AI in Drug Discovery Market was at USD 850 million in 2023 and projected to grow at a CAGR of 40.5%

AI in Drug Discovery Market was at USD 850 million in 2023-e and projected to grow at a CAGR of 40.5% through 2030 to reach USD 4,500 million.The AI in drug discovery market is driven by the strong demand for precise analysis of extensive datasets and the increasing prevalence of chronic and infectious diseases across the globe. The necessity for efficient drug discovery processes, coupled with the surge in health challenges, underscores the pivotal role of AI in addressing these demands.

An opportune avenue for market advancement lies in the ongoing progress of AI technology. As AI evolves, incorporating advanced machine learning and data analysis techniques, there is a substantial opportunity to enhance the speed, accuracy, and effectiveness of drug discovery. The convergence of these market drivers and technological advancements positions AI as a transformative force in revolutionizing the pharmaceutical industry's approach to discovering and developing novel therapeutics.

Segmentations

Oncology segment is projected to dominate the market

The oncology segment accounted for the largest market share in 2023-e. AI aids in the identification of potential targets and biomarkers associated with specific types of cancer by analyzing vast datasets, including genomics and proteomics data. This accelerates the initial stages of drug development, enabling researchers to focus on promising candidates. The technology excels in drug repurposing, rapidly identifying existing medications with potential anti-cancer properties, thereby potentially reducing time and costs.

AI plays a pivotal role in expediting the identification of anti-cancer drugs. With the escalating incidence of cancer, particularly evident in the US where it stands as the second-leading cause of death, the oncology segment is poised for substantial growth. The American Cancer Society's 2022 report estimates over 609,360 deaths and 1.9 million new cancer cases by the end of the year. AI, leveraging machine learning and deep learning algorithms, accelerates the discovery process by facilitating the design of novel molecular structures and predicting their reactions.

Source: Intent Market Research Analysis

North America to lead the market due to the innovative technological development

North America region is anticipated to register high growth throughout the forecast period. The market growth is attributed to innovative technological development. The growth of the North American market can be attributed to several factors, including the strong presence of major industry players in the region. The forecast period anticipates significant growth in this region as well, primarily attributed to ongoing technological advancements and active engagement of companies in product development initiatives.

Competitive Landscape

The AI in drug discovery market is characterized by the presence of various small and big players. The major market player includes AI in drug discovery market are BenevolentAI, BioXcel Therapeutics, Deep Genomics, Exscientia, Google, Insilico Medicine, IQVIA, Labcorp, Microsoft, NVIDIA, Recursion. In a competitive market landscape, players are swiftly embracing advanced technologies to enhance AI in drug discovery operations and bolster their competitive stance through strategic initiatives, including mergers, acquisitions, and the introduction of new products.

Companies with Diversified and Strong Product Portfolios to Hold Key Market Share

• In Oct 2023, Fujitsu and RIKEN have jointly created an AI-driven drug discovery technology employing generative AI to forecast structural alterations in proteins.
• In May 2023, AION Labs collabotaed with BioMed X, the Israeli company aims at creating an AI platform designed to uncover novel small molecules with high affinity