Artificial Intelligence (AI) In Pharmaceutical Market Size

Artificial Intelligence (AI) In Pharmaceutical Market Analysis

The Artificial Intelligence In Pharmaceutical Market size is estimated at USD 3.05 billion in 2024, and is expected to reach USD 18.06 billion by 2029, growing at a CAGR of 42.68% during the forecast period (2024-2029).

• The COVID-19 pandemic had a significant impact on the adoption of artificial intelligence (AI) in the pharmaceutical market during its initial phase. Strict lockdowns and government regulations halted or postponed research and development (R&D) activities, with more focus on COVID-19 trials, affecting the adoption of AI in the pharmaceutical industry. However, as AI technology emerged as an essential non-medical intervention, it has gained lucrative demand for building next-generation epidemic preparedness and developing new drugs using AI.
• For example, an article published by IJMS in March 2022 reported that AI played a major role in COVID-19 De Novo drug design. Various AI methods, including structure-based AI methods for small molecules, ligand-based AI methods for small molecules, and AI methods for vaccine design, helped identify and design novel molecules during the pandemic. This trend is expected to have a positive impact on the market during the pandemic and is likely to continue over the coming years.
• Several factors are driving the growth of the AI pharmaceutical market over the forecast period. The increasing adoption of AI for clinical trials, a growing number of cross-industry collaborations and partnerships, and an increasing need to reduce drug discovery and development costs and timelines are major drivers. Many companies are leveraging AI to speed up the clinical trial process and reduce completion time. For instance, in February 2022, Hong Kong-based company Insilico Medicine completed a Phase 0 clinical study and entered a Phase I clinical trial with its anti-fibrotic drug candidate for a novel target discovered using the company's artificial intelligence platform Pharma.AI.
• The total time from target discovery program initiation to the start of Phase I took less than 30 months, representing a new level in therapeutic asset development speed for the pharmaceutical industry. In October 2021, Amazon Web Services Inc. (AWS) and Israel Biotech Fund (IBF) launched the AION Labs in Israel, allowing drug developers to harness AI technologies and computational science to solve therapeutic challenges. Therefore, the adoption of AI as an asset to accelerate the drug discovery process is expected to increase in the future, driving the growth of the studied market over the forecast period.
• Despite the positive factors, the lack of skilled professionals and incompatible healthcare IT infrastructure in pharmaceutical research centers are expected to hinder the growth of the market over the forecast period.