Artificial Intelligence (AI) In Pharmaceutical Market Size
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 3.05 Billion |
| Market Size (2029) | USD 18.06 Billion |
| CAGR (2024 - 2029) | 42.68 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Artificial Intelligence (AI) In Pharmaceutical Market Analysis
The Artificial Intelligence In Pharmaceutical Market size is estimated at USD 3.05 billion in 2024, and is expected to reach USD 18.06 billion by 2029, growing at a CAGR of 42.68% during the forecast period (2024-2029).
Several factors are driving the growth of the AI pharmaceutical market during the forecast period. The increasing adoption of AI for clinical trials, a growing number of cross-industry collaborations and partnerships, and a rising need to reduce drug discovery and development costs and timelines are major drivers. Many companies are leveraging AI to speed up the clinical trial process and reduce completion time. For instance, in February 2022, Hong Kong-based company Insilico Medicine completed a Phase 0 clinical study and entered a Phase I clinical trial with its anti-fibrotic drug candidate for a novel target discovered using the company's artificial intelligence platform Pharma.ai.
The total time from the target discovery program initiation to the start of Phase I took less than 30 months, representing a new level in the speed of therapeutic asset development for the pharmaceutical industry. The accelerated timeline from target discovery to Phase I initiation highlights the efficiency of artificial intelligence in drug development, thereby driving its adoption and growth in the pharmaceutical market. For instance, in June 2023, Sanofi launched its new application, Plai, developed with artificial intelligence (AI) platform company Aily Labs. It delivers real-time, reactive data interactions and gives an unprecedented 360° view across all Sanofi activities.
Similarly, in December 2022, Cyclica Inc. and SK Chemicals Co. Ltd entered an artificial intelligence (AI)-driven drug discovery and development partnership to develop therapies across various disease areas. Under the collaboration with SK Chemicals, Cyclica will deploy its robust, proprietary drug discovery platforms to identify novel drug candidates for challenging biological targets across therapeutic areas of mutual interest to Cyclica and SK Chemicals.
Therefore, the adoption of AI as an asset to accelerate the healthcare process is expected to increase in the future, driving the growth of the market during the forecast period.
Despite the positive factors, the need for more skilled professionals and incompatible healthcare IT infrastructure in pharmaceutical research centers are expected to hinder the growth of the market during the forecast period.
Artificial Intelligence (AI) In Pharmaceutical Market Trends
The Drug Discovery Segment is Expected to Register Considerable Growth During the Forecast Period
The drug discovery segment is expected to gain a significant market share during the forecast period, driven by the growing prevalence of chronic and rare diseases and increased research and development activities within the pharmaceutical industry. Artificial intelligence (AI) has emerged as a key technology in this space, accelerating the drug development process and creating better medications that improve the lives of millions of people.
Researchers and major pharmaceutical companies are focusing on the application of AI in drug discovery platforms, resulting in significant investments in this area. For example, in February 2022, Deargen Inc. secured USD 17 million in a Series B financing round, which will be used to establish the iDear Center for AI-driven drug discovery and development, expand AI-powered new drug development platform (Dr.UG) applications, and accelerate overseas market entry.
Similarly, in January 2022, Sanofi signed a license and research collaboration agreement with Exscientia to develop up to 15 novel small molecule candidates across oncology and immunology indications based on Exscientia's AI-based platform. Such developments undertaken by key players in the market are expected to drive the growth of the drug discovery segment during the forecast period.
In addition, cross-industry collaborations and partnerships among market players are helping to create new AI-based platforms, thereby expanding drug development services in the pharmaceutical industry. For example, in September 2022, Novo Nordisk and Microsoft announced a new strategic collaboration to combine Microsoft's computational services, cloud, and AI with Novo Nordisk's drug discovery, development, and data science capabilities. This collaboration is expected to propel the growth of the drug discovery segment during the forecast period.
Overall, the adoption of AI and new cross-industry collaborations are key factors driving the usage of AI in the drug discovery segment and are likely to propel the market during the forecast period.
North America is Expected to Experience Significant Market Share in the Artificial Intelligence in Pharmaceutical Market During the Forecast Period
North America is expected to experience significant growth in the AI pharmaceutical market during the forecast period, driven by various factors. These include the rising adoption of AI in pharmaceutical clinical trials, an increasing number of drug discoveries and developments coupled with the growing prevalence of chronic diseases, and technological advancements in the pharmaceutical industry in the region.
The presence of numerous market players and a growing number of cross-industry collaborations and partnerships are also majorly impacting the growth of the AI pharmaceutical market in North America. For instance, in March 2022, Insilico Medicine partnered strategically with EQRx to combine their expertise in de novo small molecule design, clinical development, and commercialization.
Similarly, in October 2022, Deerfield Management and BioSymetrics entered a five-year joint venture to accelerate the advancement of new therapeutics, with an initial focus on cardiovascular and neurological diseases. The collaboration will identify new drug discovery programs that combine BioSymetrics' AI-powered target discovery and validation platform with Deerfield's drug discovery and commercial modeling capabilities. As major players continue to undertake continuous strategic activities, the market's growth in the region is expected to augment during the forecast period.
The establishment of new AI centers in the region is another significant factor expected to drive the AI pharmaceutical market. For instance, Sanofi opened an Artificial Intelligence Centre of Excellence in Toronto in June 2022, focused on developing world-class data and AI products that accelerate research and development to improve access to life-saving medicine and create value in the healthcare industry. The new AI centers in the region are expected to increase research and development activities in the pharmaceutical industry, thus boosting the market during the forecast period.
In summary, the establishment of new AI centers and cross-industry collaborations are likely to increase the usage of AI in the pharmaceutical industry in North America and propel the market's growth during the forecast period.
Artificial Intelligence (AI) In Pharmaceutical Indusrty Overview
The artificial intelligence in the pharmaceutical market is fragmented in nature. In the current pharmaceutical market, the use of artificial intelligence (AI) has become increasingly prevalent, with a number of global players focusing on differentiating themselves in a highly competitive space. Also, there has been a recent influx of new market entrants rapidly gaining traction. Overall, competitive rivalry within the industry is expected to remain high during the forecast period.
Some of the major players in the AI pharmaceutical market include Alphabet Inc. (Isomorphic Labs), Atomwise Inc., BenevolentAI, BioSymetrics, Cloud Pharmaceuticals Inc., Deep Genomics, Deargen Inc., Euretos, Exscientia, Insilico Medicine, Cyclica Inc., and InveniAI LLC.
Artificial Intelligence (AI) In Pharmaceutical Market Leaders
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Deep Genomics
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Euretos
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Exscientia
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Insilico Medicine
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Alphabet Inc. (Isomorphic Labs)
*Disclaimer: Major Players sorted in no particular order
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Artificial Intelligence (AI) In Pharmaceutical Market News
- May 2024: Oregon Therapeutics & Lantern Pharma entered a strategic AI collaboration to optimize the development of first-in-class drug candidate XCE853- a potent cancer metabolism inhibitor.
- April 2024: Aurigene Pharmaceutical Services launched Aurigene.AI, an AI and ML-assisted platform for accelerating drug discovery projects from hit identification to candidate nomination.
Artificial Intelligence in Pharmaceutical Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Number of Cross-industry Collaborations and Partnerships
4.2.2 Surge In Adoption of Artificial Intelligence (AI) for Clinical Trials
4.2.3 Increasing Need to Reduce Drug Discovery & Development Costs and Timelines
4.3 Market Restraints
4.3.1 Inadequate Availability of Skilled Professionals
4.3.2 Incompatible Healthcare IT Infrastructure
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Technology
5.1.1 Machine Learning
5.1.2 Other Technologies
5.2 By Type
5.2.1 Software
5.2.2 Services
5.3 By Application
5.3.1 Drug Discovery
5.3.2 Clinical Trial
5.3.3 Laboratory Automation
5.3.4 Other Applications
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 South Korea
5.4.3.6 Rest of Asia-Pacific
5.4.4 Middle East and Africa
5.4.4.1 GCC
5.4.4.2 South Africa
5.4.4.3 Rest of Middle East and Africa
5.4.5 South America
5.4.5.1 Brazil
5.4.5.2 Argentina
5.4.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Alphabet Inc (Isomorphic Labs)
6.1.2 BenevolentAI
6.1.3 XtalPi Inc.
6.1.4 Cloud Pharmaceuticals Inc.
6.1.5 Deep Genomics
6.1.6 Euretos
6.1.7 Exscientia
6.1.8 Deargen Inc.
6.1.9 Insilico Medicine
6.1.10 InveniAI LLC
6.1.11 Atomwise Inc.
6.1.12 Cyclica Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Artificial Intelligence (AI) In Pharmaceutical Industry Segmentation
As per the scope of the report, AI in the pharmaceutical industry is used to handle data and present results that encourage better decision-making and save human effort, cost, and time. Artificial intelligence in the pharmaceutical industry is segmented by technology, type, application, and geography. The technology segment is further segmented into machine learning and other technologies. The type segment is further divided into software and services. The application segment is further bifurcated into drug discovery, clinical trials, laboratory automation, and others. Geography is divided into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD) for the above segments.
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Artificial Intelligence in Pharmaceutical Market Research FAQs
How big is the Artificial Intelligence In Pharmaceutical Market?
The Artificial Intelligence In Pharmaceutical Market size is expected to reach USD 3.05 billion in 2024 and grow at a CAGR of 42.68% to reach USD 18.06 billion by 2029.
What is the current Artificial Intelligence In Pharmaceutical Market size?
In 2024, the Artificial Intelligence In Pharmaceutical Market size is expected to reach USD 3.05 billion.
Who are the key players in Artificial Intelligence In Pharmaceutical Market?
Deep Genomics, Euretos, Exscientia, Insilico Medicine and Alphabet Inc. (Isomorphic Labs) are the major companies operating in the Artificial Intelligence In Pharmaceutical Market.
Which is the fastest growing region in Artificial Intelligence In Pharmaceutical Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Artificial Intelligence In Pharmaceutical Market?
In 2024, the North America accounts for the largest market share in Artificial Intelligence In Pharmaceutical Market.
What years does this Artificial Intelligence In Pharmaceutical Market cover, and what was the market size in 2023?
In 2023, the Artificial Intelligence In Pharmaceutical Market size was estimated at USD 1.75 billion. The report covers the Artificial Intelligence In Pharmaceutical Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Artificial Intelligence In Pharmaceutical Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
AI in Pharma Industry Report
The Artificial Intelligence (AI) in Pharmaceutical Market Report is segmented by technology, type, application, and geography. The market analysis covers machine learning and other technologies, with a focus on software and services. Applications include drug discovery, clinical trials, and laboratory automation. The report provides an industry overview of the AI in pharmaceutical market, detailing market size and market share. The report also includes a historical overview and a market forecast outlook.
Artificial intelligence in the pharmaceutical industry is transforming the landscape with significant growth in market value and market trends. The industry analysis highlights key market leaders and their role in driving market growth. The market forecast provides insights into future market predictions and the industry outlook.
Industry reports and industry research reveal important industry statistics and industry trends. The market review includes a detailed market segmentation and market data, offering a comprehensive market overview. The report example and report PDF are available for download, providing further industry information and insights into market sales.
Research companies contribute to the industry research, ensuring that the market analysis is thorough and up-to-date. The market outlook and market predictions are based on extensive market data and industry research. The industry size and industry sales are key indicators of the market's performance, with market growth driven by innovative applications of AI in the pharmaceutical sector.
The report includes a detailed market segmentation, covering various applications and technologies. The market review highlights the importance of AI in drug discovery and clinical trials, with a focus on laboratory automation. The market value and market forecast provide a clear picture of the industry's future, supported by industry statistics and industry information.
In conclusion, the AI in Pharmaceutical Market Report offers a comprehensive analysis of the market, including market data, market trends, and market segmentation. The report provides valuable insights into the industry's growth rate, market outlook, and industry trends, making it an essential resource for understanding the AI in pharmaceutical market.
AI in Pharma Market Report Snapshots
