HEALTHCARE CHATBOTS MARKET ANALYSIS

The global healthcare chatbots market was valued at US$ 200.9 Mn in 2022 and is forecast to reach a value of US$ 593.5 Mn by 2030 at a CAGR of 14.5% between 2023 and 2030. The global healthcare chatbots market is experiencing strong growth due to the increasing adoption or the use of healthcare chatbots and the outbreak of COVID-19 (pandemic). Moreover, increasing Internet access and increase in smartphone penetration and rise in focus on providing better healthcare is expected to boost the growth of the market. However, factors such as concerns regarding the data privacy and lack of acceptance or integration are expected to hamper the market growth.

Global Healthcare Chatbots Market: Regional Insights

Based on geography, the global healthcare chatbots market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period due to the rise in internet connectivity, rise in smartphone penetration, increasing adoption of smart devices, and the outbreak of COVID-19 in this region For instance, in December 2022, Google and DeepMind announced the launch of MedPaLM, an open-sourced large language model that exclusively addresses medical queries. The chatbot combines a new dataset, HealthSearchQA, which consists of 3,375 frequently asked questions by healthcare consumers with existing clinical datasets to address inquiries from medical and non-medical professionals.  

Europe and Asia Pacific are also expected to witness significant growth in the global healthcare chatbots market due to the rise in healthcare digitalization, increasing adoption of smart devices, increasing number of Internet and smartphone users, and outbreak of COVID-19 in these regions. For instance, in February 2023, YugasaBot joins the healthcare pilot DIISHA (Digital Innovations Interventions for Sustainable Healthtech Action) to empower ASHA workers with an AI-enabled chatbot to answer their queries about health policies for their respective village residents. ASHAs would be able to ask their queries 24*7 in the language of their choice.

Figure 1. Global Healthcare Chatbots Market Share (%), by Region, 2023

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Global Healthcare Chatbots Market Drivers:

Increasing use of healthcare chatbots to boost market growth

One of the key factors expected to augment the growth of the global healthcare chatbots market over the forecast period is the increasing use of healthcare chatbots across the world. The need for healthcare chatbot is on the rise due to the increase in demand for virtual health assistance. In July 2021, Sapio Smart Healthcare developed a chatbot that assists patients from rural and remote areas in India. The AKS Sapio Med Bot is designed to understand the "local and personal" concerns of a patient, assisting them in seeking treatment before getting medical consultations. Sapio seeks to build a comprehensive and accessible healthcare system in small towns and villages across India.

The outbreak of COVID-19 to underpin market growth

Another factor which is driving the growth of the global healthcare chatbots market is the outbreak of COVID-19 (pandemic). For instance, the pandemic has increased the use of healthcare chatbot. Over 1000 COVID-19-specific chatbots have been built on Microsoft's chatbot formation program alone, according to the World Economic Forum. In May 2021, Sapio Analytics and Government of India announced the launch of the SUTRA smart chatbot that helps people with COVID-19 in locating nearby verified plasma donors and healthcare centres. A chatbot is made for people from small towns and those without access to digital platforms and networks.

Global Healthcare Chatbots Market Opportunities:

Rise in focus on providing better healthcare is expected to provide significant growth opportunities for players in the healthcare chatbots market. For instance, people worldwide are using several AI enabled healthcare services to better understand their health conditions. In March 2022, WhatsApp announced the launch of a new Artificial Intelligence (AI)-based health education chatbot, called Bol Behen, designed particularly for women in India in collaboration with non-profit Girl Effect. This initiative was developed with the goal of assisting adolescent girls and women who do have questions about their general health and sexual well-being.

Increasing Internet access and increase in smartphone penetration around the world is expected to offer significant growth opportunities for players in the healthcare chatbots market. For instance, rising Internet connectivity and growing adoption of smartphones and mobile platforms play a key role in ensuring the adoption and use of healthcare chatbots. A 2021 national survey commissioned by Woebot Health found that consumers have shown an interest in the empathic dialogue available 24/7 through an AI-powered mental health chatbot. Around 22% of adults had used a mental health chatbot and 47% said they would be interested in using one if needed.

Global Healthcare Chatbots Market Trends:

Deployment of AI-enabled chatbot is a recent trend

Healthcare providers are relying on conversational artificial intelligence (AI) to serve patients 24/7 which is a game-changer for the industry. Chatbots for healthcare can provide accurate information and a better experience for patients. Thus, many healthcare organizations worldwide are investing in chatbot development and deployment, and this trend is primarily driven by the advancements in artificial intelligence (AI) technologies. This trend is expected to over during the forecast period, driving the growth of the healthcare chatbots market.

Rise in awareness among people is another trend

Increase in the use of internet and smart devices has created awareness among the users about the advancements in the field of healthcare. Several healthcare facilities worldwide are also engaged in promoting the use of these chatbots. Moreover, the use of AI in consumer electronics has also increase the use/demand for chatbot services. Thus, with the increasing awareness among people, the use of healthcare chatbots is also increasing rapidly. This trend is expected to continue during the forecast period, driving the growth of the market.

Global Healthcare Chatbots Market Restraints:

Concerns regarding data privacy to hinder market growth

One of the key factors expected to hamper the growth of the global healthcare chatbots market is the concerns regarding the data privacy. Healthcare chatbots offer several benefits for both patients and healthcare providers. However, the data collected by the chatbots is vulnerable and open to attacks in the cases where the data is not well maintained. For instance, poor-coding, human errors, and lack of protection can lead to issues related to data privacy. Chatbots are vulnerable to hacking, which leads to exposure of secure customer data, which is highly sensitive and confidential.

Lack of acceptance or integration to hamper market growth

Another factor which is hampering the growth of the global healthcare chatbots market is the lack of acceptance or integration of chatbot. Despite all the promising features, healthcare chatbots still face several challenges like negative perceptions about their ability to provide accurate information and secure users’ privacy, and lack of interest on part of users. Concerns regarding data privacy, accuracy, cybersecurity, lack of empathy, and technological maturity are some potential factors associated with the delay in chatbot acceptability or integration.

Figure 2. Global Healthcare Chatbots Market Share (%), by Application, 2023

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Global Healthcare Chatbots Market Segmentation:

The global healthcare chatbots market report is segmented into Application, End User, and Region.

Based on Application, the market is segmented into Symptoms Check, Medical and Drug Information Assistance, Appointment Scheduling and Monitoring and Other Applications. Out of which, Symptoms Check Segment is expected to dominate the healthcare chatbots market during the forecast period and this is attributed to the increasing adoption of healthcare chatbots. Symptom checker chatbots can educate patients about various health conditions, giving them accurate and reliable healthcare information.

Medical and Drug Information Assistance Segment is also expected to witness robust growth in the near future and this is owing to the rise in burden of chronic disease and growing geriatric population across the globe.

Based on End User, the market is segmented into Healthcare Providers, Healthcare Payers, Patients, and Other End Users. Out of which, Healthcare Providers Segment is expected to dominate the market over the forecast period and this is attributed to the increase in adoption of healthcare chatbots to provide better healthcare services to people.

Patients Segment is also expected to witness significant growth in the near future and this is owing to increasing awareness among people about the benefits of healthcare chatbots.

Based on Deployment, the market is segmented into Cloud-based and On-premise. Out of which, Cloud-based Segment is expected to dominate the market over the forecast period and this is attributed to the increasing adoption of cloud-based chatbots.

Global Healthcare Chatbots Market: Key Developments

In November 2022, Health Tap announced to launch of Eval360, an innovative product for health plans that enables HealthTap’s doctors to conduct comprehensive virtual medical evaluations and easily share valuable health data back with those partner plans by providing a 360-degree view of a member’s health status.

In September 2022, Babylon and Bupa announced today that they had extended their partnership agreement for three years to deliver digital health services to USD 2.3 million Bupa UK health insurance customers, where Babylon provides digital services within Bupa, including Symptom Checker, 24/7 virtual consultations and My Health.

In July 2022, Tata Consultancy Services (TCS) and Walton Centre NHS Foundation Trust teamed up to develop digital solutions to help increase specialists' productivity and reduce patient waiting times. TCS also planned to develop an innovative artificial intelligence-based chatbot, which could transform the way headache patients are diagnosed and treated.

In May 2022, Glenmark Pharmaceuticals announced the launch of a WhatsApp-based chatbot to help patients suffering from fungal infections adhere to the recommended treatment duration. The company developed the digital patient education tool 'Hello Skin' in collaboration with the Indian Association of Dermatologists, Venereologists, and Leprologists (IADVL).

In March 2022, Ivy.ai, a sophisticated AI chatbot and live chat platform, launched Genie, a self-building chatbot technology that allows organizations to build pre-trained, conversational chatbots that can understand unique content in just minutes. 

Global Healthcare Chatbots Market: Key Companies Insights

The global healthcare chatbots market is highly competitive. This is attributed to the increasing adoption of the use of healthcare chatbots across the globe, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global healthcare chatbots market are ADA Digital Health Ltd., Buoy Health, Inc., Gyant.com, Inc., Infermedica, Microsoft, and Babylon Healthcare Service Limited, among others.

*Definition: A chatbot is an automated tool designed to simulate an intelligent conversation with human users. Healthcare chatbots are AI-powered conversational solutions that help healthcare providers, patients, and insurance companies easily connect with each other.