AI in Pharma Global Market Report 2024

The AI in pharma market size has grown exponentially in recent years. It will grow from $1.58 billion in 2023 to $2.06 billion in 2024 at a compound annual growth rate (CAGR) of 30.4%. The growth observed during the historic period can be attributed to two key factors such as the increased adoption of artificial intelligence (AI) for cost-efficient drug discovery and the rising implementation of AI in radiology.

The AI in pharma market size is expected to see exponential growth in the next few years. It will grow to $5.62 billion in 2028 at a compound annual growth rate (CAGR) of 28.5%. Forecast period growth drivers include pharma firms adopting cloud-based services, increased healthcare spending, government backing AI. Key trends involve Introduction of generative AI, AI in molecular target identification, drug screening integration, AI tool advancements, increased investments, strategic partnerships.

The anticipated growth of the AI in pharma market is set to be propelled by the increasing government support for AI development. Governments globally acknowledge the transformative potential of AI technologies within the pharmaceutical sector, leading to the implementation of supportive policies and initiatives. Numerous countries have formulated national AI strategies that prioritize healthcare and pharmaceutical applications. These strategies are designed to catalyze the development and integration of AI technology, fostering scientific advancements and addressing real challenges within the country. An illustrative example is the Australian government's announcement in April 2022 of a financing program amounting to AUD44 million ($29.61 million) to bolster AI research among small and medium-sized enterprises (SMEs). This initiative aligns with a broader strategy aimed at enhancing AI applications across Australia's national manufacturing priority sectors, including the pharmaceutical industry. The funds will be utilized to establish digital capability centers, serving as hubs for AI research and development, offering resources, training, and support to SMEs. Consequently, the growing government support is poised to be a driving force behind the growth of the AI in pharma market in the forecast period.

The growth trajectory of the AI in pharma market is further fueled by the escalating adoption of cloud-based applications and services within pharmaceutical companies. Cloud-based drug discovery platforms represent an innovative approach to research and development in the pharmaceutical industry, leveraging data analytics and cloud computing technologies. These platforms enhance drug discovery procedures by providing a diverse array of tools and functionalities, optimizing efficiency, cost-effectiveness, and collaboration in the process. Pharmaceutical companies, as significant market participants and end-users, benefit from secure data storage options that accommodate large volumes of clinical, chemical, and biological data. In March 2023, Nvidia Corporation, a US-based technology company, introduced BioNeMo Cloud to streamline life sciences research, drug discovery, and protein engineering. This cloud-based software facilitates access to pre-trained AI models, allowing customization with proprietary data. BioNeMo Cloud, offered as a cloud service, expedites drug discovery workflows, with notable adoption by biotech company Amgen and various startups. The increasing adoption of cloud-based applications and services within the pharmaceutical sector is expected to be a key driver for the growth of the AI in pharma market in the forecast period.

An important trend in the AI for the pharma market is the introduction of new AI tools by companies, aiming to provide significant benefits to pharmaceutical companies. AI technology contributes to various aspects of the pharmaceutical industry, including quality control, predictive maintenance, waste reduction, design optimization, and process automation. In August 2022, Sanford Health and Sharp HealthCare, both US-based non-profit healthcare organizations, collaborated with Dandelion Health, a US-based healthcare AI company, to unveil a comprehensive data platform. Named the Dandelion Platform, this initiative provides health institutions with access to high-quality and representative patient data for the development of clinical AI tools. The platform enables health AI developers to securely access patient datasets, encompassing images, waveforms, and structured health records. This accessibility facilitates the creation of tools and products that can benefit both patients and clinicians.

Companies operating in the AI for pharma market are increasingly directing their focus towards the application of generative AI in improving medical consultations. Generative AI, a subfield of artificial intelligence dedicated to creating new data instances resembling existing data, has found its way into the pharmaceutical industry, offering the potential to revolutionize drug discovery, development, and medical records management. In October 2023, Ubie, a Japan-based medical AI startup, introduced a novel Generative AI feature designed for doctors. This feature, known as the 'Medical Interview Summary Function,' utilizes a Large Language Model (LLM) to generate AI-based summaries from patient visits. Specifically, it summarizes the 20-30 questions related to symptoms and lifestyle habits that patients answer on the 'Ubie Medical Navi' product. The LLM then presents this summary on the doctor's PC screen, enabling quick comprehension of the patient's symptoms and concerns. This innovation serves to enhance the quality of medical consultations by providing efficient and comprehensive summaries for healthcare professionals.

In October 2021, Nurosene Health Inc., a Canadian company specializing in AI-driven technology for mental performance and wellness, acquired Netramark Incorporated for an undisclosed sum. This acquisition is intended to bolster Nurosene Health's AI-based neuroscience product portfolio. Netramark Incorporated, also based in Canada, focuses on pharmaceutical technology, employing AI, advanced mathematical techniques, and quantum computing to enhance new drug development, clinical trials, and diagnoses.

Major companies operating in the AI in pharma market report are Concerto HealthAI, Alphabet Inc., OWKIN, Nvidia Corporation, PathAI, Insilico Medicine, Exscientia, Microsoft Corporation, XtalPi, Intel, Standigm, Takeda Pharmaceutical Company Ltd., Otsuka Pharmaceutical Co. Ltd., China National Pharmaceutical Group Co. Ltd. (Sinopharm), Jiangsu Hengrui Medicine Co. Ltd, Cipla Limited, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories Ltd., Sun Pharma, Alliance Pharm Pte Ltd., Shanghai Pharmaceuticals, DeepMind, GlaxoSmithKline, Sanofi, Bayer, Renalytix AI, Merck, AstraZeneca, Iktos, Benevolent AI, Novartis, Ardigen, Botkin, Webiomed, Care Mentor AI, Diagnocat, IBM Corporation, Atomwise Inc., Cloud Pharmaceuticals, Bioage, NuMedii, Envisagenics, Aria Pharmaceuticals, Verge Genomics, Berg LLC, Cyclica, IQVIA, Roche, Pfizer, PRA Health Science, Gesto, Intensicare, Epitrack, Deep Genomics Inc., Welltok Inc., Oncora Medical, Recursion Pharmaceuticals Inc., Nucleai, Pepticom, Rology, hearX Group, DilenyTech, iNNOHEALTH Technology Solutions


North America was the largest region in the AI in pharma market in 2023. The regions covered in the AI in pharma market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the AI in pharma market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The market analysis of artificial intelligence (AI) in the pharmaceutical sector, as detailed in the report, is segmented based on technology, encompassing context-aware processing, natural language processing, querying methods, and deep learning. Additionally, it is categorized by drug type, covering small molecules and large molecules. Furthermore, the segmentation includes various applications such as diagnosis, clinical trial research, drug discovery, research and development, and epidemic prediction.

The artificial intelligence (AI) in pharma market research report is one of a series of new reports that provides artificial intelligence (AI) in pharma market statistics, including artificial intelligence (AI) in pharma industry global market size, regional shares, competitors with artificial intelligence (AI) in pharma market share, detailed artificial intelligence (AI) in pharma market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in pharma industry. This artificial intelligence (AI) in pharma market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AI in pharma market includes revenues earned by entities by implementing quality control, addressing supply chain problems in the production line, and minimizing material waste. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.