According to a report by Altus Market Research titled, “Artificial Intelligence (AI) In Drug Discovery Global Market 2022 Opportunities And Strategies To 2031: By Technology: (Context-Aware Processing; Natural Language Processing; Querying Method; Deep Learning); By Drug Type; By Therapeutic Type; By End-Users”, the global artificial intelligence (AI) in drug discovery market reached a value of nearly $791.8 million in 2021, having increased at a compound annual growth rate (CAGR) of 31.0% since 2016. The market is expected to grow from $791.8 million in 2021 to $2,994.5 million in 2026 at a rate of 30.5%. The market is then expected to grow at a CAGR of 25.4% from 2026 and reach $9,293.0 million in 2031.
Growth in the historic period in the artificial intelligence (AI) in drug discovery market resulted from growing adoption of artificial intelligence (AI) for cost efficient drug discovery, growing number of cross-industry collaborations and partnerships, and increasing use of artificial intelligence (AI) for tracking medication adherence. The market was restrained by shortage of skilled labor, challenges due to regulatory changes, low healthcare access, and high rate of AI project failures. Going forward, rising adoption of cloud-based applications and services, increasing need to control drug discovery & development costs and reduce the overall time, and government initiatives in developing economies will drive market growth. Factors that could hinder the growth of the market in the future include incompatible legacy health IT infrastructure.
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Market Growth by Key Players:
The global artificial intelligence (AI) in drug discovery market is concentrated characterized by the presence of global artificial intelligence (AI) in drug discovery providers. The top ten competitors in the market made up to 50.21% of the total market in 2020. Artificial intelligence (AI) has the potential to transform the pharmaceutical industry. Each of the major pharma players is investing in the technology at some level, and there are a growing number of applications that address target and drug discovery, preclinical and clinical development, and postapproval activities .
Major Players covered in the report include, PathAI, BERG, GNS Healthcare, Microsoft Corporation, Insilico Medicine, Shanghai Pharmaceuticals, Standigm, Indegene, Intuition Systems, Innoplexus, Takeda Pharmaceutical Company Ltd., RxPrism, Otsuka Pharmaceutical Co. Ltd., China National Pharmaceutical Group Co. Ltd., Jiangsu Hengrui Medicine Co. Ltd, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories Ltd., Sun Pharma, Tricog Health Services Pvt. Ltd., Alliance Pharm Pte Ltd., GSK Australia, CytoReason, IIPharma, DeepMind
Player-adopted strategies in the artificial intelligence (AI) in drug discovery market includes strategic collaboration and acquisitions investments, strategic partnerships for producing new technologies, opening new manufacturing sites, and new product launches to meet the global demand and strengthen their product portfolio.
Market Growth by Segments:
The artificial intelligence (AI) in drug discovery market is segmented by technology into context-aware processing, natural language processing, querying method, and deep learning. The deep learning segment was the largest segment by technology, accounting for 33.9% of the total in 2021. Going forward, the deep learning segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by technology, at a CAGR of 30.49% during 2021-2026.
The artificial intelligence (AI) in drug discovery market is also segmented by drug type into small molecule, large molecules. The small molecules was the largest segment by drug type, accounting for 64.2% of the total in 2021. Going forward, the large molecules segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by drug type, at a CAGR of 33.4% during 2021-2026.
The artificial intelligence (AI) in drug discovery market is also segmented by therapeutic type into metabolic disease, cardiovascular disease, oncology, neurodegenerative diseases, respiratory diseases, anti-infective diseases and other therapeutic areas. The Other Diseases segment was the largest segment by therapeutic type, accounting for 21.2% of the total in 2021. Going forward, cardiovascular diseases segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by therapeutic type, at a CAGR of 32.0% during 2021-2026.
The artificial intelligence (AI) in drug discovery market is also segmented by end-users into pharmaceutical companies, biopharmaceutical companies, academic and research institutes, and others. The pharmaceutical companies segment was the largest segment by end-users, accounting for 50.9% of the total in 2021. Going forward, biopharmaceutical companies’ segment is expected to be the fastest growing segment in the artificial intelligence (AI) in drug discovery market segmented by end-users, at a CAGR of 27.8% during 2021-2026.
Market Growth by Region:
North America was the largest region in the artificial intelligence (AI) in drug discovery market, accounting for 44.0% of the total in 2021. It was followed by the Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence (AI) in drug discovery market will be South America and Asia Pacific where growth will be at CAGRs of 40.0% and 37.2% respectively during 2021-2026. These will be followed by Africa and Western Europe, where the markets are expected to register CAGRs of 34.4% and 33.2% respectively during 2021-2026.
COVID-19 Impact:
The pandemic has impacted supply chains of the pharmaceutical industry, along with changes in demand, regulation revisions, and changes in R&D processes. It has also affected the industry with delays in approvals, delays in clinical trials, especially for early-stage trials, and delays in product launches, which in turn impacted demand for AI for drug discovery software. For Instance, IBM, an AI in drug discovery company generated $73.6 billion revenue in 2020 and $77.1 billion revenue in 2019, a decline of 4% due to the impact of COVID-19. However, in the global attempt to develop an effective vaccine and medical treatment for the COVID-19 coronavirus, artificial intelligence researchers made initial efforts for the fight against COVID-19. The pandemic has accelerated the digital maturity process for pharma companies, with institutions rapidly implementing the most cutting-edge technologies such as artificial intelligence and machine learning to help speed up the process of finding an effective medicine. With the increasing digitalization of the healthcare industry, there is an increase in the amount of data gathered. Companies are leveraging AI to analyze data from various sources, including photos, microscopic images, X-rays, CT scans, and MRI scans which helps in drug discovery to diagnostics and care delivery.
Future Investment Opportunities:
The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by technology will arise in deep learning segment, which will gain $747.0 million of global annual sales by 2026. The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by drug type will arise in small molecules segment, which will gain $1,287.0 million of global annual sales by 2026. The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by therapeutic type will arise in other diseases segment, which will gain $480.2 million of global annual sales by 2026. The top opportunities in the artificial intelligence (AI) in drug discovery market segmented by end-users will arise in pharmaceutical companies segment, which will gain $1,028.0 million of global annual sales by 2026. The artificial intelligence (AI) in drug discovery market size will gain the most in the USA at $621.3 million.
Market: Trend-based Strategies
Market-trend-based strategies for the artificial intelligence (AI) in drug discovery include companies should leverage AI platform for precise molecular target identification with desirable therapeutic activity, leverage AI for drug screening process and minimize the cost of drug development, leveraging AI based models in pre-clinical studies, use of biomarker for drug development, introduce of new artificial intelligence (AI) tools for drug discovery, investments in AI driven biotech firms, consider forming partnership with CROs to become more efficient in their drug discovery processes and consider creating AI innovation labs to effectively expand their drug discovery capabilities.
Growth Strategies by Altus Market Research for Companies in the Market:
To take advantage of the opportunities, Altus Market Research recommends the artificial intelligence (AI) in drug discovery companies to focus on use of AI based models in pre-clinical studies, invest in AI innovation labs, focus on introducing new AI tools for drug discovery, focus on use of AI for rare diseases treatment, expand in developing economies, scale up through merger and acquisition activity, expand in countries offering research incentives, provide competitively priced offerings, offer value-based pricing, leverage social media use to maximize reach, partner with big brands, participate in trade shows and events and maximize awareness among scientists and pharmaceutical specialists.
