The Asia Pacific artificial intelligence (AI) in healthcare market is expected to reach US$ 17,797.42 million in 2027 from US$ 622.92 million in 2019. The market is estimated to grow with a CAGR of 50.8% from 2020 to 2027.
The growth of this market is attributed to the key driving factors such as the increasing public-private investments in the integration of AI in healthcare and the burgeoning partnerships among market players. However, the market is expected to experience slow growth during the forecast period owing to the lack of expertise in artificial intelligence and non-uniform regulatory guidelines for medical software.
Artificial Intelligence is among the most important technological developments in the healthcare sector; numerous startups are developing AI-driven imaging and diagnostic solutions that are accountable for the market's growth. China-based AI healthcare start-ups have benefited from the government’s AI-focused development strategy, inspiring investment and private-public partnerships. Shanghai-based medical AI startup, Synyi raised US$ 36.3 million (RMB 250M) in Series C funding by Chinese tech giant Tencent in July 2019. Synyi started with Natural Language Processing (NLP) abilities in the Chinese language and focused on hospitals’ demand for scientific research data, joining AI & HIT to create their primary smart analytics platform. Moreover, 12 Sigma Technologies, a Chinese company that provides medical data analysis software, makes medical diagnoses by employing deep learning. The company raised US$ 29 million in funding and is supported by SB China Venture Capital. iCarbonX uses advanced data and AI to cure disease with received funding of more than US$ 200 million from several investment firms, such as Tencent and China Bridge Capital.
Moreover, Tricog, an Indian healthcare analytics startup, used artificial intelligence and machine learning algorithm for wellness, screening, and diagnosis of acute and chronic heart diseases. The firm raised US$10.5 million in a Series B round of funding. The investment comes in from Aflac Ventures, LLC, Japan; UTEC - The University of Tokyo Edge Capital, Japan; and TeamFund, USA and Dream Incubator. Similarly, in July 2018, Kleiner Perkins and GV funded US$ 21 million in Viz.ai-an AI in a healthcare start-up. Further, HealthPlix Technologies Pvt. Ltd. raised US$ 3 million in a Series A funding round headed by Kalaari Capital and IDG Ventures India in July 2018. Besides, companies are progressively associating with AI startups as incumbents look to startups to help them compete with newer entrants entering the space. Microsoft partners with KenSci, for the development of artificial intelligence and a machine learning-powered risk prediction platform. Moreover, in February 2019, KenSci secured around US$ 22 million in series B financing directed by Polaris Partners, Ignition Partners, Osage University Partners, Mindset Ventures, and new strategic investor UL Ventures. Similarly, NVIDIA collaborates with Paige.AI, which uses AI for cancer pathology. Therefore, the increasing public-private investments in artificial intelligence in the healthcare sector are anticipated to positively influence market growth during the forecast period.
The COVID-19 has spread to more than 170 countries, including China prompting the WHO to declare the disease as a global pandemic. In China, in February 2020, Baidu, in association with Oregon State University and the University of Rochester, published its Linearfold prediction algorithm to study protein folding. The algorithm is much quicker than conventional algorithms in forecasting the structure of a virus's secondary ribonucleic acid (RNA) and provides scientists with additional information on how viruses spread. Linearfold would have calculated the forecast of the secondary structure of the RNA sequence of COVID-19 27 seconds instead of 55 minutes.
In Japan, in May 2020, FUJIFILM Corporation commenced a research study to develop AI-based technology to help in the diagnosis and treatment assessment of patients with COVID-19-induced pneumonia. The company embarks on a collaborative research study with regional medical universities managing COVID-19 patients, beginning with the Kanagawa Cardiovascular and Respiratory Center.
Improvements in AI employment such as natural language processing, data analytics, speech recognition, deep learning, machine learning, chatbots, and facial recognition have been used for investigation, contact tracing, and vaccine development. AI aided the restriction of the COVID-19 pandemic and supported controlling its worst consequences. Hence, such outbreaks continue the need for new technologically advanced products nationwide, thereby positively impacting the market growth.
Based on component, the Asia Pacific artificial intelligence (AI) in healthcare market is segmented into software solution, hardware, and services. The software solution segment held the largest market share in 2019, and the same segment is anticipated to register the highest CAGR in the market during the forecast period.
Based on application, the Asia Pacific artificial intelligence (AI) in healthcare market is segmented into robot assisted surgery, virtual assistants, administrative workflow assistants, connected machines, diagnosis, clinical trials, fraud detection, cybersecurity, dosage error reduction, and others. The clinical trials segment held the largest market share in 2019, whereas the robot assisted surgery segment is anticipated to register the highest CAGR in the market during the forecast period.
Based on end user, the Asia Pacific artificial intelligence (AI) in healthcare market is segmented into hospitals & healthcare providers, patients, pharma & biotech companies, healthcare payers, and others. The hospitals & healthcare providers segment held the largest market share in 2019, and the same segment is anticipated to register the highest CAGR in the market during the forecast period.
A few of the primary and secondary sources referred to while preparing the report on the Asia Pacific artificial intelligence (AI) in healthcare market are The University of Tokyo Edge Capital (UTEC), Global AI Talent (2019), among others.