Healthcare Medical Devices Biotechnology

AI in Drug Discovery Market is Expected to Reach USD 36.06 Billion by 2030

Mar 2024

Healthcare Medical Devices Biotechnology

As per the report published by Kings Research, the global AI in Drug Discovery Market was valued at USD 4.07 billion in 2022 and is projected to reach USD 36.06 billion by 2030, growing at a CAGR of 31.94% from 2023 to 2030.

The partnership between AI startups and pharmaceutical companies plays a crucial role in driving the AI in drug discovery market growth. These collaborations are expected to result in breakthroughs in drug development, leading to improved efficiency and cost reduction. Additionally, there is a growing focus on the potential of drug repurposing and rare disease research. By harnessing the power of AI, pharmaceutical companies can speed up the identification of potential drug candidates for rare diseases, which have traditionally posed challenges. The forecasts indicate strong growth for the global AI in drug discovery market over the forecast period.

Key Insights

  • Based on component, the software segment held the largest market share of 63.45% in 2022
  • Based on computational method, the machine learning segment generated the highest revenue of USD 2.03 billion in 2022
  • Based on therapeutic area, the oncology segment secured the largest market share of 36.87% in 2022
  • Based on region, North America accounted for the largest market share of 43.05% in 2022

Recursion Pharmaceuticals and NVIDIA Secure USD 50 Million for AI-Powered Drug Discovery Collaboration

July 2023: Recursion Pharmaceuticals partnered with NVIDIA and secured USD 50 million in funding for AI-powered drug discovery. This collaboration combined Recursion's cutting-edge AI technology with NVIDIA's computational resources, thereby enhancing drug development. The funding was allocated to expand the company's drug discovery initiatives, accelerating the identification of potential therapeutic candidates. The partnership aimed to leverage the power of AI to address challenging diseases, marking significant progress in the field of pharmaceutical research. This financial boost reflected the growing interest in AI-driven drug discovery and the potential it held for revolutionizing the pharmaceutical industry.

Growing Adoption of AI and Big Data in Pharmaceuticals to Foster Market Expansion

The pharmaceutical industry is undergoing a significant transformation due to the increasing use of AI and big data. This shift is crucial in improving the efficiency of drug discovery and development processes by utilizing large datasets to identify potential drug candidates, predict their safety and effectiveness, and enable personalized medicine. AI and big data are revolutionizing drug target identification and facilitating predictive modeling, which ultimately reduces the time and costs associated with drug development. The industry's adoption of these technologies represents a profound change, enabling data-driven decision-making and expediting the creation of life-saving medications.

In Silico Approach in Drug Development and Testing Presents Significant Opportunities for Market Expansion

The pharmaceutical industry is poised to witness a significant shift, due to the promising capabilities of AI-powered virtual drug development and testing. This innovative approach, known as in silico drug development, holds the potential to transform the entire drug development process. By harnessing the capabilities of AI, drug candidates can be designed, developed, and tested in a virtual environment, significantly reducing the need for physical experiments. This opportunity brings numerous benefits, including cost reduction, faster iteration of drug candidates, and personalized drug design. Moreover, it enables early validation and prediction of a drug candidate's success in clinical trials, thereby reducing the risks associated with late-stage failures.

Asia Pacific to Emerge as the Fastest-Growing Region in AI in Drug Discovery Market, Exhibiting a CAGR of 41.59% Over 2023-2030

Based on region, the global AI in drug discovery market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. The Asia Pacific region is positioned to lead the global AI in drug discovery market, expanding at a remarkable CAGR of 41.59% through the projected period. This considerable growth can be attributed to various factors, including increased investments in healthcare, growing research and development activities, and a strong focus on innovation. Additionally, the large population in Asia Pacific presents lucrative growth opportunities for both pharmaceutical companies and AI startups. The adoption of AI in drug discovery is rapidly gaining momentum, with governments and private sector entities recognizing its potential to revolutionize healthcare and drug development.

Market Leaders Concentrate on Collaborations and Acquisitions to Sustain Growth

The global AI in drug discovery market is fragmented with key players such as Bayer AG, Novartis International AG, Pfizer Inc., AstraZeneca PLC, GlaxoSmithKline PLC (GSK), Takeda Pharmaceutical Company Limited, F. Hoffmann-La Roche Ltd, Johnson & Johnson, Sanofi S.A., Merck & Co., Inc., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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