Global AI in Drug Discovery Market Size By Type (Based on Offering & Technology), By Application (Oncology, Infectious Diseases, Neurodegenerative Diseases, Rare Diseases, Other), By Region, And Segme...

The Global Lab Automation in AI in Drug Discovery ug Discovery Market was valued at USD 0.96 billion in 2023 and it is poised to grow beyond USD 4.89 billion by the end of 2030; registering a CAGR of 26.20% during the forecast period of 2024-2030.

AI (Artificial Intelligence) in drug discovery refers to the use of machine learning algorithms, deep learning, and other AI techniques to expedite and optimize the process of discovering new drugs. The growth of the global AI in Drug Discovery is primarily driven by advancements in AI and machine learning technologies in drug discovery processes. Lack of AI workforce and regulatory guidelines especially for medical sector might hamper the growth of the market.

Global AI in Drug Discovery Market Dynamics

Market Drivers

Advancements in AI and Machine Learning Technologies in Drug Discovery Processes;

-        AI technology is advancing rapidly due to increase in Computational Power, Advancements in Algorithms, Availability of Large Datasets etc. This allows researchers to train larger and more complex models, leading to improved performance and capabilities of AI technology.

-        Recent advancements in AI and machine learning algorithms, as well as the availability of large datasets, have enabled more accurate predictions and better decision-making in drug discovery. For instance, AtomNet an AI platform use structure-based drug design to predict how different drug molecules will interact with the target, thereby enhancing the precision of drug development. This has increased the adoption of AI tools and technologies by pharmaceutical companies and research organizations.

AI helps in accelerating clinical trials;

-        Clinical trials are being revolutionized by AI, mainly in the areas of trial design and patient recruitment. Employing artificial intelligence (AI), businesses can examine electronic health records (EHRs) to find qualified applicants more quickly. By matching patients to appropriate clinical trials, AI can accelerate the recruitment process and improve patient retention.

Market Restraint

Lack of AI workforce and regulatory guidelines especially for medical sector

-        The lack of AI workforce and regulatory guidelines, especially in the medical sector, pose significant challenges to the AI in drug discovery market. There is a shortage of skilled professionals with expertise in both AI and the medical domain. Developing AI algorithms for drug discovery requires a deep understanding of both the biological and computational aspects of the problem. However, there is a shortage of professionals who possess this interdisciplinary expertise. As a result, many companies struggle to find and retain qualified AI talent, slowing down the development and adoption of AI in drug discovery.

-        The regulations for AI in the medical sector are complex and constantly evolving. Regulatory agencies such as the FDA (Food and Drug Administration) in the United States are still in the process of developing guidelines for the use of AI in drug discovery. The lack of standard regulatory guidelines can create uncertainty for companies developing AI-based medical products, leading to delays in product development and market entry.

Market Opportunities

Continuous development in AI Technology;

-        Advancements in AI algorithms, particularly in machine learning and deep learning, enable more accurate prediction of potential drug targets. AI can analyze large biological datasets to identify genes, proteins, and other molecules which acts as key element in any disease. This helps researchers with valuable insights for drug discovery.

-        Overall, continuous development in AI creates numerous opportunities for the AI in Drug Discovery Market by accelerating the drug discovery process, reducing costs, and improving the efficiency and effectiveness of drug development.

AI in Drug Discovery Market by Application Insights:

Base on application segment, the market is categorized into Oncology, Infectious Diseases, Neurodegenerative Diseases, Rare Diseases, Cardiovascular Diseases, Metabolic Diseases, Others. The oncology segment holds the major share of the total market due to the rapidly increasing cases of cancers. The infectious diseases segment is expected to be the fastest-growing application segment from 2023 to 2030.

AI in Drug Discovery Market by End-user Insights:

On the basis of end-use segment, the market is segmented into Pharmaceutical and Biotechnology Companies, Contract Research Organizations (CROs), Research Centers and Academic Institutes and Others. The Pharmaceutical and Biotechnology Companies dominates the market in 2023 due to the growing focus and investment in pharmaceutical sector.

Market By Region Insights

Based on the regional coverage, the global AI in Drug Discovery market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. North America currently dominates the AI in Drug Discovery market due to the early adoption of technology and heavy investment in pharmaceutical industry in the region.

Competitive Scenario:

Major players operating in the global AI in Drug Discovery market include NVIDIA Corporation, IBM, Atomwise Inc., Microsoft, Benevolent AI, Aria Pharmaceuticals, Inc., DEEP GENOMICS, Exscientia, Insilico Medicine, Cyclica, NuMedii, Inc., Envisagenics, Owkin Inc., BERG LLC, Schrödinger, Inc., XtalPi Inc.

Scope of Work – Global AI in Drug Discovery Market

Market Segmentation

·        Based on Offering

o   Software

o   Services

·        Based on Technology

o   Machine Learning (ML)

o   Natural Language Processing (NLP)

o   Context Aware Processing

o   Others

·        Based on Application

o   Oncology

o   Infectious Diseases

o   Neurodegenerative Diseases

o   Rare Diseases

o   Cardiovascular Diseases

o   Metabolic Diseases

o   Others

·        Based on End-user

o   Pharmaceutical and Biotechnology Companies

o   Contract Research Organizations (CROs)

o   Research Centers and Academic Institutes

o   Others

Based on region

o   North America (U.S., Canada)

o   Europe (Germany, France, Italy, Spain, UK, Rest of Europe)

o   Asia-Pacific (China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia-Pacific)

o   Latin America (Brazil, Argentina, Mexico, and Rest of LAMEA)

o   Middle East & Africa (Saudi Arabia, UAE, Qatar Bahrain, South Africa, Rest of MEA)

Frequently Asked Question

Q. What is the current market size of the Global AI in Drug Discovery Market?

Answer. The global AI in Drug Discovery market size was estimated at USD 0.96 billion in 2023 and is expected to grow beyond USD 4.89 billion in 2030, registering a CAGR of 26.20% during the forecast period of 2023-2030. 

Q. What is the major growth driver of the Global AI in Drug Discovery Market?

Answer. The growth of the global AI in Drug Discovery market is mainly driven by advancements in AI and machine learning technologies in drug discovery processes.

 Q. Which is the largest region during the forecast period in the Global AI in Drug Discovery Market?

Answer.  North America region accounted for largest market share in the global AI in Drug Discovery market in 2022.

 Q. Which segment accounted for the largest market share in Global AI in Drug Discovery Market?

Answer. Based on end-user, Pharmaceutical and Biotechnology Companies segment dominates the AI in Drug Discovery market.

 Q. Who are the key market players in the Global AI in Drug Discovery Market?

Answer. NVIDIA Corporation, IBM, Atomwise Inc., Microsoft, Benevolent AI, Aria Pharmaceuticals, Inc., DEEP GENOMICS, Exscientia, Insilico Medicine, Cyclica, NuMedii, Inc., Envisagenics, Owkin Inc., BERG LLC, Schrödinger, Inc., XtalPi Inc. are the key players in this market that are shaping the growth trajectory of this market.