Artificial intelligence (AI) is being increasingly adopted in the pharmaceutical industry, with applications ranging from drug discovery to clinical trials. AI technologies such as deep learning can analyze huge datasets to identify patterns and reveal insights that may accelerate drug discovery by reducing costs and improving outcomes. For instance, AI can scan thousands of existing compounds to reveal new uses and properties of existing drugs. The AI tools can also help design new molecules with ideal properties.
The Global artificial intelligence (AI) in pharmaceutical market is estimated to be valued at USD 1,108.1 Mn in 2024 and is expected to reach USD 7,776.2 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 32.1% from 2024 to 2031.
Key Takeaways
Key players operating in the Global Artificial Intelligence (AI) In Pharmaceutical are NVIDIA Corporation, IBM Corporation, Exscientia, Insilico Medicine, Atomwise, Inc., Cloud Pharmaceuticals, Inc., Cyclica Inc., Envisagenics, Inc., Numerate, Inc., Schrödinger, Inc., Standigm, Turbine.ai, BenevolentAI, Recursion Pharmaceuticals, Owkin, Inc., XtalPi Inc., Valo Health, Absci.
The Global Artificial Intelligence (AI) In Pharmaceutical Market Demand is leveraging key opportunities offered by AI as it can help improve R&D productivity and reduce operational costs. AI is also being used to speed up clinical trials by improving patient recruitment and monitoring. Advances in deep learning technologies are enabling more accurate disease modelling and simulation of biological processes.
Market Drivers:
Rising research investments by pharmaceutical giants and venture capital funding into AI startups are driving the adoption of AI. Additionally, availability of huge amounts of real-world patient data and increasing computing power are also fueling the AI in pharmaceutical market growth. Growing need to design personalized treatment, reduce drug development costs and timelines present a significant growth opportunity for AI applications in the coming years.
Current challenges in Global Artificial Intelligence (AI) In Pharmaceutical Market
Some of the key challenges being faced by the Global Artificial Intelligence (AI) In Pharmaceutical Market Size And Trends are data privacy and security concerns, lack of skilled workforce, and high costs of implementation. With increasing amounts of sensitive healthcare data being collected and used by AI systems, it has become imperative to address privacy breaches and ensure strict data governance. At the same time, developing expert AI teams has remained a hurdle due to the scarcity of professionals with cross-disciplinary skills. Adopting advanced AI techniques also requires heavy investments which many small to mid-sized companies may not be able to afford. overcoming these difficulties will be important for maximizing the benefits of emerging technologies.
SWOT Analysis
Strength: AI can analyze huge amounts of data to accelerate drug discovery. It helps identify new drug targets and candidate molecules through simulations.
Weakness: Lack of explainability of AI decisions can reduce acceptance. Heavy reliance on data may not prove useful for rare diseases with limited samples.
Opportunity: AI can optimize clinical trials and make them more efficient. It provides new solutions for improving drug safety.
Threats: High development costs of AI systems pose financial challenges. Regulations have not fully caught up with the evolving technologies.
Geographical regions with high market concentration in terms of value:
North America currently dominates the global AI in pharmaceuticals space. Developed markets like the US and Canada have a well-established pharmaceutical industry and are rapid adopters of innovative technologies. According to estimates, North America accounted for over 45% market share in 2024 due to presence of leading AI companies and healthcare organizations actively pursuing partnerships.
Fastest growing geographical region:
Asia Pacific region is poised to grow at the fastest pace during the forecast period. This is driven by increasing healthcare expenditure, focus of governments on digitizing healthcare through initiatives like digital India, and gradual development of AI infrastructure in major countries including China and India. Growing patient population, rising disease burden, and expansion of pharmaceutical sectors offer tremendous potential for AI vendors to tap into Asia Pacific’s large unmet needs.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile itGlobal Artificial Intelligence (AI) in Pharmaceutical Market