PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1574938
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1574938
Artificial Intelligence in Drug Discovery Market size was valued at USD 1,590.43 Million in 2023, expanding at a CAGR of 29.90% from 2024 to 2032.
Artificial Intelligence (AI) in drug discovery is the application of machine learning (ML), deep learning, and other AI techniques to accelerate and improve the process of discovering new drugs. Traditionally, drug discovery is a lengthy, costly, and labor-intensive process that can take more than a decade to bring a new drug to market. AI seeks to enhance various stages of this process by providing faster insights, automating tasks, and reducing costs.
Artificial Intelligence in Drug Discovery Market- Market Dynamics
Growing need for faster drug delivery and advancement in big data, machine learning is expected to propel market demand
The COVID-19 pandemic highlighted the urgent need for faster drug development. AI's ability to quickly sift through vast datasets, predict molecule interactions, and identify potential drug candidates is a major driver. Pharmaceutical companies are under pressure to accelerate time-to-market for new therapies, especially for urgent health crises or unmet medical needs, making AI an attractive solution. Traditional drug discovery is extremely costly, with estimates that bringing a new drug to market can cost over $2.6 billion and take 10-15 years. AI offers the potential to significantly reduce these costs by streamlining processes such as target identification, lead discovery, and clinical trials. By automating tasks and reducing experimental failures, AI can lower the financial burden on pharmaceutical companies. These benefits are expected to bolster the market demand.
The healthcare and pharmaceutical industries generate massive amounts of data from genomics, proteomics, clinical trials, and real-world evidence (e.g., electronic health records). AI thrives on large datasets, enabling predictive analytics and identifying hidden patterns. The growing availability of high-quality healthcare data, including biological and chemical information, fuels AI's effectiveness in drug discovery. Rapid progress in AI techniques such as deep learning, reinforcement learning, and natural language processing (NLP) has improved the accuracy and efficiency of AI models used in drug discovery.
Artificial Intelligence in Drug Discovery Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 29.90% over the forecast period (2024-2032)
Based on Disease Type segmentation, the oncology segment was predicted to show maximum market share in the year 2023, owing to high demand from therapeutic patients requiring predictive measures.
Based on Application segmentation, drug optimization & repurposing segment was the leading Application segment in 2023, due to the rapid R&D activities.
Based on End User segmentation, research institutes segment was the leading End User segment in 2023, due to increasing investment by pharma companies in R&D.
On the basis of region, North America was the leading revenue generator in 2023, due to the advancement in AI technologies.
The Global Artificial Intelligence in Drug Discovery Market is segmented on the basis of Disease Type, Application, End User, and Region.
The market is divided into five categories based on Disease Type: oncology, cardiovascular diseases, infectious diseases, metabolic diseases, and others. The oncology segment dominates the market. The increasing prevalence of cancer and effective treatment available is boosting market growth.
The market is divided into three categories based on Application: drug optimization & repurposing, preclinical testing, and others. The drug optimization & repurposing segment dominates the market. The preclinical testing segment is expected to grow at significant rate over the forecast period.
The market is divided into four categories based on End User: research institutes, clinical laboratories, and others. The research institutes segment dominates the market and is expected to maintain its high dominance during the forecast period. The rising number of investments by pharma companies in drug discoveries is spurring market demand.
Artificial Intelligence in Drug Discovery Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. North America is currently the largest market for AI in drug discovery, primarily driven by the growing United States market. North America has a strong R&D infrastructure with leading academic institutions and research organizations, along with significant funding for AI and drug discovery projects. Europe is the second-largest market for AI in drug discovery. The region is witnessing rapid adoption due to robust healthcare infrastructure and active collaboration between pharmaceutical companies and AI firms.
The Artificial Intelligence (AI) in the Drug Discovery market is highly competitive and dynamic, with numerous companies ranging from established pharmaceutical giants to AI-driven startups actively investing in AI technologies. Companies are competing by developing unique AI models that offer superior prediction accuracy, efficiency in molecule design, and integration capabilities with existing pharma R&D systems. Companies are extending AI applications beyond drug discovery into clinical trials, using AI to optimize patient recruitment, predict outcomes, and reduce trial duration and costs.
In 2023, Roche and Exscientia have formed a collaboration to leverage AI in the identification of novel drug targets.
In 2022, Sanofi invested over $100 million in a partnership with AI firm Owkin to leverage its AI platform for oncology research.
In 2023, Insilico Medicine received USD 255 million in funding to scale up its AI drug discovery platform.