The global AI in drug discovery market is estimated to grow significantly, at a CAGR of 51.3%, during the forecast period. AI has the potential to enhance the drug discovery process, diminish failure rates during clinical trials, reduce R&D expenses, and ultimately produce a superior medicine for the healthcare sector. There are several drug discovery and pharma companies have started working in conjunction with software companies for implementing the most advanced technologies that require costly and extensive drug discovery process. AI-driven computer programs can accurately and promptly analyze structures of a range of drug molecules and predict adverse effects, potency, and pharmacological activities of the drug. This possibility has the potential to develop a rapid and inexpensive route of drug discovery.  

AI stands out to be one of the biggest technological breakthroughs in the healthcare sector; however, there are lots of security concerns associated with this technology, which hampers the growth of the market at the global level. In addition, the lack of relevant data input to AI-assisted healthcare devices may result in hampering the market growth during the forecast period. Despite these restraining factors, with the increasing prevalence of diseases, the need for the advanced drug is rising. Every pharma company strives to develop a new innovative drug. In order to achieve this goal, companies spend heavily on R&D department. These investments are expected to offer growth opportunities to the AI in drug discovery market during the forecast period. 

Segmental Outlook  

The AI in drug discovery market is classified on the basis of application, and end-user. Based on the application, the market is segmented into oncology, CVD, neurodegenerative diseases, and others. Based on end-user, the market is segmented into pharmaceutical and biotechnology companies, CROs, and academic organizations.  

Global AI in Drug Discovery Market Share by End-user, 2018 (%)

Global AI in drug discovery market to be driven by its rising application in pharmaceutical and biotechnology companies sector

Pharmaceutical and biotechnology companies are swiftly adopting AI technology for drug discovery. In preliminary drug discovery, AI technology has a potential application in various fields ranging from initial screening of drug compounds to predicted success rate of drug, based on biological factors. This includes R&D discovery technologies such as next-generation sequencing technology. The platform enables pharmaceutical companies to improve the efficiency and accountability of the clinical supply process by transforming patient engagement in clinical trials. Pharmaceutical giant Merck KGaA is one implementing AI-based solutions in drug discovery. The company has entered into a partnership agreement with Numerate, a US-based pharmaceutical company leveraging AI-based algorithms and cloud computing solutions to transform the drug discovery and designing process.

Regional Outlook 

The global AI in drug discovery market is classified on the basis of geography, including North America, Europe, Asia-Pacific, and the Rest of the World. North America is estimated to have considerable market share in the global AI in drug discovery market. The major countries which contribute to the North American market growth include the US. The factors that are contributing significantly in the market growth include high expenditure on healthcare R&DThe region has well-developed ICT infrastructure and employs the adoption of a larger number of connected devices. North America is home to the largest companies in terms of revenue, which include Microsoft, IBM, and Google. 

Global AI in Drug Discovery Market Growth, by Region 2019-2025

Asia-Pacific is expected to propel with a considerable growth rate in the global market

Asia-Pacific is expected to project a considerable growth in the global AI in drug discovery market. China, India, and Japan hold a significant share in the market. The Asia-Pacific region has a potential market due to the increasing R&D and investments by big pharmaceutical companies in life science research coupled with harnessing innovation. Asia-Pacific region serves as an emerging economy for this market due to developing infrastructure and increasing prevalence of diseases such as cancer, heart diseases, and diabetes. In addition, increasing demand for the integrated healthcare system and growing investment from healthcare IT companies, as well as increasing geriatric population pool, serves as the motivating factors for the growth of the market in the Asia-Pacific region.

Market Players Outlook

The key players in the AI in drug discovery market are contributing significantly by providing advanced technology-based products and expanding their geographical presence across the globe. The key players operating in the global AI in drug discovery market include Atomwise, Inc., Microsoft Corp., IBM Corp., Google LLC, and Intel Corp. These market players adopt various strategies such as product launch, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. For instance, in March 2020, XtalPi Inc. announced a strategic collaboration with Porton Pharma Solutions Ltd. for the integration of the company’s next-generational computational tools with Porton’s experimental expertise, in order to accelerate drug design and pre-clinical approach.

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global AI in drug discovery market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.