×
Global Generative AI in Healthcare Market Size, Share, Trends, Demand & Growth Analysis 2024 to 2029

Global Generative AI in Healthcare Market Size, Share, Trends, Demand & Growth Analysis 2024 to 2029

Global Generative AI in Healthcare Market Size, Share, Trends, Demand & Growth Analysis 2024 to 2029

The Global Generative Artificial Intelligence (GenAI) in Healthcare Market is expected to witness a growth rate of 36-38% in the next five years. The rapid advancements in AI technology; increasing demand for precision medicine; increasing demand for efficient healthcare solutions; expanding venture funding and other investments in the AI sector; ability of generative AI to automate tasks, reduce errors, optimize treatment, and lowers costs; availability of vast amounts of healthcare data, including EHRs, medical imaging, and genomic data; and growing applications in drug discovery are some of the key factors driving the Generative AI in Healthcare market growth. However, data privacy and security concerns; regulatory challenges; the high cost associated with development, deployment, and maintenance of generative AI system; and ethical concerns related to the use of AI in healthcare is likely to hinder the market’s growth.

Generative AI, in the context of healthcare, refers to artificial intelligence systems and algorithms that have the capability to generate new, original data, content, or information related to healthcare. These AI systems use deep learning and neural networks to create data or content that is not explicitly programmed but is instead generated based on patterns and information learned from existing healthcare datasets.

The Rapid Advancements in AI Technology to Drive Market Growth

The rapid advancements in AI technology are pivotal in driving the growth of generative AI in the healthcare market. Breakthroughs in deep learning, natural language processing (NLP), and neural networks enable AI systems to analyse vast amounts of medical data with unprecedented accuracy. These technologies facilitate the automation of complex tasks such as drug discovery, diagnostic imaging, and personalized treatment planning, improving patient outcomes and operational efficiency. Enhanced AI algorithms can predict disease progression, optimize treatment plans, and even generate novel therapeutic solutions tailored to individual patients. As these technologies continue to evolve, they reduce the time and cost of medical research and development, making advanced healthcare solutions more accessible. Consequently, the integration of cutting-edge AI technologies is transforming healthcare delivery, driving demand for generative AI applications, and fuelling market expansion.

“Advancements in AI, particularly in machine learning and deep learning, have significantly improved the efficiency and innovation in industries like healthcare. These technologies enable faster data processing, more accurate predictions, and the automation of complex tasks, which are crucial for accelerating growth"- Vice President, GenAI Product and Data Strategy, An AI Healthcare Company, United States

Expanding Venture Funding and Other Investments in the AI sector to Fuel Market Growth

Venture capital investment in artificial intelligence (AI) has surged in recent years, reaching record levels in 2024, with the generative AI (GenAI) sector particularly benefiting. In 2023, GenAI start-ups globally raised USD10 billion in venture capital, marking a 110% increase from 2021 (source: GlobalData). The sector is projected to receive over USD12 billion globally in 2024 (source: EY). The healthcare industry is emerging as a key focus for generative AI applications, with venture capitalists increasingly recognizing its transformative potential. This has led to significant financial investments, not only from VCs but also from major corporations. For example, Microsoft has invested over USD13 billion in OpenAI since their partnership began in 2019, integrating OpenAI's models across its product suite, including Azure, Bing, Teams, and Windows.

Other well-funded generative AI companies, like Jasper.ai, which raised USD125 million and achieved a USD1.5 billion valuation, are also contributing to the sector's rapid growth. These investments enable start-ups and established companies to accelerate the development and deployment of innovative AI-driven solutions in healthcare. Generative AI, with its capabilities in drug discovery, personalized medicine, and predictive diagnostics, offers significant opportunities to improve patient outcomes and reduce healthcare costs. Substantial venture funding supports research, talent acquisition, regulatory approvals, and partnerships, ultimately driving rapid adoption and market growth in the healthcare sector. The growing confidence of VCs in AI further attracts other investors, creating a positive feedback loop that continuously propels the generative AI healthcare market forward.

Generative AI in Healthcare Market

To learn more about this report, download the PDF brochure

Technological Innovations are Driving the Generative AI in Healthcare Market

The Generative AI in Healthcare market is technology-driven and is marked by constant initiatives for product innovations. For instance,

  • In June 2024, Cognizant, in partnership with Google Cloud, launched healthcare-specific generative AI solutions to streamline administrative processes and improve patient care experiences. These AI-driven tools target high-cost workflows, enhancing efficiency, accuracy, and overall healthcare delivery
  • In April 2014, Augmedix launched Augmedix Go, the first fully-automated, generative AI-powered medical documentation product for emergency departments, following a successful pilot with HCA Healthcare. The solution aims to enhance patient care, reduce clinicians' documentation burden, and improve productivity by accurately automating medical notes in complex, noisy ED environments
  • In March 2024, NVIDIA launched over two dozen healthcare microservices, enabling global healthcare enterprises to leverage generative AI for advanced medical applications across any cloud platform. These microservices, including optimized AI models and development tools, accelerate healthcare workflows in drug discovery, medical imaging, and genomics, enhancing patient care and clinical interactions
  • In February 2024, Hartford HealthCare launched its Center for Artificial Intelligence (AI) Innovation in Healthcare to advance AI research and development in clinical care, collaborating with institutions like MIT and the University of Oxford. The center aims to lead AI-driven healthcare transformation by focusing on collaboration, trustworthiness, and innovation, building on Hartford HealthCare's existing AI initiatives

US Expected to be a Major Growth Engine in Generative AI in Healthcare Market

The US is expected to be a major growth engine in the Generative AI in healthcare market due to several factors. First, the country’s robust healthcare infrastructure and advanced technology adoption create an ideal environment for AI integration. Major healthcare providers, such as hospitals and clinics, are increasingly embracing AI to enhance patient care, streamline administrative processes, and improve outcomes. Second, the US is home to leading AI companies, research institutions, and tech giants like Google, IBM, and NVIDIA, which are heavily investing in AI development and applications tailored for healthcare. This fosters innovation and accelerates the deployment of AI solutions in the medical field. Third, there is significant venture capital funding and government support for AI in healthcare, further driving market growth. Regulatory bodies like the FDA are also adapting frameworks to ensure the safe integration of AI technologies, encouraging more widespread adoption. Overall, the US combines technological leadership, investment, and a supportive regulatory environment, making it a key driver in the global Generative AI healthcare market.

Growth in the APAC generative AI in healthcare market is driven by the rapid adoption of digital health technologies and AI-powered solutions across the region. Significant investments from both private and public sectors are fuelling innovation, while supportive government policies and initiatives are enhancing healthcare infrastructure, making the region a key area for AI-driven healthcare advancements. Additionally, a growing focus on personalized medicine and improving healthcare access in densely populated areas further accelerates market growth.

Generative AI in Healthcare Market - Segmentation

To learn more about this report, download the PDF brochure

Application Type Segment Analysis

The generative AI in Healthcare market comprises application types like: Drug Discovery and Development, Medical research and data analysis, Medical Imaging and Diagnostics, Patient Assistance and Monitoring, Personalized Medicine, Clinical Decision Support, Healthcare Operations, Predictive Analytics and Other Applications. Drug Discovery and Development is the largest segment due to the extensive use of AI in accelerating the discovery of new drugs, optimizing clinical trials, and reducing time-to-market. This segment benefits from AI’s ability to analyze large datasets, simulate drug interactions, and predict outcomes more efficiently. Growth in the patient assistance and monitoring segment is driven by the rapid advancements in AI-driven virtual assistants and remote monitoring technologies. AI tools are increasingly being used to provide real-time health support, enhance patient engagement, and monitor chronic conditions, making this segment particularly dynamic. The rise in telehealth and wearable devices further contributes to its expansion.

End User Type Segment Analysis

The generative AI in Healthcare market can be analyzed based on end user types, such as Pharmaceutical & Biotechnology Companies, Medical Device Companies, Healthcare Payers, Academic & Research Institutes, and Other End Users. Pharmaceutical & biotechnology companies represent the largest segment. This is due to their extensive use of AI in drug discovery, development, and clinical trials. AI helps these companies streamline processes, enhance precision in drug targeting, and reduce costs, making them the primary adopters of generative AI technologies. The growth in the healthcare providers segment for AI in healthcare is driven by the need for improved patient care and operational efficiency. AI aids in automating administrative tasks, enhancing diagnostic accuracy, and personalizing treatment plans. This technology supports real-time data analysis and decision-making, leading to better patient outcomes and streamlined workflows, thus fueling its adoption among healthcare providers.

Organic and Inorganic Growth Strategies Adopted by Players to Establish Their Foothold in the Market

Players operating in this market are adopting both organic and inorganic growth strategies such as collaborations, acquisitions, and new product launches to garner market share. For instance,

  • In July 2024, GE HealthCare and Amazon Web Services (AWS) formed a strategic partnership to develop generative AI applications aimed at enhancing medical diagnostics and patient care. GE HealthCare will use AWS’s cloud and AI services to create innovative solutions that improve clinical workflows, diagnostic accuracy, and patient outcomes, accelerating the development and implementation of new healthcare technologies
  • In March 2024, Google Cloud integrated its Vertex AI Search with MedLM and Healthcare Data Engine (HDE) to enhance generative AI healthcare services, improving patient record summaries and access to longitudinal data. The updates include expanded HDE access, new MedLM features for chest x-ray classification, and a data mapping tool, aiming to advance AI-driven healthcare solutions while addressing potential issues with AI credibility
  • In February 2024, CitiusTech launched, the CitiusTech Gen AI Quality & Trust solution, a pioneering solution to enhance the reliability, quality, and trust of generative AI in healthcare, addressing common concerns that delay AI adoption. The solution offers a comprehensive framework with metrics and methods tailored to healthcare, enabling organizations to confidently scale Gen AI applications
  • In November 2023, Wipro partnered with NVIDIA to enhance healthcare solutions using generative AI, leveraging NVIDIA’s AI Enterprise software for improved member experience, enrolment, and claims processing. This collaboration aims to accelerate the adoption of AI in healthcare, enabling custom AI models and transforming digital and business processes in the industry

The generative AI in Healthcare market is expected to gain further momentum in the coming years due to technological advancements, rising R&D investments, new product launches, and aggressive organic and inorganic growth strategies followed by the players.

Competitive Landscape Analysis: Generative AI in Healthcare Market

The global generative AI in Healthcare market is marked by the presence of established market players such as Amazon Web Services, Cognizant, Google LLC, IBM Corporation, Meta, Microsoft Corporation, NVIDIA, OpenAI, Oracle Corporation, and Syntegra, among others.

Generative AI in Healthcare Market - Key Players

Get a sample report for competitive landscape analysis

Future Outlook of the Generative AI in Healthcare Market

The global generative AI in Healthcare market is expected to gain further momentum in the coming years due to its abilities to create synthetic datasets that for training machine learning models; enhance patient engagement; streamline processes and improve efficiency; and the growing trend of collaboration between AI developers and healthcare professionals. These factors collectively contribute to the growth and evolution of the generative AI in healthcare market.

Generative AI in Healthcare Market Report Scope and Highlights

Report Scope

Details

Base Year Considered

2023

Historical Data

2022 - 2023

Forecast Period

2024 - 2029

CAGR (2024-2029)

36-38%

Segment Scope

Product, Application, End User

Regional Scope

  • North America (U.S. & Canada)
  • Europe (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia Pacific (China, India, Japan, Rest of Asia Pacific)
  • Rest of the World (Latin America, Middle East & Africa)

Key Companies Mapped

Amazon Web Services, Cognizant, Google LLC, IBM Corporation, Meta, Microsoft Corporation, NVIDIA, OpenAI, Oracle Corporation, and Syntegra, among others

Report Highlights

Market Size & Forecast, Growth Drivers & Restraints, Trends, Competitive Analysis

 

Key Strategic Questions Addressed

  • What is the market size & forecast for the Global Generative AI in Healthcare Market?
  • What are the historical, present, and forecasted market shares and growth rates of various segments and sub-segments of the Global Generative AI in Healthcare Market?
  • How has COVID-19 impacted the Global Generative AI in Healthcare Market?
  • What are the major growth drivers, restraints/challenges impacting the market?
  • What are the opportunities prevailing in the market?
  • What is the investment landscape?
  • Which region has the highest share in the global market? Which region is expected to witness the highest growth rate in the next 5 years?
  • Who are the major players operating in the market? What is the competitive positioning of key players?
  • Who are the new players entering the market?
  • What are the key strategies adopted by players?
  1. Introduction
    • Market Scope
      • Market Definition
      • Segments Covered
      • Regional Segmentation
    • Research Timeframe
    • Currency Considered
    • Study Limitations
    • Stakeholders
    • List of Abbreviations
    • Key Conferences and Events (2023-2024)
  2. Research Methodology
    • Secondary Research
    • Primary Research
    • Market Estimation
      • Bottom-Up Approach
      • Top-Down Approach
    • Market Forecasting
  3. Executive Summary
    • Generative AI in Healthcare Market Snapshot (2023-2029)
    • Segment Overview
    • Regional Snapshot
    • Competitive Insights
  4. Market Overview
    • Market Dynamics
      • Drivers
        • The rapid advancements in AI technology
        • Expanding venture funding & other investments in the AI sector
        • Availability of vast amounts of healthcare data
        • Increasing demand for efficient healthcare solutions
      • Restraints
        • Data privacy and security concerns
        • Regulatory challenges
        • Ethical concerns related to the use of AI in healthcare
      • Opportunities
        • Drug discovery and development
        • Precision medicine
        • Virtual health assistants
        • Telemedicine and remote monitoring
      • Key Market Trends
      • Unmet Market Needs
      • Industry Speaks
      • Porter’s Five Forces Analysis
      • Regulatory Analysis
  1. Global Generative AI in Healthcare Market - Size & Forecast (2022-2029), By Product Type, USD Million
    • Software
    • Services
  2. Global Generative AI in Healthcare Market - Size & Forecast (2022-2029), By Application Type, USD Million
    • Drug Discovery and Development
    • Medical research and data analysis
    • Medical Imaging and Diagnostics
    • Patient Assistance and Monitoring
    • Personalized Medicine
    • Clinical Decision Support
    • Healthcare Operations
    • Predictive Analytics
    • Other Applications
  3. Global Generative AI in Healthcare Market - Size & Forecast (2022-2029), By End User Type, USD Million
    • Pharmaceutical & Biotechnology Companies
    • Medical Device Companies
    • Healthcare Providers
    • Healthcare Payers
    • Academic & Research Institutes
    • Other End Users
  4. Global Generative AI in Healthcare Market - Size & Forecast (2022-2029), By Region, USD Million
    • North America
      • S.
      • Canada
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Spain
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • Rest of Asia Pacific
    • Latin America
    • Middle East & Africa
  5. Competitive Landscape
    • Key Players and their Competitive Positioning
      • Market Share Analysis (2023)
      • Segment-wise Player Mapping
      • Key Player Comparison
      • Company Categorization Matrix
        • Dominants/Leaders
        • New Entrants
        • Emerging Players
        • Innovative Players
      • Key Strategies Assessment, By Player (2022-2024)
        • New Product Launches
        • Partnerships, Agreements, & Collaborations
        • Mergers & Acquisitions
        • Geographic Expansion
  1. Key Companies Scanned (Indicative List)
    • Amazon Web Services
    • Cognizant
    • Google LLC
    • IBM Corporation
    • Meta
    • Microsoft Corporation
    • NVIDIA
    • OpenAI
    • Oracle Corporation
    • Syntegra
    • Other Prominent Players

The study has been compiled based on extensive primary and secondary research.

Secondary Research (Indicative List)

Generative AI in Healthcare Market - Secondary Research

Primary Research

To validate research findings (market size & forecasts, market segmentation, market dynamics, competitive landscape, key industry trends, etc.), extensive primary interviews were conducted with both supply and demand-side stakeholders.

Supply Side Stakeholders:

  • Senior Management Level: CEOs, Presidents, Vice-Presidents, Directors, Chief Technology Officers, Chief Commercial Officers
  • Mid-Management Level: Product Managers, Sales Managers, Brand Managers, Business Development Managers, Consultants

Demand Side Stakeholders:

  • Stakeholders in Pharmaceutical and Biotechnology Companies, Medical Device Companies, Hospitals, Academic and Government Research Institutes, and Other End Users

Breakdown of Primary Interviews

Generative AI in Healthcare Market - Primary Interviews

Market Size Estimation

Both ‘Top-Down and Bottom-Up Approaches’ were used to derive market size estimates and forecasts.

Data Triangulation

Research findings derived through secondary sources & internal analysis were validated with Primary Interviews, Internal Knowledge Repository, and Company Sales Data.