Market Trends of Artificial Intelligence (AI) In Pharmaceutical Industry
Drug Discovery Segment is Expected to Witness Significant Growth in the Market Over the Forecast Period
- The drug discovery segment is expected to gain a significant market share over the forecast period, driven by the growing prevalence of chronic and rare diseases and an increase in research and development activities within the pharmaceutical sector. Artificial intelligence (AI) has emerged as a key technology in this space, accelerating the drug development process and leading to the creation of better medications that improve the lives of millions of people.
- Researchers and major pharmaceutical companies are focusing on the application of AI in drug discovery platforms, resulting in significant investments in this area. For example, in February 2022, Deargen Inc secured USD 17 million in a Series B financing round, which will be used to establish the iDear Center for AI-driven drug discovery and development, expand AI-powered new drug development platform (Dr.UG) applications, and accelerate overseas market entry.
- Similarly, in January 2022, Sanofi signed a license and research collaboration agreement with Exscientia to develop up to 15 novel small molecule candidates across oncology and immunology indications based on Exscientia's AI-based platform. Such developments undertaken by key players in the market are expected to drive the growth of the drug discovery segment over the forecast period.
- In addition, cross-industry collaborations and partnerships among market players are helping to create new AI-based platforms, thereby expanding drug development services in the pharmaceutical sector. For example, in September 2022, Novo Nordisk and Microsoft announced a new strategic collaboration to combine Microsoft's computational services, cloud, and AI with Novo Nordisk's drug discovery, development, and data science capabilities. This collaboration is expected to propel the growth of the drug discovery segment over the forecast period.
- Overall, the adoption of AI and new cross-industry collaborations are key factors driving the usage of AI in the drug discovery segment and are likely to propel the market over the forecast period.
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North America is Expected to Have a Major Share in the Market Over the Forecast Period
- North America is expected to experience significant growth in the AI pharmaceutical market over the forecast period, driven by various factors. These include the rising adoption of AI in pharmaceutical clinical trials, an increasing number of drug discoveries and development, coupled with the growing prevalence of chronic diseases, and technological advancements in the pharmaceutical industry in the region.
- The presence of numerous market players and a growing number of cross-industry collaborations and partnerships are also majorly impacting the growth of the AI pharmaceutical market in North America.
- For instance, in March 2022, Insilico Medicine entered into a strategic collaboration with EQRx to combine their respective expertise in de novo small molecule design and clinical development and commercialization. Similarly, in December 2021, Amazon Web Services collaborated with Pfizer to develop innovative, cloud-based solutions that improve new medicines' development and testing in clinical trials. As major players continue to undertake continuous strategic activities, the market's growth in the region is expected to augment over the forecast period.
- The establishment of new AI centers in the region is another significant factor expected to drive the AI pharmaceutical market. For instance, Sanofi opened an Artificial Intelligence Centre of Excellence in Toronto in June 2022, focused on developing world-class data and AI products that accelerate research and development to improve access to life-saving medicine and create value for the health sector. The new AI centers in the region are expected to increase research and development activities in the pharmaceutical sector, thus boosting the market over the forecast period.
- In summary, the establishment of new AI centers and cross-industry collaborations are likely to increase the usage of AI in the pharmaceutical industry in North America and propel the market's growth over the forecast period.
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