AI in Drug Discovery Market to Grow with a CAGR of 10.18% through 2028
Increasing adoption of AI in pharmaceutical industry and rise in
incidence of chronic disease is expected to drive the Global AI in Drug
Discovery Market growth in the forecast period, 2024-2028.
According to TechSci Research report, “AI in Drug Discovery Market - Industry Size, Share, Trends,
Opportunity, and Forecast, 2018–2028F”, the Global AI in Drug Discovery
Market stood at USD 750.04 Million in 2022 and is anticipated to grow with a CAGR of 10.18% in the
forecast period, 2024-2028. The increasing demand for the discovery and
development of novel drug therapies, coupled with the expanding manufacturing
capacities of the life science industry, is driving the need for artificial
intelligence (AI)-empowered solutions in drug discovery processes.
Manufacturers in the life science sector prioritize replenishing their product
pipelines as many top-selling drugs go off patent.
Moreover, the market is
driven by a growing number of public-private partnerships that foster the
adoption of AI-powered solutions in drug discovery and development. Dominating
the clinical trial space are countries such as France, the U.S., Spain, and
Japan, while the U.K. focuses on enhancing research and development activities.
Drug discovery and development is a complex and time-consuming process that
incurs substantial costs. Industry journals report average costs of USD 2.6
billion and a timeline of over 10 years for discovering and developing new drug
therapies.
Due to the narrow development testing funnel, most candidate
therapies are eliminated during the initial phases of clinical trials,
particularly preclinical and phase-1 trials. This contributes directly to the
high costs and lengthy timelines involved in the process. The adoption of AI
solutions in the clinical trial process has the potential to eliminate
obstacles, reduce cycle time, and enhance the productivity and accuracy of
clinical trials. As a result, the life science industry stakeholders are
increasingly embracing these advanced AI solutions in drug discovery processes.
According to data from Clinical Trials Arena, the number of strategic
collaborations and partnerships between major AI-based drug discovery companies
and pharmaceutical firms increased from four partnerships in 2015 to 27
partnerships in 2020.
Digitalization in biomedical and clinical
research spaces is paving the way for the implementation of AI solutions. The
vast array of datasets generated from drug discovery processes, such as
molecule screening and preclinical studies, is driving the adoption of
AI-powered solutions. These extensive datasets pose challenges for researchers
to accurately analyze studies, but with the implementation of AI solutions,
screening processes can be accelerated and turnaround times reduced.
Additionally, the ongoing Covid-19 pandemic has significantly transformed the
perception of clinical trials and increased the utilization of AI solutions.
Notably, renowned pharmaceutical companies like Pfizer, Novartis, Bayer,
Sanofi, and Johnson & Johnson are collaborating with AI-based drug
discovery solution providers. The availability of various options, such as data
mining and personalization capabilities, is driving the adoption of AI
solutions in drug discovery processes. Furthermore, the integration of deep
learning and machine learning algorithms in AI platforms enhances accuracy in
identifying molecule binding properties of drugs.
Moreover, the incorporation
of advanced technologies like electronic data capture (EDC) supports
manufacturers in improving patient data management and reducing monitoring
costs. Integration of electronic Clinical Outcome Assessment (e-COA) in AI
solutions helps minimize process errors. Recently, advanced analytics have been
integrated into these AI solutions, aiding stakeholders in data mining, patient
recruitment, and medical and clinical records management.
Among the different
phases of a clinical trial study, preclinical testing incurs the highest
revenue loss with low returns. By adopting AI solutions, the preclinical
testing phase can be optimized to minimize costs. AI-based models accurately
analyze human physiological responses and eliminate experimental costs.
Stringent regulations pertaining to clinical trial studies set by regulatory
authorities worldwide are expected to drive the demand for AI solutions in drug
discovery processes.
Moreover, government authorities in developed and emerging
economies are undertaking favorable initiatives to increase the adoption of AI
solutions and the number of clinical trials.
Browse over 26 market data Figures spread through 91 Pages and an in-depth TOC on "Global
AI in Drug Discovery Market.”
The Global AI in Drug Discovery Market is
segmented into component type, drug type, application type, therapeutic area, regional
distribution, and company.
Based on application type, the drug
optimization and repurposing application type segment accounted for the largest
revenue share in 2022. AI platforms facilitate the identification of target
proteins for drug discovery, enabling the assessment of adverse events and
potential side effects. Through drug repurposing, molecules can be optimized to
enhance efficacy while minimizing side effects. AI platforms also expedite the
study and modification of a company's drug portfolio, expediting the
development of new drugs.
Based on region, North America segment is
expected to grow during the forecast period. North America held the largest
revenue share in 2022, establishing itself as a forerunner in AI technology.
IBM's supercomputer, 'Watson', gained recognition by winning the trivia game
'Jeopardy', leading to further advancements in the field of AI. Since then, AI
has become an integral part of the tech industry, with significant applications
in sectors such as pharmaceuticals. Major tech giants in the United States have
collaborated with prestigious institutes to accelerate drug discovery, design,
and repurposing. Additionally, AI is being utilized to study diseases and
derive meaningful conclusions, ultimately improving disease management. The
APAC market is expected to exhibit the fastest CAGR from 2023 to 2028.
Developing countries in the Asia Pacific region are embracing AI as a tool for
understanding diseases and facilitating drug discovery. Notably, Intuition
Systems, an Indian AI company, has partnered with Lantern Pharma to enhance
drug discovery and biomarker identification. Niramai and Sigtuple are other AI
companies dedicated to leveraging advanced technologies to improve healthcare
through faster drug discovery and more accurate identification of target
proteins and biomarkers.
Major companies operating in Global AI in Drug Discovery Market are:
- GNS Healthcare
- BioSymetrics
- BPGbio, Inc.
- Atomwise Inc.
- Owkin Inc.
- NVIDIA Corporation
- IBM Corporation
- Microsoft Corporation
- Aria Pharmaceuticals, Inc.
- Insilico Medicine Inc.
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“The pharmaceutical industry has traditionally
been slow in adopting new technologies such as AI. However, there has been a
noticeable surge in activity in recent years. Numerous companies, including
established leaders, are now incorporating AI into their digital transformation
strategies. AI is poised to become a pivotal driver of healthcare innovation,
with applications ranging from managing chronic diseases and drug discovery to
improving clinical trials, manufacturing, and supply chains. The integration of
artificial intelligence (AI) is expected to yield lucrative opportunities in
the healthcare industry. By reducing the research and development gap in drug
manufacturing and enabling targeted drug production, AI is empowering
biopharmaceutical companies to enhance their market share. This significant
factor is fueling the growth of the global AI for drug discovery market.
Moreover, the mounting pressure on drug manufacturers to lower drug prices is
another key factor expected to propel the expansion of the global AI for drug
discovery market. Additionally, the scarcity of skilled healthcare personnel is
anticipated to further accelerate the growth of the global AI for drug
discovery market.,” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based management consulting firm.
“AI in Drug Discovery Market Global Industry Size, Share, Trends,
Opportunity, and Forecast, 2018-2028 Segmented By Component Type (Software and
Services), By Drug Type (Small Molecule and Large Molecule), By Application
Type (Preclinical Testing, Drug Optimization, and Repurposing, Target
Identification, Candidate Screening, and Others), By Therapeutic Area
(Oncology, Neurodegenerative Diseases, Cardiovascular Diseases, Rare Diseases, and
Others), By Region and Competition”, has evaluated the future growth potential of Global
AI in Drug Discovery Market and provides statistics & information on market
size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in Global AI in
Drug Discovery Market.
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