AI in Operating Room Market

Market Overview

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).

Artificial intelligence (AI) mimics cognitive processes by computers and computer programs. It includes speech recognition, machine vision, natural language processing, and expert systems. AI in healthcare is "the application of machine learning to medical information through the analysis of complex algorithms and software to enable data-driven solutions." AI in the operating room is a sub-segment of the overall healthcare system wherein algorithms, software, and AI-enabled devices are used to augment the surgical process, data management, diagnosis, and rehabilitation, among other operations limited to the operation theatre.

Although the concept of artificial intelligence (AI) in operating rooms is familiar, commercial products and solutions have only been available in the market since 2018. Automation and intelligence in operating rooms will soon be part of the standard healthcare paradigm. While AI has started to contribute to the workflow in operating rooms in some capacity, further adoption is expected to be driven by efforts in standardizing the regulatory process for AI-based solutions in the healthcare industry, advancement in 3D visualization technologies, and the growing preference for advanced technologies to streamline the workflow in operating rooms.

Highlights

• Software-as-a-Service (SaaS) dominates the offering segment.
• Gastroenterology dominates the indication segment.
• Hospitals dominate the end-user segment.
• Europe is the highest shareholder in the global market.

Market Dynamics

Global AI in Operating Room Market Drivers

Benefits of Artificial Intelligence-Enabled Surgeries Over Conventional Surgeries

Surgery is expected to be driven by artificial AI-enabled population analysis during every phase of care. This can be made possible by integrating multimodal data with AI for patient-specific or population-based data. Market players are more oriented toward developing products for training and planning applications. Shortly, solutions can be designed to cover the intraoperative experience in-depth, enhancing a surgeon's decision-making. Remote monitoring technology can be used to gather post-operative data from personal/connected devices and integrate them with the data collected from hospitalization.

According to a study conducted in 2018, published in the National Center for Biotechnology Information, titled, 'Artificial Intelligence in Surgery: Promises and Perils,' pathologists have utilized AI to decrease their error rate in recognizing cancer-positive lymph nodes from 3.4% to 0.5%. Thus, the benefit of reducing error rates, combined with overall cost-benefit in terms of healthcare savings, is expected to be a primary driver for the growth in the adoption of AI in operating rooms during the forecast period.

Growth in Funding for AI

AI development for surgical and OR-related applications is in the early stages and provides strong growth opportunities for market players and medical technology companies. Consequently, the funding received from various established players, government organizations, and independent investors is a crucial driver for the growth of global AI in the operating room market. For instance, Brainomix Limited, a spin-out of the University of Oxford, secured USD 33.2 million worth of funds as a cumulative total of five funding rounds between August 2014 and January 2019. The funds have been used to expand the imaging software for acute stroke care and support clinical trials.

Global AI in Operating Room Market Restraint

Lack of a Well-Defined Regulatory Framework in Regions

The concept of AI in healthcare has existed for several years. However, the industry is only in the initial stages of unlocking the potential of AI in healthcare applications. Consequently, new market players bring new products and solutions, which expand the capabilities and roles of AI. As a result, regulatory frameworks are still in the process of constant development and upgradation. Since the understanding of the potential of AI remains vague, adopting this technology to something as critical as surgery can be seen as being associated with very high risk. This acts as a crucial barrier to the adoption of AI in OR.

Global AI in Operating Room Market Opportunities

Leveraging Business Synergies for Capability and Portfolio Enhancement

There has yet to be a fully autonomous robotic operation. To carry out specialized tasks, surgeons command surgical robots. Nevertheless, this technology is not designed to supplant doctors in the operating room. Robotic movements are being improved with the use of computer communications. Human endurance, human precision, and the perioperative experience are all being improved via research and development.

Furthermore, most organizations creating AI in operating rooms are start-ups operating in a specific market segment and engaging in merger and acquisition (M&A) deals with established businesses. Ongoing rivalry and innovation are predicted to rise due to these M&As. The company's geographic reach can be increased through M&A. Brainomix Limited. Stryker Neurovascular teamed together in February 2021 to make their transformational stroke therapy technology more widely available in the EMEA region. Such agreements also enable AI-enabled technology to break into several untouched areas. Countries with large patient populations, including China, India, Japan, Latin America, and the MEA area, have much room to grow the use of artificial intelligence in the operating room.

Regional Analysis

Based on region, the global AI in operating room market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Europe Dominates the Global Market

Europe is expected to grow at a CAGR of 39.03%, with the region holding the most significant market share during the forecast period. Europe is one of the major markets for early adopters and one of the top markets for AI in the operating room. Strategic partnerships, mergers and acquisitions, end users' strong demand for AI-based solutions, and innovation in use cases are anticipated to be positive factors for the Europe market. Europe-based nations are highly technologically prepared and are anticipated to lead the way in AI adoption. The adoption of AI in the operating room market in Europe is expected to grow due to rising awareness of the benefits of AI-enabled solutions, increasing clinical decision-making complexity, growing numbers of government initiatives encouraging the adoption of AI technologies, and more. Implementation issues with MDR, technical problems with the use of automation and machine learning in surgery, the scarcity of studies on the effectiveness of AI in surgeries, and the absence of standardized regulatory guidelines are some of the significant factors that can initially act as barriers to growth.

North America is anticipated to boost at a CAGR of 43.43% over the forecast period. North America is predicted to continue to be the top market for AI in operating rooms because of its significant early adopter population. With their major offices in this area, many of the top businesses in the industry are well-represented in the US market. The market for AI in operating rooms in North America is anticipated to expand due to the rising number of funding activities and start-ups. In addition, several essential variables, including the development of AI technology, rising AI-enabled solution adoption, and expanding AI applications in health informatics, are anticipated to support the development of North American AI in the operating room market throughout the forecast period. Most industry participants concur that using AI in the operating room has more advantages than traditional surgery.

The Asia-Pacific region offers the market for operating rooms substantial growth potential throughout the projected period. The main drivers of market growth are anticipated to be investments made by both private and public entities, the rising number of start-ups, and the partnerships between industry participants. China is one of the critical nations at the forefront of AI development. Southeast Asian nations like Malaysia and Singapore provide substantial expansion prospects for using AI in operating rooms. Moreover, the majority of the unmet demand for neurosurgery is created in populous, low- and middle-income nations. As a result, industry participants should focus on expanding their businesses in the Asia-Pacific area.

In Latin America, AI has been used in healthcare and medical research to some extent. According to a study, "Machine Learning in Neurosurgery: A Global Study," published in Springer in 2020, the adoption rate of machine learning in neurosurgery was 33.3% in Latin America. The majority of the nations in South America have emerging economies. Both their healthcare systems and technology are improving dramatically in these countries. The hurdles impeding the region's market growth, however, include a need for more knowledge about the usage of AI, data security issues, and an absence of curated healthcare data.

The Middle East and Africa is an important center for the global AI operating room market. According to a 2019 study by Microsoft Corporation titled "Artificial Intelligence in the Middle East and Africa," which was conducted across five countries in the Middle East and Africa region, AI is accelerating digital transformation in the Middle East and Africa and is expected to open up new business opportunities in the future. The market is also anticipated to rise due to continuous expenditures in creating AI solutions for the healthcare sector. For instance, Dubai Future Foundation made significant investments in programs for the advancement of AI, such as the UAE AI and Robotics Prize for Good.

Segmental Analysis

The global AI in the operating room market is bifurcated into offering, technology, indication, application, and end-user.

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. 

The software-as-a-service segment includes the AI-enabled platforms that provide software-as-a-service (SaaS) through a subscription or fee-per-case model. AI-based software used in operating rooms is rigorously trained by using numerous datasets and images that are then used for various applications, including identification of image patterns, workflow improvement, image analysis, decision support, remote monitoring, predictive analysis, and reporting and communication. The increasing adoption of AI technologies in surgeries, the emergence of advanced surgical robots, and the limited clinician workforce are some of the primary propellers for services segment growth. 

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% over the forecast period. ML and deep learning assist across different surgical applications in operating rooms, such as surgical automation, evaluation of surgical skills, improving robotic surgical materials, and surgical workflow modeling, which is expected to be a strong market growth driver. ML and deep learning assist in processing large volumes of clinical data, conducting relevant analysis, and delivering insights based on several aspects of surgeries. The ability of surgeons to pre-plan surgeries with more profound and accurate insights is expected to be strengthened with the advancement in machine learning technology. The continuous growth in available data and increased computational power constantly drive the knowledge of ML.

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. The gastroenterology segment of AI technologies includes the automated detection of disease and the differentiation of pathology subtypes and disease severity. Growing research interest in adopting AI in disease characterization during gastroenterology procedures improves the quality of treatment solutions and ultimately fuels the growth of the AI market in gastroenterological surgeries.

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. The training segment comprises apps and software which create step-by-step procedural playbooks or videos to train new neurosurgeons. The data collected from the operations performed during surgeries help design guides to train surgeons for further surgeries. The platform allows trainees to learn procedures, test their knowledge, and rehearse for surgery. Most new market players target medical training and education as one of the first applications for their products while continuing research of developing upgrades to accommodate more use cases.

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 grow at a CAGR of 48.44% during the forecast period. Hospitals are at the forefront in terms of the adoption of AI in operating rooms. The hospital segment is also lucrative in developing countries. Currently, only a fraction of the tier 1 hospitals in developing countries have the necessary infrastructure and capital to integrate AI-based solutions for surgery. However, adoption rates are expected to be much higher post-2024.

Recent Developments

• October 2022- Medtronic plc announced that its HugoTM robotic-assisted surgery (RAS) system 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.
• July 2022- Royal Philips stated that the U.S. Food and Drug Administration (FDA) had granted 510(k) clearance to its SmartSpeed artificial intelligence (AI)-powered MR acceleration software.