Artificial Intelligence in Diagnostics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

Artificial intelligence in the diagnostics market is expected to grow at a CAGR of 26.1% over the forecast period, 2022-2027.

The COVID-19 pandemic has significantly impacted the healthcare system, particularly diagnostics. The lockdown measures worldwide decreased public mobility and impacted the diagnostic industry. Moreover, the COVID-19 pandemic not only affected the global economy but also greatly impacted the functioning of general hospital care for non-COVID-19 patients in hospitals across the globe. However, with the increasing demand for diagnostic imaging procedures globally, the demand for implementing artificial intelligence in diagnostics is also increasing. According to the article "Artificial intelligence in the diagnosis of COVID-19: challenges and perspectives," published in April 2021, at different levels of the healthcare system, including diagnosis, artificial intelligence (AI) has been implemented. Particularly during the current pandemic, AI algorithms are crucial for the quick diagnosis of COVID-19 patients.

Additionally, AI tools were employed to handle the pandemic's depth and complexity, from diagnosis to drug development, disease transmission prediction, and population monitoring and surveillance. A study titled "The Role of Artificial Intelligence in Fighting the COVID-19 Pandemic," published in the Journal of "Nature Public Health Emergency Collection" in April 2021, proposed a temporal step method, which includes presenting recent research investigations, examining how AI observes and acts on society and the healthcare system, and reporting various data types. Hence, the deployment of AI tools in diagnosing patients with SARS-CoV-2 played a substantial role throughout the pandemic phase, thereby augmenting the market growth.

Furthermore, factors such as increasing demand for AI tools in the medical imaging field and rising focus on reducing the workload of radiologists, government initiatives to increase the adoption of AI-based technologies, and growth in funding for AI-based start-ups are anticipated to bolster the growth of the market shortly.

Incorporating artificial intelligence into imaging devices may improve the diagnosis, which is expected to aid the overall market growth during the forecast period. For instance, the Journal of the American Medical Association article titled "An Artificial Intelligence–Based Chest X-ray Model on Human Nodule Detection Accuracy from a Multicenter Study," published in December 2021, reported that an artificial intelligence algorithm was associated with improved detection of pulmonary nodules on chest radiographs compared with unaided interpretation for different levels of detection difficulty and readers with different experience. The research articles stated that artificial intelligence could be a promising technology for medical imaging shortly.

Moreover, factors such as increasing funding for AI start-ups globally are increasing the demand for increasing incorporation of AI in the diagnostic imaging modalities. For instance, in March 2022, Qure.ai (Qure), a health-tech business raising USD 40 million in fundraising, employs artificial intelligence (AI) for medical imaging diagnostics. The company further declared that it would utilize the funding to broaden and improve its global presence, particularly in the United States and Europe, and accelerate the development of products for critical care and community diagnostics. Therefore, such fundraising is anticipated to contribute to market growth.

Thus, owing to the aforementioned factors, the market studied is anticipated to grow over the analysis period. However, the lack of a skilled AI workforce and ambiguous regulatory guidelines for medical software is expected to restrain the market's growth.

Scope of the Report

Artificial intelligence (AI) in medicine uses algorithms and software to approximate human cognition in analyzing complex medical data. Specifically, AI in diagnostics assists healthcare providers in making appropriate treatment decisions for their patients. Artificial Intelligence in Diagnostics Market is segmented By Type (In Vitro Diagnostics, Diagnostic Imaging, and Other Types), Application (Cardiology, Oncology, Neurology, Obstetrics/ Gynecology, and Other Applications), End-User (Hospitals, Diagnostic Imaging Centers, Diagnostic Laboratories, and Other End-Users), and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the market size and forecasts in value (USD million) for the above segments.

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Key Market Trends

X-rays Segment is Expected to Dominate the Market

The X-rays segment is expected to garner a significant market share during the forecast period. Since X-rays are the most common imaging test performed in most radiology departments, the potential for artificial intelligence (AI) to aid with the triage and interpretation of traditional radiographs (X-ray images) is particularly significant. Incorporating AI in X-rays enhances its efficiency, accuracy, ease of access, and workflow, reducing time and increasing quality and patient safety. These advantages are expected to increase the demand for AI in X-rays, boosting the segment's growth during the forecast period.

Additionally, the article titled "These Algorithms Look at X-Rays—and Somehow Detect Your Race," published in August 2021, stated that recently market players are heavily spending on innovations to create artificial intelligence software that interprets x-rays and for identifying conditions that doctors occasionally check, such as in the case of lung tumors. Additionally, as mentioned above, these algorithms can detect several data points on these scans that clinicians don't look for. Such developments and the growing incorporation of AI in X-rays are anticipated to drive segment growth.

Furthermore, the increase in product launches by the industry players is anticipated to drive the segment's growth. For instance, in August 2021, CXR-AID, a chest X-ray program powered by artificial intelligence (AI) developed by Fujifilm, will be made available in Japan after receiving certification from the Pharmaceuticals and Medical Devices Agency (PMDA). CXR-AID, which was created utilizing Lunit's AI technology, can recognize significant abnormal findings from X-ray images, such as chest nodules, consolidation, and pneumothorax.

Thus, owing to the abovementioned factors, the segment is expected to grow over the analysis period.

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