Artificial Intelligence in Drug Discovery Market Analysis

AI in Drug Discovery Market Analysis

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Based on component, the market is segmented into software and services. The software segment held 68.3% revenue share in 2023 and is projected to grow at 29.4% CAGR during the forecast period.
 

• 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 fueling 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 adoption of AI software in drug discovery.
   

Based on technology, the AI in drug discovery market is classified into machine learning and other technologies. The machine learning segment is anticipated to witness substantial growth to reach USD 15.9 billion during the analysis time.
 

• Machine learning segment holds a substantial market share in the field of AI in drug discovery, driven by its ability to revolutionize various stages of the drug development process.
   
• Machine learning algorithms can analyze vast amounts of data, including biological, chemical, and clinical data, to identify potential drug candidates, predict their efficacy and safety profiles, and optimize clinical trial designs.
   
• Additionally, the increasing adoption of machine learning in drug discovery is supported by advancements in computational power, data availability, and algorithm development, further fueling its market growth.
   

Based on application type, the AI in drug discovery market is bifurcated into molecular library screening, target identification, drug optimization and repurposing, de novo drug designing, and preclinical testing. The molecular library screening accounted for USD 756.6 million in 2023 and is projected to witness growth at 29.3% from 2024 to 2032.
 

• AI algorithms enable high-throughput screening of large molecular libraries, allowing researchers to analyze thousands to millions of compounds rapidly. This efficiency accelerates the drug discovery process, reducing the time and resources required for identifying potential drug candidates. Thus, the adoption of AI for molecular library screening is increasing owing to these benefits.
   
• Furthermore, it can be easily integrated with AI-driven drug design approaches, such as de novo design maximizing the potential for discovering novel therapeutics with improved efficacy and safety profiles.
   

Based on therapeutic area, the AI in drug discovery market is divided into oncology, neurodegenerative diseases, inflammatory, infectious diseases, metabolic diseases, rare diseases, cardiovascular diseases, and other therapeutic areas. The oncology segment dominated the global AI in drug discovery market with 46% of market share in 2023.
 

• Increasing prevalence of cancer worldwide is a major factor contributing to the growth of this segment. For instance, according to International Agency for Research on Cancer (IARC) 2022 report showed 20 million new cancer cases and 9.7 million deaths globally, with lung and breast cancer being the most common type of cancers.
   
• Oncology represents an area with significant unmet medical needs, as cancer remains one of the leading causes of mortality worldwide. The unmet medical needs significantly increase the demand for more effective and targeted therapy. Thus, the complexity and heterogeneity of cancer require innovative approaches for drug discovery, thereby increasing the adoption of AI-driven solutions.
   

Based on end-use, the artificial intelligence in drug discovery market is categorized into pharmaceutical and biotechnology companies, contract research organization (CROs), and other end-users. The pharmaceutical and biotechnology companies segment held significant market share in 2023 and is expected to reach USD 10.2 billion by 2032.
 

• These companies have substantial financial resources, enabling them to invest significantly in AI technologies for drug discovery. Further, they are major contributors to research and development (R&D) in the healthcare industry.
   
• Additionally, they have access to vast amounts of data, including proprietary research and clinical trial data, which can be leveraged by AI algorithms to identify potential drug candidates more efficiently.
   
• Moreover, pharmaceutical and biotechnology companies often have established expertise in drug development, allowing them to integrate AI into their existing processes more seamlessly. As a result, these companies are at the forefront of adopting AI in drug discovery and contribute towards market growth.
   

North America held the largest share of 47.4% in 2023 and is set to witness substantial growth in the coming years.
 

• The region boasts a robust pharmaceutical industry, a strong presence of leading AI technology providers, and a supportive regulatory environment for innovation.
   
• Its commitment to fostering innovation through collaborations between academia, industry, and technology providers has bolstered its position in the AI in drug discovery market, driving growth and advancements in the field.
   

The U.S. artificial intelligence in drug discovery market in 2023 was valued at USD 823.6 million and is anticipated to grow at 29.1% CAGR.
 

• Increasing research funding, government initiatives promoting precision medicine in the U.S., and the adoption of AI-based tools in R&D for drug discovery among major pharmaceutical companies have further propelled the growth of this country.
   
• Furthermore, due to the advanced healthcare infrastructure, there is an early and proactive adoption of AI technology in this region, leading to a substantial presence in the market.
   

China's market for AI in drug discovery is poised for an impressive growth rate of 31.6% in the upcoming years.
 

• China boasts a vast and rapidly growing pharmaceutical industry that is increasingly leveraging AI to accelerate drug discovery processes, reduce costs, and improve success rates.
   
• Furthermore, rising incidence of chronic diseases and an aging population are driving the demand for new and more effective medications, further propelling the growth of the AI in drug discovery market in China.
   

India is set to lead the global artificial intelligence market in drug discovery, boasting a remarkable growth rate of 32.1%.
 

• The Indian government has been actively promoting AI and biotechnology through various initiatives and funding programs, aiming to transform the country into a global hub for technological innovation.
   
• Additionally, the increasing number of AI startups and tech companies focusing on healthcare solutions is spurring innovation and creating a dynamic ecosystem for AI-driven drug discovery.