2018 - 2026
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Artificial Intelligence in the Life Sciences Market was valued at USD 1,255.3 million in 2020, and it is estimated to be worth USD 5,402.1 million by 2026, registering a CAGR of 29.13% during the forecast period 2021-2026. The COVID-19 outbreak has made profound and lasting impacts on the health and life sciences industry. The outbreak has caused life sciences organizations to adjust to supply chain and clinical development disruptions and financial challenges that would have previously been unthinkable. In the near term, healthcare organizations would accelerate innovation to respond to the crisis. These investments would enable healthcare organizations post-COVID-19 to rethink care delivery and financing, thereby stimulating the growth in the adoption of AI for the life sciences industry.
- Further, the industry is witnessing a transformation, owing to increasing cost pressure, a greater need for productivity, and disruption caused by new and innovative market players. An emerging area of artificial intelligence (AI), specifically the analysis of small systems-of-interest specific datasets, can be utilized to improve drug development and personalized medicine.
- According to a study published in Science Translational Medicine, Quadratic Phenotypic Optimization Platform (QPOP), an AI platform is capable of substantially improving combination therapy in bortezomib-resistant multiple myeloma, which is used to identify the best drug combinations for individual multiple myeloma patients.
- Furthermore, complex diseases, such as cancer, often require effective drug combinations to make any significant therapeutic impact. As the drugs in these combination therapies become increasingly specific to molecular targets, designing effective drug combinations, as well as choosing the right drug combination for the right patient, becomes more difficult. With the high average development costs (around USD 2 billion for a new approved treatment), low clinical trial drug success rate (below 12%), low return-on-investment (ROI) due to reduced healthcare expenditure, and focus on rare diseases, drug discovery is becoming more inefficient.
- Clinical trial research is an extensive progress, which can be reduced with the help of AI in numerous ways. One is by using advanced predictive analytics on a broad range of data to identify candidates for clinical trials for target populations more quickly. Additionally, machine learning applications can make clinical trials more efficient by facilitating tasks, such as calculating ideal sample sizes, facilitating patient recruitment, and using medical records to minimize data errors.
- Artificial Intelligence (AI) presents one of the most promising and potentially transformative opportunities for the life sciences industry. AI will be a key investment target in the coming years, with myriad organizations hoping to capitalize on its potential. The number of applications is expected to continue to increase and the investors are expected to enter the AI industry early.
Scope of the Report
Artificial intelligence (AI) in the life sciences industry is used for various applications, such as drug discovery, biotechnology, medical diagnosis, clinical trials, precision and personalized medicine, and patient monitoring. The study also categorizes the impact of these applications across various regions. AI is a highly data-driven technology. In the life sciences sector, it is commonly employed to make meaningful relations from loosely coupled data. With the introduction of the third wave of AI, it is anticipated that advanced AI solutions can learn and evolve, as they are finding novel applications. The study also offers an assessment of the impact of COVID-19 on the industry.
|Precision and Personalized Medicine|
|Rest of the World|
Key Market Trends
Clinical Trials is Expected to Hold a Significant Market Share
- Clinical trials are one of the most data-intensive tasks in the life sciences industry. They generate vast sets of data everyday monitoring, several variables of a patient under observation. Subjecting these data sets to intelligent AI algorithms can help the researchers to screen meaningful correlation even between loosely coupled data.
- This is encouraging many pharmaceutical companies and clinical research organizations to invest in technologies, like artificial intelligence. In the current market scenario, the rapid adoption of AI is widely seen in the pharmaceutical sector, who are responsible for almost 50% of the clinical trials conducted globally every year.
- Furthermore, the increasing number of clinical trials all over the world is producing colossal amounts of data that is available in the public domain. Over the forecast period, these numbers are expected to increase by at least 11%, creating new opportunities for AI in clinical trial applications, especially in Europe and North America.
- Such rapid growth in clinical trials and public availability of data is helping and encouraging many research institutes to prefer AI over traditional software solutions so that they can obtain specific results from data available in the public domain without having the entire trial procedure. Additionally, many countries, like China, the United States, and several European countries, are making clinical trial data available in the public domain supporting the growth of AI solutions, globally.
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The United States is Expected to Hold a Major Share in the Market
- The United States is the largest market for AI solutions in the life sciences market, owing to the high demand for AI solutions from almost all the life sciences applications in the United States. In addition, the significant presence of pharmaceutical companies and the global demand for US pharmaceutical exports are increasingly motivating companies to invest in R&D activities.
- According to the Pharmaceutical Research and Manufacturers of America (PhRMA), the Pharmaceutical Manufacturers Association, the pharmaceutical companies in the United States spent approximately USD 80 billion worldwide on R&D in 2018, and expenditure in the companies’ domestic market of the United States contributed an overwhelming share.
- PhRMA also revealed that, on average, most pharmaceutical companies in the country spent over 19% of their total revenues in R&D activities. Moreover, PhRMA members spent around 19.5% of their combined global revenues on R&D in 2018. This share increased to approximately 22% when only considering the sales and R&D expenditure from the domestic market of the United States.
- Many pharmaceuticals companies, such as Pfizer and Johnson & Johnson, and several clinical research organizations in the country, are increasingly spending on AI solutions, and according to ClinicalTrials.gov, it is projected that by 2024 Johnson & Johnson will have the largest research and development spending among pharmaceutical companies. Also, companies, like Pfizer, despite collaborating with several AI vendors, are investing in updating their in-house AI operations to support their ongoing several drug discovery and patient monitoring processes.
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Artificial intelligence in the Life Sciences Market is highly competitive and consists of several major players. The market appears to be moderately concentrated. The major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are also acquiring start-ups working on artificial intelligence in life sciences technologies to strengthen their product capabilities.
- June 2020 - The University of Kentucky announced a research collaboration with Atomwise, an industry leader in using artificial intelligence (AI) for small molecule discovery, to explore potential COVID-19 therapies.
- September 2020 - IBM Watson Health and Pharmaspectraannounced a strategic collaboration, according to which IBM Watson Health would withdraw IBM Stakeholder Manager from its portfolio and offer a transition path for its clients to LINK, Pharmaspectra’sproduct, a provider of key opinion leader (KOL) management solutions. IBM Watson Health strategizes to streamline its portfolio by focusing on new strategies and innovations for helping support lifesciencesclients through the further stages of digital transformation.
- July 2020 - NuMedii Inc. announced the availability of the world’s first single-cell sequencing atlas for idiopathic pulmonary fibrosis (IPF) that was the result of strategic research collaboration, including the Yale School of Medicine, Baylor College of Medicine, Brigham and Women’s Hospital, and NuMedii. This comprehensive catalogreveals the complexity and diversity of 35 aberrant cellular populations in IPF. The company can apply NuMedii’s AI-driven technology to such a rich dataset and foster a greater understanding of the mechanisms driving lung fibrosis and augment their IPF therapeutic discovery programs.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Increasing Adoption of AI in the Domain of R&D
4.3.2 High Emphasis on the Development of Precision Medicine and Personalized Drugs
4.3.3 Increasing Demand for AI in Drug Discovery
4.4 Market Restraints
4.4.1 High Initial Costs and Concerns over the Replacement of Human Workforce
4.5 Technology Snapshot
4.6 Impact of COVID-19 on the Industry
5. MARKET SEGMENTATION
5.1.1 Drug Discovery
5.1.2 Medical Diagnosis
5.1.4 Clinical Trails
5.1.5 Precision and Personalized Medicine
5.1.6 Patient Monitoring
5.2.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
5.2.3 Asia Pacific
188.8.131.52 South Korea
184.108.40.206 Rest of Asia Pacific
5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 IBM Corporation
6.1.2 NuMedii Inc.
6.1.3 Atomwise Inc
6.1.4 AiCure LLC
6.1.5 Nuance Communications Inc.
6.1.6 Sensely Inc.
6.1.7 Sophia Genetics SA
6.1.8 Insilico Medicine Inc.
6.1.9 Enlitic Inc.
6.1.10 Apixio Inc.
6.1.11 Zebra Medical Vision
6.1.12 twoXAR Inc.
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The AI In Life Sciences Market market is studied from 2018 - 2026.
What is the growth rate of AI In Life Sciences Market?
The AI In Life Sciences Market is growing at a CAGR of 29.13% over the next 5 years.
Which region has highest growth rate in AI In Life Sciences Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in AI In Life Sciences Market?
North America holds highest share in 2020.
Who are the key players in AI In Life Sciences Market?
- IBM Corporation
- NuMedii Inc.
- Atomwise Inc
- AiCure LLC
- Nuance Communications Inc.
Are the major companies operating in AI In Life Sciences Market.