By 2024, market is estimated to grow more than three-fold, reaching $225.4 million from $69.1 million in 2019, at staggering compound annual growth rate of 26.7 per cent
Frost & Sullivan’s recent study, Growth Opportunities in Artificial Intelligence and Analytics in Surgery, 2020, finds that the permeation of artificial intelligence (AI) and analytics in operating rooms (ORs) will help hospitals achieve high potential. Their deployment addresses inefficiencies and challenges that conventional ORs are facing, such as optimal block utilisations, accurate case-by-case costing, and myriad clinical challenges for physicians performing surgery.
By 2024, the market is estimated to grow more than three-fold, reaching $225.4 million from $69.1 million in 2019, at a staggering compound annual growth rate (CAGR) of 26.7 per cent. However, due to the COVID-19 pandemic uncertainty, the adoption of AI and analytics solutions is expected to be much slower in 2020, given that it will not be a priority for hospitals. Operational solutions that help hospitals manage their strained resources could still see higher adoption once the crisis subsides.
“Most existing OR challenges have been difficult to address, but the advent of AI and analytics technologies makes it simpler to address these with low investment,” said Siddharth Shah, Transformational Health Programme Manager, Frost & Sullivan. “Additionally, innovation in this nascent market is primarily driven by start-ups. As is typically the case with such markets, the application areas are highly varied but distributed within two larger buckets – operational or administrative applications, and clinical applications.”
Shah added, “By 2025, there will be significant mergers and acquisitions (M&A) activity in this start-up-driven market, with medical technology (medtech) and medical imaging majors racing to build the most comprehensive solution portfolios to complement existing offerings. Further, operational offerings will be taken over by clinical offerings in terms of adoption and revenue-generation potential because of the proven value in improving patient outcomes and long-term studies, indicating a return on investment (ROI).”
While moving toward a growth stage from a nascent stage, AI and analytics for the surgery market are expected to present tremendous growth opportunities, including:
- Leverage the power of disruptive technologies such as augmented reality (AR), virtual reality (VR), and robotics to build clinical offerings targeting new areas currently not being served.
- Emphasise vertical integration beyond the operating room through partnerships, licensing, and M&A.
- Focus on geographical expansion by collaborating or partnering with local agents, especially in Asia-Pacific.
- Ensure implementation of and adherence to best practices for the operating room.
Growth Opportunities in Artificial Intelligence and Analytics in Surgery, 2020 is the latest addition to Frost & Sullivan’s Transformational Health research and analyses available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.