AI in Pharmaceutical Market Size, Share, and Trends 2025 to 2034

AI in Pharmaceutical Market Size and Forecast 2025 to 2034

The global AI in pharmaceutical market size was estimated at USD 1.51 billion in 2024 and is anticipated to reach around USD 16.49 billion by 2034, expanding at a CAGR of 27% from 2025 to 2034. The increasing demand for innovative and effective drugs, rising focus on regulatory compliance and safety, rising prevalence of chronic diseases, and rising use of AI in drug discovery & development are expected to drive the growth of the AI in pharmaceutical market during the forecast period.

AI in Pharmaceutical Market Key Takeaways

• North America dominated the global AI in pharmaceutical market with the largest market share of 35% in 2024.
• Asia Pacific is projected to grow at the fastest CAGR during the forecast period.
• By drug type, the small molecules segment contributed the highest market share of 66% in 2024.
• By drug type, the large molecules segment is projected to grow at a solid during the forecast period.
• By technology , the deep learning segment accounted for the highest market share in 2024.

U.S. AI in Pharmaceutical Market Size and Growth 2025 to 2034

The U.S. AI in pharmaceutical market size was estimated at USD 400 million in 2024 and is anticipated to be surpass around USD 4350 million by 2034, rising at a CAGR of 27.30% from 2025 to 2034.

North America dominated the global AI in pharmaceutical market with the largest market share of 35% in 2024. 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.

Market Overview

Artificial intelligence (AI) has come a long way in the pharmaceutical industry, playing significant roles in various aspects. AI technologies offer numerous advantages in the pharmaceutical industry including accelerating the development of new drugs, optimizing clinical trials, improving production processes, and personalizing treatments. Leveraging AI assists in improving supply chain management by predicting demand and monitoring product quality. By harnessing the power of AI, pharmaceutical companies can rapidly advance the future of healthcare. The AI can significantly enhance the operations related to manufacturing, clinical trials, and research & development.

AI in Pharmaceutical Market Growth Factors

• The rising adoption of Artificial Intelligence (AI) for clinical trials is anticipated to drive the growth of the market during the forecast period. AI can optimize clinical trials by identifying suitable patients and predicting any potential adverse reactions.
• The rising healthcare expenditure, favorable government policies, and strong economic growth are some of the major factors propelling the expansion of the AI in pharmaceutical market in the coming years.
• The top companies in the pharmaceutical industry are collaborating or partnering with the players in the AI industry to implement AI technology in drug discovery, research and development, and drug manufacturing, contributing to the overall growth of the market.
• Pharmaceutical companies are adopting AI to improve the efficiency and effectiveness of their operations. Some of the key trends in AI adoption include process automation, predictive analytics, AI platforms, and virtual clinical trials.
• The rising use of Robots and automated systems powered by AI algorithms to manage and optimize production, distribution, and logistics processes. These systems also assist in predicting equipment failures, improving inventory management, and optimizing the supply chain.

Market Scope

Market Dynamics

Driver

Rising drug discovery and development process

The increasing use of AI reduces the time and cost of drug discovery & development are expected to drive the growth of the AI in pharmaceutical market. Artificial Intelligence (AI) has the most critical application in drug discovery and development. Earlier, the discovery of new drugs was costly and a time-consuming process. AI integration has transformed this process by speeding up the identification of potential drug candidates. The usage of AI algorithms predicts how different molecules interact with biological targets, assisting in identifying which compounds have the highest or lowest potential for therapeutic benefit. Machine learning algorithms enable researchers to analyze vast amounts of biological, chemical, and clinical data to identify new therapeutic targets and predict the efficacy of new molecules. By leveraging AI tools, pharmaceutical companies are increasingly working on minimizing and preventing human errors, reducing R&D costs, and accelerating the research timeline, which leads to effective and cost-effective drugs. Therefore, the use of AI can reduce the cost and time of drug development and improve accuracy in predicting successful drug compounds.

Restraint

Lack of Healthcare IT Infrastructure

The lack of healthcare IT Infrastructure is anticipated to projected to hamper the market's growth. The deployment of AI tools and technologies requires expensive infrastructure investment to broaden coverage and operate. Several lower and middle-income countries lack healthcare IT Infrastructure which is likely to limit the expansion of the global AI in the pharmaceutical market.

Opportunity

Rising demand for personalized medicine

The growing demand for personalized medicine is projected to offer lucrative growth opportunities to the market players in the coming years.  AI holds great potential for personalized medicine, to improve the treatment of various chronic diseases. Leveraging AI algorithms assists in using genomic data and past medical histories to identify patterns and make appropriate predictions to personalize patient treatments which often results in becoming more effective therapies with lessening side effects. For instance, the usage of AI can aid in determining the exact dosage of drugs based on the patient’s unique genetic makeup, thus raising the treatment efficacy and minimizing risks.

• In October 2024, BioNTech and its AI subsidiary InstaDeep unveiled their AI strategy at an event called "AI Day." The companies plan to use new models and supercomputers to accelerate the development of vaccines and cancer therapies. With InstaDeep as its in-house AI specialist, BioNTech aims to advance the use of AI in developing personalized vaccines and targeted treatments. A key focus is the DeepChain platform, which uses various omics data for drug design.

Technology Insights

The deep learning segment accounted for the highest market share in 2024. 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 contributed the highest market share of 66% in 2024. 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 molecules segment is projected to grow at a solid 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

The drug discovery segment is diminated the market in 2024. 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.

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

Recent Developments

• In September 2024, Silver Touch Technologies Limited incorporated a new subsidiary, AI4Pharma Tech Limited, to develop artificial intelligence solutions for the pharmaceutical industry. AI4Pharma Tech Limited aims to create AI-based tools for regulatory submissions, monitoring, and compliance within the pharmaceutical sector.
• In January 2025, Absci Corporation, a data-first generative AI drug creation company, and Owkin, a TechBio that uses agentic AI to unlock complex targets for drug discovery, development, and diagnostics, announced a partnership bringing together two leading AI platforms to rapidly discover and design novel therapeutics for patients.

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