Artificial Intelligence (AI) In Drug Discovery Global Market Opportunities and Strategies to 2032

This report describes and explains the artificial intelligence (AI) in drug discovery market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global artificial intelligence (AI) in drug discovery market reached a value of nearly $1,042.3 million in 2022, having grown at a compound annual growth rate (CAGR) of 30.5% since 2017. The market is expected to grow from $1,042.3 million in 2022 to $3,739.2 million in 2027 at a rate of 29.1%. The market is then expected to grow at a CAGR of 25.7% from 2027 and reach $11,729.1 million in 2032.

Growth in the historic period resulted from growth in emerging markets, the rising prevalence of chronic diseases, the increased adoption of artificial intelligence (AI) for cost efficient drug discovery and the increasing strict quality regulations for drug manufacturers. Factors that negatively affected growth in the historic period were low healthcare access in developing countries, the shortage of skilled labor and the high failure rate of AI projects.

Going forward, the government support, the increasing healthcare expenditure and rising adoption of cloud-based applications and services will drive the growth. Factors that could hinder the growth of the artificial intelligence (AI) in drug discovery market in the future include the incompatible health IT infrastructure in many countries.

The artificial intelligence (AI) in drug discovery market is segmented by technology into context-aware processing, natural language processing, querying method and deep learning. The deep learning market was the largest segment of the artificial intelligence (AI) in drug discovery market segmented by technology, accounting for 33.9% of the total in 2022. Going forward, the deep learning segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by technology, at a CAGR of 29.12% during 2022-2027.

The artificial intelligence (AI) in drug discovery market is segmented by drug type into small molecules and large molecules. The small molecules market was the largest segment of the artificial intelligence (AI) in drug discovery market segmented by drug type, accounting for 63.2% of the total in 2022. Going forward, the large molecules segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by drug type, at a CAGR of 31.7% during 2022-2027.

The artificial intelligence (AI) in drug discovery market is segmented by therapeutic type into metabolic disease, cardiovascular disease, oncology, neurodegenerative diseases, anti-infective diseases, respiratory diseases and other therapeutics. The oncology market was the largest segment of the artificial intelligence (AI) in drug discovery market segmented by therapeutic type, accounting for 23.2% of the total in 2022. Going forward, the other therapeutics segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by therapeutic type, at a CAGR of 29.9% during 2022-2027.

The artificial intelligence (AI) in drug discovery market is segmented by end user into pharmaceutical companies, biopharmaceutical companies, academic and research institutes and other end-users. The pharmaceutical companies market was the largest segment of the artificial intelligence (AI) in drug discovery market segmented by end user, accounting for 50.2% of the total in 2022. Going forward, the biopharmaceutical companies segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by end user, at a CAGR of 32.4% during 2022-2027.

North America was the largest region in the artificial intelligence (AI) in drug discovery market, accounting for 41.9% of the total in 2022. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence (AI) in drug discovery market will be South America and Asia-Pacific where growth will be at CAGRs of 37.6% and X35.8% respectively. These will be followed by Africa and Western Europe where the markets are expected to grow at CAGRs of 32.8% and 31.4% respectively.

The artificial intelligence (AI) in drug discovery market is highly concentrated, with a large number of small players. The top ten competitors in the market made up to 79.32% of the total market in 2021. IBM Corporation was the largest competitor with 32.27% share of the market, followed by Microsoft Corporation with 21.25%, NVIDIA Corporation with 11.90%, Exscientia with 3.28%, Alphabet with 2.85%, Atomwise Inc. with 1.89%, Insilico Medicine with 1.87%, Owkin Inc. with 1.66%, Xtalpi Inc with 1.33%, and Cloud Pharmaceuticals with 1.01%.

The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by technology will arise in the deep learning segment, which will gain $914.6 million of global annual sales by 2027. The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by drug type will arise in the small molecules segment, which will gain $1,559.8 million of global annual sales by 2027. The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by therapeutic type will arise in the oncology segment, which will gain $642.2 million of global annual sales by 2027. The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by end user will arise in the pharmaceutical company’s segment, which will gain $1,245.1 million of global annual sales by 2027. The artificial intelligence (AI) in drug discovery market size will gain the most in the USA at $700.4 million.

Market-trend-based strategies for the artificial intelligence (AI) in drug discovery market include integration of multi-omics data, use of AI in target selection, use of AI in drug screening, introduction of AI innovation labs, increasing investments and partnerships and collaborations.

Player-adopted strategies in the artificial intelligence (AI) in drug discovery market include enhancing operational capabilities through the launch of new solutions and strengthening business operations through strategic collaborations and partnerships.

To take advantage of the opportunities, the publisher recommends the artificial intelligence (AI) in drug discovery companies to focus on use of AI in drug screening, focus on use of ai in target selection, focus on integration of multi-omics data, expand in emerging markets, continue to focus on developed markets, focus on partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on fast-growing therapeutic areas and continue to target fast-growing end-users.