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Seven Reasons for the Growing AI Market in the Healthcare Industry

$45.2 Billion Worldwide Artificial Intelligence Industry by 2026

I recently wrote an article about disenchanting the AI hype based on an article in the Wall Street Journal.

It is fair to say that the recent report offered at Research and Markets and reported in BusinessWire is very optimistic in its predictions about the market potential of artificial intelligence.

“The Global AI in Healthcare Market is Expected to Grow from USD 4.9 Billion in 2020 and reach USD 45.2 Billion by 2026 at a CAGR of 44.9%”

Why is the market growing at such a rate?

A summary posted in BusinessWire argues there are several reasons.

Here is a list of seven based on the article:

  1. Increasing volume of healthcare data.
  2. Growing complexities of datasets.
  3. Intensifying need to reduce towering healthcare costs.
  4. Improving computing power and declining hardware costs.
  5. Growing number of cross-industry partnerships and collaborations.
  6. Rising imbalance between health workforce and patients driving the need for improvised healthcare services.
  7. Adoption of this technology by multiple pharmaceutical and biotechnology companies across the world to expedite vaccine or drug development processes for COVID-19.

One major restraint that is mentioned is the: “…reluctance among medical practitioners to adopt AI-based technologies and lack of a skilled workforce.

Several segments are expected to grow.

A Micro Processing Unit (MPU) is a Central Processing Unit (CPU) that fits on a single chip.

  • MPU processor segment expected to hold the largest share in AI in healthcare in 2020

“An MPU contains all or most of the CPU functions and is the engine that goes into motion when the computer is on. A microprocessor is specially designed to perform arithmetic and logic operations that use small number-holding areas called registers. Typical microprocessor operations include adding, subtracting, comparing two numbers, and fetching numbers. These operations are the result of a set of instructions that are part of the microprocessor design.”

Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period.

  • AI in the healthcare market for machine learning projected to grow at the highest CAGR during the forecast period

This is due to the use in medical imaging, diagnostics, drug discovery and tracking. In this manner the: “Patient data & risk analysis segment to capture the largest share of AI in the healthcare market.”

To learn more read the report: Artificial Intelligence in Healthcare Market with Covid-19 Impact Analysis by Offering (Hardware, Software, Services), Technology (Machine Learning, NLP, Context-Aware Computing, Computer Vision), End-Use Application, End User and Region — Global Forecast to 2026.

This is #500daysofAI and you are reading article 384. I am writing one new article about or related to artificial intelligence every day for 500 days.

AI Policy and Ethics at www.nora.ai. Student at University of Copenhagen MSc in Social Data Science. All views are my own. twitter.com/AlexMoltzau