Product Code: HCIT9508
The global AI in drug discovery and development market reached US$ 6.24 billion in 2024 and is expected to reach US$ 34.05 billion by 2032, growing at a CAGR of 18.5% during the forecast period 2025-2033.
AI in drug discovery and development uses technologies like machine learning, deep learning, natural language processing, and data analytics to speed up the process of discovering, designing, and developing new drugs. By analyzing large datasets from genomics, proteomics, and clinical trials, AI helps identify potential targets, predict molecular interactions, optimize compound selection, and forecast outcomes more efficiently than traditional methods, transforming the pharmaceutical industry and making therapy discovery faster and more precise.
Market Dynamics: Drivers & Restraints
Increasing Adoption of Artificial Intelligence for Faster Drug Development
The global AI in drug discovery and development market is gaining momentum due to its ability to analyze complex biological data, identify drug targets, and predict compound efficacy and toxicity. This technology reduces time and cost in traditional drug development. Pharmaceutical companies and research institutions are using machine learning algorithms and deep learning tools to streamline candidate screening, optimize clinical trials, and enhance decision-making, leading to faster time-to-market for new drugs.
Additionally, AI improves clinical trial efficiency by predicting outcomes, designing trials, and enabling drug repositioning. However, challenges include robust data-sharing mechanisms and comprehensive intellectual property protections for algorithms. AI-driven pharmaceutical companies must integrate biological sciences and algorithms effectively, ensuring the successful fusion of wet and dry laboratory experiments.
Regulatory Challenges in AI Integration
The global AI in drug discovery and development market faces challenges due to the evolving regulatory landscape, with bodies like the FDA and EMA developing guidelines for AI-driven tools. The lack of standardized protocols for data handling, model validation, and algorithm transparency creates additional compliance burdens. Concerns around data privacy, ethical considerations, and explainability in AI decisions also add to these uncertainties. These uncertainties can delay product launches and discourage smaller players from adopting AI technologies, limiting market growth.
Segment Analysis
The global AI in drug discovery and development market is segmented based on technology, application, and region.
Technology
Machine learning in the technology segment is expected to grow with the highest CAGR in the forecast period.
Machine learning is a subfield of artificial intelligence that enables machines to imitate intelligent human behavior. AI systems are used to perform complex tasks similar to human problem-solving. The goal of AI is to create computer models that exhibit "intelligent behaviors" like humans, such as recognizing visual scenes, understanding natural language, or performing physical actions. Boris Katz, a principal research scientist at CSAIL, emphasizes this goal.
Machine learning is a key driver of global AI in the drug discovery and development market. It enables faster and more accurate analysis of complex biological data, reducing time and cost. It helps identify and validate drug targets by recognizing patterns in large datasets, aiding in early drug development stages. ML also streamlines compound screening and lead optimization by predicting drug efficacy and toxicity, improving success rates. It also supports efficient clinical trial design through patient stratification and real-time data analysis.
For instance, in April 2024, Aurigene Pharmaceutical Services Limited, a Dr. Reddy's Laboratories company, introduced Aurigene.AI, an AI and ML-assisted platform designed to expedite drug discovery projects from hit identification to candidate nomination.
Geographical Analysis
Asia-Pacific is expected to hold a significant position in the AI drug discovery and development market with the highest market share
The market growth in the Asia-Pacific region is contributed to by various factors such as rising pharmaceutical innovations, increasing investments by pharmaceutical and biopharmaceutical companies in drug discovery and development activities, etc.
For instance, in the Asia-Pacific region, Japan has the strongest pharmaceutical industry, supported by constant and advanced R&D activities, novel innovations, etc. Many pharmaceutical companies operate globally and stand among industry giants. These companies invest heavily in drug discovery and development activities and are forming strategic alliances with AI technology leaders. These collaborative initiatives are the major market drivers of the Japanese market.
For instance, in February 2024, Ono Pharmaceutical Co., Ltd. announced a research collaboration with InveniAI LLC to identify novel therapeutic targets by leveraging InveniAI's cutting-edge artificial intelligence (AI) and machine learning (ML) platforms AlphaMeld and ChatAlphaMeld.
Moreover, in February 2024, Atinary Technologies Inc. announced a partnership with Takeda, one of the largest pharmaceutical manufacturers in Japan and globally. Through this partnership, Takeda will leverage Atinary's leading AI Self-Driving Labs technology, combined with its expertise in R&D and drug discovery.
In addition, several leading technology leaders are establishing their footprint in the Asia-Pacific region, especially in Japan, which will create opportunities for Japanese manufacturers to leverage these advanced AI technologies in their drug discovery activities.
Competitive Landscape
The major global players in the AI in drug discovery market are Alphabet (Google DeepMind), Atomwise Inc., BenevolentAI, BioMap, BioSymetrics, DEEP Genomics, Euretos, Exscientia, IBM, and Iktos. Among others.
Key Developments
- In January 2025, InveniAI LLC, has announced its recent key milestones as a part of its commitment to revolutionize the drug development process. InveniAI has launched its fully owned subsidiary AlphaMeld Corporation, which specializes in artificial intelligence (AI), generative AI, and machine learning technologies for the development of novel therapies.
- In July 2024, Exscientia plc announced the expansion of its collaboration with Amazon Web Services (AWS) to utilize the cloud provider's artificial intelligence (AI) and machine learning (ML) services for powering Exscientia's platform for end-to-end drug discovery and automation. The platform uses generative AI models and AWS's scalability and robotic lab automation to design drug candidates quickly and at low cost.
Why Purchase the Report?
- Pipeline & Innovations: Reviews ongoing clinical trials, product pipelines, and forecasts upcoming pharmaceutical advancements.
- Technology Performance & Market Positioning: Analyzes product performance, market positioning, and growth potential to optimize strategies.
- Real-World Evidence: Integrates patient feedback and data into product development for improved outcomes.
- Physician Preferences & Health System Impact: Examines healthcare provider behaviors and the impact of health system mergers on adoption strategies.
- Market Updates & Industry Changes: Covers recent regulatory changes, new policies, and emerging technologies.
- Competitive Strategies: Analyzes competitor strategies, market share, and emerging players.
- Pricing & Market Access: Reviews pricing models, reimbursement trends, and market access strategies.
- Market Entry & Expansion: Identifies optimal strategies for entering new markets and partnerships.
- Regional Growth & Investment: Highlights high-growth regions and investment opportunities.
- Supply Chain Optimization: Assesses supply chain risks and distribution strategies for efficient Technology delivery.
- Sustainability & Regulatory Impact: Focuses on eco-friendly practices and evolving regulations in healthcare.
- Post-market Surveillance: Uses post-market data to enhance product safety and access.
- Pharmacoeconomics & Value-Based Pricing: Analyzes the shift to value-based pricing and data-driven decision-making in R&D.
The global AI in drug discovery and development market report would provide approximately 54 tables, 47 figures, and 180 pages.
Technology Audience 2023
- Manufacturers: Pharmaceutical, Biotech Companies, Contract Manufacturers, Distributors, Hospitals.
- Regulatory & Policy: Compliance Officers, Government, Health Economists, Market Access Specialists.
- Technology & Innovation: R&D Professionals, Clinical Trial Managers, Pharmacovigilance Experts.
- Investors: Healthcare Investors, Venture Fund Investors, Pharma Marketing & Sales.
- Consulting & Advisory: Healthcare Consultants, Industry Associations, Analysts.
- Supply Chain: Distribution and Supply Chain Managers.
- Consumers & Advocacy: Patients, Advocacy Groups, Insurance Companies.
- Academic & Research: Academic Institutions.
Table of Contents
1. Market Introduction and Scope
- 1.1. Objectives of the Report
- 1.2. Report Coverage & Definitions
- 1.3. Report Scope
2. Executive Insights and Key Takeaways
- 2.1. Market Highlights and Strategic Takeaways
- 2.2. Key Trends and Future Projections
- 2.3. Snippet by Technology
- 2.4. Snippet by Application
- 2.5. Snippet by Region
3. Dynamics
- 3.1. Impacting Factors
- 3.1.1. Drivers
- 3.1.1.1. Increasing Adoption of Artificial Intelligence for Faster Drug Development
- 3.1.1.2. Rise in Technological Advancements
- 3.1.2. Restraints
- 3.1.2.1. Regulatory Challenges
- 3.1.2.2. High Cost associated with AI integration
- 3.1.3. Opportunities
- 3.1.3.1. Expansion in Emerging Markets
- 3.1.4. Impact Analysis
4. Strategic Insights and Industry Outlook
- 4.1. Regulatory Analysis
- 4.2. Market Leaders and Pioneers
- 4.2.1. Emerging Pioneers and Prominent Players
- 4.2.2. Established leaders with the largest-selling Brand
- 4.2.3. Market leaders with established Product
- 4.3. CXO Perspectives
- 4.4. Latest Developments and Breakthroughs
- 4.5. Regulatory and Reimbursement Landscape
- 4.5.1. North America
- 4.5.2. Europe
- 4.5.3. Asia Pacific
- 4.5.4. South America
- 4.5.5. Middle East & Africa
- 4.6. Porter's Five Forces Analysis
- 4.7. Supply Chain Analysis
- 4.8. Patent Analysis
- 4.9. SWOT Analysis
- 4.10. Unmet Needs and Gaps
- 4.11. Recommended Strategies for Market Entry and Expansion
- 4.12. Scenario Analysis: Best-Case, Base-Case, and Worst-Case Forecasts
- 4.13. Pricing Analysis and Price Dynamics
- 4.14. Key Opinion Leaders
5. AI in Drug Discovery and Development Market, By Technology
- 5.1. Introduction
- 5.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 5.1.2. Market Attractiveness Index, By Technology
- 5.2. Machine Learning*
- 5.2.1. Introduction
- 5.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 5.3. Natural Language Processing
- 5.4. Generative AI
- 5.5. Others
6. AI in Drug Discovery and Development Market, By Application
- 6.1. Introduction
- 6.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 6.1.2. Market Attractiveness Index, By Application
- 6.2. Target Discovery & Validation*
- 6.2.1. Introduction
- 6.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
- 6.3. Hit Discovery & Virtual Screening
- 6.4. Hit-to-Lead
- 6.5. Lead Optimization
- 6.6. Pre-Clinical Testing
- 6.7. Clinical Trials
- 6.8. Others
7. AI in Drug Discovery and Development Market, By Region
- 7.1. Introduction
- 7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
- 7.1.2. Market Attractiveness Index, By Region
- 7.2. North America
- 7.2.1. Introduction
- 7.2.2. Key Region-Specific Dynamics
- 7.2.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 7.2.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 7.2.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 7.2.5.1. U.S.
- 7.2.5.2. Canada
- 7.2.5.3. Mexico
- 7.3. Europe
- 7.3.1. Introduction
- 7.3.2. Key Region-Specific Dynamics
- 7.3.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 7.3.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 7.3.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 7.3.5.1. Germany
- 7.3.5.2. U.K.
- 7.3.5.3. France
- 7.3.5.4. Spain
- 7.3.5.5. Italy
- 7.3.5.6. Rest of Europe
- 7.4. South America
- 7.4.1. Introduction
- 7.4.2. Key Region-Specific Dynamics
- 7.4.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 7.4.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 7.4.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 7.4.5.1. Brazil
- 7.4.5.2. Argentina
- 7.4.5.3. Rest of South America
- 7.5. Asia-Pacific
- 7.5.1. Introduction
- 7.5.2. Key Region-Specific Dynamics
- 7.5.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 7.5.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
- 7.5.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
- 7.5.5.1. China
- 7.5.5.2. India
- 7.5.5.3. Japan
- 7.5.5.4. South Korea
- 7.5.5.5. Rest of Asia-Pacific
- 7.6. Middle East and Africa
- 7.6.1. Introduction
- 7.6.2. Key Region-Specific Dynamics
- 7.6.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Technology
- 7.6.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Application
8. Competitive Landscape and Market Positioning
- 8.1. Competitive Overview and Key Market Players
- 8.2. Market Share Analysis and Positioning Matrix
- 8.3. Strategic Partnerships, Mergers & Acquisitions
- 8.4. Key Developments in Product Portfolios and Innovations
- 8.5. Company Benchmarking
9. Company Profiles
- 9.1. Alphabet (Google DeepMind) *
- 9.1.1. Company Overview
- 9.1.2. Product Portfolio
- 9.1.2.1. Product Description
- 9.1.2.2. Product Key Performance Indicators (KPIs)
- 9.1.2.3. Historic and Forecasted Product Sales
- 9.1.2.4. Product Sales Volume
- 9.1.3. Financial Overview
- 9.1.3.1. Company Revenue
- 9.1.3.2. Geographical Revenue Shares
- 9.1.3.3. Revenue Forecasts
- 9.1.4. Key Developments
- 9.1.4.1. Mergers & Acquisitions
- 9.1.4.2. Key Product Development Activities
- 9.1.4.3. Regulatory Approvals, etc.
- 9.1.5. SWOT Analysis
- 9.2. Atomwise Inc.
- 9.3. BenevolentAI
- 9.4. BioMap
- 9.5. BioSymetrics
- 9.6. DEEP GENOMICS.
- 9.7. Euretos.
- 9.8. Exscientia
- 9.9. IBM
- 9.10. Iktos.
LIST NOT EXHAUSTIVE
10. Appendix
- 10.1. About Us and Services
- 10.2. Contact Us