Healthcare Automation Market

Healthcare Automation Market Outlook (2023 to 2033)

The global healthcare automation market accounts for a valuation of US$ 38.6 billion in 2023 and is expected to surge ahead at 9.3% CAGR over the next ten years to reach a size of US$ 94 billion by the end of 2033.

The burden on healthcare institutions has been increasing rapidly in recent years as the incidence of chronic disorders and hospitalization of patients rises simultaneously. To manage this increasing patient load, healthcare establishments are deploying automation solutions that could speed up different tasks and relieve the load on medical professionals and institutions as well.

Increasing proliferation of digitization in almost all walks of life is also projected to aid the adoption of automated healthcare systems over the coming years. The healthcare industry is quickly adopting innovations, such as medical automation, healthcare AI, healthcare RPA, EHR automation, and medical imaging technology, and relying on maximum benefits to boost operational efficiencies, save costs, and improve the quality of treatment.

Expanding geriatric population, focus on better patient outcomes, demand for value-based care, growing use of IoT medical devices, rising medical tourism activity, and increasing investments by government and other institutions for healthcare infrastructure development are other prospects that favour market growth through 2033. Tech companies are continually investing in the healthcare domain to benefit from the rising adoption of process automation technologies in the medical sector.

• In April 2023, Google, a leading multinational tech conglomerate, announced that it was releasing a version of its medical large language model called Med-PaLM 2. The version was made available to only a limited number of users to get useful feedback on meaningful ways to deploy this technology.

Contrastingly, high installation and maintenance cost of healthcare automation systems is projected to be the major challenge that companies need to overcome in the future. The dearth of skilled professionals to handle automated systems, limited programmability of automation solutions, and growing concerns regarding the cybersecurity of connected healthcare automation solutions are other restraints that could hinder market growth over the next ten years and beyond.

Report Attributes	Details
Healthcare Automation Market Size (2023)	US$ 38.6 Billion
Projected Market Value (2033F)	US$ 94 Billion
Global Market Growth Rate (2023 to 2033)	9.3% CAGR
United States Market Share (2023)	>40%
Key Companies Profiled	Siemens AG Tecan Group Ltd. Koninklijke Philips N.V. Medtronic plc Danaher Corporation Stryker Corporation General Electric Company Swisslog Holding AG Accuray Inc. Intuitive Surgical Inc.

How Can Start-ups Usher in a New Era of Automation in Healthcare?

“Innovation Critical to Success of Budding a Healthcare Automation Company”

New healthcare automation solution providers are projected to concentrate on raising new capital to fund their innovation as automation is a very money-intensive task. High costs of automation hardware and software also make financing a crucial part of any upcoming healthcare automation company’s success, which is why fundraising is estimated to be a mainstay ingredient in the recipe of fortunate healthcare automation start-ups.

• In June 2023, Outbound AI, a new company based in Seattle, United States, announced that it had raised US$ 16 billion in capital to roll out its new AI tools that aid healthcare teams in their interaction with insurance companies to automate the administrative work of the claims process. The company claimed that its tools are 4 to 5 times faster than humans and more cost-effective in the grand scheme of things.
• In February 2023, CodaMetrix, a start-up focusing on solving challenges in the clinical and administrative spaces of the healthcare sector, announced that it had raised US$ 55 billion in a Series A funding round. The funds were expected to be used to build an AI-powered hospital billing platform to improve healthcare automation.
• In June 2022, Medallion, a new healthcare start-up, announced that it had raised US$ 35 billion in a Series C funding round co-led by Spark Capital and GV which was formerly known as Google Ventures along with participation from other investors.
• In November 2022, RedBrick AI, a health technology start-up based in Delaware, announced that it had raised US$ 4.6 billion in a financing round. The company is working on developing automated and semi-automated annotation tools to fast-track the training process required to train AI models that could change the future of automated imaging.

Through this elaborate healthcare automation research by skilled analysts at Fact.MR, a market research and competitive intelligence provider, start-ups can know more about trends such as local supply, pricing trends, product standards, safety regulations, and new developments that could alter the current or future competitive landscape.

Country-wise Insights

Why Should Healthcare Automation Providers Invest in China?

“Growing Focus on Healthcare Infrastructure Development and Expanding Patient Pool”

The healthcare automation market in China is predicted to reach new heights owing to supportive government initiatives promoting healthcare R&D and the increasing load on healthcare institutions following rising rates of hospitalization due to chronic diseases.

Presence of an expanding senescent population, rising investments in the development of healthcare infrastructure, and increasing healthcare expenditure are other factors that could play into the hands of healthcare automation providers in China through 2033.

What Makes the United States an Opportune Space for Healthcare automation Companies?

“High Healthcare Expenditure Slated to Open New Avenues of Opportunities”

The global healthcare automation market is estimated to be dominated by the United States throughout the forecast period. Government organizations in the country are investing in research and development (R&D), which will help the healthcare automation sector innovate. The presence of developed healthcare infrastructure also facilitates the quick adoption of healthcare automation solutions.

High prevalence of chronic diseases, growing penetration of digital solutions in the healthcare sector, and rising awareness regarding the benefits of automation are other prospects that favour market development going forward. The growing need for better healthcare services and increasing preference for diagnostics & monitoring automation are driving the market growth in the United States.

Which European Countries are Set to Be Opportune Markets?

“Germany, United Kingdom – Investment-worthy Markets in Europe”

Growing popularity of telemedicine, robotics process automation (RPA), and electronic health records (EHR) automation in European countries such as Germany and the United Kingdom are creating lucrative opportunities for healthcare automation companies. The adoption of digital transformation initiatives by different healthcare establishments and the support of governments for the same are also slated to bolster demand for healthcare automation over the next ten years in the aforementioned countries.

Category-wise Insights

Why are Healthcare Companies Focusing on Therapeutic Automation?

“Rising Need for Accuracy in Several Healthcare Domains”

Therapeutic automation is the leading application in the healthcare automation marketplace. Therapeutic automation, commonly referred to as therapeutic assistance or patient-specific gadgets, is a technical solution that aids patients in managing their ailments and achieving specified objectives.

Therapeutic devices are developed to help patients with specific conditions with daily tasks such as eating, dressing, bathing, and so on. These automated tools can be used by healthcare providers as part of their treatment plans, and they can also be prescribed to patients who can use them at home.

The term 'therapeutic automation' refers to fully automated digital therapy systems. These systems are gaining traction since they incorporate a variety of tools and technologies that provide superior therapies to patients, including physiological procedure regulation with better accuracy and no margin for human error.

Where Will Healthcare Automation Be Deployed at Large?

“Focus on Improving Efficiency Pushing Research Institutes & Labs to Opt for Automation Technologies”

In research institutes and labs, healthcare automation offers a wide range of applications. It is used for a variety of reasons, including increasing the efficiency, accuracy, quality, reliability, and timeliness of testing; giving access to test results that would otherwise be difficult or impossible to obtain; lowering the risk of human error and providing an audit trail of test results to prove compliance requirements.

Research institutes and labs are investing to automate certain processes and enhance overall job productivity with lab digitization. This automation is assisting institutes in improving the quality of their experimental data, reducing lab process cycle times, and increasing overall productivity.

As a result of growing automation adoption by these end users, research institutes and labs have become the top revenue-generating segment. The healthcare automation industry is expected to gain attractive opportunities from this category over the coming years.

Competitive Landscape

Top-tier healthcare automation companies are focusing on launching new software and hardware solutions to advance automation in the healthcare sector to improve patient outcomes and efficiency.

• In February 2023, Integral, a health technology company founded in 2022, announced the launch of Integral Platform which is its end-to-end collaborative software suite that helps in the automation of healthcare data compliance. The platform provides real-time compliance and allows companies to work with data safely and swiftly.

Key Segments of Healthcare Automation Industry Research

• By Application :

  • Therapeutic Automation
  • Lab & Pharmacy Automation
  • Logistics & Training Automation
  • Diagnostics & Monitoring Automation

• By End User :

  • Pharmacies
  • Research Institutes & Labs
  • Home Care
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA