by Artificial intelligence (AI) in medical diagnostics involves the use of machine learning and deep learning algorithms to analyze medical images and data to support healthcare professionals in making accurate diagnosis. AI diagnostic tools can analyze complex medical data such as CT scans, MRI scans, genetic sequence information, patient records and electronic health records and identify patterns, trends and relationships undetectable by humans. This helps clinicians narrow differential diagnoses, arrive at definitive diagnosis faster and aid clinical decision making. The global artificial intelligence in medical diagnostics market is estimated to be valued at US$ 1,502.9 Mn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
One of the major market opportunity for artificial intelligence in medical diagnostics is its ability to reduce diagnostic errors. Diagnostic errors are among the most common types of medical errors. Studies show that around 5% of adult patients are subjected to diagnostic errors leading to thousands of injuries and deaths each year. AI diagnostic tools have shown potential to reduce such diagnostic errors by analyzing patient data more thoroughly and accurately and identifying subtle patterns that humans may miss. By leveraging techniques like natural language processing, AI can analyze patients’ histories, notes, reports, lab results more comprehensively. This can help detect inconsistencies or abnormalities missed by clinicians and generate alternative diagnostic possibilities to reduce chances of oversight. With continuous learning capabilities, AI systems also have potential to improve diagnostic accuracy over time by learning from more data and cases. This ability to reduce human errors and oversight through objective, data-driven analysis presents a major market opportunity for wider adoption of AI solutions in medical diagnosis.
Porter’s Analysis
Threat of new entrants: Low startup costs and intellectual property protection make it difficult for new players to enter the market.
Bargaining power of buyers: Individual buyers have low bargaining power due to significant health benefits of AI diagnostics. However, large hospitals have some bargaining power.
Bargaining power of suppliers: A few leading AI companies like IBM Watson and Anthropic have significant influence on the market.
Threat of new substitutes: Growing adoption of remote monitoring devices and apps poses some threat of substitution.
Competitive rivalry: Intense competition between existing players to gain market share through innovations.
SWOT Analysis
Strength: AI offers non-invasive and accurate diagnostics with ability to analyze huge medical data.
Weakness: Lack of explainability of AI decisions and data privacy concerns restrict adoption. Healthcare providers also face challenges updating skills to leverage AI.
Opportunity: Rising chronic diseases and aging population drives the need for accessible healthcare. Untapped emerging markets present new opportunities.
Threats: Significant investments required for R&Dposes financial challenge for new entrants. Regulations around AI healthcare needs harmonization across regions.
Key Takeaways
The Global Artificial Intelligence Diagnostics Market is expected to witness high growth over the forecast period driven by increasing investments in AI healthcare startups.
Regional analysis: Asia Pacific will be the fastest growing region during the forecast period supported by rising medical expenditures, increasing digitization of healthcare sector and growing geriatric population susceptible to chronic diseases.
Key players operating in the Artificial Intelligence Diagnostics Market are Zoetis Inc., Merck & Co. Inc., Elanco, Ceva Santé Animale, Boehringer Ingelheim, Biovac, Hester Biosciences Limited, Dechra Pharmaceuticals PLC, Venky’s Limited, and Phibro Animal Health Corporation, among others. These players are focused on developing innovative AI diagnostic platforms and solutions through strategic collaborations and mergers & acquisitions for footprint expansion.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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