Global AI in Pharmaceutical Market Projected to Reach US$4,451.6 Mn by 2030, Bolstered by Rising Adoption of AI in Drug Discovery and Personalized Treatment

The global AI in pharmaceutical market, which was valued at approximately US$807.2 Mn in 2018, is set to experience remarkable growth, reaching an estimated valuation of US$4,451.6 Mn by the end of 2030. This impressive trajectory is driven by the rapid adoption of Artificial Intelligence (AI) in various facets of the pharmaceutical industry, including drug discovery, development, and personalized treatment.

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Between the forecast years of 2023 and 2030, the market is expected to witness a robust Compound Annual Growth Rate (CAGR) of 19.1%, underscoring the transformative impact of AI on the pharmaceutical sector.

Market Analysis in Brief

AI in the pharmaceutical industry involves the application of AI technologies and techniques to enhance drug discovery, streamline development processes, and provide personalized treatment options. AI’s ability to recognize disease patterns with accuracy has paved the way for the identification of drug compositions better suited for various diseases. As a result, pharmaceutical companies are leveraging AI to reduce research and development costs, eliminate human errors, and expedite research timelines, leading to the creation of affordable, effective, and profitable drugs.

AI in Pharmaceutical Market Highlights

1. Transforming Drug Discovery and Development

AI has the potential to revolutionize drug discovery and development by harnessing data analytics, machine learning, and natural language processing. It accelerates timelines, reduces costs, and improves patient outcomes through data-driven decision-making, predictive modeling, and personalized treatment approaches. As AI technologies continue to advance, they will play an increasingly significant role in reshaping the pharmaceutical landscape.

2. Key Report Findings

• The global AI in pharmaceutical market is projected to reach US$4,451.6 Mn by 2030, surging from US$807.2 Mn in 2018.
• The increased utilization of AI in drug discovery and development, pharmaceutical marketing, predictive forecasting, and personalized treatment will be major growth drivers.
• Asia Pacific is poised to be the fastest-growing market, while North America maintains a leading position.

3. Market Drivers

Increasing Adoption Potential in New Drug Discovery With the pharmaceutical sector’s imperative to deliver drugs and vaccines swiftly, AI has played a critical role in accelerating the process. Machine learning and AI enable the recognition of disease patterns, leading to the identification of optimal drug compositions. This results in cost-effective, efficient, and profitable drug development, making AI adoption crucial. Rising healthcare expenditure, the prevalence of chronic diseases, and AI technology advancements further fuel market growth.

Dramatically Rising Adoption of AI in Drug Discovery and Development AI is increasingly used in drug discovery to analyze vast datasets, identify potential drug targets, optimize drug molecules, and predict drug efficacy and safety. AI also identifies biomarkers for personalized treatment and enhances drug discovery processes, expediting drug development and market launch.

Boom Around Advanced Technology-enabled Personalized Treatment AI facilitates improved personalized treatments by enabling real-time patient data analysis. Machine learning and AI-driven data analysis offer early insights into patient conditions, improving diagnostic capabilities. Predictive forecasting, clinical trial optimization, and pharmaceutical marketing are further enhanced by AI. The incorporation of new-age technologies into personalized treatments propels market growth.

4. Overview of Key Segments

Drug Discovery: The Key Application Area The drug discovery application is a major contributor to the AI in pharmaceutical market, valued at US$291.7 Mn in 2022 and projected to reach around US$1,225.9 Mn by 2030. AI’s influence in drug discovery spans target identification, clinical trials, and molecular pathway analysis, significantly improving the efficiency and success rate of drug development.

Natural Language Processing: Dominant Technology Segment Natural language processing (NLP) is widely used in the pharmaceutical industry due to its ability to extract, organize, and analyze unstructured text data from various sources. NLP aids in identifying drug candidates, targets, and biological pathways, expediting the drug discovery process.

5. Growth Opportunities Across Regions

North America Maintains a Dominant Position North America, a technology hub, is expected to hold a substantial share in the AI in pharmaceutical market. AI applications in clinical trials, drug discovery, and drug development, coupled with the rising burden of chronic diseases, drive market growth. Industry leaders and cross-industry collaborations further contribute to the region’s growth.

The US in the Investment Bandwagon Global investment in AI in the pharmaceutical industry is on the rise, with the US leading the way. Investment is expected to reach US$6.3 Bn by 2025, with the US accounting for nearly half of this total. China, the UK, Germany, France, and Japan are also actively investing in AI to enhance drug discovery and development capabilities.

Asia Pacific Represents the Fastest Growing Regional Pocket The Asia Pacific region is growing at a CAGR of 20.8% and is actively embracing AI-driven technologies across various sectors, including pharmaceuticals. AI is being leveraged to accelerate drug discovery and development, optimize drug designs, and tailor treatment plans to individual patients’ unique characteristics. The region’s focus on precision medicine and drug repurposing using AI further fuels growth.

6. Competition Landscape Analysis

The AI in pharmaceutical market is witnessing intense competition, with companies and research institutions leveraging AI to enhance drug discovery, development, and patient care. Key market players include GNS Healthcare, Benevolent AI, Berg Health, Novo Nordisk, IBM Corporation, Alphabet Inc (DeepMind), General Electric Company, Pfizer Inc., Johnson & Johnson, and Novartis AG.

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