AI in Pharma Global Market Opportunities and Strategies to 2032

This report describes and explains the AI in pharma market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AI in pharma market reached a value of nearly $1.47 billion in 2022, having grown at a compound annual growth rate (CAGR) of 35.8% since 2017. The market is expected to grow from $1.47 billion in 2022 to $6.29 billion in 2027 at a rate of 33.6%. The market is then expected to grow at a CAGR of 18.9% from 2027 and reach $14.95 billion in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, increased adoption of artificial intelligence (AI) for cost efficient drug discovery and rising implementation of AI in radiology. Factors that negatively affected growth in the historic period was high rate of AI project failures and low healthcare access.

Going forward, adoption of cloud-based applications and services by pharma companies, increasing healthcare expenditure and growing government support rising to AI development will drive the growth. Factor that could hinder the growth of the AI in pharma market in the future include lack of skilled professionals.

The AI in pharma 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 AI in pharma market segmented by technology, accounting for 34.3% or $507.30 million of the total in 2022. Going forward, the context-aware processing segment is expected to be the fastest growing segment in the AI in pharma market segmented by technology, at a CAGR of 33.72% during 2022-2027.

The AI in pharma market is segmented by drug type into small molecules and large molecules. The small molecules market was the largest segment of the AI in pharma market segmented by drug type, accounting for 63.2% or $934.38 million of the total in 2022. Going forward, the large molecules segment is expected to be the fastest growing segment in the AI in pharma market segmented by drug type, at a CAGR of 36.2% during 2022-2027.

The AI in pharma market is segmented by application into diagnosis, clinical trial research, drug discovery, research and development and epidemic prediction. The drug discovery market was the largest segment of the financial advisory market segmented by application, accounting for 79.7% or $1.17 billion of the total in 2022. Going forward, the clinical trial research segment is expected to be the fastest growing segment in the financial advisory market segmented by application, at a CAGR of 38.1% during 2022-2027.

North America was the largest region in the AI in pharma market, accounting for 41.7% or $615.92 million of the total in 2022. It was followed by Western Europe, Asia Pacific and then the other regions. Going forward, the fastest-growing regions in the AI in pharma market will be South America and Asia Pacific where growth will be at CAGRs of 42.3% and 40.4% respectively. These will be followed by Eastern Europe and Africa where the markets are expected to grow at CAGRs of 37.7% and 37.3% respectively.

The global AI in pharma market is fairly fragmented, with a few large players operating in the market. The top ten competitors in the market made up to 17.4% of the total market in 2022. Prominent players are acquiring the services of other companies and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing their services. KPMG International Cooperative was the largest competitor with a 4.4% share of the market, followed by PricewaterhouseCoopers International Limited (PwCIL) with 2.5%, Deloitte Group with 2.1%, Morgan Stanley with 1.5%, JPMorgan Chase & Co with 1.2%, Wells Fargo & Co with 1.2%, Boston Consulting Group with 1.2%, Goldman Sachs Group Inc with 1.2%, Ernst & Young Global Limited with 1.1% and Mckinsey & company with 0.9%.

The top opportunities in the AI in pharma market segmented by technology will arise in the deep learning segment, which will gain $1.64 billion of global annual sales by 2027. The top opportunities in the AI in pharma market segmented by drug type will arise in the small molecules segment, which will gain $2.80 billion of global annual sales by 2027. The top opportunities in the AI in pharma market segmented by application will arise in the drug discovery segment, which will gain $3.70 billion of global annual sales by 2027. The AI in pharma market size will gain the most in the USA at $1.23 billion.

Market-trend-based strategies for the financial advisory market include introduction of generative ai in pharma, use of AI in molecular target identification, integration of AI in drug screening process, advancements in AI tools for the pharmaceutical industry, growing investments to develop new product solutions and strategic partnerships and collaborations among market players.

Player-adopted strategies in the AI in pharma market include focus on launching new practices to better serve the customers and industry, focus on strategic partnerships and collaborations to create new financial solutions and to create effective market investment opportunities and focus on business expansion through mergers and acquisitions.

To take advantage of the opportunities, the analyst recommends the AI in pharma companies to focus on introduction of generative AI in pharma, focus on use of AI in molecular target identification, focus on integration of AI in drug screening process, focus on growing investments to develop new product solutions, focus on fast-growing technologies, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, focus on competitive pricing, participate in trade shows and events, continue to focus on B2B promotions and continue to target fast-growing applications.