Artificial Intelligence (AI) in Drug Discovery Market - By Component (Software, Service), Technology (Machine learning {Deep Learning}), Application Type (Target Identification), Therapeutic Area (Oncology), End-use (CRO), Global Forecast, 2023 – 2032

AI in Drug Discovery Market Size

AI in Drug Discovery Market size accounted for USD 1.5 billion in 2022 and is estimated to grow at 30.1% CAGR between 2023 and 2032. Increasing demand to curb the drug discovery cost and time utilized in the process will accelerate the market growth.
 

Growing number of collaborations and partnerships is expected to accelerate the market demand. For instance, in January 2022, Janssen Pharmaceutica NV, a pharmaceutical company of Johnson & Johnson, collaborated with SRI International (SRI). With this collaboration, Janssen can leverage SRI’s SynFini platform, an artificial intelligence (Al)-guided, automated synthetic- chemistry system for small molecule drug discovery. This strategy helped the company to accelerate small-molecule drug discovery and development. Thus, increasing number of collaborations and partnerships is driving the adoption of AI-based solution for drug discovery and development process.
 

Artificial intelligence (AI) in drug discovery refers to the application of advanced computational algorithms and machine learning techniques to expedite and enhance the process of discovering new drugs and therapies. It involves the utilization of AI models to analyse vast amounts of biological, chemical, and clinical data, enabling the identification of potential drug targets, the design of novel compounds, and the prediction of drug efficacy and safety profiles.
 

COVID-19 Impact

The COVID-19 pandemic had positive impact on the artificial intelligence in drug discovery market. The urgency to develop effective treatments and vaccines for COVID-19 has driven researchers and pharmaceutical companies to leverage AI technologies at an unprecedented scale. For instance, in June 2020, Repurpose.AI, an AI drug discovery company, collaborated with Scripps Research to develop COVID-19 therapeutics. The partnership leveraged Repurpose.AI's ActivPred AI drug discovery platform to discover drug candidates to treat COVID-19. Thus, AI algorithms have played a crucial role in expediting the drug discovery process by analysing vast amounts of data and identifying potential drug candidates with higher efficiency.
 

AI in Drug Discovery Market Trends

Increasing prevalence of chronic diseases such as cardiovascular diseases, cancer, diabetes, and respiratory disorders, as well as infectious diseases such as HIV/AIDS, malaria, and COVID-19, worldwide is anticipated to boost the market growth. For instance, according to the International Diabetes Federation (IDF) report, in 2021, approximately 537 million adults (20-79 years) are living with diabetes across the globe. The total number of people living with diabetes is projected to rise to 643 million by 2030 and 783 million by 2045. As the complexity and diversity of these diseases demand innovative approaches to drug discovery, there is a growing requirement for artificial intelligence in healthcare. Moreover, AI can enable the development of precision medicine approaches by tailoring treatments to individual patients based on their unique characteristics and disease profiles. Such factor is anticipated to boost the market growth.
 

AI in Drug Discovery Market Restraint

Limited understanding and expertise [LK1] in the field of artificial intelligence (AI), specifically within drug discovery may hamper the market growth. The integration of AI into the complex and highly regulated pharmaceutical industry requires deep domain knowledge, technical expertise, and an understanding of the unique challenges in drug discovery. Additionally, the constant advancements and innovations in AI technologies necessitate ongoing learning and upskilling. Therefore, shortage of experts with the necessary skills to develop, implement, and interpret AI models specifically in drug discovery may hinder the market growth.
 

AI in Drug Discovery Market Analysis

By component, the AI in drug discovery market is classified into software and services. The software segment accounted for 63% of the market share in 2022 and is projected to witness significant growth over the analysis timeframe. Increasing demand for advanced analytics and machine learning tools within the pharmaceutical industry is expected to propel the segmental growth. Furthermore, AI software tools enhance efficiency and automate multiple stages of the drug discovery workflow, resulting in reduced time and resource requirements, thereby fuelling the adoption of AI software in drug discovery. Moreover, advancements in cloud computing and high-performance computing infrastructure have played a pivotal role in driving the growth of AI software.
 

Based on technology, the AI in drug discovery market is segmented into machine learning and other technology. The machine learning segment is expected to surpass around USD 18 billion by 2032. The increasing availability and accessibility of vast amounts of data, including genomics, proteomics, and clinical records, have created opportunities for machine learning algorithms to extract valuable insights and patterns. By leveraging these data sets, machine learning algorithms can identify potential drug targets, predict drug efficacy, and optimize drug design, enabling more targeted and efficient drug discovery processes. Such aforementioned factor is expected to drive the market growth.
 

Based on application type, the AI in drug discovery market is segmented into molecular library screening, target identification, drug optimization and repurposing, de novo drug designing, and preclinical testing. The molecular library screening segment accounted for 40.1% of the market share in 2022 and is projected to witness considerable growth over the analysis timeframe. The availability of vast and constantly expanding libraries of molecular compounds will presents a tremendous opportunity for AI-driven screening, thereby fostering the market growth.  Furthermore, increasing demand for the discovery and development of novel drug therapies and growing manufacturing capacities of the life science industry are boosting the demand of artificial intelligence in drug discovery.
 

Based on therapeutic area, the AI in drug discovery market is segmented into oncology, neurodegenerative diseases, inflammatory, infectious diseases, metabolic diseases, rare diseases, cardiovascular diseases, and other therapeutic areas. The oncology segment accounted for 44.8% of the market share in 2022 and is projected to witness considerable growth over the analysis timeframe. The increasing prevalence of cancer worldwide will supplement the market growth. For instance, according to the National Institute of Health (NIH) report, in 2022, the estimated number of incident cases of cancer in India was found to be 1,461,427 (100.4 per 100,000). Thus, growing cases of cancer will drive the demand for more effective and targeted treatments, thereby escalating the market growth.
 

Based on end-use, the AI in drug discovery market is segmented into pharmaceutical and biotechnology companies, contract research organization (CROs), and other end-users. The pharmaceutical and biotechnology companies segment accounted for 53.1% of the market share in 2022 and is projected to witness considerable growth over the analysis timeframe. The adoption of AI technologies by pharmaceutical and biotechnology companies offers numerous advantages, including the discovery of new targets and indications, optimization of drug development pipelines, enhanced collaboration, and the ability to address unmet medical requirements.
 

North America AI in drug discovery market accounted for 51.9% market share in 2022 and is anticipated to grow at considerable growth rate during the forecast timeframe. North America has a robust ecosystem of research institutions, academic centers, and healthcare facilities, thereby driving the regional growth. Moreover, the availability of diverse and high-quality dataset enables the development and validation of AI algorithms for drug discovery applications. Furthermore, increasing prevalence of chronic diseases coupled with rising investment in research and development activities is expected to supplement the artificial intelligence (AI) in drug discovery industry.
 

AI in Drug Discovery Market Share

Major market players operating in the artificial intelligence in drug discovery market include:

• Microsoft
• BenevolentAI
• Exscientia
• IBM Corporation
• Alphabet (DeepMind)

These industry players majorly adopt various strategies including collaborations, acquisitions, mergers, and partnerships to create a global footprint and sustain market competition.
 

Artificial Intelligence in Drug Discovery Industry News:

• In November 2022, Exscientia collaborated with the University of Texas MD Anderson Cancer Center to use its patient-centric artificial intelligence technology for novel small molecule drug discovery and development using the expertise of MD Anderson. This strategy helped the company to expand and grow.
   
• In August 2022, GNS Healthcare collaborated with Servier, a global pharmaceutical group to advance drug discovery, translational, and clinical development efforts in multiple myeloma (MM). This strategy helped the company to expand its service offering.
   

The artificial intelligence (AI) in drug discovery market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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By Component

• Software
• Services

By Technology

• Machine Learning 
• Deep Learning
• Supervised Learning
• Unsupervised Learning
• Other Machine Learning Technologies 
• Other Technologies

By Application Type

• Molecular library screening
• Target Identification
• Drug Optimization and Repurposing
• De novo Drug Designing
• Preclinical Testing

By Therapeutic Area

• Oncology
• Neurodegenerative Diseases
• Inflammatory
• Infectious Diseases
• Metabolic Diseases
• Rare Diseases
• Cardiovascular Diseases
• Other Therapeutic Areas

By End-use

• Pharmaceutical and Biotechnology Companies
• Contract Research Organization (CROs).
• Other End-users

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Rest of Middle East & Africa