AI in Drug Discovery Market

The report "Artificial Intelligence in Drug Discovery Market by Process (Target, Lead), Use Case (Design & Optimisation: Vaccine, Antibody; Disease understanding, PK/PD), Therapy (Cancer, CNS, CVS), Tool (ML:DL (CNN, GAN)), End User & Region - Global Forecast to 2029 ", is expected to reach USD 6.89 billion by 2029 from USD 1.86 billion in 2024, at a CAGR of 29.9 % during 2024–2029.

Browse 270 market data Tables and 50 Figures spread through 350 Pages and in-depth TOC on "Artificial Intelligence in Drug Discovery Market by Process (Target, Lead), Use Case (Design & Optimisation: Vaccine, Antibody; Disease understanding, PK/PD), Therapy (Cancer, CNS, CVS), Tool (ML:DL (CNN, GAN)), End User & Region - Global Forecast to 2029 "
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The major factors driving the market growth of artificial intelligence (AI) in drug discovery market include the increasing need to reduce the time and cost of drug discovery and development, growing pipeline of oncology indication. AI aids in predicting the toxicity of anti-cancer drugs by using machine learning models that combine information about chemical structures and gene expression. GAN tools enable the exploration of novel chemical spaces, leading to the discovery of unique compounds. Moreover, the emergence of precision medicine, initiatives for research on rare diseases and orphan drugs and integration of multi-omics data also assist in propelling the artificial intelligence (AI) in drug discovery market. Limited availability of data sets could potentially pose a challenge to the market landscape.

Pharmaceutical & biotechnology companies account for the largest share and fastest growing of the artificial intelligence (AI) in drug discovery market, by end user during the forecast period.

Based on end-user, the artificial intelligence (AI) in drug discovery market is segmented into pharmaceutical & biotechnology companies, contract research organizations (CROs), and research centers, academic institutes, & government organizations. The pharmaceutical & biotechnology companies segment dominated the AI in the drug discovery market mainly due to significant investments and innovations in AI-driven technologies within the pharma and biotech sector. For instance, in April 2024, Xaira Therapeutics, a joint venture between ARCH Venture Partners and Foresite Labs,  launched with over USD 1 billion in committed capital from lead investors.

These companies leverage AI to accelerate drug discovery, reduce time and cost of the overall drug discovery process. Moreover, collaborations and partnerships between AI vendors and pharmaceutical giants led to advancements in precision and personalized medicines, which assist to accelerate the growth of this segment.

The end-to-end Solutions Providers segment holds the largest share of the artificial intelligence (AI) in the drug discovery market in 2024.

Based on player type, the artificial intelligence (AI) in  drug discovery market is segmented into end-to-end solutions providers, niche/point solutions providers, AI technology providers, and business process service providers.  The end-to-end solutions providers segment dominated the artificial intelligence (AI) in drug discovery market primarily due to its capability to offer comprehensive services across multiple processes and use cases, which include target identification & selection, target validation, hit identification & prioritization, hit-to-lead identification/lead generation, lead optimization, and candidate selection and validation. NVIDIA Corporation (US), Exscientia (UK), and Benevolent AI (UK) these companies are prime examples of end-to-end solutions providers.

These providers streamline the whole drug discovery process, reducing costs and development timelines for pharmaceutical and biotech companies. Moreover, the growing demand for fully integrated AI solutions, the need for a one-stop solution, coupled with the need for personalized and efficient drug discovery and development, accelerates the growth of this market globally.

“Machine learning segment accounted for the largest share of the global artificial intelligence (AI) in drug discovery market.”

Based on AI tools, the artificial intelligence (AI) in drug discovery market is segmented into machine learning, natural language processing (NLP), context-aware processing and computing, computer vision, and image analysis (including optical character recognition). The machine learning segment accounted for the largest share and is expected to grow at the fastest rate during the forecast period. Deep learning, supervised learning, reinforcement learning, unsupervised learning, and other machine learning technologies are additional classifications. Machine learning algorithms are used to analyze, interpret, and identify trends in large, complex, and multifaceted datasets like genomics, proteomics, chemical structures, and clinical data, among others. Machine learning analyzes patient data to predict drug responses and helps develop personalized treatment strategies. Tailoring treatments based on genetic, molecular, and clinical information results in more effective outcomes and accelerates drug discovery. Additionally, there is increased adoption of machine learning by pharmaceutical and biotech companies, which helps to boost the growth of this market. For instance, in October 2024, according to a study published by PharmTech, 68% of pharmaceutical experts currently use AI and ML in their work, a notable increase from 54% in 2023. Furthermore, 62% of respondents plan to invest in these technologies over the next two years.

This technology has the potential to optimize molecular design, predict drug efficiency, and reduce the time and cost of the process, resulting in significantly increased application. As AI driven platforms become advanced and machine learning’s role in drug discovery plays a significant role in boosting the growth of artificial intelligence (AI) in drug discovery market.

“North America dominated the artificial intelligence (AI) in drug discovery market in 2023”

In 2023, North America dominated the the global AI in drug discovery market and is poised to maintain this leadership during the forecast period. The US FDA’s proactive stance on approving drug candidates discovered using AI and the advanced IT infrastructure of the pharma & biotech sector are driving the growth of the market. Government initiatives, such as increased funding for AI research through agencies such as the NIH and others, also boost adoption. US has been an early adoption of AI technology in drug discovery owing to the presence of key industry players, a well-established pharmaceutical and biotechnology sector, increasing in research and development spending, and a focus on developing advanced innovative solutions contribute to the growth of AI in the drug discovery market in this region. Additionally, the US has a robust biotech ecosystem with several startups and established players collaborating with AI technology firms, further fueling growth.

The report profiles key players such as NVIDIA Corporation (US), Exscientia (UK), Google (US), BenevolentAI (UK), Recursion (US), Insilico Medicine (US), Schrödinger, Inc. (US), Microsoft (US), Atomwise Inc. (US), Illumina, Inc. (US), Numedii, Inc. (US), Xtalpi Inc. (US), Iktos (France), Valo Health (US), Merck KGaA (Germany), and others.

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