Global AI In Drug Discovery Market Insights Forecasts to 2033

• The Global AI In Drug Discovery Market Size was Valued at USD 0.78 Billion in 2023
• The Market Size is Growing at a CAGR of 38.25%  from 2023 to 2033
• The Worldwide AI In Drug Discovery Market Size is Expected to Reach USD 19.9 Billion by 2033
• Asia-Pacific is Expected to Grow the fastest during the forecast period.

The Global AI In Drug Discovery Market Size is Anticipated to Exceed USD 19.9 Billion by 2033, Growing at a CAGR of 38.25% from 2023 to 2033.

Market Overview

In drug discovery, artificial intelligence (AI) uses powerful computational algorithms and machine learning models to evaluate biological data, identify possible drug candidates, and speed up the drug development process. AI facilitates the identification of novel drug targets, molecular structure optimization, and huge dataset analysis, all of which help researchers identify new and more effective therapeutic solutions. AI is becoming a valuable tool in healthcare, specifically in medication manufacturing, where it fills R&D shortages and allows for focused drug production. Biopharmaceutical businesses are using AI to boost their market presence. AI models human beings in drug research, helping to solve complicated problems and accelerate development. Its use in clinical trials facilitates operations by reducing cycle times, increasing productivity, and boosting accuracy.  The use of artificial intelligence (AI) in the field of drug research is expected to greatly improve the industry. AI accelerates research by optimizing experiments, stressing important goals, and enabling virtual screening, resulting in speedier failure and more diverse testing. AI has the potential to change drug discovery workflows by consolidating phases, automating procedures, lowering in-process decision-making, and expediting property optimization simultaneously. The development of epitope selection, prediction, and binding techniques has significantly accelerated the discovery of novel vaccines and other medicines. The global Artificial Intelligence in drug discovery market has seen strong growth due to market players' growth plans that are projected to boost the market.

Report Coverage

This research report categorizes the market for the global AI in drug discovery market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing global AI in drug discovery market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global AI in drug discovery market.

Driving Factors

Drug discovery is an expensive and time-consuming procedure, necessitating the development of alternate tools for discovering new medications. Drug discovery and development are often carried out using in vivo and in vitro procedures, The primary drivers leading to the growing cost of pharmaceutical innovation are investment unused due to late-stage clinical attrition, an increasingly strict regulatory framework that sets a high bar for approval, and higher clinical trial expenditures, particularly for important trials. Provided these facts, pharmaceutical, and biotech companies are driven to innovate and adopt new technologies to increase productivity, reduce costs, and maintain sustainability. AI uses cutting-edge technology like machine learning and deep learning to scan huge amounts of information, find viable medication candidates, and improve drug development pathways. The use of modern computational tools allows researchers to more efficiently navigate complicated biological and chemical interactions, resulting in faster and more accurate drug discovery results. As technology advances, the use of AI in drug discovery is likely to boost the pharmaceutical business by accelerating innovation and shortening development timelines.

Restraining Factors

AI in drug discovery is a complicated Technique and firms need staff with specific skill sets to create, manage, and execute. Personnel working with AI systems should be familiar with technologies such as cognitive computing, ML and machine intelligence, deep learning, and image recognition. As AI becomes more incorporated into major businesses, these challenges increase, demanding extra training and skill development for both AI and drug discovery professionals to close current shortages in skills and promote future disciplines of teamwork.

Market Segmentation

The global AI in drug discovery market share is classified into therapeutic area, technology, and application.

• The infectious diseases segment dominates the market with the largest market share through the forecast period.

Based on the therapeutic area, the global AI in drug discovery market is categorized into oncology, infectious diseases, neurology, metabolic, cardiovascular, immunology, and other therapeutic areas.  Among these, the infectious diseases segment dominates the market with the largest market share through the forecast period. COVID-19, malaria, TB, and HIV receive the most attention and supply, while other infectious illnesses, notably neglected tropical diseases (NTDs), receive less. AI and associated platforms, such as the Internet of Things (IoT), are being used to better understand infectious diseases, their transmission, and infection mechanisms, as well as to improve vaccine creation. These platforms make use of a network of linked devices such as smartphones and medical equipment, and the data generated from these devices can be utilized to understand lifestyle patterns and variations to study disease. Given the current circumstances, it has become increasingly important to develop ways of identifying and treating infectious diseases.

• The machine learning segment is anticipated to grow at the fastest CAGR growth through the forecast period.

Based on the technology, the global AI in drug discovery market is categorized into machine learning, natural language processing, context-aware processing, and other technologies. Among these, the machine learning segment is anticipated to grow at the fastest CAGR growth through the forecast period. The increased availability and accessibility of massive quantities of data, such as genomes, proteomics, and clinical records, has provided an opportunity for machine learning algorithms to extract significant insights and patterns. Using these data sets, machine learning algorithms identify prospective therapeutic targets, predict medication efficacy, and optimize drug design, resulting in more targeted and efficient drug development processes.

• The drug optimization and repurposing segment accounted for the largest revenue share through the forecast period.

Based on the application, the global AI in drug discovery market is categorized into drug optimization & repurposing, preclinical testing, and others. Among these, the drug optimization and repurposing segment accounted for the largest revenue share through the forecast period. Drug optimization and repurposing platforms support drug manufacturers in generating alternative therapies by introducing slight changes to the product, which allows them to expand their range of options. In addition, AI platforms assist researchers in recognizing a drug's hazardous effects on the human body and reducing the risk of adverse effects. Advances in AI technology have also made it easier to study and compare medications, as well as repurposing them into more effective versions, thereby reducing adverse effects and improving efficacy.

Regional Segment Analysis of the Global AI In Drug Discovery Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global AI in drug discovery market over the predicted timeframe.

North America is projected to hold the largest share of the global AI in drug discovery market over the forecast period. North America's growth can be attributed to increased research funding, government initiatives to promote precision medicine in the United States, and an increase in the usage of AI-based tools in R&D for drug discovery by large pharmaceutical companies. The region's dedication to promoting innovation through collaborations among academics, business, and technology suppliers strengthens its position in the AI in drug discovery market. North America is predicted to dominate the AI drug discovery market, owing to increased R&D investments and widespread implementation of AI technology in medical development. The region's control is amplified by the strong presence of important AI technology companies such as IBM, Google, and Microsoft. Their impact and technological contributions contribute considerably to the expected expansion of the market in North America.

Asia Pacific is expected to grow at the fastest CAGR growth of the global AI in drug discovery market during the forecast period. The developing nations in the Asia Pacific are also using AI to better understand diseases and improve drug discovery. Insight Systems, an AI business based in India, has teamed with Lantern Pharma to develop drugs and identify biomarkers. Asia-Pacific is predicted to see a strong expansion in the AI in drug discovery industry. In addition, continuous healthcare infrastructure development in the area is expected to fuel market expansion, highlighting Asia-Pacific's growing importance in influencing the landscape of AI applications in drug discovery.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global AI in drug discovery market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• IBM Watson
• NVIDIA Corporation
• Exscientia
• GNS Healthcare
• Aria Pharmaceuticals, Inc.
• Alphabet (DeepMind)
• Benevolent AI
• BioSymetrics
• Insilico Medicine
• Envisagenics
• Euretos
• Berg Health
• Atomwise
• Intro
• Cyclica
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In September 2023, Exscientia entered into a collaboration with Merck KGaA focused on the discovery of novel small molecule drug candidates across oncology, neuroinflammation, and immunology. The multi-year collaboration will utilize Exscientia’s AI-driven precision drug design and discovery capabilities while leveraging Merck KGaA’s disease expertise in oncology and neuroinflammation, clinical development capabilities, and global footprint.

• In May 2023, Recursion, a leading clinical-stage TechBio company decoding biology to industrialize drug discovery, announced it has signed agreements to acquire two companies in the AI-enabled drug discovery space: Cyclica and Valence.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global AI in drug discovery market based on the below-mentioned segments: 

Global AI In Drug Discovery Market, By Therapeutic Area

• Oncology
• Infectious Diseases
• Neurology
• Metabolic
• Cardiovascular
• Immunology
• Others

Global AI In Drug Discovery Market, By Technology

• Machine Learning
• Natural Language Processing
• Context-Aware Processing
• Others

Global AI In Drug Discovery Market, By Application

• Drug Optimization & Repurposing
• Preclinical Testing
• Others

Global AI In Drug Discovery Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa