Artificial Intelligence (AI) in Life Sciences Market Size, Share, and Trends 2024 to 2034

Artificial Intelligence (AI) in Life Sciences Market Size and Growth 2023 to 2032

The global artificial intelligence (AI) in life sciences market size was valued at US$ 1.50 billion in 2022 and it is expected to reach around US$ 9.17 billion by 2032 with a registered CAGR of 19.90% from 2023 to 2032.

Till date, technology impact on life sciences industry has only reached the surface of its potential and there are a lot more to go during the long run. As technology is shaping the future of various industries and has now become the key driving factor for almost every industry, life science is no exception here. Penetration of Artificial Intelligence (AI) and Machine Learning (ML) in life science has proved to be a tipping point for the industry’s growth. Integration AI and ML in life sciences along with  its fast adoption by the life sciences companies expected has made drug discovery easier and faster compared to traditional approaches.

AI allows interpreting and process large sets of data as well as AI helps in designing right structure of drugs coupled with correct predictions for toxicity, bioactivity, and physicochemical properties. In addition, AI along with ML helps in distinguishing the image characteristics that is unable to be done by human brain. Moving forward, AI can also be helpful in the diagnosis of critical diseases such as heart disease, cancer, and diabetes. By early diagnosis the critical or life-threatening diseases, people can adopt necessary and pr3eventive measures to cure the disease and enjoy a longer and healthier life.

Growth Factors

There are various factors such as rising costs, need for improving productivity, and disruptions caused due to various innovative technologies are the major factors that are expected to boost the growth of the global AI in life sciences market during the forecast period. Moreover, the rapid growth of the data based AI, rising need to attain robotics autonomy, and advances in the deep learning are significantly boosting the growth of the global AI in life sciences market.

The various market players in the life sciences industry are increasingly investing in the adoption of AI based technologies to remain competitive in the market, which is boosting the demand for the AI in life sciences field. The rising applications of AI in the analysis of small systems-of-interest specific datasets is significantly enhancing the drug discovery & development and development of personalized medicines.

Moreover, the growing demand for the therapeutics to treat complex diseases like cancer is boosting the growth of the AI in life sciences market. The drug discovery process is becoming more inefficient owing to the various factors like high development costs, low success rate in clinical trials, diminishing return on investments, and rising focus on rare diseases. The adoption of AI can reduce the extensive progress involved in the clinical trials research. The AI can enhance the predictive analysis to identify the suitable candidate for clinical trials quickly.

Further, the machine learning can facilitate tasks like ideal sample size calculations, usage of medical records to minimize error, and facilitating candidate recruitment and make the clinical trials process more efficient. The number of AI applications in the field of life sciences is expected to increase in the forthcoming future, which is significantly attracting investments from the major players of the life sciences industry.

Report Scope of the Artificial Intelligence (AI) in Life Sciences Market

COVID-19 Impact Analysis

Sudden outbreak of COVID-19 pandemic has disturbed the operation, sales, marketing of several industries that includes healthcare, automotive, manufacturing, and many others. Despite the negative impact of COVID-19 on rest of the industries, some of the industries such as healthcare, and pharmacy grow exponentially during the period. Healthcare spending and investment in the research & development of appropriate drug for the fast and sooner recovery from COVID-19 virus attack has also prosper the drug development and research department in the healthcare sector. In accordance to the same, life science research being associated to the drug development and clinical trials was also least affected by the COVID-19 outbreak. Henceforth, the market for Artificial Intelligence (AI) in life sciences has witnessed prominent growth during the pandemic period and expected to continue the same trend during the forthcoming years.

Offering Insights

Based on the offering, the software segment dominated the global AI in life sciences market in 2022. The rising penetration of the software owing to the rising need for storing, managing, analyzing, and sharing data in the drug discovery & development, and clinical trials has led to the dominance of this segment. The growing need for the big data analytics is boosting the demand for the AI software in the global Ai in life sciences market. Moreover, the software generates recurring revenue stream for the market players over a long time period and hence has become the largest revenue contributor to the AI in life sciences market across the globe.

On the other hand, the services is expected to be the fastest-growing segment during the forecast period. The lack of knowledge regarding the operation of AI based hardware and software among the life science professionals is boosting the demand for the third-party service providers that supplies technically equipped staffs to operate the expensive AI systems. This factor is driving the demand for the services segment in the global AI in life sciences market during the forecast period.

Deployment Insights

The cloud segment dominated the global AI in life sciences market in 2022. The growing penetration of internet, development of innovative cloud based services, rising investments in the development of IT and telecommunications infrastructure, and ease of operations associated with the cloud based servers are the major factors that has led to the growth of the cloud segment in the global AI in life science market. This segment is expected to be the fastest-growing segment during the forecast period, owing to the rising investments by the top biotech and life sciences companies in the adoption of the digital technologies.

Application Insights

Depending on the application, the drug discovery segment dominated the global AI in life sciences market in 2022. The rising prevalence of various chronic and gene related diseases is significantly boosting the growth in the investments towards drug discovery & development. The leading pharma and biotech companies are constantly engaged in the drug discovery activities to develop new and innovative drugs for the treatment of various chronic diseases like cancer, diabetes, cardiovascular diseases, musculoskeletal diseases, and infectious diseases. Moreover, the surging demand for advanced and innovative therapeutics among the patients has led to the dominance of this segment in the global market.

The clinical trails is expected to be the most opportunistic segment during the forecast period. The surging number of drug discovery activities is boosting the number of clinical trials across the globe, which is resulting in the generation of huge volume of data. The generation of such huge amount of data and rising availability of these data on the public domain is accelerating the adoption of the AI based software among the various academic and research institutions also. Hence, the clinical trials segment will gain a rapid traction during the forecast period.

Region Insights

North America dominated the global AI in life sciences market in 2022. US is the global leader in the AI in life sciences market. This growth is attributed to the higher demand for the AI technology across all the applications of life sciences. Moreover, the US is home to the several leading pharma and biotech companies. The huge investments by the US based pharma companies in the drug discovery and clinical trials has led to the significant demand for the AI in life sciences. US holds the property rights for the majority of the newly developed drugs. As per the Pharmaceutical Research and Manufacturers of America (PhRMA), around US$80 billion was spent on research and development by the pharma companies across the globe in 2018. It highlighted that the pharma companies invested around 19% of their revenues in the research and development. The various pharma companies and clinical research companies in US are increasingly investing in the adoption of the AI technologies, which will sustain the dominance of North America in the global AI in life sciences market in the forthcoming future.

Asia Pacific is expected to witness the highest growth rate during the forecast period, owing to the rising investments by the various research companies in the adoption of the AI software and hardware to enhance the operational efficiency. The presence of several top research organizations in the regions is fueling the growth of the market.

Competitive Landscape

Market players in the AI in life science industry focus increasingly towards enhancing the research study of various body parts using AI and ML. In addition, development and research activities are the key strategies adopted by the market players that help them in retaining their market position on the global scale.

Key Market Developments

• In September 2020, Pharmaspectra and IBM Watson Health announced to enter into a strategic collaboration. The new collaboration between the two companies was aimed to streamline the product portfolio of IBM Watson health by increasing its focus towards innovations and new strategies that help and support life science’s clients of the IBM using digital transformation.
• In July 2020, NuMedii Inc. introduced the world’s first atlas of single-cell sequencing for idiopathic pulmonary fibrosis (IPF)with the help of a strategic collaboration for research with Yale School of Medicine, Brigham & Women’s Hospital, and Baylor College of Medicine. The new research was targeted to enhance the understanding of lungs fibrosis by using AI.
• In June 2020, The University of Kentucky entered into a research collaboration with Atomwise, a leading user of artificial intelligence (AI) for small molecule discovery, to explore potential therapies for COVID-19 disease.
• In March 2020, IBM and EBSCO entered into a strategic collaboration to improve the clinical decision support for the healthcare providers and health systems.

Some of the prominent players in the global AI in life sciences market include:

• IBM Corporation
• Atomwise, Inc.
• Nuance Communications, Inc.
• NuMedii, Inc.
• AiCure LLC.
• APIXIO, Inc.
• Insilico Medicine, Inc.
• Enlitic, Inc.
• Sensely, Inc.
• Zebra Medical Vision

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Offering

• Software
• Hardware
• Services

By Deployment

• On Premise
• Cloud

By Application

• Medical Diagnosis
• Drug Discovery
• Precision and Personalized Medicine
• Biotechnology
• Clinical Trials
• Patient Monitoring

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa