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AI in Biopharmaceutical Market By Technology (Machine Learning (ML), Deep Learning, Natural Language Processing (NLP), Robotics), By Application (Drug Discovery, Bioprocessing, Personalized Medicine, Healthcare Data Management, Diagnostics), By End-Use Industry (Biopharmaceutical Companies, Academics & Research Organizations, Contract Research Organizations (CROs)), and By Region; Global Insights & Forecast (2024 – 2030)

Published: December, 2024  
|   Report ID: LI4652  
|   Life Sciences & Healthcare

As per Intent Market Research, the AI in Biopharmaceutical Market was valued at USD 1.2 billion in 2023 and will surpass USD 3.7 billion by 2030; growing at a CAGR of 17.2% during 2024 - 2030.

The AI in biopharmaceutical market is experiencing rapid growth as biopharmaceutical companies and researchers adopt advanced technologies like machine learning (ML), deep learning, and natural language processing (NLP) to revolutionize drug development, bioprocessing, and personalized medicine. These technologies are helping to analyze vast amounts of biological data, streamline research processes, and optimize treatment outcomes. AI is increasingly used to accelerate drug discovery, predict patient responses, and enhance the efficiency of biopharmaceutical production, significantly reducing costs and time-to-market for new therapies.

The biopharmaceutical industry, driven by the growing need for innovative treatments and precision medicine, has recognized the value of AI in addressing challenges such as improving the accuracy of drug development, managing clinical trials more effectively, and personalizing treatments to individual patients. With a surge in chronic and complex diseases such as cancer, autoimmune disorders, and genetic conditions, AI’s ability to process large datasets and derive actionable insights is becoming indispensable for biopharmaceutical companies. As research in AI and biopharmaceuticals continues to expand, the market is poised for even greater advancements that could lead to more efficient, targeted therapies.

Machine Learning Fuels Growth in Drug Discovery

Machine learning (ML) is the largest and fastest-growing technology segment within the AI in biopharmaceutical market. ML models have revolutionized the drug discovery process by enabling researchers to analyze complex biological datasets quickly and accurately. Traditional drug discovery methods are often time-consuming, expensive, and prone to failures in clinical trials due to unforeseen side effects or inefficacy. Machine learning algorithms can learn from vast datasets, identifying potential drug candidates, predicting their biological activity, and suggesting possible molecular structures that could lead to effective treatments.

By leveraging ML in the discovery phase, biopharmaceutical companies can shorten the time it takes to bring a drug to market while simultaneously reducing the overall cost of drug development. ML is also used to predict drug toxicity, optimize drug formulations, and identify biomarkers for personalized treatments. This ability to rapidly identify viable drug candidates and predict clinical trial outcomes is making ML indispensable in modern biopharmaceutical R&D, and its adoption is set to accelerate as more companies recognize the potential of these AI-powered solutions.

AI in Biopharmaceutical Market Share

Bioprocessing: A Game-Changer for Biopharmaceutical Production

Bioprocessing is one of the key applications of AI in the biopharmaceutical industry and is witnessing significant growth. AI technologies, especially machine learning and deep learning, are playing a crucial role in optimizing the production of biopharmaceuticals, such as biologics, vaccines, and monoclonal antibodies. Biopharmaceutical production often involves complex, large-scale processes that require careful control and monitoring to ensure consistency, yield, and quality. AI can enhance these processes by predicting optimal conditions for fermentation, cell culture, and purification, resulting in higher efficiency and reduced costs.

AI is also being integrated into the monitoring and automation of production processes, helping biopharmaceutical companies minimize human error and reduce downtime. Predictive analytics powered by AI can anticipate potential issues, such as contamination or equipment malfunction, allowing for proactive measures to maintain production quality. The use of AI in bioprocessing is expected to continue growing, as it offers biopharmaceutical companies the ability to scale production while maintaining the highest standards of quality and compliance.

Biopharmaceutical Companies Drive AI Adoption

Biopharmaceutical companies are the largest end-users of AI technologies in the biopharmaceutical market. These companies are leveraging AI to optimize various stages of the drug development process, from early-stage discovery to clinical trials and production. The pressure to reduce the time and cost of bringing new drugs to market is driving biopharmaceutical companies to adopt AI solutions that can streamline R&D, improve clinical trial designs, and personalize treatments for patients.

In particular, biopharmaceutical companies are using AI to enhance drug discovery by analyzing large datasets of genetic, clinical, and preclinical information to identify promising drug candidates. AI is also playing a pivotal role in bioprocessing, helping companies improve the efficiency and scalability of their production processes. As the demand for personalized medicine continues to rise, biopharmaceutical companies are increasingly turning to AI to develop therapies tailored to the genetic makeup and specific needs of individual patients. The increasing use of AI in drug development and production is driving market growth, with biopharmaceutical companies investing heavily in AI-powered tools and platforms.

North America Leads the AI in Biopharmaceutical Market

North America holds the largest share of the AI in biopharmaceutical market, supported by the presence of a robust healthcare infrastructure, world-leading pharmaceutical companies, and cutting-edge technology firms. The United States, in particular, is a key hub for AI innovation, with both biopharmaceutical companies and tech giants investing in AI research and development. Additionally, North America benefits from a favorable regulatory environment, with institutions like the U.S. Food and Drug Administration (FDA) providing guidelines that promote the use of AI in drug discovery and manufacturing.

The region’s healthcare ecosystem is also a major driver of AI adoption, as AI technologies are increasingly applied to personalized medicine, drug discovery, and biomanufacturing. The growing prevalence of chronic diseases and the demand for personalized therapies are pushing biopharmaceutical companies to explore AI solutions that can optimize R&D and production processes. As North American companies continue to lead in AI innovation, the region is expected to maintain its dominant position in the global AI in biopharmaceutical market.

AI in Biopharmaceutical Market Size by Region 2030

Leading Companies and Competitive Landscape

The AI in Biopharmaceutical Market is characterized by the presence of leading biopharmaceutical companies, technology giants, and specialized AI solution providers collaborating to revolutionize drug development, personalized medicine, and bioprocessing. Key players such as Pfizer, Novartis, and Roche are leveraging AI to accelerate drug discovery and improve biopharmaceutical manufacturing efficiency. These companies are integrating AI technologies like machine learning and robotics to streamline processes and reduce costs, giving them a competitive edge.

Technology leaders such as Google DeepMind, IBM Watson Health, and Microsoft are also prominent in this space, offering cutting-edge AI platforms and analytics tools tailored for biopharmaceutical applications. Their expertise in AI and data management has enabled biopharma firms to analyze complex biological datasets and optimize R&D outcomes. Additionally, specialized startups such as Insilico Medicine and Exscientia are making significant advancements in AI-driven drug discovery, often partnering with large biopharmaceutical companies to combine innovation with scale.

The competitive landscape is defined by strategic alliances, mergers and acquisitions, and significant R&D investments. For instance, collaborations between AI firms and biopharma companies aim to fast-track clinical trials and enhance precision medicine. While established players dominate the market, emerging entrants focusing on niche applications such as AI in bioprocessing or diagnostics are gaining traction. This dynamic competition fosters innovation and ensures the continued evolution of AI applications within the biopharmaceutical industry.

Recent Developments:

  • In October 2024, IBM Corporation launched an AI-powered platform for biopharmaceutical R&D, enabling faster drug discovery and precision medicine applications.
  • In September 2024, DeepMind Technologies announced a breakthrough in protein folding prediction, revolutionizing drug development for biopharmaceuticals.
  • In August 2024, Exscientia Ltd. expanded its AI-driven drug discovery platform, successfully advancing lead compounds for a major pharmaceutical partner.
  • In July 2024, Moderna, Inc. integrated AI into its vaccine development pipeline, improving speed and efficacy predictions for new biopharmaceutical products.
  • In June 2024, Insilico Medicine introduced a new AI-powered tool for optimizing bioprocessing workflows, significantly reducing production costs in the biopharma industry.

List of Leading Companies:

  • IBM Corporation
  • Google LLC (Alphabet Inc.)
  • Microsoft Corporation
  • NVIDIA Corporation
  • Accenture plc
  • Atomwise, Inc.
  • Insilico Medicine
  • Exscientia Ltd.
  • BenevolentAI
  • Tempus Labs
  • BioSymetrics, Inc.
  • Moderna, Inc.
  • Insilico Biotech
  • Philips Healthcare
  • Evaxion Biotech

Report Scope:

Report Features

Description

Market Size (2023)

USD 1.2 billion

Forecasted Value (2030)

USD 3.7 billion

CAGR (2024 – 2030)

17.2%

Base Year for Estimation

2023

Historic Year

2022

Forecast Period

2024 – 2030

Report Coverage

Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments

Segments Covered

AI in Biopharmaceutical Market By Technology (Machine Learning (ML), Deep Learning, Natural Language Processing (NLP), Robotics), By Application (Drug Discovery, Bioprocessing, Personalized Medicine, Healthcare Data Management, Diagnostics), By End-Use Industry (Biopharmaceutical Companies, Academics & Research Organizations, Contract Research Organizations (CROs))

Regional Analysis

North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), Middle East & Africa (Saudi Arabia, UAE, Rest of Middle East & Africa)

Major Companies

IBM Corporation, Google LLC (Alphabet Inc.), Microsoft Corporation, NVIDIA Corporation, Accenture plc, Atomwise, Inc., Insilico Medicine, Exscientia Ltd., BenevolentAI, Tempus Labs, BioSymetrics, Inc., Moderna, Inc., Insilico Biotech, Philips Healthcare, Evaxion Biotech

Customization Scope

Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements

1. Introduction

   1.1. Market Definition

   1.2. Scope of the Study

   1.3. Research Assumptions

   1.4. Study Limitations

2. Research Methodology

   2.1. Research Approach

      2.1.1. Top-Down Method

      2.1.2. Bottom-Up Method

      2.1.3. Factor Impact Analysis

  2.2. Insights & Data Collection Process

      2.2.1. Secondary Research

      2.2.2. Primary Research

   2.3. Data Mining Process

      2.3.1. Data Analysis

      2.3.2. Data Validation and Revalidation

      2.3.3. Data Triangulation

3. Executive Summary

   3.1. Major Markets & Segments

   3.2. Highest Growing Regions and Respective Countries

   3.3. Impact of Growth Drivers & Inhibitors

   3.4. Regulatory Overview by Country

4. AI in Biopharmaceutical Market, by Technology (Market Size & Forecast: USD Million, 2022 – 2030)

   4.1. Machine Learning (ML)

   4.2. Deep Learning

   4.3. Natural Language Processing (NLP)

   4.4. Robotics

   4.5. Others

5. AI in Biopharmaceutical Market, by Application (Market Size & Forecast: USD Million, 2022 – 2030)

   5.1. Drug Discovery

      5.1.1. Target Identification

      5.1.2. Lead Compound Identification

   5.2. Bioprocessing

      5.2.1. Cell Line Development

      5.2.2. Upstream & Downstream Processing

   5.3. Personalized Medicine

   5.4. Healthcare Data Management

   5.5. Diagnostics

6. AI in Biopharmaceutical Market, by End-Use Industry (Market Size & Forecast: USD Million, 2022 – 2030)

   6.1. Biopharmaceutical Companies

   6.2. Academics & Research Organizations

   6.3. Contract Research Organizations (CROs)

7. Regional Analysis (Market Size & Forecast: USD Million, 2022 – 2030)

   7.1. Regional Overview

   7.2. North America

      7.2.1. Regional Trends & Growth Drivers

      7.2.2. Barriers & Challenges

      7.2.3. Opportunities

      7.2.4. Factor Impact Analysis

      7.2.5. Technology Trends

      7.2.6. North America AI in Biopharmaceutical Market, by Technology

      7.2.7. North America AI in Biopharmaceutical Market, by Application

      7.2.8. North America AI in Biopharmaceutical Market, by End-Use Industry

      7.2.9. By Country

         7.2.9.1. US

               7.2.9.1.1. US AI in Biopharmaceutical Market, by Technology

               7.2.9.1.2. US AI in Biopharmaceutical Market, by Application

               7.2.9.1.3. US AI in Biopharmaceutical Market, by End-Use Industry

         7.2.9.2. Canada

         7.2.9.3. Mexico

    *Similar segmentation will be provided for each region and country

   7.3. Europe

   7.4. Asia-Pacific

   7.5. Latin America

   7.6. Middle East & Africa

8. Competitive Landscape

   8.1. Overview of the Key Players

   8.2. Competitive Ecosystem

      8.2.1. Level of Fragmentation

      8.2.2. Market Consolidation

      8.2.3. Product Innovation

   8.3. Company Share Analysis

   8.4. Company Benchmarking Matrix

      8.4.1. Strategic Overview

      8.4.2. Product Innovations

   8.5. Start-up Ecosystem

   8.6. Strategic Competitive Insights/ Customer Imperatives

   8.7. ESG Matrix/ Sustainability Matrix

   8.8. Manufacturing Network

      8.8.1. Locations

      8.8.2. Supply Chain and Logistics

      8.8.3. Product Flexibility/Customization

      8.8.4. Digital Transformation and Connectivity

      8.8.5. Environmental and Regulatory Compliance

   8.9. Technology Readiness Level Matrix

   8.10. Technology Maturity Curve

   8.11. Buying Criteria

9. Company Profiles

   9.1. IBM Corporation

      9.1.1. Company Overview

      9.1.2. Company Financials

      9.1.3. Product/Service Portfolio

      9.1.4. Recent Developments

      9.1.5. IMR Analysis

    *Similar information will be provided for other companies 

   9.2. Google LLC (Alphabet Inc.)

   9.3. Microsoft Corporation

   9.4. NVIDIA Corporation

   9.5. Accenture plc

   9.6. Atomwise, Inc.

   9.7. Insilico Medicine

   9.8. Exscientia Ltd.

   9.9. BenevolentAI

   9.10. Tempus Labs

   9.11. BioSymetrics, Inc.

   9.12. Moderna, Inc.

   9.13. Insilico Biotech

   9.14. Philips Healthcare

   9.15. Evaxion Biotech

10. Appendix

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A comprehensive market research approach was employed to gather and analyze data on the AI in Biopharmaceutical Market. In the process, the analysis was also done to analyze the parent market and relevant adjacencies to measure the impact of them on the AI in Biopharmaceutical Market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.

Research Approach - AI in Biopharmaceutical MarketSecondary Research

Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.

Primary Research

Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the AI in Biopharmaceutical ecosystem. The primary research objectives included:

  • Validating findings and assumptions derived from secondary research
  • Gathering qualitative and quantitative data on market trends, drivers, and challenges
  • Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
  • Assessing the supply-side landscape, including technological advancements and recent developments

Market Size Assessment

A combination of top-down and bottom-up approaches was utilized to analyze the overall size of the AI in Biopharmaceutical Market. These methods were also employed to assess the size of various subsegments within the market. The market size assessment methodology encompassed the following steps:

  1. Identification of key industry players and relevant revenues through extensive secondary research
  2. Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
  3. Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources

Bottom Up and Top Down - AI in Biopharmaceutical MarketData Triangulation

To ensure the accuracy and reliability of the market size, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size assessment.

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