The artificial intelligence for drug discovery and development market size was valued at $520 million in 2019 and is projected to reach $4,815 million by 2027, registering a CAGR of 31.6% from 2020 to 2027.
Artificial intelligence is a branch in computer science that deals with the simulation of intelligent behavior. It gives computers an ability to think and perform different tasks, such as humans and animals, while learning through the errors during this process. Artificial Intelligence is usually an algorithm built in such a way that permits the computer to perform tasks efficiently while making nominal errors. It uses personified knowledge by applying deep learning and machine learning algorithms while performing several tasks.
Artificial intelligence has significant applications in the drug discovery field as it helps track diseases, create disease cures and predict which animal viruses appear to mutate. Artificial intelligence has been known to enhance R&D in drug discovery, which has helped researchers to discover chronic disease treatments. Drug discovery and development in the fields of medicine, pharmacology, and biotechnology are processes for the creation, design, and procurement of a drug through identifying a biological target, such as enzyme protein, gene, or receptor. Previously, the drugs were discovered by identifying the active ingredient conventional treatments. Thus, drug discovery is the first step in the process of identifying potential novel drugs and their medicinal purpose. New criteria for drugs are measured based on their bioavailability, efficacy, potency, and toxicity.
In the healthcare industry, artificial intelligence has been widely used, specifically in finding novel drugs. This has the ability to identify drug targets, and plays a significant role in efficiently identifying, developing, detecting and screening small molecules in less time. Furthermore, market is expected to witness an exponential growth during the forecast period, owing to benefits of using these advanced techniques over conventional procedures. Moreover, the market is majorly driven by growing number of industry collaborations and partnerships. In addition, artificial intelligence reduces cost and time utilized in the drug discovery process, which further boosts the market growth. However, lack of skilled professionals and lack of data sets in the field of drug discovery hinder the market growth. On the contrary, increase in awareness related to artificial intelligence is expected to provide significant profitable opportunities for manufacturers in the artificial intelligence for drug discovery and development industry.
It is estimated that artificial intelligence for drug discovery and development market would show a significant market growth due to Covid-19 pandemic, owing to rise in adoption of AI to discover & develop drugs for treatment of COVID-19. For instance, in June 2020 Repurpose.AI collaborated with Scripps Research to develop COVID-19 therapeutics with a focus on drug repurposing. Artificial Intelligence based drug screening techniques will theoretically help to explain important part of the virus (such as protein structure) to assess how the functions of the virus can play an integral role in drug design and accelerate vaccine technologies to fight COVID-19. Moreover, Artificial intelligence can boost drug discovery and development process by quickly identifying drugs having efficacy against COVID-19. This bridge the gap between number of repurposed drugs (using existing drugs for other diseases), clinical testing and final drug authorization process.
Artificial Intelligence For Drug Development And Discoverymarket Segmentation
The artificial intelligence for drug discovery and development market is segmented on the type, indication, end user and region. By type, it is divided into target identification, molecules screening, de novo drug design & drug optimization and preclinical &clinical testing. On the basis of indication, it is classified into oncology, infectious disease, neurology, and others. By end user, it is segmented into pharmaceutical & biotechnology companies, and CROs. Region wise, the market is analyzed across North America (US, Canada), Europe (Germany, France, UK, Rest of Europe), Asia-Pacific (Japan, China, Australia, India, Rest of Asia-Pacific), and LAMEA (Latin America and Middle East and Africa).
By Type
Preclinical and clinical testing is projected as one of the most lucrative segment.
Type segment review
By type, the preclinical and clinical testing segment occupied the highest share in 2019, owing to rise in number of collaborations between pharma companies and AI providers for clinical and preclinical testing. Preclinical trial is a stage of research that starts before clinical trials, during which iterative testing, important feasibility and drug safety data are collected for the development of drugs. Preclinical trials require analytics software to follow a precise scientific standard of drug development and to discover more advanced drug candidates from laboratory to clinical trials. The De Novo drug design and drug optimization segment is projected to witness the fastest growth rate during the forecast period owing to increase in adoption of AI for De novo studies.
By Indication
Oncology is projected as one of the most lucrative segment.
Indication Segment Review
By indication, the oncology segment is projected to witness growth at the highest CAGR during the forecast period, owing to increase in adoption of AI to discover drug for treatment of different forms of cancer, large number of promising drugs in the oncology pipeline, higher adoption of AI to discover & develop oncology drugs and increase in number of collaborations between large pharma companies and AI providers are majorly driving the growth of this segment.
By End User
Pharmaceutical and Biotechnology Companies holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
Region Segment Review
North America held the major artificial intelligence for drug discovery and development market share in 2019 and is expected to continue its dominance during the forecast period, owing to strong economies such as the U.S. and Canada; high adoption rate of AI technologies due to large number of investments to boost the drug discovery industry; and large number of cross industry collaborations and partnerships, which majorly fuel the market growth. However, Asia-Pacific is expected to grow at the highest CAGR during the forecast period, owing to rise in adoption of advanced AI technologies, and growth in focus of major players on increasing their presence in emerging Asian countries.
By Country
Asia Pacific region would exhibit the highest CAGR of 33.7% during 2020-2027.
Comprehensive competitive analysis and profiles of the major artificial intelligence for drug discovery and development market players such as Alphabet Inc., Atomwise, Inc., Benevolent AI, Cloud Pharmaceutical, Deep Genomics, Exscientia, IBM Corporation, Insilico Medicine Inc., Microsoft Corporation, and Nvidia Corporation are provided in this report.
Key Benefits For Stakeholders
The study provides an in-depth analysis of the global artificial intelligence for drug discovery and development market along with the current trends and future estimations to elucidate the imminent investment pockets.
It offers a quantitative analysis from 2019 to 2027, which is expected to enable the stakeholders to capitalize on the prevailing artificial intelligence for drug discovery and development market opportunities.
A comprehensive analysis of all the regions is provided to determine the existing opportunities.
The profiles and growth strategies of the key players are thoroughly analyzed to understand the competitive outlook of the global market.
Artificial Intelligence For Drug Development and Discovery Market Report Highlights
| Aspects | Details |
 By Type |
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 By Indication |
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 By End User |
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 By Geography |
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 Key Market Players | ATOMWISE, INC., MICROSOFT CORPORATION, BENEVOLENT AI, ALPHABET INC., EXSCIENTIA., INSILICO MEDICINE INC., IBM CORPORATION, NVIDIA CORPORATION, DEEP GENOMICS, CLOUD PHARMACEUTICAL |
Analyst Review
Artificial intelligence for drug discovery and development market is witnessing intense competition, owing to rise in number of industry collaborations and partnership. In addition, artificial intelligence reduces cost and time utilized in the drug discovery process, which further boosts the market growth. Increase in awareness related to artificial intelligence is expected to provide significant opportunities for artificial intelligence providers in the pharmaceutical and biotech industry.
Analysis reports that the use of AI for drug discovery and development is highest in the North American region, owing to developed economies in the U.S. and Canada with higher adoption rate of AI technologies. In addition, large number of investments in R&D and surge in cross-industry collaborations and partnerships majorly fuels the market growth. However, Asia-Pacific is expected to grow at the highest CAGR during the forecast period, owing to rise in adoption of advanced AI technologies, and growth in focus of major players on increasing their presence in developing Asian countries..
The total market value of artificial intelligence for drug discovery and development Market is $519.5 million in 2019.
The forcast period for artificial intelligence for drug discovery and development Market is 2020 to 2027
The market value of artificial intelligence for drug discovery and development market in 2020 is $706.1 million.
The base year is 2019 in artificial intelligence for drug discovery and development Market
Top companies such as, Alphabet Inc., Atomwise, Inc., Benevolent AI, Cloud Pharmaceutical, Deep Genomics, Exscientia, IBM Corporation, Insilico Medicine Inc., Microsoft Corporation, and Nvidia Corporation held a high market position in 2019. These key players held a high market postion owing to the strong geographical foothold in rigions.
Type segment is the most influencing segment owing to rise in number of collaborations of pharma companies with AI providers for clinical and preclinical testing further contributes the market growth.
The major factor that fuels the growth of the artificial intelligence for drug discovery and development market includes driven by growing number of industry collaborations and partnership. In addition, artificial intelligence reduces cost and time utilized in the drug discovery process further boosts the market growth. On the contrary, increase in awareness related to artificial intelligence is expected to provide significant profitable opportunities for manufacturers in the artificial intelligence for drug discovery and development industry
North America has the highest growth rate in the market which is growing due to the contribution of the emerging countries. This is due to high adoption rate of AI technologies due to large number of investments to boost the drug discovery industry; and large number of cross industry collaborations and partnerships majorly fuels the market growth.
Artificial intelligence has known to have significant applications in the drug discovery field as it helps track diseases, create disease cures and predict which animal viruses appear to mutate. Artificial intelligence has been known to enhance research and development in drug discovery which has helped researchers to discover chronic disease treatments.
AI is helping drug discovery, it can help identify drug targets, find good molecules from data libraries, suggest chemical modifications, identify candidates for repurposing and so on.
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