI company.
• Company Competitiveness Analysis: An insightful competitiveness analysis of the generative AI in healthcare providers, based on various relevant parameters, such as [A] company strength, and [B] service portfolio strength.
• Company Profiles: Comprehensive profiles of key industry players in the generative AI in the healthcare domain, featuring information on [A] company overview, [B] financial information (if available), [C] generative AI in healthcare portfolio, [D] recent developments, and [E] future outlook statements.
• Partnerships and Collaborations: A detailed analysis of partnerships inked between stakeholders in the generative AI in healthcare market, based on several relevant parameters, such as [A] year of partnership, [B] type of partnership, [C] type of partner company, [D] purpose of partnership, [E] geography, and [G] most active players (in terms of number of partnerships).
• Generative AI in Healthcare Use Cases: A detailed case study of the use cases of generative AI in healthcare, presenting information on collaborations inked between various generative AI companies in healthcare. Each use case provides information on various parameters, such as [A] a brief overview of the companies involved, [B] business needs [C] details on the objectives achieved, and [D] solutions provided.

Generative AI In Healthcare: Use Cases

• Use Case 1: Collaboration between NVIDIA and Genentech
• Use Case 2: Collaboration between Insilico Medicine and Inimmune
• Use Case 3: Collaboration between OpenAI and Moderna
• Use Case 4: Collaboration between Amazon Web Services and Pfizer
• Use Case 5: Collaboration between Suki and Ascension Saint Thomas
• Use Case 6: Collaboration between Abridge and Emory Healthcare
• Use Case 7: Collaboration between Google and China Medical University Hospital

Players in the Generative AI in Healthcare Market Profiled in the Report Include:

• Amazon Web Services
• C3 AI
• Exscientia
• Google
• Huma
• IBM
• Iktos
• LeewayHertz
• Medical IP
• Microsoft
• NVIDIA
• OpenAI
• Oracle
• PhamaX
• Syntegra

Report Scope:

Purpose

• Clinical-based Purpose
• System-based Purpose

Type of Offering

• Technology / Platform
• Service

Application Area

• Drug Discovery and Development
• Diagnosis
• Treatment
• Administrative Tasks
• Other Application Areas

End-User

• Pharmaceutical and Life Science Companies
• Healthcare Providers
• Other End-Users

Key Geographical Regions

• North America
• Europe
• Asia-Pacific
• Middle East and North Africa
• Latin America

Market in North America

• US
• Canada

Market in Europe

• Germany
• UK
• France
• Spain
• Switzerland
• The Netherlands
• Rest of Europe

Market in Asia-Pacific

• China
• Japan
• South Korea
• Singapore
• India
• Rest of Asia-Pacific

Market in Middle East and North Africa

• Israel
• UAE
• Rest of Middle East and North Africa

Market in Latin America

• Brazil
• Rest of Latin America

Additional Benefits

• Complimentary PPT Insights Packs
• Complimentary Excel Data Packs for all Analytical Modules in the Report
• 15% Free Content Customization
• Detailed Report Walkthrough Session with Research Team
• Free Updated report if the report is 6-12 months old or older

For more information about this report visit https://www.researchandmarkets.com/r/byn61g

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Fonte: Business Wire