AI in Pharmaceutical Market Size, Share, and Trends 2024 to 2034

The global AI in pharmaceutical market was valued at USD 908 million in 2022 and is expected to reach over USD 11813.56 million by 2032, poised to grow at a compound annual growth rate (CAGR) of 29.30% from 2023 to 2032.

AI in Pharmaceutical Market Size in the U.S. 2023 To 2032

The U.S. AI in pharmaceutical market reached USD 905.91 million in 2022 and is predicted to be worth over USD 9,241.34 million by 2032, grow at a CAGR of 29.30% from 2023 to 2032.

North America dominated the global AI in the pharmaceutical market in 2022, garnering a market share of around 44%. North America is witnessing strong growth in the adoption of the AI in the pharmaceutical sector. North America has favorable regulatory framework that encourages the adoption of the AI in the pharmaceutical industry. Moreover, the presence of several top pharmaceutical companies in the region is investing heavily in strengthening their position in the biopharmaceutical landscape. The rapid development of the biotechnology and the biologics is positively impacting the market growth in North America.

Asia Pacific is estimated to be the most opportunistic market during the forecast period. Asia Pacific is characterized by the presence of several top contract research organizations and contract manufacturing organizations, which fuels the adoption of the AI in the pharmaceutical industry. The rising investments in the implementation of the AI for boosting up the production of the pharmaceuticals are a primary factor that propels the market growth in Asia Pacific region. Furthermore, the rising healthcare expenditure and rapidly growing geriatric population in the region is fueling the demand for the biopharmaceuticals, which in turn is augmenting the demand for AI in the pharmaceutical market.

Growth Factors

The automated and the interconnected technologies that can function automatically with minimum or no human intervention, in the pharmaceutical industry is referred to as the AI in the pharmaceutical. The AI can significantly enhance the operations related to manufacturing, clinical trials, and research & development. It is estimated that more than 60% of the healthcare companies across the globe are planning to implement artificial intelligence technologies, during the forecast period. The rising adoption of the AI in the biotechnology and the healthcare industry is expected to be a major factor behind the burgeoning growth of the market. The top companies in the pharmaceutical industry are joining hands with the players in the AI industry to implement AI technology in the drug discovery, research and development, and drug manufacturing. Top companies such as Pfizer, Sanofi, GSK, and AstraZeneca are either collaborating with the AI companies or acquiring the AI technologies. Therefore, the heavy investments by the top healthcare companies are exponentially fueling the growth of the global AI in the pharmaceutical market.

The growth of the AI in pharmaceutical market is attributable to the rising healthcare expenditure, favorable government policies, and strong economic growth in the past few years, especially in the emerging markets. The AI in the pharmaceutical market witnessed a sudden spike in 2020 owing to the increased investments in the AI for discovering the drugs for the COVID-19 disease. For instance, in April 2020, GSK entered into a partnership with Vir Biotechnology to enhance the process of drug discovery for COVID-19 through AI and CRISPR. Hence, the outbreak of the COVID-19 diseases has resulted in the growth of the market in 2020 and this growth is expected to sustain and have a great impact on the market growth during the forecast period.

Scope of the AI in Pharmaceutical Market

Technology Insights

The deep learning was the dominant segment in the global AI in the pharmaceutical market, garnering a market share of over 34% in 2022. Deep learning can efficiently identify the certain health conditions that develop in the body and can predict regarding the health conditions accurately. Deep learning technology covers the procedures such as cardiovascular diseases, sepsis, and thyroidectomy, which has significantly fostered the growth of this segment. The increased usage of the deep learning technology in the diagnosis and prediction of the health conditions has led to the dominance of this segment.

The querying method is estimated to be the most opportunistic segment during the forecast period. This is attributed to the increasing popularity of the query method as a communication tool. It is being increasingly used as an assistant in digital applications.

Drug Type Insights

The small molecules segment dominated the market with more than 66% market share in 2022. This is attributed to the huge demand for the small molecule drugs across the globe. The small molecule drugs are the most common types of drugs like aspirin and diphenhydramine, which is extensively used for the prevention and treatment of a disease. Therefore, the huge demand for the small molecule drugs have resulted in the increased usage of AI in the production of the small molecule drugs. Moreover, the US FDA had approved around 59 drugs in 2018, 71 of which were small molecule drugs.

The large molecule is expected to be the fastest-growing segment during the forecast period. The rapidly growing demand for the biologics owing to the increased investments in the development of the biologics industry is fueling the demand for the large molecule drugs. Moreover, the development of biologic drugs for chronic diseases like cancer is expected to drive the demand for the large molecule drugs, thereby driving the growth in the use of AI in the production of the large molecule drugs.

Application Insights

Based on the application, the drug discovery segment is accounting for around 82% of the market share in 2022. AI is now increasingly being used in the development of new medications. The pharmaceutical manufacturers can repurpose the existing drugs and molecules using the AI platforms. Drug discovery is a time-consuming process but with the implementation of the AI in the drug discovery procedure, the drug discovery method can be boosted and time and cost can be significantly reduced. This has fostered the growth of this segment.

Clinical trial is expected to be the fastest-growing segment during the forecast period. The increased drug discovery activities are resulting in the rising number of the clinical trials, which fosters the demand for the AI in the clinical trials.

Key Developments

• In April 2021, Abbott introduced its new coronary imaging platform, powered by artificial intelligence, in Europe. It has also received CE mark by the concerned authorities in Europe.
• In April 2020, GSK entered into a partnership with Vir Biotechnology to enhance the process of drug discovery for COVID-19 through AI and CRISPR.
• In December 2019, Almirall, a Spanish pharmaceutical company entered into a research collaboration with Iktos for development of new drug design.

The various developmental strategies like partnerships, acquisitions, collaborations, and new product launches with latest and innovative features fosters market growth and offers lucrative growth opportunities to the market players.

AI in Pharmaceutical Market Companies

• IBM Corporation
• Exscientia
• Deep Genomics
• Cloud Pharmaceuticals, Inc.
• Microsoft Corporation
• NVIDIA Corporation
• Insilico Medicine
• Alphabet Inc.
• Atomwise, Inc.
• Biosymetrics
• Euretos
• BenevolentAI

Segments Covered in the Report

By Technology

• Natural Language Processing
• Context-Aware Processing
• Deep Learning
• Querying Method

By Drug Type

• Large Molecules
• Small Molecules

By Application

• Drug Discovery
• Clinical Trial
• Research & Development
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia Pacific
• China
• India
• Japan
• South Korea
• Rest of the World