AI in Drug Discovery Market Size, Demand & Growth Analysis

GLOBAL AI IN DRUG DISCOVERY MARKET SIZE INSIGHTS

The global AI in drug discovery market size was valued at USD 1.71 billion in 2024 and is expected to reach USD 8.52 billion by 2030, growing at a CAGR of 30.58% during the forecast period. The global AI in drug discovery market size is poised for exponential growth, driven by technological advancements, increasing investments, and a growing focus on precision medicine. As AI algorithms continue to evolve, they are expected to play an even greater role in addressing the inefficiencies of traditional drug discovery processes. Companies that prioritize innovation, collaboration, and regulatory alignment will be well-positioned to capitalize on the vast opportunities in this dynamic market, further contributing to the expansion of the global AI in drug discovery market size.

MARKET TRENDS & DRIVERS

Integration of AI with Big Data and Omics Technologies

The integration of AI with big data and omics technologies is reshaping the global AI in drug discovery market size. By enabling a deeper understanding of biological systems, improving efficiency, and driving personalized medicine, this trend is creating unprecedented opportunities for innovation and growth. Overcoming existing challenges will further cement its role as a transformative force in the healthcare and pharmaceutical industries. The future of drug discovery is undeniably data-driven, with AI at its core, driving growth in the global AI in drug discovery market size.

Increasing Use of Generative AI Models

The increasing use of generative AI models in the global AI in drug discovery market size marks a paradigm shift in how pharmaceutical research and development are conducted. By enabling faster, cheaper, and more precise drug development, these models are creating new opportunities across the healthcare ecosystem. As technology continues to evolve, generative AI is set to redefine the boundaries of what is possible in drug discovery, offering hope for faster cures, more personalized treatments, and a healthier future, all contributing to the growth of global AI in drug discovery market size.

Emergence of AI-Driven Drug Repurposing

The emergence of AI-driven drug repurposing is a game-changer in the global AI in drug discovery market size, transforming traditional approaches and creating exciting new opportunities. By reducing costs, accelerating timelines, and addressing unmet medical needs, AI-driven drug repurposing is shaping the future of pharmaceutical innovation. As AI technologies continue to evolve, their integration into drug repurposing will undoubtedly unlock even greater potential, benefiting both the industry and global healthcare systems, thereby impacting the global AI in drug discovery market size.

Growing Partnerships between Pharmaceutical Companies and AI-focused Expertise

The growing partnerships between pharmaceutical companies and AI-focused expertise are transforming the global AI in drug discovery market size. By leveraging AI's capabilities to overcome traditional challenges, these collaborations are creating new opportunities for faster, more cost-effective, and innovative drug development. As the pharmaceutical industry continues to embrace AI, the synergies between these two domains will not only drive market growth but also pave the way for groundbreaking advancements in medicine, ultimately benefiting patients worldwide and contributing to the expansion of the global AI in drug discovery market size.

SEGMENTATION INSIGHTS

1. By Application: The global AI in the drug discovery market is divided into drug repurposing, drug screening, drug design & optimization, and others. The drug repurposing segment holds the largest share. It involves finding new uses for existing drugs, with AI helping by analyzing large datasets to match drugs with diseases. Drug screening, which tests many compounds to find potential candidates, is also sped up by AI, boosting market growth.
2. By Therapeutic Area: The global AI in drug discovery market size covers various therapeutic areas, using AI to improve research and development for different medical conditions. AI helps analyze large datasets, find drug candidates, and speed up development. In 2024, oncology held the largest market share. AI in oncology helps identify new drug targets by analyzing genomic and transcriptomic data to find genes and proteins linked to tumors. Combining different types of data and collaboration among stakeholders will drive innovation and growth in the AI drug discovery market.
3. By Technology: The global AI in drug discovery market size is divided by technology into machine learning (ML), deep learning, natural language processing (NLP), and others. In 2024, ML holds the largest market share. It’s the most commonly used technology in AI drug discovery, helping analyze large datasets, find patterns, and speed up drug development. ML also improves clinical trial design by analyzing patient data to select the right participants, predict responses, and reduce dropouts, driving global AI in drug discovery market size.
4. By End-User: The global AI in drug discovery market size by end-user is segmented into pharma & biotech companies, CROs & CDMOs, and others. The increasing adoption of AI across all end-user segments reflects the growing recognition of its transformative potential in drug discovery. Pharma & biotech companies will continue to lead the market, leveraging AI to address R&D inefficiencies and enhance drug pipelines. As AI technologies continue to advance, the role of pharma and biotech companies as end-users will be instrumental in shaping the future of medicine, addressing unmet medical needs, and improving global health outcomes, further boosting the global AI in drug discovery market size.
5. By Geography: The global AI in drug discovery market size exhibits significant regional diversity, with each geography offering unique opportunities and challenges. North America leads the global AI in drug discovery market size accounting for a global share of over 43% in 2024, driven by its advanced technological ecosystem, robust pharmaceutical and biotechnology sectors, and substantial investments in research and development.

COMPETITIVE LANDSCAPE

The global AI in drug discovery market size has grown quickly as pharmaceutical companies use AI to speed up and improve drug discovery. AI technologies like machine learning (ML), deep learning, and natural language processing (NLP) help researchers understand biological systems, analyze large biomedical datasets, and find drug candidates more efficiently and cost-effectively. The market is competitive, with established pharma companies, AI tech providers, and new startups all trying to make their mark. Big players like IBM Watson Health, Google DeepMind, and NVIDIA are leading the way. For example, IBM Watson uses NLP and ML to analyze scientific literature and find drug targets, while Google DeepMind’s AlphaFold has transformed protein structure prediction, making drug candidate identification faster and more accurate.