AI in Drug Discovery & Development Market
Number of pages: 100 | Report Format: PDF | Published date: March 01, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2022-2030
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Report Attribute |
Details |
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Market Size Value in 2022 |
US$ 994.95 million |
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Market Size Value in 2031 |
US$ 8,318.08 million |
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CAGR |
30.4% |
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Base Year for Estimation |
2022 |
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Forecast Period |
2023-2031 |
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Historical Year |
2021 |
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Segments Covered |
Offering, Technology, Molecule Type, Application, End Users, and Region |
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Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global AI in drug discovery & development market was valued at US$ 994.95 million in 2022 and is expected to register a revenue CAGR of 30.4% to reach US$ 8.31 billion by 2031.
AI in Drug Discovery & Development Market Fundamentals
Artificial Intelligence (AI) is one of the most trending and revolutionary topics among researchers, especially in the healthcare industry. The intensively growing application of AI in drug discovery is a topic of global interest. In the last decade, AI has transformed the profession of drug development. Many drug discovery applications, such as virtual screening and drug designing, have made the usage of various AI approaches more demanding. The industry of drug discovery is experiencing intense modifications due to rapid advancements in AI and machine learning (ML). Among the popular uses of AI in drug discovery are virtual screening, de novo drug design, retrosynthesis and reaction prediction, and de novo protein design, which can be divided into two categories, namely, predictive and generative tasks. A wide range of AI approaches are used to power various AI applications, with model designs expanding from classic ML models to deep neural networks, such as convolutional neural networks, recurrent neural networks, graph neural networks, and transformers.
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AI in Drug Discovery & Development Market Dynamics
The increasing emphasis on lowering turnaround time in drug discovery, growing applications of AI in drug discovery, rising incidence of chronic illnesses, and the high risk of new infectious diseases are the key factors driving the revenue growth of the AI in drug discovery & development market. The increased usage of artificial reasoning to successfully investigate drug action is expected to raise interest in artificial consciousness in the pharmaceutical development sector. Also, lowering the cost of medication disclosure can be a crucial factor affecting the rate of development of artificial reasoning in the medicine revelation industry. Mechanical advancement is another essential viewpoint that contributes to highlighting improvement. Rapid urbanization and growing disposable income levels in developing and developed nations are influencing the rate of development of the AI in drug discovery & development market. Moreover, the increase in acceptance of ML in drug discovery, the rise of local and regional start-ups in AI in drug discovery, and growth in R&D spending are all generating potential for this market to flourish in the near future.
However, the high cost of AI integration and the lack of adequate modalities and infrastructure in low economies may lead to some hurdles in market revenue growth.
AI in Drug Discovery & Development Market Ecosystem
The global AI in drug discovery & development market has been analyzed from six perspectives: offering, technology, molecule type, application, end user, and region.
AI in Drugs Discovery & Development Market by Offering
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Based on the offering, the global AI in the drug discovery & development market is segmented into software and services.
The software segment accounted for a major revenue share of the global AI in drug discovery & development market in 2022, as AI platforms are built on ML and deep learning technologies, which is an essential component of the overall AI industry. Microsoft Azure and Google AI are two prominent AI platforms in the market. Furthermore, a growing number of small-scale organizations are building AI platforms, propelling the AI in drug discovery and development market forward at an exponential rate.
AI in Drugs Discovery & Development Market by Technology
Based on technology, the global AI in drug discovery & development market is segmented into machine learning, deep learning, supervised & unsupervised learning, reinforcement learning, and others.
The machine learning (ML) segment registered the largest revenue share in the global market in 2022, attributed to its major role in drug discovery and development. Generally, traditional drug research and development techniques are time-consuming, labor-intensive, and highly expensive. However, using ML drug development procedures can speed up the drug research and development and also can provide more efficiency. This technology also assists in focusing on novel drug development, as it has the ability to manage massive, diverse, multi-dimensional data sources, spot patterns, and anticipate results. As a result, the labor and funds with time consumption can be significantly reduced, thereby propelling the segment revenue growth.
Deep learning (DL) is a subset of AI in which models reflect geometric changes over several layers. Deep learning technology recognizes and discriminates patterns, such as voice, picture, and video, by using a logic structure akin to the brain called neural networks. Over the assessment period, it is predicted to be the fastest-growing segment in the market.
AI in Drugs Discovery & Development Market by Molecule Type
Based on the molecule type, the global AI in drug discovery & development market is segmented into small molecule and large molecule.
The large molecule segment is expected to show lucrative growth opportunities during the projected period, as it covers large and complicated molecular structures, such as biologics. Additionally, increasing need for life-saving medications and biologics, as well as rapidly growing usage of AI technology in evaluating complicated molecular structures and biologic drug development.
AI in Drugs Discovery & Development Market by Application
Based on the application, the global AI in drug discovery & development market is segmented into cardiovascular diseases, neurodegenerative diseases, infectious diseases, metabolic diseases, immuno-oncology, and others.
The immuno-oncology segment is predicted to dominate the global market. AI technology shows promising results in distinguishing genetic variants for precision medicine. The benefit factor is that oncologists can better treat patients by examining and identifying genetic alterations. AI use in cancer drug development has enormous promise, and a growing number of industries/businesses are adopting AI in cancer drug research.
The neurodegenerative diseases segment is estimated to depict lucrative revenue growth during the forecast period. Another key usage of AI integration for drug development is for neurodegenerative illnesses. Amyotrophic lateral sclerosis (ALS) is a severe neurological illness that currently has no therapy to reduce its symptoms. BenevolentAI, a start-up focused on AI and ML, is working on the potential therapeutics for ALS. The growing number of firms engaging in research for neurodegenerative illnesses is expected to fuel segment growth at a rapid rate.
The cardiovascular segment is also growing at a rapid pace. Cardiovascular disease affects a large population in the world, and the number of deaths due to cardiovascular disease is quite high. AI integration for drug discovery of cardiovascular disease drugs is expected to help in formulating drugs with high efficacy and low side effects.
AI in Drugs Discovery & Development Market by End User
Based on the end user, the global AI in drug discovery & development market is further segmented into research centers & academic institutes, contract research organizations (CROs), and pharmaceutical & biotechnology companies.
The pharmaceutical & biotechnology companies segment registered for the largest revenue share in the global market, due to the growing need for efficient and enhanced drugs with the rising incidences of different diseases.
AI in Drug Discovery & Development Market by Region
North America dominates the global AI in drug & development market share and is expected to retain its dominance during the projected period. The growth of the market in this region can be attributed to developed economies and the high adoption of technologies, especially AI, due to its vast application with a main focus on drug discoveries and development. Additionally, the presence of advanced healthcare facilities due to large healthcare spending and a high rate of strategic collaboration and/or acquisition are boosting the AI in drug discovery & development market in North America.
Asia Pacific is the fastest-growing region in the global market. The expanding infrastructure for AI and pharmaceutical research in countries, such as China, India, and South Korea, as well as rising funding for cancer research and increasing investments in AI are driving the expansion of the Asia Pacific AI in drug discovery & development market. Additionally, the rising number of AI-based drug discovery firms is fueling the market’s expansion.
AI in Drug Discovery & Development Market Competitive Landscape
The prominent players operating in the global AI in drug discovery & development market are:
AI in Drug Discovery & Development Market Strategic Developments
The global AI in drug discovery & development market is expected to be valued at US$ 8.31 billion in 2031.
The high cost of AI integration and the lack of adequate modalities and infrastructure in low economies may lead to some hurdles in market revenue growth during the projected period.
The global AI in drug discovery & development market is expected to grow at a revenue CAGR of 30.4% during the forecast period from 2023 to 2031.
The global AI in drug discovery & development market was valued at US$ 994.95 million in 2022.
Microsoft Corporation, Google, Cloud Pharmaceuticals, NuMedii, and Atomwise Inc. are among the top market players.
*Insights on financial performance are subject to the availability of information in the public domain