Number of pages: 100 | Report Format: PDF | Published date: July 03, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
According to the deep-dive market assessment study by Growth Plus Reports, the global AI in the drug discovery market was valued at US$ 600 million in 2022 and is expected to register a revenue CAGR of 25.22% to reach US$ 4,541.66 million by 2031.
AI in Drug Discovery Market Fundamentals
The field of drug discovery has been revolutionized by the implementation of artificial intelligence (AI). Artificial intelligence can transform the entire drug discovery process, from target identification to clinical trials. By leveraging machine learning algorithms and big data analytics, AI enables researchers to analyze vast amounts of biological and chemical data more efficiently and accurately. The introduction of AI in drug discovery has opened new possibilities and accelerated the pace of research and development. It has the potential to significantly reduce the time and cost required to bring new drugs to market. AI algorithms can quickly analyze large databases of chemical compounds and predict their potential efficacy and safety, helping researchers prioritize the most promising candidates for further investigation.
In recent years, AI-driven drug discovery has seen significant advancements, with deep learning models being a key trend. These models can learn from vast amounts of data and predict outcomes based on complex patterns and relationships. They have proved useful in tasks like virtual screening, toxicity prediction, and lead optimization, enabling researchers to identify potential drug candidates more accurately and efficiently. Another trend is the integration of AI with high-throughput screening technologies. AI algorithms can analyze data from screenings and identify patterns that may be missed by human researchers, leading to the discovery of novel drug targets and the repurposing of existing drugs for new indications.
Market players, including pharmaceutical companies, biotechnology firms, and technology companies, are actively influencing the adoption and development of AI in drug discovery.
Top players are investing significant resources and forming strategic partnerships to harness the power of AI and drive innovation in the field.
AI in Drug Discovery Market Dynamics
There are several key factors contributing to the rising demand for artificial intelligence in drug discovery. Handling large-scale biological and chemical datasets is a crucial factor in the adoption of AI in drug discovery. As technology, such as genomics, proteomics, and high-throughput screening, continues to advance rapidly, there is an exponential increase in the amount of data being generated and collected. Artificial intelligence algorithms can analyze these datasets to extract valuable insights, identify patterns, and discover new relationships between molecules, targets, and diseases. The abundance of big data fuels the development and application of AI in drug discovery, enabling researchers to make data-driven decisions and accelerate the discovery of effective drugs.
Furthermore, many top players in the pharmaceutical industry are actively investing in significant resources such as machine learning to support their drug discovery. For instance, in 2019, Pfizer collaborated with CytoReason to leverage their drug discovery through artificial intelligence and machine learning technologies. In September 2022, Pfizer and CytoReason recently extended their partnership to continue their work on AI-driven drug discovery. Similarly, Sanofi announced an expansion of its partnership with CytoReason. Sanofi has licensed CytoReason's inflammatory bowel disease (IBD) model for a multimillion-dollar fee as part of the deal.
Moreover, the presence of many pipeline drugs discovered and designed by artificial intelligence is anticipated to increase the revenue share of global AI in the drug discovery market. For instance, in June 2023, a drug discovered and generated by Insilico's AI entered Phase II clinical trials in multiple regions, including the U.S. and China. This is a possibly first-in-class anti-fibrotic drug candidate in clinical Phase II that is entirely delivered by generative AI, featuring a novel AI-discovered target and a novel AI-generated molecular structure.
However, there are several restraining factors in AI in the drug discovery market. These include limited availability and quality of data, regulatory challenges, ethical considerations, and the need for human expertise in interpreting and validating AI-generated results.
The global AI in the drug discovery market is analyzed from the following perspectives: by component, application, therapeutic area, end user, and region.
AI in Drug Discovery Market by Component
Based on components, the global AI in the drug discovery market is segmented into software, hardware, and services.
The software segment accounted for a significant share of the global AI in drug discovery market share in 2022. This growth can be attributed to the increasing adoption of AI-powered software solutions by pharmaceutical companies and research and development organizations for various drug discovery processes. These software solutions offer advanced capabilities such as predictive modeling, data analysis, and virtual screening, which help identify potential drug candidates more efficiently and accurately. Additionally, integrating AI algorithms in drug discovery software enables the identification of new therapeutic targets and optimizing drug development processes, further driving the market growth.
AI in Drug Discovery Market by Application
Based on the application, the global AI in the drug discovery market is segmented into drug optimization and repurposing, drug screening, and others.
The drug optimization & repurposing segment accounted for 54.2% revenue share of the global AI in drug discovery market in 2022. This is attributed to the ability of artificial intelligence to analyze large amounts of data quickly and accurately. AI algorithms can shift through vast databases of chemical compounds and identify potential candidates for drug development or repurposing. This can greatly speed up the discovery process, as AI can analyze thousands of compounds simultaneously, whereas traditional methods would take much longer to evaluate each one individually. AI can also predict the efficacy and safety of potential drugs, helping researchers prioritize which compounds to focus on for further testing.
AI in Drug Discovery Market by Therapeutics
Based on therapeutics, the global AI in the drug discovery market is segmented into oncology, neurodegenerative diseases, cardiovascular diseases, metabolic diseases, infectious diseases, and others.
The oncology segment accounted for a 25% share of the global AI in the drug discovery market in 2022. This significant market share can be attributed to the increasing adoption of AI technology in cancer research and drug development. The oncology segment has witnessed a surge in demand for AI solutions, as it offers immense potential for identifying novel therapeutic targets, optimizing drug combinations, and predicting patient outcomes. Additionally, the rising prevalence of cancer worldwide and the need for more effective and personalized treatment options have further fueled the growth of AI in drug discovery within the oncology segment.
AI in Drug Discovery Market by End User
Based on end user, the global AI in drug discovery market is segmented into pharmaceutical & biotechnology companies, research and development institutes, and contract research organization.
The pharmaceutical & biotechnology companies segment dominated the global AI in the drug discovery market. This dominance can be attributed to the increasing need for innovative and efficient solutions in the drug discovery process. Pharmaceutical and biotechnology companies heavily rely on AI technologies to accelerate the identification of potential drug candidates, optimize drug design, and predict their efficacy. With the vast amount of data available, AI algorithms can analyze and interpret complex biological and chemical information, leading to faster and more accurate predictions. Additionally, integrating AI in drug discovery allows for the exploration of novel targets and the repurposing of existing drugs, ultimately speeding up the development of new therapies and reducing costs.
AI in Drug Discovery Market by Region
Based on the region, the AI in the drug discovery market is segmented into North America, Europe, Asia Pacific, Latin America, & the Middle East & Africa.
North America accounted for 59% of the global AI in drug discovery market share in 2022. This dominance can be attributed to the presence of key market players in the region and the increasing adoption of AI technologies in the pharmaceutical industry. Additionally, the region's robust healthcare infrastructure and favorable government initiatives have further propelled the growth of AI in the drug discovery market in North America. Moreover, the strong research and development capabilities in North America have enabled it to lead in the development and implementation of AI-based drug discovery solutions.
The Asia Pacific AI in the drug discovery market is expected to register a 25.82% of revenue CAGR in the forecast years. This growth can be attributed to the increasing investments in AI technology by pharmaceutical companies in the region. The rising prevalence of chronic diseases and the need for more efficient drug discovery processes are also driving market growth.
AI in Drug Discovery Market Strategic Development
AI in Drug Discovery Market Competitive Landscape
The competitive landscape in AI in the drug discovery market is rapidly evolving as more and more companies recognize the potential of this technology. Major pharmaceutical companies have invested heavily in AI to enhance their drug discovery efforts. Additionally, there has been a surge in the number of start-ups specializing in AI-driven drug discovery, further intensifying the competition in the market. These companies leverage advanced algorithms and machine learning techniques to analyze vast amounts of data and identify potential drug candidates more accurately and efficiently.
Some of the prominent companies having the largest revenue share in the global AI in drug discovery market are,
Artificial intelligence can potentially transform the entire drug discovery process, from target identification to clinical trials.
The global AI in drug discovery market has witnessed significant growth over the years, owing to the increasing demand for innovative drugs and technological advancements in AI.
The global AI in the drug discovery market is expected to register a revenue CAGR of 25.22% in the forecast period from 2023 to 2031.
North America accounted for the majority of the global AI in the drug discovery market due to the presence of major market players in the region investing in AI and increasing demand for new and innovative drugs.
The global AI in the drug discovery market was valued at US$ 600 million in 2022.
*Insights on financial performance are subject to the availability of information in the public domain