ARTIFICIAL INTELLIGENCE IN DRUG DISCOVERY MARKET ANALYSIS

The global artificial intelligence in drug discovery market was valued at US$ 1,016.1 Mn in 2022 and is forecast to reach a value of US$ 3,547.4 Mn by 2030 at a CAGR of 5.7% between 2023 and 2030. The global Artificial Intelligence in Drug Discovery Market is experiencing strong growth owing to the Rising need to curb drug development and discovery costs, Rising prevalence of chronic diseases supporting development of personalized drugs, Big data and information explosion in healthcare and drug discovery,  and growth strategies by market players is expected to boost the market growth. However, factors such as Inadequate availability and quality of data, Lack of digital infrastructure in emerging markets, High implementation costs, are expected to hamper the growth of the global artificial intelligence in drug discovery market.

Global Artificial Intelligence in Drug Discovery Market: Regional Insights

• Based on geography, the global artificial intelligence in drug discovery market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.
• Among regions, North America is expected to gain highest share in the market during the forecast period due to the Strong economic growth and presence of well-equipped hospitals, research centers, universities, & medical device manufacturers are factors boosting the development of new products in this region. In addition, increasing need for managing & controlling overall costs & time associated with discovery & development of drugs, increasing cross-industry collaborations & partnerships, surge in the adoption of cloud-based services & applications, and impending patent expiry of blockbuster drugs are expected to further drive the market in North America. For instance, in May 2018, Intel announced its collaboration with Novartis for using deep neural networks to increase high-content screening to support early drug discovery 
• Europe and Asia Pacific are also expected to witness robust growth in the global artificial intelligence in drug discovery market owing to the Healthcare systems in Europe are overburdened due to increasing costs, growing incidence of chronic conditions, large elderly population, and increasing demand for healthcare facilities. In addition, increasing investments in AI in healthcare are expected to drive the market. For instance, in October 2019, the UK government announced an investment of USD 300 million in AI, which is expected to be utilized by the public healthcare system to improve quality of care. In 2018, General Data Protection Regulation (GDPR) outlined policies for personal data collection, processing, and security in healthcare organizations. This regulation divides heath data requiring special protection into three types: genetic data, biometric data, and data concerning health.

Figure 1. Global Artificial Intelligence in Drug Discovery Market Share (%), by Region, 2023

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Global Artificial Intelligence in Drug Discovery Market Drivers:

• Rising prevalence of chronic diseases supporting development of personalized drugs to propel market growth: The increase in prevalence of chronic diseases is one of the key factors that has raised the need to understand and diagnose diseases in their early stages. With AI-based deep learning technologies, it would become easy to predict diseases based on their historic health data and simplify the drug discovery process related to a particular condition. Thus, many healthcare firms have started collaborating with AI-based companies for the development of a particular drug, effective for a chronic condition, with the use of AI. For instance, in 2019, GlaxoSmithKline partnered with Exscientia, an AI-driven drug development and discovery company, for development of drug targeted novel treatment for Chronic Obstructive Pulmonary Disease (COPD). Such instances signify growth potential and rising adoption of AI-based drug discovery processes for chronic conditions.
• Rising need to curb drug development and discovery costs to drive market growth: Target identification and validation for drug development is a crucial step for the overall drug discovery process. Increasing application of AI in target identification is another factor propelling the adoption of AI in drug discovery process. In addition, many key players in healthcare industry are trying to adopt AI-based processes to curb costs of drug development. For instance, according to an article published by Reuters, in 2017, AstraZeneca and Berg collaborated for identification of new drug targets with the help of AI-based analysis of tissue samples. Moreover, key players such as Pfizer, Takeda, Roche, and Sanofi are trying to gain foothold in emerging AI-based drug discovery market. For instance, according to a report published by Deloitte, as of 2019, Pfizer disclosed around five deals involving AI. Hence, increasing importance of AI in overall healthcare sector is likely to increase its adoption in drug development process, thereby reducing the total cost of drug discovery and development.

Global Artificial Intelligence in Drug Discovery Market Opportunities:

• Developed countries, such as the U.S., Australia, Canada, and the UK, spend a large proportion of their GDP on healthcare. In these economies, the cost and demand for healthcare is growing rapidly, thus increasing the need for digital technologies, such as AI. In recent years, the U.S. and the UK have adopted AI technologies to reduce the cost of care and improve clinical services. In the U.S., AI has been primarily adopted because of the shift from traditional to value-based healthcare systems. For instance, in 2017, NHS organized chatbots, based on AI, on trial basis to reduce the pressure on emergency triage process.

Global Artificial Intelligence in Drug Discovery Market Trends:

• Increasing growth strategies such as research collaborations is a recent trend: Market players are focused on signing growth strategies such as research collaboration, which is expected to drive the growth of global artificial intelligence in drug discovery market. for instance, in January 2022, Amgen and Generate Biomedicines today announced a research collaboration agreement to discover and create protein therapeutics for five clinical targets across several therapeutic areas and multiple modalities. Generate Biomedicines is pioneering the field of generative biology – a revolutionary approach to drug discovery and development that leverages machine learning and AI to program novel protein therapeutics. The company’s machine learning algorithms analyze hundreds of millions of known proteins, looking for statistical patterns linking amino acid sequence, structure and function, and its technology platform has been enhanced by closed-loop learning on tens of thousands of computationally generated and broadly experimental characterized novel proteins over the past three years.

• Raising funds from investors to develop new drug discovery platforms is another trend: Market players are focused on gaining funds from investors, which is expected to drive the growth of global artificial intelligence in drug discovery market. For instance, on May 25 2023, BenchSci, a world leader in AI solutions for preclinical life sciences research and development (R&D), announced a US$ 95 million (US $70 million) Series D funding round led by Generation Investment Management, with participation from existing investors iNovia Capital, TCV, Golden Ventures and F-Prime Capital. The funds will be used to expand the company’s revolutionary AI drug discovery platform, ASCEND by BenchSci, which enables scientists to discover biological connections, dramatically reduce trial-and-error experimentation and uncover risks early.

Global Artificial Intelligence in Drug Discovery Market Restraints:

• Inadequate availability and quality of data to hinder market growth: Large pharmaceutical and healthcare companies are often concerned about the utilization of large amount of data that gets created due to distinct experimental platforms. In addition, the utilization of this data, in a consolidated form, for analytical purposes and drug discovery is many times not considered by firms. This impedes the growth of AI in drug discovery process
• Lack of digital infrastructure in emerging markets to hamper the market growth: Maintaining Electronic Health Records (EHRs) & healthcare claims data and providing telemedicine services & patient data analytics require a well-established digital infrastructure. Currently, digital health services are being used only on end-to-end basis in developed economies. On the contrary, lack of well-developed digital health infrastructure in various emerging and underdeveloped economies is a key factor that may limit market growth. To establish AI systems, there is a need of high-end infrastructure. Lack of financial resources makes it difficult for stakeholders in emerging economies to adopt these systems effectively.

Figure 2. Global Artificial Intelligence in Drug Discovery Market Share (%), by Therapeutic Space, 2023

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Global Artificial Intelligence in Drug Discovery Market Segmentation:

• The global artificial intelligence in drug discovery market report is segmented into Therapeutic space, application and Region.
• Based on Therapeutic space, the market is segmented into Oncology, Neurodegenerative diseases, cardiovascular diseases, metabolic diseases, infectious diseases, and others. Out of which, Oncology Segment is expected to dominate the artificial intelligence in drug discovery market over the forecast period and this is attributed to the increasing prevalence of cancer.
• Neurodegenerative diseases is also expected to witness significant growth in the near future and this is owing to the Efficacy and efficiency make AI platforms most useful tools in drug development for neurodegenerative diseases. Diseases like Parkinson’s and Alzheimer’s are difficult to diagnose and the treatment options are limited. AI platforms can help in better understanding these conditions and assist in providing better diagnosis and in developing treatments.
• Based on Application, the market is segmented into Drug Optimization & Repurposing, Preclinical Testing and Others. Out of which, Drug Optimization & Repurposing Segment is expected to dominate the market over the forecast period and this is attributed to the use of AI platforms in identifying alternative applications of existing medicines is increasing. These platforms help pharmaceutical companies in producing alternative therapies by minor modifications in the product and help them expand their range of offerings. Furthermore, AI platforms assist researchers in detecting the toxic effects of a drug on the human body and help them lower the chance of adverse effects.
• Preclinical Testing Segment is also expected to witness significant growth in the near future and this is owing to increasing use of AI is increasing in preclinical testing due to their effectiveness in reducing overhead and operational costs. 

Global Artificial Intelligence in Drug Discovery Market: Key Developments

• On May 08 2023, Recursion, a leading clinical stage TechBio company decoding biology to industrialize drug discovery, announced it has signed agreements to acquire two companies in the AI-enabled drug discovery space: Cyclica and Valence.
• In August 2022, Atomwise, a leader in using artificial intelligence (AI) for small molecule drug discovery, announced that it has established a strategic and exclusive research collaboration with Sanofi that will leverage its AtomNet platform for computational discovery and research of up to five drug targets.

Global Artificial Intelligence in Drug Discovery Market: Key Companies Insights

• The global artificial intelligence in drug discovery market is highly competitive. This is attributed to the rise demand for advanced, technological advancement, strategic collaborations and launching new platforms in the market.
• Some of the key players in the global Artificial Intelligence in Drug Discovery Market are IBM Corporation (IBM Watson Health), Exscientia, GNS Healthcare, Alphabet, Inc. (DEEPMIND), Benevolent AI, Biosymetrics, Euretos, Berg LLC., Atomwise, Inc., Insitro, and among others.

*Definition: Artificial Intelligence (AI) had transfigured different sectors in society, where the pharmaceutical sector is not an exceptional case. Pharmaceutical sectors have reached new heights with the emergence of these sophisticated technologies. The evolution of artificial intelligence in the pharmaceutical industry is in a growth phase opening the possibilities of discovering many new drugs.