Global Artificial Intelligence in Drug Discovery Market By Component (Software and Service), By Technology (Machine Learning, Deep Learning, and Other Technologies), By Application, By End-User, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

In 2023, the Global Artificial Intelligence in Drug Discovery Market was valued at USD 1.2 Billion. Between 2024 and 2033, this market is estimated to register the highest CAGR of 27.5%. It is expected to reach USD 13.6 Billion by 2033.

The applications of artificial intelligence are increasing in every industry. The rising use of artificial intelligence in the pharmaceutical industry has seen significant growth in the last few years. This growth of artificial intelligence in the pharmaceutical industry is due to the wide application of AI in the industry. One such application of artificial intelligence in the pharmaceutical industry is used for drug discovery.

Artificial intelligence is used in drug discovery for many operations like recognizing the lead and hit compounds, faster validation of the drug target, and efficiently optimizing the drug structure design. Other applications of AI in drug discovery include polypharmacology, chemical synthesis, drug repurposing, and drug screening

Because of such wide applications of artificial intelligence in drug discovery, AI in the drug discovery market is expected to grow in the upcoming period. The increasing demand for the development and discovery of drugs for newly emerging diseases is helping in the development of global artificial intelligence in the drug discovery market.

Major companies in drug discovery are adopting artificial intelligence in their systems to optimize the workload and increase productivity. Moreover, the collaborations and partnerships between pharmaceutical companies and AI offering companies are fueling the growth of artificial intelligence in the drug discovery market.

Key Takeways

• Global Artificial Intelligence in Drug Discovery Market was valued at USD 1.2 Billion. Between 2024 and 2033.
• This market is estimated to register the highest CAGR of 27.5%. It is expected to reach USD 13.6 Billion by 2033.
• The software leads the market by covering 65.4% share of AI in the drug discovery market.
• The machine learning dominates 52.7% market share of the technology segment due to its benefits.
• Neurodegenerative diseases was account 43.8% market share in 2023.
• Pharmaceutical and biotechnological companies cover 68.4% market share of AI in the drug discovery market.
• North America dominated the global artificial intelligence in the drug discovery market by accounting for a major revenue share of 60.1%.
• The pharmaceutical industry has witnessed significant growth in the use of artificial intelligence for drug discovery, enabling tasks like lead compound recognition, target validation, and drug structure optimization.
• Key applications of AI in drug discovery encompass polypharmacology, chemical synthesis, drug repurposing, and drug screening, facilitating the development of drugs for emerging diseases.

Driving Factors

Increasing Investments in AI for Drug Discovery and Time Optimizing Benefits of AI To Drive the Market

Drug discovery is a very lengthy and expensive process in terms of money. Due to this, the drug discovery system needs the tool to optimize the workload in the process. Therefore, the use of artificial intelligence in drug discovery is a tool for the drug discovery process to optimize the workload in the process. These benefits of artificial intelligence in drug discovery are driving the growth of artificial intelligence in the drug discovery market.

Moreover, the major companies in the market are heavily investing in the research and development of the advanced features of artificial intelligence to use in the drug discovery process. This is also boosted the growth of artificial intelligence in the drug discovery market over the last few years.

Restraining Factors

High Cost of AI Integration and Lack of Infrastructure is Obstructing the Growth of AI in Drug Discovery

The integration of artificial intelligence in drug discovery optimizes the work in the process for companies. However the high cost of artificial intelligence integration is restricting many companies from adopting artificial intelligence in their system for drug discovery. Only the major companies in drug discovery are able to integrate artificial intelligence into their system. At the same time, the small and medium enterprises in the market are not able to integrate AI into their systems due to its high cost. This is restraining the growth of artificial intelligence in the drug discovery market.

Moreover, the lack of infrastructure for the integration of artificial intelligence in drug discovery in developing and underdeveloped countries are also hampering the growth of artificial intelligence in the drug discovery market. Developed countries like the United States and Canada have the privilege of developing infrastructure for drug discovery. In contrast, underdeveloped and developing countries lack the infrastructure for drug discovery. This is restricting the growth of artificial intelligence in the drug discovery market.

Component Analysis

The Software Segment Dominates Over the Service Segment in the Component Analysis

Artificial intelligence in drug discovery is classified into software and services on the basis of components. From these components, the software leads the market by covering 65.4% share of AI in the drug discovery market. This significant growth of the software in the component segment is due to the rising adoption of AI in drug discovery software across the globe for its benefits like faster, cost-effective, and efficient functions. These factors are boosting the growth of the software in the component segment of artificial intelligence in the drug discovery process.

Technology Analysis

The Machine Learning Segment Leads the Technology Analysis

Based on technology, artificial intelligence in the drug discovery market is classified into machine learning, deep learning, and other technologies. Out of these technologies, machine learning dominates 52.7% market share of the technology segment due to its benefits, like providing efficient tools for improving the decision-making capacity in return for specific questions and high-quality data.

Machine learning is said to have the potential to boost the speed of the drug discovery process and decrease the failure rate in the process. All these key factors are driving the growth of machine learning in the technology segment of artificial intelligence in the drug discovery market. However, deep learning technology is expected to grow at the fastest rate over the forecast period.

Application Analysis

The Neurodegenerative Diseases Segment Dominates the Application Analysis

Artificial intelligence in the drug discovery market is divided into neurodegenerative diseases, cardiovascular diseases, metabolic diseases, immuno-oncology, and other applications on the basis of application. Among these applications, artificial intelligence is mostly used in the drug discovery of drugs for neurodegenerative diseases. The ability of AI to process complex structures in the discovery of drugs related to neurodegenerative diseases was account 43.8% market share. Driving the growth of neurodegenerative diseases in the applications segment of artificial intelligence in the drug discovery market.

End-User Analysis

Pharmaceutical and Biotechnological Companies Dominated the End-User Segment

On the basis of end-users, AI in the drug discovery market is classified into pharmaceutical and biotechnological companies, academic and research institutes, and other end users. Out of these end users, the pharmaceutical and biotechnological companies cover 68.4% market share of AI in the drug discovery market.

This exponential growth of pharmaceutical and biotechnological companies is due to the increasing use of artificial intelligence in these companies for drug discovery at a high level. The use of AI in drug discovery for pharmaceutical and biotechnological companies gives them the tool to use in the mass processing of compounds in the drug discovery processes. This is driving the growth of pharmaceutical and biotechnological companies in the end-user segment of artificial intelligence in the drug discovery market.

Market Key Segments

Component

• Software
• Service

Technology

• Machine Learning
• Deep Learning
• Other Technologies

Application

• Neurodegenerative Diseases
• Cardiovascular Diseases
• Metabolic Diseases
• Immuno-Oncology
• Other Applications

End-User

• Pharmaceutical and Biotechnological Companies
• Academic and Research Institutes
• Other End-Users

Growth Opportunity

Increasing Applications of AI in the Healthcare Sector are Expected to Create Many Opportunities in the Market Over the Forecast Period

The increasing applications of artificial intelligence in the healthcare sector are creating many opportunities in the market. The integration of artificial intelligence in the system for its applications in various steps of drug discovery is attracting more and more companies in drug discovery to adopt artificial intelligence in their systems. This is anticipated to create many lucrative opportunities in the AI drug discovery market over the forecast period.

Latest Trends

The Ongoing Trend of Using Artificial Intelligence Across Various Industries is Expected to Fuel the Growth of AI in the Drug Discovery Market

The ongoing trend of using artificial intelligence across various industries is driving the growth of artificial intelligence in the drug discovery market. The increasing use of artificial intelligence in industries for prevailing the benefits of artificial intelligence in time and work optimization is promoting the adoption of artificial intelligence across industries. In these industries, the healthcare and pharmaceutical industries are no exception in using artificial intelligence in the systems due to its benefits. This trend of using artificial intelligence across industries is anticipated to boost the growth of AI in the drug discovery market over the forecast period.

Regional Analysis

The North American region Leads the Market with a Major Revenue Share in Account

North America dominated the global artificial intelligence in the drug discovery market by accounting for a major revenue share of 60.1%. This growth in North America is attributed to the presence of well-developed infrastructure for artificial intelligence integration in the drug discovery process. Major countries in the North American region, like the United States and Canada, are home to various companies offering artificial intelligence in the region. All these factors are positively propelling the growth of artificial intelligence in the drug discovery market in North America.

However, the Asia Pacific region is anticipated to be the fastest-growing region in the global artificial intelligence in drug discovery market over the forecast period. This growth of the Asia Pacific region is due to the rising adoption of AI in developing countries for the healthcare and pharmaceutical sectors. Major countries in the region, like Australia, China, Japan, and India, are adopting AI across various industries to optimize the workload. This is expected to boost the growth of the Asia Pacific region during the forecast period.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Player Analysis

Artificial intelligence in the drug discovery market is fragmented into many companies across the world. These key companies are adopting various strategies to expand their business share in various regions across the world. The companies are collaborating, merging, and partnering to strengthen their position in the market. Some of the major players in artificial intelligence in the drug discovery market are NVIDIA CORPORATION, Microsoft Corporation, TOMWISE INC., Cloud Pharmaceuticals, Schrodinger, EXSCIENTIA.AI, BioSymetrics, Benevolent AI, Cyclica Inc., IBM Watson, and other key players.

Market Key Players

• NVIDIA CORPORATION
• Microsoft Corporation
• Cloud Pharmaceuticals
• TOMWISE INC.
• AI
• Schrödinger
• BioSymetrics
• Cyclica Inc.
• IBM Watson
• Benevolent AI
• Other Key Players

Recent Developments

• In July 2021, Chief.AI did the sendoff of pay more owing to the rising cost of AI for drug development. This move from the Chief.AI is expected to empower SMEs to adopt AI in drug discovery.
• In October 2020, Beginning Therapeutics partnered with Genentech to focus on the development of multi-target drug improvement by using the Genesis chart AI.

Report Scope