Global AI in Operating Room Market Worth USD 5,293.82 Million With a CAGR of 48.58%

Introduction

Artificial intelligence (AI) is computer and software simulation of cognitive processes. It comprises speech recognition, computer vision, natural language processing, and expert systems. The definition of AI in healthcare is "the application of machine learning to medical information by analyzing complicated algorithms and software to enable data-driven solutions." AI in the operating room is a subsegment of the entire healthcare system in which algorithms, software, and AI-enabled technologies are utilized to enhance the surgical process, data management, diagnostics, and rehabilitation, among other limited-to-the-operating-room functions.

Market Dynamics

Benefits of Artificial Intelligence-Enabled Surgeries Over Conventional Surgeries Drives the Global Market

During every phase of care, surgery is anticipated to be driven by population analysis facilitated by artificial intelligence. This can be accomplished by merging multimodal patient-specific or population-based data with artificial intelligence. Industry participants are increasingly focused on creating products for training and planning applications. Shortly, solutions can be made to cover intraoperative experience in detail, thereby boosting a surgeon's decision-making abilities. 

According to a 2018 paper titled 'Artificial Intelligence in Surgery: Possibilities and Perils' released by the National Center for Biotechnology Information, pathologists have used AI to reduce their error rate in identifying cancer-positive lymph nodes from 3.4% to 0.5%. Hence, the benefit of reducing error rates, coupled with the overall cost-benefit in terms of healthcare cost savings, is anticipated to be a significant driver of the growth in the use of AI in operating rooms over the forecast period.

Leveraging Business Synergies for Capability and Portfolio Enhancement Creates Tremendous Opportunities 

Efforts are being undertaken to improve the precision of robotic motions through computer connectivity. Research and development aim to enhance human endurance, accuracy, and surgical experience. Yet, most organizations developing artificial intelligence in operating rooms are start-ups operating in a specialized industry and forming merger-and-acquisition (M&A) relationships with established firms. These mergers and acquisitions will gradually promote competition and innovation. M&As can also be used to expand the regional footprint of a company. Moreover, such agreements may allow AI-enabled products to enter unexplored markets. Countries with vast populations of patients, such as China, India, Latin America, Japan, the Middle East, and Africa, have the potential to expand the application of artificial intelligence in neurology operating rooms.

Regional Analysis

Europe is expected to grow at a CAGR of 39.87%, with the region holding the most significant market share during the forecast period. Europe is one of the leading early adopters and one of the largest markets for surgical AI. Positive drivers for the Europe market are projected to include strategic alliances, mergers and acquisitions, increasing demand from end users for AI-based solutions, and innovation in use cases. Europe's nations are technologically advanced and are projected to lead the adoption of artificial intelligence. The adoption of AI in the operating room market in Europe is anticipated to increase due to various factors, including rising awareness of the benefits of AI-enabled solutions, increasing clinical decision-making complexity, and increasing the number of government initiatives encouraging the adoption of AI technologies. Implementation concerns with MDR, technical issues with the use of automation and machine learning in surgery, a dearth of studies on the efficacy of AI in operations, and the absence of defined regulatory norms are among the primary reasons that can initially operate as growth hurdles.

North America is projected to grow at a CAGR of 43.43% during the forecast period. North America is expected to continue to be the largest market for artificial intelligence in operating rooms. With their headquarters in this region, many of the industry's leading companies are well-represented in the US market. In North America, the market for artificial intelligence in operating rooms is expected to grow due to the increasing number of funding activities and start-ups. In addition, the development of AI technology, the increased use of AI-enabled solutions, and the expansion of AI applications in health informatics are expected to boost the growth of North American AI in the operating room market throughout the forecast period. Most industry players concur that utilizing AI in the operating room offers more significant benefits than conventional surgery.

Key Highlights

• The global AI in operating room market was valued at USD 150.12 million in 2022. It is estimated to reach USD 5,293.82 million by 2031, growing at a CAGR of 48.58% during the forecast period (2023–2031).

• Based on the offering, the global AI in operating room market is divided into hardware and software-as-a-service (SaaS). The software-as-a-service (SaaS) segment is the highest contributor to the market share and is expected to expand at a CAGR of 47.48% throughout the forecast period. 
• Based on technology, the global AI in operating room market is divided into machine learning (ML) and deep learning, natural language processing (NLP), and others. The machine learning (ML) and deep learning segment accounts for the largest market share and are anticipated to grow at a CAGR of 45.49% throughout the forecast period. 
• Based on indication, the global AI in operating room market is divided into cardiology, orthopedics, urology, gastroenterology, neurology, and others. The gastroenterology segment is the most significant contributor to the market and is estimated to expand at a CAGR of 46.70 % throughout the forecast period.
• Based on application, the global AI in operating room market is bifurcated into training, diagnosis, surgical planning and rehabilitation, outcomes and risk analysis, integration and connectivity, and others. The training segment owns the market and is predicted to grow at a CAGR of 39.58% over the forecast period. 
• Based on the end-user, the global AI in operating room market is bifurcated into hospitals and others. The hospital segment dominates the market and is projected to develop at a CAGR of 48.44% during the forecast period.
• Europe is expected to grow at a CAGR of 39.03%, with the region holding the most significant market share during the forecast period.

Competitive Players

Competitive Analysis

The key players in the global AI in operating room market are Brainomix Limited, Caresyntax Corp, Holo Surgical Inc., DeepOR S.A.S, ExplORer Surgical Corp., LeanTaaS Inc., Medtronic Plc, Activ Surgical Inc., Proximie, Scalpel Limited, and Theator Inc.

Recent Developments

Market News

• In October 2022, Medtronic plc announced that its HugoTM robotic-assisted surgery (RAS) system had received three key global market entry and indication expansion approvals. The approval includes Conformité Européenne (CE) Mark clearance for general surgery indication; Health Canada license for general laparoscopic surgery indication; and Ministry of Health, Labor, and Welfare (MHLW) approval for urological and gynecological indications in Japan.
• In July 2022, Royal Philips said that the U.S. Food and Drug Administration (FDA) had granted 510(k) clearance to its SmartSpeed artificial intelligence (AI)-powered MR acceleration software.

Segmentation

Global AI in Operating Room Market: Segmentation

By Offering

• Hardware
• Software-as-a-Service (SaaS)

By Technology

• Machine Learning (ML) and Deep Learning
• Natural Language Processing (NLP)
• Others

By Indication

• Cardiology
• Orthopedics
• Urology
• Gastroenterology
• Neurology
• Others

By Applications

• Training
• Diagnosis
• Surgical Planning and Rehabilitation
• Outcomes and Risk Analysis
• Integration and Connectivity
• Others 

By End-User

• Hospitals 
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa