Artificial Intelligence in Drug Discovery Market is Expected to Reach $4.9 Billion | MarketsandMarkets.

Chicago, Dec. 12, 2023 (GLOBE NEWSWIRE) -- Artificial Intelligence in Drug Discovery market in terms of revenue was estimated to be worth $0.9 billion in 2023 and is poised to reach $4.9 billion by 2028, growing at a CAGR of 40.2% from 2023 to 2028 according to a latest report published by MarketsandMarkets™.

The growth of the artificial intelligence in drug discovery market is primarily driven by factors such as the growing number of cross-industry collaborations and partnerships, the need to control drug discovery & development costs and reduce the overall time taken in this process, additionally the high cost and lengthy timelines associated with traditional drug discovery methods have prompted the industry to seek innovative solutions. AI-driven approaches expedite the identification of potential drug candidates, significantly reducing time and costs involved in preclinical and clinical stages. This acceleration is facilitated by predictive modelling, which aids in anticipating compound behaviours and potential side effects, improving the success rate of drug candidates the rising adoption of cloud-based applications and services, and the impending patent expiry of blockbuster drugs. On the other hand, a lack of data sets in the field of drug discovery and the inadequate availability of skilled labor and validating AI-generated predictions in the complex biological context can be challenging and time-consuming these factors might restraint the growth of the market.

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Artificial Intelligence in Drug Discovery Market Scope:

Report Coverage Details
Market Revenue in 2023 $0.9 Billion
Estimated Value by 2028 $4.9 Billion
Growth Rate Poised to grow at a CAGR of 40.2%
Market Size Available for 2021–2028
Forecast Period 2023–2028
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered Offering, Therapeutic Area, Process, Use Cases, Technology, End User, Region
Geographies Covered North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, and the Rest of Europe), Asia Pacific (Japan, China, India, and Rest of Asia Pacific), South America, and Middle East & Africa
Report Highlights Updated financial information / product portfolio of players
Key Market Opportunity Emerging Markets
Key Market Driver Growing need to control drug discovery & development costs and reduce time involved in drug development

"Services segment accounted for the largest share of by offering segment of global AI in drug discovery market"

Based on offering, the AI in drug discovery market is classified into software and services. In 2022, services dominated the market and accounted for the largest share. This segment is also expected to grow at the highest CAGR during the forecast period. The robust expansion of the services sector can be attributed to the manifold advantages associated with AI services, coupled with a pronounced demand from end-users. The benefits associated with AI services (less cost, lower failure rate, option to scale up or down based on research requirements and growth objectives, and no requirement of developing complex infrastructure, among others) and the sturdy demand from end users for AI services are some of the key factors driving the growth of this market segment.

"The oncology therapeutic segment accounted for the largest share of the Al in drug discovery market in 2022"

Based on therapeutic area, the AI in drug discovery market is bifurcated into neurodegenerative diseases, oncology diseases, cardiovascular diseases, metabolic diseases, immunology diseases and other diverse applications. Notably, the oncology segment attained the largest market share in 2022, a reflection of the escalating demand for efficacious oncological treatments. Researchers and medical professionals can obtain deeper understanding of the molecular mechanisms underlying cancer by utilizing AI. This will enable them to produce more individualized and effective medicines that enhance patient outcomes and quality of life.

"Hit-to-lead identification/lead generation by process segment accounted for the largest share of the global Al in drug discovery market"

By process, the drug discovery services market is broadly classified into target identification and selection, target validation, hit identification & prioritization, hit-to-lead identification/lead generation, lead optimization, and candidate validation. Hit-to-lead identification/lead generation is the largest process and fastest growing segment in this market. In order to reduce the amount of compounds that fail in the drug development process, a drug ability assessment is frequently carried out in the hit-to-lead discovery phase. Hit-to-lead identification is the most lucrative procedure because of its critical role in drug discovery; at the moment, numerous CROs provide pharmaceutical corporations with these services, such factors are adiing to the growth of this market.

"Pharmaceutical & biotechnology companies segment accounted for the largest share of the global Al in drug discovery market"

Based on end-user, the AI in drug discovery market is stratified into three key segments: pharmaceutical and biotechnology companies, contract research organizations, and research centers, as well as academic and government institutes. Notably, during 2022, the pharmaceutical and biotechnology companies segment emerged as the principal contributor to the AI in drug discovery market. The robust requirement for AI-enabled tools, instrumental in enhancing the efficiency of the entire drug discovery continuum, substantially propels the expansion of this specific end-user segment.

"North America is expected to dominate the Al in drug discovery market in 2022"

The global AI in drug discovery market is segmented across five prominent regions: North America, Europe, Asia Pacific, South America and Middle East and Africa. In the year 2022, the North American region emerged as the primary driver of both the largest market share and the most rapid expansion within the AI in drug discovery domain. Within North America, encompassing the US, Canada, and Mexico, the market holds its most substantial presence. These nations have demonstrated early and proactive adoption of AI technology in the realms of drug discovery and developmental endeavors. The prevalence of established industry leaders, well-established pharmaceutical and biotechnology sectors, and a pronounced emphasis on research and development coupled with substantial investments contribute significantly to the substantial market share and noteworthy growth rates observed within this domain.

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Artificial Intelligence in Drug Discovery market major players covered in the report, such as:

  • NVIDIA Corporation (US)
  • Exscientia (UK)
  • BenevolentAI (UK)
  • Recursion (US)
  • Insilico Medicine (US)
  • Schrödinger, Inc. (US)
  • Microsoft Corporation (US)
  • Google (US)
  • Atomwise Inc. (US)
  • Illumina, Inc. (US)
  • NuMedii, Inc. (US)
  • XtalPi Inc. (US)
  • Iktos (France)
  • Tempus Labs (US)
  • Deep Genomics, Inc. (Canada)
  • Verge Genomics (US)
  • BenchSci (Canada)
  • Insitro (US)
  • Valo Health (US)
  • BPGbio, Inc. (US)
  • IQVIA Inc (US)
  • Labcorp (US)
  • Tencent Holdings Limited (China)
  • Predictive Oncology, Inc. (US)
  • Celsius Therapeutics (US)
  • CytoReason (Israel)
  • Owkin, Inc. (US)
  • Cloud Pharmaceuticals (US)
  • Evaxion Biotech (Denmark)
  • Standigm (South Korea)
  • Envisagenics (US)
  • Aria Pharmaceuticals, Inc. (US)
  • and Among Others

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The study categorizes the AI in drug discovery market into the following segments and subsegments:

AI in drug discovery market, By Offering

  • Software
  • Services

AI in drug discovery market, By Technology

  • Machine Learning
    • Deep Learning
    • Supervised Learning
    • Reinforcement Learning
    • Unsupervised Learning
    • Other Machine Learning Technologies
  • Natural Language Processing
  • Context-aware Processing
  • Other Technologies

AI in drug discovery market, by Therapeutic Area

  • Oncology
  • Infectious Diseases
  • Neurology
  • Metabolic Diseases
  • Cardiovascular Diseases
  • Immunology
  • Other Therapeutic Areas

AI in drug discovery market, by Process

  • Target Identification & Selection
  • Target Validation
  • Hit Identification & Prioritization
  • Hit-to-lead Identification/ Lead generation
  • Lead Optimization
  • Candidate Selection & Validation

AI in drug discovery market, by Use Cases

  • Understanding Disease
  • Small Molecule Design and Optimization
  • Vaccine Design and Optimization
  • Antibody & Other Biologics Design and Optimization
  • Safety and Toxicity

AI in drug discovery market, By End User

  • Pharmaceutical & Biotechnology Companies
  • Contract Research Organizations
  • Research Centers and Academic & Government Institutes

AI in drug discovery Market, By Region

  • North America
    • US
    • Canada
  • Mexico
    • Europe
    • Germany
    • UK
    • France
    • Italy
    • Rest of Europe
  • Asia Pacific
    • Japan
    • China
    • India
    • Rest of Asia Pacific
  • South America
  • Middle East & Africa

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Artificial Intelligence in Drug Discovery Industry Recent Developments:

  • In October 2023, Recursion, in collaboration with Roche and Genentech, achieved its first significant milestone by identifying and validating a hit series for a specific disease, triggering Roche's Small Molecule Validation Program Option. Recursion would lead the program's advancement using its Recursion OS and digital chemistry tools. This marked progress in their joint efforts to develop therapeutic programs based on Maps of Biology and Chemistry, with plans to expand to multiple CNS cell types for novel target hypotheses and partnerships in the future.
  • In September 2023, Exscientia entered into a collaboration with Merck KGaA focused on the discovery of novel small molecule drug candidates across oncology, neuroinflammation and immunology. The multi-year collaboration will utilize Exscientia’s AI-driven precision drug design and discovery capabilities while leveraging Merck KGaA’s disease expertise in oncology and neuroinflammation, clinical development capabilities and global footprint.
  • In May 2023, Google Cloud launched two new AI-powered solutions, the Target and Lead Identification Suite, and the Multiomics Suite, to accelerate drug discovery and precision medicine for biotech companies, pharmaceutical firms, and public sector organizations.  The Target and Lead Identification Suite enables more efficient in silico drug design, predicting protein structures and accelerating lead optimization for drug discovery.
  • In May 2023, 9xchange partnered with BenevolentAI. The partnership aimed to leverage BenevolentAI's AI-enabled technology to support decision-making related to indication expansion and drug repurposing for assets within the 9xchange platform. By combining BenevolentAI's proven AI-enabled engine with the 9xchange platform, the partnership aimed to uncover untapped potential in therapeutic portfolios, create new opportunities for drug discovery.
  • In March 2023, NVIDIA launched the BioNeMo Cloud service, expanding its generative AI cloud offerings to aid drug discovery and research in genomics, chemistry, biology, and molecular dynamics. The BioNeMo Cloud service allows researchers to fine-tune AI applications on their proprietary data and run AI model inference in web browsers or through cloud APIs.

Key Stakeholders:

  • Artificial intelligence (AI) in drug discovery solution providers
  • AI Platform Providers
  • Technology Providers
  • AI System Providers
  • Platform providers
  • System Integrators
  • Pharmaceutical Companies
  • Biotechnology Companies and Start-ups
  • Drug Discovery Ventures
  • Contract Development and Manufacturing Organization (CDMO)
  • Contract Research Organizations
  • Research Centers and Universities
  • Academic Institutes
  • Forums, alliances, and associations
  • Distributors
  • Venture capitalists
  • Government organizations
  • Institutional investors and investment banks
  • Investors/Shareholders
  • Consulting companies in the drug discovery sector and regulatory consultants
  • Raw material and component manufacturers
  • Hardware Manufacturers and Suppliers
  • Data Providers
  • Regulatory Agencies
  • Healthcare Providers
  • Patient Advocacy Groups
  • Ethical and Legal Experts

Report Objectives:

  • To define, describe, and forecast the global AI in drug discovery market based on offering, therapeutic area, process, use cases, technology, end user, and region.
  • To provide detailed information regarding the major factors (such as drivers, restraints, opportunities, and challenges) influencing the market growth
  • To strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall AI in drug discovery market
  • To analyze opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders.
  • To strategically analyze the market structure and profile the key players of the AI in drug discovery market and comprehensively analyze their core competencies.
  • To forecast the size of the market segments with respect to five regions, namely, North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
  • To track and analyze competitive developments such as product launches and enhancements, and investments, partnerships, collaborations, joint ventures, funding, acquisition, expansions, agreements, sales contracts, and alliances in the AI in drug discovery market during the forecast period.

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