Market Size - AI in Healthcare
In 2017, the global AI in healthcare market size was approximately $1,009,367,480 and the U.S. market size was approximately $438,750,000, which represents about 43% of the global market. The global market is expected to increase at a CAGR of 52.68% to reach $7.99 billion in 2022, while the U.S. market is expected to grow at a slower 35% CAGR to reach $1,967,369,670 in 2022.
Global Market size
While there are several market reports available that analyze the market for AI in healthcare, I have chosen to use the most recent one published that includes a global market size for 2016, an estimated CAGR, and a predicted global market size for 2022. This information allows us to calculate the estimated global market size for each year between 2016 and 2022. Research and Reports, "the world's largest market research store," indicated the global market size for AI in healthcare was $661.1 million in 2016. This report also indicates it is expected to grow at a 52.68% CAGR through 2022. Using this information, we can calculate the approximate market size for each year:
2017: $1,009,367,480 ($661,100,000 x 1.5268)
2018: $1,541,102,268 ($1,009,367,480 x 1.5268)
As such, we can say that the global AI healthcare market size in 2017 is $1,009,367,480 and will increase to $1,541,102,268 in 2018.
The Research and Reports data also estimates the healthcare AI market will grow to $7.99 billion by 2022. This growth is driven by the use of big data in healthcare, the ability of artificial intelligence to "improve patient outcomes," the "imbalance between health workforce and patients," the need to reduce healthcare costs, the increased importance of precision medicine, cross-industry partnerships, and the "significant increase in venture capital investments in AI in the healthcare domain."
U.S. market size
Several market research reports indicate that North America is "leading in AI in healthcare market," but I was able to find just one that provided hard data for the United States market without accessing a paywall. The Global Market Insights report put the U.S. healthcare artificial intelligence market size at $325 million in 2016. This report also indicated the U.S. market is expected to grow at a CAGR of 35% through 2024. With this information, we can calculate the approximate U.S. AI in healthcare market size for 2017 and 2018:
2017: $438,750,000 ($325,000,000 x 1.35)
2018: $592,312,500 ($438,750,000 x 1.35)
Therefore, we can say the U.S. AI in healthcare market size in the United States is approximately $438,750,000 in 2017 and is expected to grow to $592,312,500 in 2018.
We can also extrapolate the data to predict where the U.S. market will be in 2022 to match the global predictions since the Global Market Insights has given its projections through 2024:
2019: $799,621,875 ($592,312,500 x 1.35)
2020: $1,079,489,531 ($799,621,875 x 1.35)
2121: $1,457,310,867 ($1,079,489,531 x 1.35)
2022: $1,967,369,670 ($1,457,310,867 x 1.35)
These calculations show the U.S. AI healthcare market size will be nearly $2 billion in 2022.
Using this data, we can say that the U.S. AI healthcare market share in 2017 is 43% ($438,750,000 / $1,009,367,480). However, in 2022, the U.S. market share is expected to shrink to 25% ($1,967,369,670 / $7,990,000,000) as other regions grow at a faster pace. For example, the European market is expected to grow at a CAGR of 39%, Japan at a CAGR of 40%, Brazil at a CAGR of 40%, and China at a CAGR of 45%.