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Top Factor Driving Generative AI In Healthcare Market Growth in 2025: Surge In Personalized Medicine Fuels Growth Of Generative AI In Healthcare
Generative AI In Healthcare Market
The expanding need for customized medical treatments is anticipated to foster the growth of the generative AI in healthcare industry. Personalized or precision medicine is a forward-thinking medical approach that factors in individual-specific genes, environment, and lifestyle. The rising need for this tailored medical approach stems from various factors such as the development in genomics, enhanced comprehension of how diseases work, and a growing inclination towards more potent, targeted treatments. Generative AI in healthcare deploys algorithms to process vast amounts of patient data, including genetic information and medical records, to formulate personalized treatment methods and projections adjusted to match individual patient requirements. For example, the Personalized Medicine Coalition, a UK-based entity advocating for the adoption of personalized medicine, reported that the FDA's CDER approved as many as 16 novel personalized treatments meant for patients with rare diseases in 2023, a noticeable increase from the 6 approvals in 2022. These FDA-approved personalized treatments included seven drugs specifically for cancer and three for various other illnesses and conditions. Hence, the mounting demand for personalized medicine is propelling the advancement of the generative AI in healthcare market.
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How will the growth rate of the generative ai in healthcare market shape industry trends by 2034?
Over the past few years, the generative AI in healthcare market size has experienced remarkable growth. It is projected to expand from $2.36 billion in 2024 to $3.26 billion in 2025, escalating at a compound annual growth rate (CAGR) of 37.7%. The rapid expansion in the historic period can be attributed to factors such as the surge in healthcare data analytics, amplified demand for personalized medical approaches, an upsurge in the need for AI-enabled healthcare solutions, increased demand for individualized treatment plans, as well as the enhancement of drug discovery and development processes.
The healthcare market for generative AI is predicted to experience significant expansion in the coming years, with expectations to reach $11.6 billion by 2029, witnessing a compound annual growth rate (CAGR) of 37.4%. The expected growth in the forecast period is due to factors such as the rise in medical imaging methods, enhanced AI-enabled monitoring systems, growing globalization, the surge in patient population, advancements in modern medical treatments, and the rise of virtual patient simulations. Key trends projected for the forecast period are improvements in medical imaging, the evolution of telemedicine and distant patient monitoring, advancements in generative AI algorithms, technologically advanced cardiac data analysis, healthcare data analytics, and real-time monitoring of health conditions.
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What new trends are reshaping the generative ai in healthcare market and its opportunities?
Prominent firms in the generative AI in healthcare industry are concentrating on establishing strategic collaborations to create new technologies, thereby gaining a competitive advantage. Such collaborations are pivotal for advancing generative AI in healthcare by utilizing the capabilities and resources of numerous organizations to produce cutting-edge solutions, enhance clinical workflow efficiency, and address important healthcare concerns. For example, in June 2023, Google, a leading US-based tech company, forged an alliance with the Mayo Clinic - a US-based nonprofit dedicated to clinical practices - to incorporate generative AI into healthcare. This alliance seeks to capitalize on the inherent capabilities of generative AI to refine operations, and augment healthcare services by accessing previously untapped information and allowing real-time, personalized communication. The primary focus would be on Enterprise Search in Gen App Builder, aiming to improve clinical workflows and patient results while adhering to HIPAA (Health Insurance Portability and Accountability Act) regulations.
Which primary segments of the generative ai in healthcare market are driving growth and industry transformations?
The generative AI in healthcare market covered in this report is segmented -
1) By Component: Solutions, Services
2) By Function: AI-Assisted Robotic Surgery, Virtual Nursing Assistants, Aid Clinical Judgment Or Diagnosis, Workflow And Administrative Tasks, Image Analysis
3) By Application: Clinical, System
4) By End User: Hospitals And Clinics, Clinical Research, Healthcare Organizations, Diagnostic Centers, Other End Users
Subsegments:
1) By Solutions: Diagnostic Imaging Analysis, Drug Discovery And Development Tools, Personalized Treatment Planning, AI-Powered Clinical Decision Support
2) By Services: Consulting and Advisory Services, Implementation And Integration Services, Support And Maintenance Services, Training And Education Services
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Which geographical regions are pioneering growth in the generative ai in healthcare market?
North America was the largest region in the generative AI In healthcare market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI in healthcare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the generative ai in healthcare market landscape?
Major companies operating in the generative AI in healthcare market report are Alphabet Inc.; Microsoft Corporation; Amazon Web Services Inc.; Johnson & Johnson Services Inc.; Siemens AG; Intel Corporation; IBM Watson Health Corporation; Ernst & Young Global Limited; Oracle Corporation; Nvidia Corporation; Harman International Industries Inc.; Epic Systems Corporation; Persistent Systems Private Limited; Tempus Labs Inc.; Eleks Inc.; NioyaTech LLC; Saxon Global Inc.; Verge Genomics Inc.; PathAI Inc.; BenevolentAI Ltd; Abridge AI Inc.; Absci Corporation; Atomwise Inc.; Syntegra; Insilico Medicine; Neuralink Corporation; DiagnaMed Holdings Corp.
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What Is Covered In The Generative AI In Healthcare Global Market Report?
• Market Size Forecast: Examine the generative ai in healthcare market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the generative ai in healthcare market for a structured understanding.
• Key Players Overview: Analyze major players in the generative ai in healthcare market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the generative ai in healthcare market.
• Segment Contributions: Evaluate how different segments drive overall growth in the generative ai in healthcare market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the generative ai in healthcare market.
• Industry Challenges: Identify potential risks and obstacles affecting the generative ai in healthcare market.
• Competitive Landscape: Review strategic developments in the generative ai in healthcare market, including expansions, agreements, and new product launches.
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