Artificial Intelligence (AI) In Pharmaceutical Market Size (2024 - 2029)

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).

Several factors are driving the growth of the AI pharmaceutical market during the forecast period. The increasing adoption of AI for clinical trials, a growing number of cross-industry collaborations and partnerships, and a rising 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 the target discovery program initiation to the start of Phase I took less than 30 months, representing a new level in the speed of therapeutic asset development for the pharmaceutical industry. The accelerated timeline from target discovery to Phase I initiation highlights the efficiency of artificial intelligence in drug development, thereby driving its adoption and growth in the pharmaceutical market. For instance, in June 2023, Sanofi launched its new application, Plai, developed with artificial intelligence (AI) platform company Aily Labs. It delivers real-time, reactive data interactions and gives an unprecedented 360° view across all Sanofi activities.

Similarly, in December 2022, Cyclica Inc. and SK Chemicals Co. Ltd entered an artificial intelligence (AI)-driven drug discovery and development partnership to develop therapies across various disease areas. Under the collaboration with SK Chemicals, Cyclica will deploy its robust, proprietary drug discovery platforms to identify novel drug candidates for challenging biological targets across therapeutic areas of mutual interest to Cyclica and SK Chemicals.

Therefore, the adoption of AI as an asset to accelerate the healthcare process is expected to increase in the future, driving the growth of the market during the forecast period.

Despite the positive factors, the need for more skilled professionals and incompatible healthcare IT infrastructure in pharmaceutical research centers are expected to hinder the growth of the market during the forecast period.

Artificial Intelligence (AI) In Pharmaceutical Industry Segmentation

As per the scope of the report, AI in the pharmaceutical industry is used to handle data and present results that encourage better decision-making and save human effort, cost, and time. Artificial intelligence in the pharmaceutical industry is segmented by technology, type, application, and geography. The technology segment is further segmented into machine learning and other technologies. The type segment is further divided into software and services. The application segment is further bifurcated into drug discovery, clinical trials, laboratory automation, and others. Geography is divided into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD) for the above segments.