The global artificial intelligence in drug discovery market size was estimated to be USD 1.48 billion in 2023 and is expected to reach at USD 25.68 billion by 2034 with a CAGR of 29.62% during the forecast period 2024-2034. An increasing need for the exploration & development of new drug therapies, a rise in the production capacities within the life science industry, heightened emphasis on rejuvenating product pipelines, a growing prevalence of public-private collaborations, intensified research & development endeavors, a surge in the creation of innovative drug therapies, and a continuous introduction of sophisticated artificial intelligence platforms in drug discovery are some of the key factors boosting the market growth.
A continuous introduction of sophisticated artificial intelligence platforms in drug discovery is predicted to boost the market growth during the forecast period. The process of drug discovery and development incurs significant costs and demands a considerable amount of time. The integration of AI solutions into the clinical trial phase addresses potential challenges, diminishes the duration of clinical trials, and enhances the efficiency and precision of the overall process. Consequently, the uptake of these advanced AI solutions in drug discovery procedures is becoming increasingly favored among stakeholders in the life science industry. For instance, in March 2023, Insilico Medicine has incorporated a dedicated AI chat function, ChatPandaGPT, into its PandaOmics platform. This integration enables researchers to engage in natural language conversations with the platform, streamlining the process of identifying potential therapeutic targets and biomarkers. The addition of this feature enables researchers to analyze extensive datasets more efficiently for the discovery of potential therapeutic targets and biomarkers.
By component, software was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the agrowing need for advanced analytics and machine learning tools in the pharmaceutical sector. AI software tools contribute to increased efficiency and automation across various stages of the drug discovery workflow, leading to decreased time and resource demands. Progress in cloud computing and high-performance computing infrastructure, along with the continual introduction of cutting-edge solutions, is also evident. For instance, in May 2023, During the Bio-IT World Conference, Google Cloud unveiled two novel AI-driven solutions in the field of life sciences. These offerings are designed to expedite drug discovery and enhance precision medicine efforts for biotech companies, pharmaceutical firms, and public sector organizations. The Target and Lead Identification Suite aids researchers in improving the identification of amino acid functions and predicting protein structures. Simultaneously, the Multiomics Suite speeds up the discovery and interpretation of genomic data, assisting companies in developing precise treatments. Additionally, services is predicted to grow at the fastest CAGR during the forecast period. Al technology is crucial in drug discovery, and services play a vital role in its deployment. Pharmaceutical companies and research institutions increasingly outsource tasks like data analysis, algorithm development, machine learning, and other Al-related functions to specialized service providers. These services aid in efficient model building, data processing, and interpretation of results, empowering researchers with insights for informed decision-making. The demand for Al services in the drug discovery market is driven by the necessity for specialized expertise, access to state-of-the-art Al tools and infrastructure, and the objective to streamline the drug development process.
By technology, machine learning was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the growing availability and accessibility of extensive datasets, encompassing genomics, proteomics, and clinical records, have opened up opportunities for machine learning algorithms to extract valuable insights & patterns and increasing approvals granted by regulatory authorities. For instance, in June 2022, Schrödinger, Inc. has obtained approval from the U.S. Food and Drug Administration (USFDA) for its investigational new drug application concerning SGR-1505, a MALT1 inhibitor. The company employs a physics-based software platform for drug discovery applications. Additionally, is predicted to grow at the fastest CAGR during the forecast period owing to the rising trend in the adoption of cloud-based technology, and organizations are increasingly expressing a need for processing power, along with the deployment of Internet of Things (IoT) devices.
By therapeutic area, oncology was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the increasing incidence of cancer, particularly lung cancer, a growing demand for early disease diagnosis, and a surge in the adoption of AI in the drug discovery process for cancer are notable trends in the healthcare industry. For instance, in October 2022, Pharma-tech company Model Medicines introduced its Oncology Program, concentrating on the discovery and development of anti-cancer drugs specifically designed to target AXL and BRD4. Additionally, infectious diseases is predicted to grow at the fastest CAGR during the forecast period owing to the increase in the demand to devise methods for detecting infectious diseases, a rising prevalence of such diseases, and a growing emphasis on the development of AI and related platforms like the Internet of Things (IoT).
By application, drug optimization & repurposing was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the sophisticated AI systems like Deep Learning (DL) and drug modeling can be employed to investigate adverse drug effects and assess the overall efficacy of drugs, increasing adoption of this approach aims to enhance existing drugs and modify them for indications different from those previously targeted by pharmaceutical companies, and surge in partnerships among market players. For instance, in August 2022, GNS Healthcare has entered into a collaborative agreement with pharmaceutical manufacturer LES LABORATOIRES SERVIER to progress in drug discovery and development for the treatment of multiple myeloma. Additionally, molecular library screening is predicted to grow at the fastest CAGR during the forecast period owing to the presence of extensive and continuously growing collections of molecular compounds, a rising need for the exploration and creation of innovative drug therapies, and an expanding manufacturing capability within the life science industry.
By end-user, pharmaceutical & biotechnology companies was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the growing embrace of AI technologies by pharmaceutical and biotechnology companies brings forth numerous benefits, such as the identification of new targets and indications, streamlining drug development pipelines, fostering improved collaboration, and addressing unmet medical needs. Additionally, contract research organization (CROs) is predicted to grow at the fastest CAGR during the forecast period owing to the increase in research and development activities, along with a growing trend of collaborations among market players. For instance, in July 2023, Aiforia has partnered with Orion to work together on the creation of AI-driven image analysis solutions tailored for preclinical research and product development.
North America region is anticipated for the highest revenue share during the forecast period owing to the widespread adoption of AI technologies in the pharmaceutical industry, a substantial patient population, a heightened prevalence of chronic and infectious diseases, active engagement in clinical research and trials involving AI in drug discovery, and an increasing number of collaborations among market leaders. For instance, in August 2022, Janssen, a unit of Johnson & Johnson, revealed a partnership with SRI International to leverage SRI's SynFini AI platform in the exploration of small molecule drug discoveries. Additionally, Asia Pacific region is predicted to grow at fastest CAGR during the forecast period owing to the healthcare sector is witnessing the development of advanced infrastructure, a growing trend of adopting AI for disease comprehension & facilitating drug discovery, a surge in partnerships and collaborations among market players. For instance, in September 2022, Microsoft has entered into a collaboration agreement with Novo Nordisk, wherein Microsoft will offer its AI, computational, and cloud services to support Novo Nordisk's data science analysis, drug discovery, and development initiatives.
A continuous introduction of sophisticated artificial intelligence platforms in drug discovery is predicted to boost the market growth during the forecast period. The process of drug discovery and development incurs significant costs and demands a considerable amount of time. The integration of AI solutions into the clinical trial phase addresses potential challenges, diminishes the duration of clinical trials, and enhances the efficiency and precision of the overall process. Consequently, the uptake of these advanced AI solutions in drug discovery procedures is becoming increasingly favored among stakeholders in the life science industry. For instance, in March 2023, Insilico Medicine has incorporated a dedicated AI chat function, ChatPandaGPT, into its PandaOmics platform. This integration enables researchers to engage in natural language conversations with the platform, streamlining the process of identifying potential therapeutic targets and biomarkers. The addition of this feature enables researchers to analyze extensive datasets more efficiently for the discovery of potential therapeutic targets and biomarkers.
By component, software was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the agrowing need for advanced analytics and machine learning tools in the pharmaceutical sector. AI software tools contribute to increased efficiency and automation across various stages of the drug discovery workflow, leading to decreased time and resource demands. Progress in cloud computing and high-performance computing infrastructure, along with the continual introduction of cutting-edge solutions, is also evident. For instance, in May 2023, During the Bio-IT World Conference, Google Cloud unveiled two novel AI-driven solutions in the field of life sciences. These offerings are designed to expedite drug discovery and enhance precision medicine efforts for biotech companies, pharmaceutical firms, and public sector organizations. The Target and Lead Identification Suite aids researchers in improving the identification of amino acid functions and predicting protein structures. Simultaneously, the Multiomics Suite speeds up the discovery and interpretation of genomic data, assisting companies in developing precise treatments. Additionally, services is predicted to grow at the fastest CAGR during the forecast period. Al technology is crucial in drug discovery, and services play a vital role in its deployment. Pharmaceutical companies and research institutions increasingly outsource tasks like data analysis, algorithm development, machine learning, and other Al-related functions to specialized service providers. These services aid in efficient model building, data processing, and interpretation of results, empowering researchers with insights for informed decision-making. The demand for Al services in the drug discovery market is driven by the necessity for specialized expertise, access to state-of-the-art Al tools and infrastructure, and the objective to streamline the drug development process.
By technology, machine learning was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the growing availability and accessibility of extensive datasets, encompassing genomics, proteomics, and clinical records, have opened up opportunities for machine learning algorithms to extract valuable insights & patterns and increasing approvals granted by regulatory authorities. For instance, in June 2022, Schrödinger, Inc. has obtained approval from the U.S. Food and Drug Administration (USFDA) for its investigational new drug application concerning SGR-1505, a MALT1 inhibitor. The company employs a physics-based software platform for drug discovery applications. Additionally, is predicted to grow at the fastest CAGR during the forecast period owing to the rising trend in the adoption of cloud-based technology, and organizations are increasingly expressing a need for processing power, along with the deployment of Internet of Things (IoT) devices.
By therapeutic area, oncology was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the increasing incidence of cancer, particularly lung cancer, a growing demand for early disease diagnosis, and a surge in the adoption of AI in the drug discovery process for cancer are notable trends in the healthcare industry. For instance, in October 2022, Pharma-tech company Model Medicines introduced its Oncology Program, concentrating on the discovery and development of anti-cancer drugs specifically designed to target AXL and BRD4. Additionally, infectious diseases is predicted to grow at the fastest CAGR during the forecast period owing to the increase in the demand to devise methods for detecting infectious diseases, a rising prevalence of such diseases, and a growing emphasis on the development of AI and related platforms like the Internet of Things (IoT).
By application, drug optimization & repurposing was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the sophisticated AI systems like Deep Learning (DL) and drug modeling can be employed to investigate adverse drug effects and assess the overall efficacy of drugs, increasing adoption of this approach aims to enhance existing drugs and modify them for indications different from those previously targeted by pharmaceutical companies, and surge in partnerships among market players. For instance, in August 2022, GNS Healthcare has entered into a collaborative agreement with pharmaceutical manufacturer LES LABORATOIRES SERVIER to progress in drug discovery and development for the treatment of multiple myeloma. Additionally, molecular library screening is predicted to grow at the fastest CAGR during the forecast period owing to the presence of extensive and continuously growing collections of molecular compounds, a rising need for the exploration and creation of innovative drug therapies, and an expanding manufacturing capability within the life science industry.
By end-user, pharmaceutical & biotechnology companies was the highest revenue-grossing segment in the global artificial intelligence in drug discovery market in 2023 owing to the growing embrace of AI technologies by pharmaceutical and biotechnology companies brings forth numerous benefits, such as the identification of new targets and indications, streamlining drug development pipelines, fostering improved collaboration, and addressing unmet medical needs. Additionally, contract research organization (CROs) is predicted to grow at the fastest CAGR during the forecast period owing to the increase in research and development activities, along with a growing trend of collaborations among market players. For instance, in July 2023, Aiforia has partnered with Orion to work together on the creation of AI-driven image analysis solutions tailored for preclinical research and product development.
North America region is anticipated for the highest revenue share during the forecast period owing to the widespread adoption of AI technologies in the pharmaceutical industry, a substantial patient population, a heightened prevalence of chronic and infectious diseases, active engagement in clinical research and trials involving AI in drug discovery, and an increasing number of collaborations among market leaders. For instance, in August 2022, Janssen, a unit of Johnson & Johnson, revealed a partnership with SRI International to leverage SRI's SynFini AI platform in the exploration of small molecule drug discoveries. Additionally, Asia Pacific region is predicted to grow at fastest CAGR during the forecast period owing to the healthcare sector is witnessing the development of advanced infrastructure, a growing trend of adopting AI for disease comprehension & facilitating drug discovery, a surge in partnerships and collaborations among market players. For instance, in September 2022, Microsoft has entered into a collaboration agreement with Novo Nordisk, wherein Microsoft will offer its AI, computational, and cloud services to support Novo Nordisk's data science analysis, drug discovery, and development initiatives.
Segmentation: Artificial Intelligence In Drug Discovery Market Report 2023 - 2034
Artificial Intelligence In Drug Discovery Market Analysis & Forecast by Component 2023 - 2034 (Revenue USD Bn)
- Services
- Hardware
- Software
Artificial Intelligence In Drug Discovery Market Analysis & Forecast by Technology 2023 - 2034 (Revenue USD Bn)
- Deep Learning
- Machine Learning
- Unsupervised Learning
- Supervised Learning
- Other Technologies
Artificial Intelligence In Drug Discovery Market Analysis & Forecast by Therapeutic Area 2023 - 2034 (Revenue USD Bn)
- Neurodegenerative Diseases
- Cardiovascular Diseases
- Oncology
- Infectious Diseases
- Metabolic Diseases
- Others
Artificial Intelligence In Drug Discovery Market Analysis & Forecast by Application 2023 - 2034 (Revenue USD Bn)
- Target Identification
- Drug Optimization And Repurposing
- De Novo Drug Designing
- Preclinical Testing
- Molecular Library Screening
- Others
Artificial Intelligence In Drug Discovery Market Analysis & Forecast by End-user 2023 - 2034 (Revenue USD Bn)
- Contract Research Organization (CROs)
- Pharmaceutical & Biotechnology Companies
- Others
Artificial Intelligence In Drug Discovery Market Analysis & Forecast by Region 2023 - 2034 (Revenue USD Bn)
- North America
- U.S.
- Canada
- Europe
- Germany
- France
- UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of LATAM
- Middle East & Africa
- South Africa
- GCC
- Rest of MEA
Table of Contents
1. Research Methodology
2. Introduction
4. Market Environment Analysis
5. Market Dynamics
7. Artificial Intelligence In Drug Discovery Market: Component Estimates & Trend Analysis
8. Artificial Intelligence In Drug Discovery Market: Technology Estimates & Trend Analysis
9. Artificial Intelligence In Drug Discovery Market: Therapeutic Area Estimates & Trend Analysis
10. Artificial Intelligence In Drug Discovery Market: Application Estimates & Trend Analysis
11. Artificial Intelligence In Drug Discovery Market: End-user Estimates & Trend Analysis
12. Regional Market Analysis
13. North America Artificial Intelligence In Drug Discovery Market
14. Europe Global Artificial Intelligence In Drug Discovery Market
15. Asia Pacific Global Artificial Intelligence In Drug Discovery Market
16. Latin America Global Artificial Intelligence In Drug Discovery Market
17. MEA Global Artificial Intelligence In Drug Discovery Market
18. Competitor Analysis
19. Company Profiles
Companies Mentioned
- Benevolent AI
- GNS Healthcare
- BioSymetrics
- Alphabet (DeepMind)
- Euretos
- Cyclica
- Berg Health
- IBM Watson
- Atomwise
- Exscientia
- Insitro
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | March 2024 |
| Forecast Period | 2023 - 2034 |
| Estimated Market Value ( USD | $ 1.48 Billion |
| Forecasted Market Value ( USD | $ 25.68 Billion |
| Compound Annual Growth Rate | 29.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
