AI in Pharmaceutical Market Size, Share, Report By 2032

Prathamesh

4 weeks ago

The global AI in pharmaceutical market reached USD 908 million in 2022 and is expected to hit over USD 11813.56 million by 2032, poised to grow at a CAGR of 29.30% from 2023 to 2032.

The rapid adoption of the AI technologies in the pharmaceutical industry across the globe is the primary driver of the AI in the pharmaceutical market. The rising investments in the biopharmaceutical industry to cater the burgeoning demand for the innovative drugs that cures various chronic diseases such as cancer, diabetes, and CVDs is exponentially driving the adoption of AI in the pharmaceutical market.

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The use of AI technologies can enhance the research & development, clinical trials, and the drug manufacturing processes allowing the pharmaceutical companies to significantly reduce cost and time. Majority of the global pharmaceutical players are increasing investments in the adoption of the AI technologies. For instance, in April 2021, Abbott introduced its new coronary imaging platform, powered by artificial intelligence, in Europe. It has also received CE mark by the concerned authorities in Europe. Therefore, the demand for AI technologies in the pharmaceutical industry is expected to grow at a significant rate.

Report Highlights

Based on the technology, deep learning dominated the market with more than 33% of the market share in 2020. This is attributable to the increased adoption of the deep learning technology in the diagnosis and monitoring of the health conditions. It is extensively used in the monitoring of the health conditions and predicting the subsequent conditions in the near future. The rising adoption of this technology for monitoring the conditions related to various diseases such as sepsis and cardiovascular diseases is further fueling the growth of this segment.
Based on the drug type, the large molecule is estimated to be the most opportunistic segment. The growing demand for the biologics for the treatment of various chronic diseases coupled with the rising prevalence of diseases, rising healthcare expenditure, and growing awareness regarding the biologic drugs is expected to foster the market growth.
Based on the application, the drug discovery segment accounted for around 80% of the market share in 2020. The AI technologies facilitate cost reduction, savings of time, and increased operational efficiency in the drug discovery process, which has augmented the growth of this segment.

Regional Snapshot

North America garnered a market share of around 43% in 2020. North America is characterized by the higher demand for the biopharmaceutical and biologics medications owing to the increased prevalence of various chronic diseases and increased healthcare expenditure. This creates a huge pressure on the biopharma companies to manufacture innovative drugs and at a rapid pace. The AI technologies can significantly boost the research, drug discovery, and drug manufacturing process by reducing the time consumption and costs involved in the drug development. Moreover, the regulatory framework in the US is encouraging the healthcare and the pharmaceutical industries to increasingly adopt the AI powered technologies to increase operational efficiency and reduce costs. These factors had resulted in the dominance of the region in AI in the pharmaceutical market.

On the other hand, Asia Pacific is estimated to be the most opportunistic segment during the forecast period. This is attributed to the increasing presence of the CROs and the CMOs in countries like China, India, South Korea, and Singapore. The government policies to attract FDIs is fueling the adoption of the AI technologies in the research and manufacturing of the pharmaceutical drugs. The presence of the several top pharmaceutical manufacturing facilities in the Asia Pacific region is expected to boost the demand for the AI technologies in the forthcoming years.

Table of Contents

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Scope of the AI in Pharmaceutical Market

Report Coverage	Details
Market Size in 2023	USD 1169.50 Million
Growth Rate from 2023 to 2032	29.30%
Revenue Projection by 2032	USD 11813.56 Million
Largest Market	North America
Fastest Growing Market	Asia Pacific
Base Year	2022
Forecast Period	2023 to 2032

AI in Pharmaceutical Market Dynamics

Driver

Increasing usage of AI in drug discovery

The adoption of the AI and the machine learning technologies is growing rapidly in the drug discovery. The drug discovery has become extremely expensive and highly competitive in the past few years. Therefore, the rising demand for controlling cost and reducing time along with increasing the efficiency in the process related to the drug discovery is expected to drive the growth of the AI in the pharmaceutical market during the forecast period. Moreover, the AI and ML technologies assists in the research and developmental activities by reducing the errors and inefficiencies.

Restraints

High capital investments in AI technologies

A huge capital investment is involved in the implementation of the AI and ML technologies in the pharmaceutical sector. The financial restrictions of the small and medium size pharmaceutical companies and drug manufacturers may restrict the adoption of AI and can hinder the market growth during the forecast period.

Opportunities

Rising investments in the drug discovery for chronic diseases

It is estimated that by 2025, around 50% of global pharmaceutical companies will deploy AI technologies. This will result in the increased investments in the development of the drugs for curing various oncology and chronic diseases. Therefore, the increased demand for the innovative drugs across the globe owing to the rising prevalence of various chronic diseases is expected to offer lucrative growth opportunities to the market players in the upcoming future.

Challenges

Challenges of maintaining data security and data privacy

The data privacy and security are the most important factor for any big pharmaceutical organization. With the growing adoption of the digital technologies, the threat of cyberattacks is growing rapidly. The cyberattacks can adversely impact the organizations and can result in financial losses. Therefore, the maintenance of data security and privacy are the major challenges.

Key Developments

In April 2021, Abbott introduced its new coronary imaging platform, powered by artificial intelligence, in Europe. It has also received CE mark by the concerned authorities in Europe.
In April 2020, GSK entered into a partnership with Vir Biotechnology to enhance the process of drug discovery for COVID-19 through AI and CRISPR.
In December 2019, Almirall, a Spanish pharmaceutical company entered into a research collaboration with Iktos for development of new drug design.

The various developmental strategies like partnerships, acquisitions, collaborations, and new product launches with latest and innovative features fosters market growth and offers lucrative growth opportunities to the market players.