AI for Drug Discovery Market: By Offering (Software, Services);By Technology (Machine Learning and Other Technologies); By Drug Type (Small Molecule and Large Molecules); By Application (Immuno-Oncology, Neurodegenerative Diseases, Cardiovascular Disease, Metabolic Diseases and Other Applications); By End-User (Pharmaceutical & Biotechnology Companies, Contract Research Organizations, Research Centers and Academic & Government Institutes)and Region - Analysis of Market Size, Share & Trends for 2018 - 2020 and Forecasts to 2030
[ 170 + Pages Research Report ] Artificial Intelligence (AI) in Drug Discovery Market size was valued at USD 253.8 million in 2019 and is anticipated to reach USD 3,932.87 million by 2030, demonstrating a CAGR of 40.8 % from 2020 to 2030.
The initial step in drug discovery is the process of a novel drug candidate’s identification and its therapeutic target base. Based on efficacy, potency, bioavailability, and toxicity the drug discovery or new drug target is being evaluated. Artificial intelligence is extensively used in the healthcare sector and especially used for drug discovery. AI technology has the potential to recognize drug targets, and play an essential role in drug design, discovery, identification, and screening of molecules promptly and efficiently.
The global Artificial Intelligence (AI) in Drug Discovery Market size was valued at USD 253.8 million in 2019 and is anticipated to reach USD 3,932.87 million by 2030, demonstrating a CAGR of 40.8 % from 2020 to 2030. AI helps in perceiving the mechanism of disease, establishing biomarkers, and generating data or models for the drug discovery process and thereby expected to propel the market over the forecast period of 2020-2030. Furthermore, rising research and development activities and software launches by the key market players are estimated to spur the market. A wave of new research and development collaborations between key biopharma players and AI-driven companies, mostly startups.
Lantheus Holdings Inc. a diagnostic imaging company and Progenics Pharmaceuticals Inc. an oncology products company, amended a prior merger in February 2020
Novartis went into a collaboration with Microsoft for the artificial intelligence innovation lab and Amazon Web Services to form an enterprise comprising a data and analytics platform that would yield advanced medicines in February 2020.
A merger with MAbSilico was announced by OSE Immunotherapeutics in February 2020. Innovative problem-solving solutions including artificial intelligence for the development of new monoclonal antibodies are established and incorporated into the merger plan.
In 2019, the software segment held the largest share of AI in the drug discovery market at 65.23 percent by type
Based on offering type, the AI is segmented into software and services in the drug discovery market. The Software segment accounted for a larger market share in 2018. The growth of the software segment is driven by factors such as lower cost and time to market the drug, low failure rate, a large number of drug discovery software developers, and strong software demand among big pharmaceutical & biotech companies and research institutes.
In the forecast period, the segment of neurodegenerative diseases is projected to rise at the highest CAGR.
Based on the application, the drug discovery market for artificial intelligence is segmented into neurodegenerative diseases, immuno-oncology, cardiovascular disease, metabolic diseases, and other uses. Neurodegenerative diseases form the fastest-growing segment of the application, with the highest CAGR during the forecast period. AI's ability to discover medicines for complex diseases, and market players' focus on offering AI-based neurological disease platforms, are responsible for this application segment's rapid growth.
Shorten the Drug Discovery Process
Artificial Intelligence is expected as a lucrative healthcare industry avenue. Implementing AI eliminates the research and development gap in the drug production cycle and helps in targeted drug manufacturing as well as helps pharmaceutical companies streamline research and development activities for customized drugs and complex drug discovery. The AI in the Drug Discovery Market is driven by the growing need to shorten the process of drug discovery to get drugs to treat various chronic and viral diseases quicker. Due to this, Biopharmaceutical industries tend to increase their market share toward AI.
Declining Cost of the Discovered Drugs
Another factor expected to improve the AI-to-drug discovery market is the growing pressure on drugmakers to lower the drug price. Artificial intelligence renders drug discovery more cost-effective and faster. Al lowered the failure rate of clinical trials and also eliminated the cost of long-term drug discovery research and development.
High Cost and Lack of Skilled Professionals
The lack of skilled professionals and infrastructure to facilitate easy AI adoption is a major factor that is expected to hamper global AI growth for the drug discovery market. Thus, in addition to limited acceptance by healthcare professionals, high costs and technological limitations of AI decision-making will impede market development.
Key Product Offerings
Key Performance Indicators
Cloud Pharmaceuticals, Inc
Other Prominent Players
AI for Drug Discovery Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, APAC, and MENA.
In 2019 North America holds the largest share of AI in the drug discovery market. Additionally, In 2018 North America was the largest and fastest-growing drug discovery market for AI. The US, Canada, and Mexico form the largest drug discovery market for AI. In drug discovery and development these countries were early adopters of AI technology. In the North American market, the US is a major contributor. In addition, leading suppliers of AI technology, such as IBM, Google, Microsoft, NVIDIA, and Intel, are headquartered in the US; their eminent presence is a significant contributor to business growth. Other drivers include the well-established pharmaceutical industry, a strong emphasis on R&D & extensive investment, and the existence of globally prominent pharmaceutical companies. These are a few major factors that are responsible for the large share and high growth rate of this market. Europe is expected to show growth at a remarkable CAGR in the forecast period of 2020-2030. It holds the second-largest market share.
The Asia Pacific region is expected to develop at the highest CAGR of 51.68% over the forecast period, due to perpetual technological advancements in the pharmaceutical sector and the rising number of pharmaceutical manufacturers in developing countries of APAC such as China and India. The initiative of the Indian Government 'Pharma Vision 2020' has a goal of making India a leading hub for drug discovery.
The AI for drug discovery market is further segmented by region into:
North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – the United States and Canada
Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
AI for Drug Discovery Market Segments:
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