AI in Life Science Analytics Market By Component (Software, Hardware, Services), By Deployment (On premises, Cloud), By Application (Research and Development, Sales and Marketing support, Supply chain analytics, Others), By End-user (Medical Devices, Pharmaceutical sector, Biotechnology, Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: March 2024
- Report ID: 116491
- Number of Pages:
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Report Overview
The Global AI in Life Science Analytics Market size is expected to be worth around USD 5.6 Billion by 2033, from USD 1.7 Billion in 2023, growing at a CAGR of 12.7% during the forecast period from 2024 to 2033.
AI-powered technology is revolutionizing the life science industry by efficiently examining and cross-referencing large and intricate datasets, thereby providing more reliable data in less time. Complex algorithms drive AI, enabling it to make a tangible impact in various facets of the life science sector. With the aid of machine learning, AI aids in the expedited and more efficient development of treatments by life science companies, particularly for conditions such as cancers and rare diseases.
This significant impact has led to a notable increase in the adoption of AI across the industry. Pharma companies are actively investing in the development of AI tools to streamline the intensive processes involved in clinical trials, including the time-consuming and expensive screening and analysis of molecules. Consequently, the growth of AI in life science analytics has been rapid and substantial.
- According to the Global AI Adoption Index report by IBM, the rate of AI adoption has been increased stealiy and reached 35% in 2022.
- According to a survey conducted by the International Data Corporation (IDC), among life science organizations, respondents reported an anticipated average increase of 65% in AI spending within their respective organizations over the upcoming year.
- IDC estimates that by 2020, computers would have stored approximately 270 gigabytes of healthcare and life sciences data for every individual globally.
Key Takeaways
- The AI in Life Science Analytics market generated a revenue of USD 1.7 billion in 2023, and is poised to exceed USD 5.6 billion by 2033, with a CAGR of 12.7%.
- Based on component the service segment commanded the market by securing a revenue share of 38.8% in 2023.
- By deployment, the cloud segment emerged as dominant in 2023, with a market share of 53.6%.
- As far as applications are concerned, the sales and marketing segment maintained its stronghold on the market in 2023 with 35.8% share.
- Among all end-users, pharmaceutical sector was the primary end-user in 2023, with its market contribution reaching 47.9%.
- Region-wise, North America led the market and claimed the highest market share amounting to 53.1%.
Component Analysis
In 2023, the service component segment held the largest market share at 38.8% and is projected to experience the most rapid growth throughout the forecast period. This surge is driven by the rising trend of outsourcing services, as many companies lack the necessary analytic expertise internally, hindering their ability to conduct precise analyses.
The demand for accurate data analysis is propelling the adoption of AI, as it enables companies to analyze vast amounts of data effectively. AI’s ability to deliver fast, precise, and reliable data is instilling trust in the analytics field, leading to increased investments in integrating artificial intelligence algorithms into analytical solutions. The expansion of data analytics services by companies and the proliferation of technological collaborations are further fueling the growth of the service segment.
Deployment Analysis
The cloud segment emerged as the market leader in 2023, commanding a substantial revenue share of 53.6% and is poised to exhibit the swiftest growth during the forecast period. This growth trajectory is attributed to several factors including widespread internet penetration, the evolution of cloud-based services, increased adoption of cloud technologies, and a notable preference shift towards cloud-based solutions over on-premise alternatives due to their inherent advantages.
Cloud-based AI services offer particular appeal to organizations as they obviate the need for extensive data centers, thus presenting a cost-effective solution. Furthermore, the deployment of cloud-based AI streamlines workloads, automates repetitive tasks, and enhances overall efficiency. Its notable advantages include reduced costs associated with hardware maintenance and administration, alongside the utilization of reliable real-time data for enhanced data management.
Application Analysis
In 2023, the sales and marketing segment emerged as the dominant sector, capturing 35.8% of the market share, propelled by the advantages offered by AI, including marketing automation, enhanced personalization, error reduction, and accelerated decision-making processes. The escalating demand for analytical solutions has intensified competition among key players, prompting major organizations to integrate AI into their sales and marketing operations to stay competitive.
AI’s adeptness in analyzing customer data and automating repetitive tasks through advanced algorithms underscores its value in this domain. Looking ahead, the research and development segment are poised for the swiftest growth during the forecast period. This surge is driven by the increasing adoption of analytical solutions in drug development and clinical trials, particularly for severe diseases like cancer, diabetes, and infectious diseases, necessitating extensive research and development efforts.
End-User Analysis
In 2023, the pharmaceutical companies segment dominated the market with a significant share of 47.9%, primarily propelled by the increasing adoption of AI tools across various processes including manufacturing, clinical trials, and drug discovery. According to Delta4.ai, the AI in pharmaceutics industry is expected to grow to US$ 9 billion by the end of the decade. These tools expedite the discovery of new molecules, reduce cycle times and costs, and enhance clinical outcomes.
Additionally, they enable pharmaceutical manufacturers to identify quality control issues and predict potential bottlenecks, further augmenting their adoption. The biotechnology segment is poised for substantial growth due to the benefits associated with AI integration, such as accelerated R&D, informed decision-making, and cost-effectiveness. Moreover, the utilization of machine learning for interpreting large genomic datasets is anticipated to drive growth within the biotechnology sector, facilitating improved organizational workflows and competitive advantages.
Key Market Segments
Component
- Software
- Hardware
- Services
Deployment
- On premises
- Cloud
Application
- Research and Development
- Sales and Marketing support
- Supply chain analytics
- Others
End-user
- Medical Devices
- Pharmaceutical companies
- Biotechnology companies
- Others
Market Drivers
Ever-increasing data in life science encourages market growth
The exponential growth of data in the life science industry necessitates advanced analytical tools to effectively process and derive insights from vast datasets. Additionally, the demand for expedited drug discovery and development processes, especially for complex diseases like cancer and rare conditions, fuels the adoption of AI-driven solutions.
Increasing demand for precision medicine and personalized healthcare linked to accelerating market growth
Moreover, the increasing emphasis on precision medicine and personalized healthcare requires sophisticated analytics capabilities, which AI can provide through its predictive modeling and data interpretation algorithms. Furthermore, the recent pandemic has highlighted the importance of leveraging technology for healthcare innovation, driving investment and interest in AI solutions for life science analytics. Lastly, regulatory pressures and the need for improved efficiency and cost-effectiveness across the healthcare value chain are significant drivers propelling the growth of the AI in life science analytics market.
Market Restraints
Data privacy and security concerns hinder market growth
Concerns regarding data privacy and security remain a significant barrier, especially given the sensitive nature of healthcare data. Regulatory compliance and adherence to stringent data protection laws further complicate the implementation of AI solutions in the life science industry. Additionally, the high initial costs associated with AI implementation, including infrastructure setup, training, and integration with existing systems, pose a challenge for many organizations, particularly smaller players with limited resources.
Furthermore, the complexity of AI algorithms and the lack of transparency in their decision-making processes raise ethical and regulatory concerns, hindering widespread adoption. Moreover, the shortage of skilled professionals proficient in both life sciences and AI technology presents a bottleneck in harnessing the full potential of AI-driven analytics in the life science sector. Addressing these restraints will be crucial for realizing the full benefits of AI in life science analytics and ensuring its sustainable growth in the future.
Opportunities
The AI in life science analytics market presents numerous opportunities for growth and innovation. Firstly, the increasing availability of big data sets in healthcare, coupled with advancements in AI technology, opens doors for more precise diagnosis, treatment personalization, and predictive analytics.
The integration of AI-driven analytics into clinical trials and drug development processes holds promise for accelerating time-to-market for new therapeutics and improving patient outcomes. Moreover, the rise of telemedicine and remote patient monitoring creates opportunities for AI-powered analytics to enhance healthcare delivery and patient engagement.
Additionally, collaborations between industry players, academia, and government agencies foster innovation and drive the development of novel AI applications in life science analytics. Furthermore, the growing trend towards value-based care and outcomes-driven healthcare models incentivizes the adoption of AI solutions for optimizing resource allocation, improving operational efficiency, and reducing healthcare costs. Embracing these opportunities can revolutionize the landscape of life science analytics, paving the way for transformative advancements in healthcare.
Latest Trends
In the AI in life science analytics market, several latest trends are shaping the landscape and driving innovation. One notable trend is the increasing focus on explainable AI (XAI), which aims to enhance transparency and interpretability of AI algorithms, especially in critical healthcare decision-making processes. Another emerging trend is the convergence of AI with other disruptive technologies such as blockchain and Internet of Things (IoT) to create integrated solutions for data security, interoperability, and real-time monitoring in life science applications.
Additionally, there is a growing emphasis on federated learning and distributed AI models to facilitate collaborative research while preserving data privacy and security. Furthermore, the rise of AI-driven drug repurposing and precision medicine approaches is revolutionizing therapeutic discovery and development, enabling more targeted treatments for diverse patient populations.
Lastly, the increasing adoption of cloud-based AI platforms and as-a-service models is democratizing access to advanced analytics capabilities, empowering organizations of all sizes to leverage AI for life science applications.
Impact of Macroeconomic / Geopolitical Factors
Inflation, currency rates, interest rates, and government policies collectively exert significant influence on the market dynamics of AI in life science analytics. High inflation rates can increase operational costs for companies, affecting investment decisions and pricing strategies.
Fluctuations in currency rates may impact the competitiveness of products and services in international markets, potentially affecting revenues and profit margins. Similarly, shifts in interest rates can influence borrowing costs and investment returns, thereby affecting capital expenditure and growth initiatives in the market.
Government policies, including regulations on data privacy, healthcare reimbursement, and research funding, can shape the operating environment for companies and influence market trends and opportunities.
Moreover, government initiatives to promote AI adoption, research, and development can stimulate market growth, while regulatory changes may introduce compliance challenges and uncertainties. Therefore, stakeholders in the AI in life science analytics market closely monitor and respond to these economic and policy factors to mitigate risks and capitalize on opportunities for sustainable growth.
Regional Analysis
North America is leading the AI in Life Science Analytics Market
In 2023, North America led the AI in life science analytics market with a 53.1% revenue share, driven by increased demand for AI technology and advancements in life science analytics, bolstered by strong digital literacy. Government initiatives and collaborations between public and private entities further contributed to market growth, alongside healthcare institutions’ rapid adoption of solutions for workflow organization.
The Asia Pacific region is expected to experience the highest CAGR during the forecast period
Asia Pacific is poised for the highest growth during the forecast period, attributed to the increasing number of countries embracing AI tools and the significant presence of biotech companies in the region. Major players in Asia Pacific prioritize the adoption of AI-based analytical tools to enhance operational efficiency, a key driver of market expansion. As per findings from an IBM report, Chinese and Indian companies are at the forefront of AI adoption, with nearly 60% of IT professionals affirming that their organizations have already implemented AI applications.
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Market Key Players Analysis
In the AI in life science analytics market, key companies are continually enhancing their offerings and expanding their market share. Notable players such as Sorcero and CloudMedx have introduced innovative AI-based solutions like Clarity and ACO REACH Explorer, respectively, to cater to the evolving needs of the life science industry. These advancements aim to provide integrated views and unify disparate data, thereby improving medical affairs and patient engagement.
The competitive landscape is characterized by a focus on improving the quality and capabilities of AI tools, alongside strategic collaborations and technological advancements. As the market continues to grow, companies are striving to establish themselves as leaders in providing AI-driven solutions for life science analytics.
Top Key Players in AI in Life Science Analytics Market
- Indegene
- Lexalytics
- Databricks
- SAS Institute Inc.
- Sisense
- IQVIA
- IBM
- Sorcero
- Other Key Players
Recent Developments
- In January 2024, Lexalytics, a division of InMoment and a trailblazer in AI-driven natural language processing (NLP) technology, unveiled its enhancements, showcasing improved accuracy and extended NLP functionalities across 11 non-English languages it accommodates. With support for a total of 31 languages, businesses can now make more informed decisions and better understand customer sentiments on a global scale.
- In February 2023, Alteryx announced an extended collaboration with Databricks, designed to empower Alteryx users to merge their domain knowledge with the advanced data science and generative AI features offered by Databricks’ tools.
Report Scope
Report Features Description Market Value (2023) USD 1.7 billion Forecast Revenue (2033) USD 5.6 billion CAGR (2024-2033) 12.7% Base Year for Estimation 2023 Historic Period 2018-2022 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Software, Hardware, Services; By Deployment – On premises, Cloud; By Application – Research and Development, Sales and Marketing support, Supply chain analytics, Others; By End-user – Medical Devices, Pharmaceutical sector, Biotechnology, Others Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Indegene, Lexalytics, Databricks, SAS Institute Inc., Sisense, IQVIA, IBM, Sorcero, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) AI in Life Science Analytics MarketPublished date: March 2024add_shopping_cartBuy Now get_appDownload Sample -
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- Indegene
- Lexalytics
- Databricks
- SAS Institute Inc.
- Sisense
- IQVIA
- International Business Machines Corporation Company Profile
- Sorcero
- Other Key Players
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