Artificial Intelligence In Drug Discovery and Screening Market Research Report - Segmented By Application (Drug Optimization & Repurposing, Preclinical Testing), By Therapeutic Area (Oncology, Neurodegenerative Diseases, Cardiovascular Diseases, Metabolic Diseases, Infectious Diseases, Others) By Region (North America, Europe, Asia-Pacific, Latin America, The Middle East, and Africa), And Segment Forecasts, 2024 2030

AI Drug Discovery & Screening Market Analysis (2024 – 2030)

The AI in drug discovery and screening market attained a valuation of USD 364.67 million and is foreseen to reach USD 4000.54 million by 2030. Projected to grow at a Compound Annual Growth Rate (CAGR) of 40.8% from 2024 to 2030, the market's advancement is driven by factors such as the increasing number of cross-industry collaborations and alliances in the field of artificial intelligence (AI) applied to drug discovery.

Market Overview

Artificial intelligence, a computer science subfield, is dedicated to simulating intelligent behavior, enabling computers to perform tasks akin to humans and animals, while learning from their errors. Utilizing deep learning and machine learning methods, AI applies personalized knowledge to various activities effectively.

In drug development, AI plays a pivotal role in tracking diseases, formulating remedies, and predicting changes in animal viruses. It aids researchers in enhancing Research and Development (R&D) in medication discovery, facilitating the development of remedies for chronic diseases.

The drug discovery and development processes involve identifying biological targets and designing drugs. AI, extensively employed in healthcare, accelerates the discovery of therapeutic targets, playing a crucial role in swiftly identifying, producing, detecting, and screening small compounds. The market is anticipated to witness exponential growth due to the adoption of advanced techniques over traditional methods and increased industry alliances. AI reduces costs and time in drug discovery, propelling market growth. However, challenges include a shortage of trained individuals and datasets in drug discovery, which is expected to change as awareness of AI increases.

Covid-19 Impact on AI Drug Discovery & Screening Market

The ongoing Covid-19 pandemic has strained healthcare systems, leading pharmaceutical companies to leverage AI-powered solutions in clinical trials for new medicine remedies. This utilization is expected to continue post-pandemic, accelerating drug development.

The pandemic has significantly impacted the pharmaceutical industry, decreasing the number of patents, revenue, and overall employment. The industry has witnessed substantial changes in the innovation and manufacturing value chain.

Market Drivers

The increasing number of cancer and other disease cases is projected to boost market growth.

 AI aids researchers in understanding cancer cell resistance, contributing to the creation of market-appropriate medications. The demand for medications to treat serious diseases, particularly cancer, further drives AI in drug discovery.

Rise in AI research and development activities propels market growth.

Collaborations and cross-industry alliances contribute to the market's expansion. The importance of AI in medication discovery, substantial financing for AI research and development, and growing awareness, especially in China and India, are factors driving market demand.

Market Restraints

Limited market expansion in low-income countries results from a lack of advanced instruments. AI may struggle to handle massive datasets in pharmaceutical corporations, hindering its growth in drug discovery.

The high cost of AI integration acts as a restraint on market expansion. Technology costs, along with scarcity of skilled professionals and low awareness, impede the market's growth pace during the forecast period (2024 - 2030).

AI Drug Discovery & Screening by Application

1. Drug Optimization & Repurposing
2. Preclinical Testing
3. Other

In 2021, the segment focusing on drug optimization and repurposing claimed the highest revenue share, accounting for nearly 50.0 percent based on application. Employing advanced AI systems, such as Deep Learning (DL) and drug modeling, proves effective in evaluating undesirable drug effects and overall drug efficacy. The pharmaceutical industry leverages these AI technologies to enhance existing medications, repurpose them for different indications, and subsequently reduce development costs.

Another burgeoning application of AI in drug development is preclinical testing. The manual selection of individuals for trials based on medical history can be time-consuming. However, AI algorithms expedite the process, shortening the overall clinical timeline. Predictive machine learning algorithms, based on genome-specific data, assist in identifying lead compounds and patient populations. Companies like Amplion utilize AI technology to select biomarkers strategically, aiding researchers in patient recruitment and biomarker selection, thereby reducing clinical study timelines.

AI Drug Discovery & Screening by Therapeutics

1. Oncology
2. Neurodegenerative Diseases
3. Cardiovascular Diseases
4. Metabolic Diseases
5. Infectious Diseases
6. Others

In 2021, the oncology sub-segment dominated with a revenue share exceeding 20.0 percent. AI systems play a crucial role in early disease detection, compensating for human error in diagnosis. The enhanced accuracy of AI in disease detection facilitates early identification, proving invaluable, especially in cases like lung cancer, where late-stage detection significantly impacts survival rates. AI, coupled with genetic sequences and patient histories, enables the early detection of tumors and the administration of personalized treatments.

Between 2023 and 2030, the infectious diseases category is projected to be the fastest-growing application segment. AI and related platforms, such as the Internet of Things (IoT), contribute to a deeper understanding of infectious diseases, transmission mechanisms, and infection dynamics. This aids in more effective vaccine development, utilizing connected devices to collect data on lifestyle trends, anomalies, and disease research.

AI Drug Discovery & Screening by Region

1. North America
2. Europe
3. Asia-Pacific
4. Latin America
5. The Middle East and Africa

In 2021, North America led with a revenue share exceeding 55.0 percent. The United States, being a pioneer in AI technology, has integrated it extensively into various industries, including pharmaceuticals. Major American IT companies collaborate with renowned institutes to accelerate medication discovery, design, and repurposing. AI plays a pivotal role in disease research, yielding valuable insights for disease management.

From 2023 to 2030, the Asia-Pacific (APAC) market is anticipated to experience the fastest growth. Developing countries in the region utilize AI to enhance disease understanding and drug research. Companies like Intuition Systems in India collaborate with entities such as Lantern Pharma to advance medication discovery and biomarker identification, contributing to the region's burgeoning AI applications in healthcare.

AI Drug Discovery & Screening by Company

The imperative to expedite drug discovery and enhance treatments is driving widespread AI adoption in the pharmaceutical industry. Major IT companies are intensifying efforts to accelerate medication discovery, with global market leaders including:

1. IBM
2. Microsoft
3. Atomwise Inc.
4. Cloud Pharmaceuticals
5. Benevolent AI
6. BIO AGE

Collaborations between tech giants and academic/research institutions propel the broader adoption of AI in the pharmaceutical industry. Leading competitors in the global AI-driven drug development sector include IBM Watson, Exscientia, GNS Healthcare, Alphabet (DeepMind), Benevolent AI, BioSymetrics, Euretos, Berg Health, Atomwise Intro, Cyclica, and others. These collaborations foster the development of improved pharmaceuticals with reduced adverse effects, expediting disease research to uncover essential solutions.

RECENT ADVANCES IN THE AI DRUG DISCOVERY & SCREENING MARKET

PRODUCT LAUNCH: In December 2021, Insilico Medicine, an AI-driven pharmaceutical development firm, disclosed the initiation of a microdose trial for ISM 001-005, a small-molecule inhibitor targeting a biological entity identified by Pharma.AI and developed using AI methodologies. The trial is presently in progress in Australia, with the first healthy volunteer successfully dosed.

In July 2021, Chief.AI, a machine learning platform, introduced a pay-as-you-go AI platform dedicated to drug discovery. This innovative platform facilitates cost-effective access to advanced technology for small and medium-sized enterprises (SMEs), mitigating the trial-and-error nature of drug development and expediting the precise identification of groundbreaking therapies.

COLLABORATIONS: In July 2021, Sanofi, the renowned pharmaceutical company headquartered in Paris, forged a research partnership with Exscientia, a firm leveraging artificial intelligence for the discovery of novel drug candidates, potentially valuing the collaboration at up to $5.2 billion. This agreement signifies a significant milestone in the realm of AI-based drug discovery, which has attracted substantial investments over recent years, promising a more efficient and secure exploration of novel medications, though tangible outcomes are still pending.