Healthcare Artificial Intelligence Projected to Surpass $34 Billion by 2025

Healthcare organizations are increasingly incorporating artificial intelligence (AI) technology into areas such as medical imaging, and Tractica, a Boulder, Colo.-based market intelligence firm, projects that the global market for AI solutions in the healthcare sector will increase from $1 billion in 2017 to more than $34 billion by 2025. The healthcare industry has undergone a significant evolution over the past several years, moving from an antiquated, paper-based records system to a more efficient and integrated system that often incorporates physical, payer, and patient-generated health data. According to a Tractica report, AI is being increasingly used to improve the depth of data analytics capabilities, in addition to automating key healthcare-related tasks. Tractica forecasts that global software revenue from 22 key healthcare AI use cases will grow from $511.7 million in 2018 to $8.6 billion annually by 2025. Including the hardware and services sales that will be driven by these software implementations, the market intelligence firm anticipates that the total revenue opportunity for the healthcare AI market will surpass $34 billion by 2025. Tractica projects that the top three use cases for healthcare AI will be medical image analysis, healthcare VDAs, and computational drug discovery and drug effectiveness, each of which will reach 2025 revenue of more than $1.1 billion by 2025, according to the report.