Artificial Intelligence in Drug Discovery Market

Global Artificial Intelligence in Drug Discovery Market Size (2024 to 2032)

The global artificial intelligence in drug discovery market was worth USD 1.10 billion in 2023. The global market is predicted to reach USD 1.54 billion in 2024 and USD 22.99 billion by 2032, growing at a CAGR of 40.2% during the forecast period.

Current Scenario of the Market 

Artificial intelligence (AI) integrated with machine learning (ML) is being used significantly in discovering drugs with high efficiency in treating diseases. The gap between understanding the disease and identifying the potential treatment procedure is filled by using AI, which acts as a powerful catalyst. The challenges posed by the traditional way of discovering drugs are completely rolled out in medical history with the help of AI. A drug discovery procedure involves various matters like disease identification, target identification, and predicting drug toxicity, among others. AI is unfolding all these tasks with ease, and it is anticipated to launch or discover a new drug with minimal human effort in very little time.

MARKET DRIVERS

The prominence of discovering new or modifying existing drugs to improve the efficiency of the healthcare network, that is, to reduce the burden of a number of diseases, is majorly fuelling the growth rate of artificial intelligence in the drug discovery market.

In general, AI is playing an important role in easily identifying the compounds that can selectively interact with the disease-causing molecule. Identifying the disease-causing molecule is one of the toughest parts in the process of drug discovery, which is lucratively possible by using artificial intelligence. The prominence of reducing the burden of diseases by improving the existing treatment procedure along with finding new drugs is ascribed to bolstering the growth rate of the market.

Drug discovery is the prominent and highly innovative phase for researchers who are hugely involved in following scientific principles. Traditional drug discovery is associated with huge initial investments, whereas artificial intelligence helps in predicting drug development procedures and simultaneously reduces the overall cost, which is definitely a driving factor for the market's growth rate. Artificial intelligence helps researchers to analyze various factors like safety and pharmacokinetics that have the potential to reduce the potential risk factors to develop a drug in that particular way, thereby reducing overall cost. In general, a drug discovery may take 10-15 years with huge initial investments in the research activities, which is a huge burden for the investors if the project fails due to uncertainties. AI overcomes all these factors, such as predicting the output accurately in very little time by completely analyzing the vast data, thereby reducing the overall cost factor at the same time.

MARKET RESTRAINTS

AI in drug discovery has a lot of positive factors, like modeling the overall process in simple steps that help researchers validate the overall data and find out the effective way to discover a drug in very little time. However, there are some factors that are degrading the growth rate of the market, such as difficulty in interpretability and explainability of AI models that change frequently. Frequently changing AI algorithms are highly difficult to understand, which is likely to hamper the growth rate of Artificial intelligence in the drug discovery market. The growing concern in protecting the data from cyber attackers is also to degrade the fastest growth rate of the market.

MARKET OPPORTUNITIES 

The launch of innovative technological developments in discovering a new drug that helps in finding new ways to treat chronic or any other diseases is anticipated to gear up huge opportunities for artificial intelligence in the drug discovery market. Top companies are coming up with different strategies to launch innovative techniques in finding new drugs or modifying existing drugs. For instance, in 2024, the Global Health Drug Discovery Institute (GHDDI) and Microsoft Research joined hands together to launch innovative treatment procedures by drug discovery for global infectious diseases. The joint team successfully used artificial intelligence (AI) to design several molecule inhibitors that can treat novel coronavirus and tuberculosis. This project is ascribed to involving AI technologies in drug discovery that results in the launch of innovative drugs in minimal time that help promote the healthy lifestyle of people globally.

MARKET CHALLENGES

Stringent rules and regulations by government authorities in accepting the new AI technologies in drug discovery due to rising ethical considerations will certainly pose huge challenges for the market's key players in the coming years. Difficulty in approaching the decision-making process more effectively than the human mind is absolutely a negative factor that is the declining growth rate of AI in the drug discovery market. Top companies are actively working on rectifying all the key challenges in developing technologies that can improve their methods in the coming years.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Artificial Intelligence in Drug Discovery Market Analysis By Offering

The software segment is leading with the largest share of artificial intelligence in the drug discovery market. IT companies are working vigorously to launch new ideas to promote the best treatment procedures in the healthcare industry. The services segment is likely to have the highest CAGR by the end of 2029, owing to the increasing prominence of the development of various drugs for novel therapeutics.

Global Artificial Intelligence in Drug Discovery Market Analysis By Technology

The machine learning segment is gaining huge traction over the market share. Deep learning, which is a sub-segment of machine learning, is expected to have huge growth opportunities throughout the forecast period. Machine learning is a prominent tool that helps in finding out the related chemical and biological information that simultaneously enhances the progress of drug discovery, eventually leveling up the market's growth rate during the forecast period. The natural language processing segment is likely to have the highest growth rate in the future period.

Global Artificial Intelligence in Drug Discovery Market Analysis By Therapeutic Area

The oncology segment is expected to lead the largest share of the market. The rising number of cancer patients and the demand for the launch of innovative drugs that can completely cure the disease are likely to promote the market's drug rate in this area. Cancer is becoming one of the most common diseases across the world. The need to modify the existing drugs that are causing side effects is substantial to elevate the market's growth rate. The infectious diseases and cardiovascular diseases segment is expected to have the most prominent growth rate during the forecast period. The prominence of delivering new drugs for highly infectious communicable diseases is solely fulfilled with the help of AI in research studies.

Global Artificial Intelligence in Drug Discovery Market Analysis By Process

The target identification & selection segment is gearing up with huge growth opportunities during the forecast period. This is the first and most important step in the overall process of drug discovery, which is simplified using artificial intelligence. AI plays a vital role in overall drug discovery, and researchers used to take a lot of time to identify the target and select the best output. AI is simplifying the job much better than human minds, where the target identification and selection are done in very little time, along with the projections of the output. The lead optimization segment is gearing up with a significant growth rate in the coming years.

Global Artificial Intelligence in Drug Discovery Market Analysis By Use Cases

The understanding disease segment is projected to lead the highest market size during the forecast period, whereas the small molecule design and optimization segment is expected to promote the market share in the coming years. The prevalence of new infectious diseases and the prominence to discover a new drug with the advanced technologies where there is minimum knowledge of the disease is perfectly done with the AI from understanding the disease to optimizing the molecule design that is leveling up the growth rate of the market.

Global Artificial Intelligence in Drug Discovery Market Analysis By End User

The pharmaceutical & biotechnology companies segment is leading with the largest share of the market. The companies have already adopted the use of computers and several mathematical models in designing new drugs in the past decade. Now, the development of generative AI models in drug discovery is stepping towards the invention of highly successful outcomes in overall history with approximately less time. Research centers and academic & government institutes segment is likely to level up the growth rate of the market in the coming years.

REGIONAL ANALYSIS

North America is leading with the largest share of the Artificial Intelligence in Drug Discovery market. The US is a hub for the topmost healthcare industries where the prominence for the invention of new drugs with highly advanced technologies is attributed to showcasing huge growth opportunities for the market. High investments in drug discovery by government institutions in developed countries like the US and Canada are ascribed to boosting the growth rate of the market. Over the past two decades, the prominence of the development of new drugs for various diseases using AI models has totally expanded with the growing support from various government organizations through investments, especially in the US. The government spending on discovering vaccines and therapeutics for COVID-19 was accelerated to 9.9% in 2023. The US government is taking several measures to ensure that every person receives proper and effective treatment procedures at affordable prices, which is enhancing the market's growth rate.

Europe is next to North America, holding a prominent share of AI in the drug discovery market. The rapid adoption of various technologies to promote smooth operations in research centers is ascribed to fueling the growth rate of the market. The increasing number of people's expenditure on healthcare and their demand for high-quality treatment procedures is attributed to launching new drugs with fewer or no side effects, which is surging the market's growth rate in this region.

Asia Pacific artificial intelligence in the drug discovery market is likely to hit the highest CAGR by the end of 2029. Emerging countries like India and China are attributed to contributing the highest share of the market. The rising population is one of the driving factors for the growth of the market in these countries. Eventually, the increasing population in these countries is raising the demand to escalate the development of new drugs. Elderly people are more likely to surge the growth rate of the market in India and China.  

KEY MARKET PLAYERS

NVIDIA Corporation (US), Exscientia (UK), BenevolentAI (UK), Recursion (US), Insilico Medicine (US), Schrödinger, Inc. (US), Microsoft Corporation (US), Google (US), Atomwise Inc. (US), Illumina, Inc. (US), NuMedii, Inc. (US), XtalPi Inc. (US), Iktos (France), Tempus Labs (US), Deep Genomics, Inc. (Canada), Verge Genomics (US), BenchSci (Canada), Insitro (US), Valo Health (US), BPGbio, Inc. (US), IQVIA Inc (US), LabCorp (US), Tencent Holdings Limited (China), Predictive Oncology, Inc. (US), Celsius Therapeutics (US), CytoReason (Israel), Owkin, Inc. (US), Cloud Pharmaceuticals (US), Evaxion Biotech (Denmark), Standigm (South Korea), BIOAGE (US), Envisagenics (US), and Aria Pharmaceuticals, Inc. (US)

RECENT HAPPENINGS IN THE MARKET

• In 2024, NVIDIA Corporation is all set to enter into the next era of Drug Discovery and Design. The dramatic transformation in the healthcare industry to use generative AI models to reinvent drug discovery, surgery, medical imaging, and wearable devices. The researchers can take advantage of the AI model that can curate the investigation to find out the most curated drug candidates by reducing the time and cost, respectively.

DETAILED SEGMENTATION OF THE GLOBAL ARTIFICIAL INTELLIGENCE IN DRUG DISCOVERY MARKET INCLUDED IN THIS REPORT

This research report on the global artificial intelligence in drug discovery market has been segmented and sub-segmented based on the offering, technology, therapeutic area, process, end user, and region. 

By Offering

• Software
• Services

By Technology

• Machine Learning
  • Deep Learning
  • Supervised Learning
  • Reinforcement Learning
  • Unsupervised Learning
  • Other Machine Learning Technologies
• Natural Language Processing
• Context-aware Processing
• Other Technologies

By Therapeutic Area

• Oncology
• Infectious Diseases
• Neurology
• Metabolic Diseases
• Cardiovascular Diseases
• Immunology
• Other Therapeutic Areas

By Process

• Target Identification & Selection
• Target Validation
• Hit Identification & Prioritization
• Hit-to-lead Identification/ Lead generation
• Lead Optimization
• Candidate Selection & Validation

By Use Cases

• Understanding Disease
• Small Molecule Design and Optimization
• Vaccine Design and Optimization
• Antibody & Other Biologics Design and Optimization
• Safety and Toxicity

By End User

• Pharmaceutical & Biotechnology Companies
• Contract Research Organizations
• Research Centers and Academic & Government Institutes

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa