Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The AI technologies can analyze large amounts of data and recognize patterns to uncover useful insights. The AI tools are being utilized in various stages of drug discovery such as target identification, lead generation, optimization and clinical trials. AI can analyze enormous databases of chemical compounds and clinical trials data to predict potential drug candidates and their properties. This helps pharmaceutical companies to accelerate the drug discovery processes and reduce costs.
The Global Artificial Intelligence (AI) In Pharmaceutical Market is estimated to be valued at US$ 1,108.1 Mn in 2024 and is expected to exhibit a CAGR of 32.% over the forecast period 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 companies are developing new AI-based technologies and platforms and entering into strategic partnerships to strengthen their presence in the market.
The Global Artificial Intelligence (AI) In Pharmaceutical Market Trends increasing R&D expenditure of pharmaceutical companies and reduced costs of sequencing and drug discovery. The AI tools are helping to analyze huge amount of data generated during clinical trials and drug discovery research. This is improving drug discovery success rates.
The major pharmaceutical players are expanding globally by acquiring AI startups and establishing research centers in Asia Pacific and European countries. For instance, IBM established an AI research lab in India in 2020. The adoption of AI is expected to grow significantly across major markets such as U.S., China, U.K., Germany, and Japan.
Market Key Trends
One of Global Artificial Intelligence (AI) In Pharmaceutical Market Size And Trends is the adoption of machine learning technologies for drug discovery. Machine learning algorithms can analyze huge databases of biological and chemical information to predict potential drug candidates. Pharmaceutical companies are increasingly relying on machine learning to accelerate targets identification and compounds screening process. Another major trend is the increasing partnerships between AI companies and pharma giants to leverage emerging technologies like reinforcement learning and deep learning for drug R&D. Significant investments by tech giants into AI and healthcare sector are also expected to drive the development of newer AI-based solutions for drug discovery and clinical trials.
Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale in research and development pose barriers for new companies.
Bargaining power of buyers: Individual consumers have low bargaining power, while large pharmaceutical companies may be able to negotiate with AI solution providers.
Bargaining power of suppliers: A few large tech companies currently dominate the AI capabilities needed, giving them some power in the market.
Threat of new substitutes: Other areas of applying AI like healthcare and autonomous vehicles pose a threat of diverting investments away from pharmaceutical applications.
Competitive rivalry: There is intense competition among firms to develop platforms and solutions that can discover new drugs faster and at lower costs.
Geographical Regions
North America currently holds the largest share of the global AI in pharmaceutical market in terms of value, due to heavy investments in AI drug discovery by US-based pharmaceutical companies and tech firms.
Asia Pacific is poised to be the fastest growing regional market during the forecast period, driven by rising R&D expenditures, favorable government policies supporting healthcare & biotech sectors in countries like China and India, and growing investments by global AI players looking to tap the vast talent pool in the region.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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