AI in Pharma and Biotech Market Size, Share, and Industry Analysis, By Technology (Deep Learning, Machine Learning, Natural Language Processing, Machine/Computer Vision, and Others), By Application (Drug Discovery & Development, Clinical Research & Optimization, Precision Medicine, Pharmaceutical Manufacturing, and Others), By End-user (Pharmaceutical Companies, Biotechnology Companies, and Others), and Regional Forecast, 2024-2032

Artificial intelligence (AI) in pharma and biotech refers to the application of AI and machine learning (ML) technologies to various stages of the pharmaceutical and biotechnology industries. AI in pharma and biotech is revolutionizing drug discovery, clinical trials, and personalized medicine. It accelerates molecule identification, optimizes manufacturing, and analyzes vast datasets to predict drug efficacy and patient responses. In addition, it helps design effective trials, select patients, and tailor treatments to individuals.

AI's ability to process and interpret biomedical data, including research, patient records, and environmental factors, is accelerating innovation and improving treatment options. In such a way, the benefits of artificial intelligence (AI) in enhancing efficiency, accuracy, and effectiveness in pharma and biotech companies are expected to boost its adoption in the coming years.

The market growth is primarily attributed to the growing demand for speedy drug discovery and development. AI algorithms can significantly reduce the time and costs associated with launching new drugs by automating tasks such as compound screening and optimizing experimental designs in pharma and biotech companies. This is expected to fuel their adoption, driving the market growth in the coming years.

• For instance, in March 2024, the Food and Drug Administration (FDA) recognized the increased adoption of artificial intelligence (AI)/machine learning (ML) throughout the drug development cycle.

Furthermore, the growing demand for personalized medicine is driving the adoption of AI in disease diagnosis and prognosis. AI algorithms can analyze large amounts of patient data to identify personalized treatment options and improve patient outcomes. This is expected to surge the market growth during the forecast period.

Moreover, the growing advancements in artificial intelligence (AI) and machine learning (ML) are driving the increased efficiency in research and development processes. AI algorithms can assist in experimental design, predict pharmacokinetics and toxicity, and optimize lead compounds, reducing the need for extensive and costly testing. These benefits associated with the advancements in artificial intelligence (AI) are anticipated to boost market growth.

The COVID-19 pandemic had a significant impact on AI in the pharma and biotech market. The pandemic accelerated the use of AI in various domains, such as healthcare, drug development, and clinical trials. Moreover, the pandemic surged the adoption of e-pharma services, with people turning to online platforms for healthcare needs. This fueled the use of AI, driving the market growth in 2020.

• For instance, in August 2020, Google DeepMind's AlphaFold system predicted the structure of several under-studied proteins, including those associated with COVID-19.

Furthermore, the market has continued to increase in the post-pandemic years as companies recognized the benefits of integrating AI technologies in order to stay competitive and drive innovation.

Segmentation

Key Insights

The report covers the following key insights:

• New Product Launches By Key Players


• Overview: Advancements in AI in Pharma and Biotech


• Guidelines/Consideration for Using Artificial Intelligence (AI) in Pharma & Biotech


• Key Industry Developments (Mergers, Acquisitions, Partnerships)


• Impact of COVID-19 on the Market

Analysis by Application

Based on the application, the market is classified into drug discovery & development, clinical research & optimization, precision medicine, pharmaceutical manufacturing, and others. The drug discovery and development segment is projected to account for a significant share of the global AI in the pharma and biotech market during the forecast period. The growth of this segment is attributed to several factors, such as the growing demand for new therapeutics to address various diseases and conditions and the need to reduce the time and costs in the drug discovery process. AI can significantly reduce these costs and accelerate the process by optimizing experiments, identifying impactful targets, and enabling virtual screening. In addition, AI can facilitate collaboration between researchers and clinicians, improving communication and decision-making throughout the drug development process. These benefits are inspiring the key players to ensure the availability of their AI products for drug discovery worldwide, which is expected to boost the segment growth in the coming years.

• For instance, as of June 2023, Insilico Medicine is offering PHARMA.AI to accelerate three areas of drug discovery and development, including disease target identification, generation of novel molecule data, and predicting clinical trial outcomes.

On the other hand, the precision medicine segment is anticipated to grow at a significant CAGR during the forecast period. AI can aid in the development of personalized medications with the desired dose, release parameters, and other required aspects, which can lead to better patient outcomes. This is expected to increase the adoption of AI solutions, thereby propelling the segment growth in the forthcoming years.

Regional Analysis

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The global market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is expected to hold a significant share of the AI in pharma and biotech market during the forecast period. The growth is mainly attributed to the presence of major pharmaceutical companies such as Pfizer Inc., Novartis AG, and Johnson & Johnson Services, Inc. to stimulate their business growth in the region. Furthermore, pharmaceutical companies are making strategic investments in AI to secure lucrative deals and position themselves at the forefront of industry advancements, driving innovation across the sector. This is expected to boost market growth in the coming years.

• For instance, as per the data published by P360, an advanced pharma software company, in January 2022, Pfizer Inc. has been using AI over the past few years to advance drug discovery processes and protocols.

Asia Pacific is projected to grow at a significant CAGR during the forecast timeframe. The regional growth is primarily attributed to the increasing number of pharmaceutical and biotechnology companies in countries such as India and China. These companies are exploring vast opportunities to develop indigenous inventions to help the industry and lead the way in AI adoption. This is expected to boost the regional market growth during the forecast period.

Key Players Covered

The market consists of significant players, such as Merck KGaA, BenevolentAI, Insilico Medicine, Recursion, Atomwise Inc., BPGbio, Inc., Cloud Pharmaceuticals, IBM, Exscientia plc, and AstraZeneca.

Key Industry Developments

• In December 2023, Merck KGaA launched AIDDISON, a drug discovery software that speeds up drug development and increases the success rate of new drugs.


• In September 2023, Merck KGaA partnered with BenevolentAI and Exscientia to boost the drug discovery process with a higher probability of success.


• In May 2023, Google Cloud launched two new AI-powered devices to help pharmaceutical and biotechnology companies accelerate drug discovery and advance precision medicine.