by Artificial intelligence (AI) has made significant inroads into the pharmaceutical sector in recent times. AI systems have found applications ranging from drug discovery to clinical trials. AI is helping researchers analyze huge amounts of data to identify potential drug candidates more efficiently. Deep learning algorithms are being leveraged to predict the effectiveness and safety of new molecules. In clinical development, AI aids in monitoring trials and verifying drug efficacy and outcomes.
The Global artificial intelligence (AI) in pharmaceutical market is estimated to be valued at USD 1,108.1 Mn in 2024 and is expected to reach USD 7,776.2 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 32.1% from 2024 to 2031.
Key Takeaways
Key players operating in the global AI in pharmaceutical market are NVIDIA Corporation, IBM Corporation, Exscientia, Insilico Medicine, Atomwise, Inc., Cloud Pharmaceuticals, Inc., Cyclica Inc., Envisagenics, Inc., Numerate, Inc., Schrödinger, Inc., Standigm, Turbine.ai, BenevolentAI, Recursion Pharmaceuticals, Owkin, Inc., XtalPi Inc., Valo Health, Absci. There is a growing demand for AI-powered drug discovery tools and platforms across pharmaceutical companies as AI helps accelerate the overall drug development process. Several AI startups are also expanding globally and collaborating with large pharmaceutical firms to commercialize their platforms for drug R&D applications.
Market Key Trends
One of the Global Artificial Intelligence (AI) In Pharmaceutical Market Demand widespread adoption of deep learning algorithms for applications such as generating molecular structures, compound screening, target identification, and predictive toxicology. Deep learning tools help analyze huge volumes of unstructured biological and chemical data with ease. Another trend is the growing collaborations between AI companies and drug makers to advance personalized medicine using AI. AI algorithms are also augmenting clinical research by facilitating efficient trial recruitment and monitoring. The availability of more annotated healthcare data is also expected to drive the development of new deep learning solutions for various drug discovery stages.
Porter’s Analysis
Threat of new entrants: New entrants in Global Artificial Intelligence (AI) In Pharmaceutical Market Size And Trends face high entry barriers as it requires heavy investments in R&D for drug development and expertise in AI technologies which are capital intensive.
Bargaining power of buyers: Individual buyers have low bargaining power due to high costs involved in AI drug development projects however collective bargaining by large pharmaceutical companies can negotiate better deals and pricing.
Bargaining power of suppliers: AI technology providers like IBM, Microsoft etc have significant bargaining power being technology leaders however more suppliers are emerging lowering their power.
Threat of new substitutes: AI faces limited threat currently from substitutes for drug discovery however robotics, big data and other emerging technologies can potentially substitute AI in future.
Competitive rivalry: Intense competition exists among major AI drug developers to develop new therapies faster and achieve first mover advantages.
Geographical regions: North America currently accounts for over 50% market share led by presence of major tech and pharmaceutical companies and investments in AI drug R&D projects.
Asia Pacific is the fastest growing region due to increasing investments by governments and companies in emerging countries like China and India to establish AI drug development capabilities and reduce dependence on imports. Large patient pools also driving market growth.
The geographical regions where the value of Global Artificial Intelligence (AI) In Pharmaceutical Market is currently concentrated are North America and Europe due to presence of leading AI technology companies and pharmaceutical firms with deep R&D expertise. Several government initiatives and private sector investments are also being made in these regions to accelerate the development and adoption of AI solutions for drug discovery and clinical trials.
The fastest growing geographical region for the Global Artificial Intelligence (AI) In Pharmaceutical Market is expected to be Asia Pacific. Countries like China, India, Japan and South Korea are aggressively focusing on establishing domestic AI drug development capabilities. They aim to reduce over-dependence on imports and address the massive future healthcare needs of their large populations. Rising investment budgets from governments and local pharmaceutical/AI technology players are assisting the market growth in Asia Pacific.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
