Industry Outlook

Artificial intelligence in the life science analytics market is anticipated to grow at a CAGR of 11.7% during the forecast period (2025-2035). The global market is derived owing to the advancements in AI and machine learning technologies. These advancements improve the analysis of complex and large-scale datasets, which improves drug discovery and enhances patient care. Furthermore, the number of investments in the pharmaceutical sector has increased, contributing to market expansion and supporting AI R&D. The industry focuses on enhancing health by innovating medical solutions to improve patient recovery time. Additionally, the government is supporting advancements in AI to improve medical facilities by leveraging AI for pharmaceutical innovation, biomedical research, and healthcare. These schemes are meant to accelerate technical development, promote collaboration across sectors, and address ethical and regulatory issues. According to the National Artificial Intelligence Initiative Office (NAIIO), which was founded in early 2021 and unites AI research and development across federal agencies, academia, and industry, it is a noteworthy instance of US success.

Segmental Outlook

The global AI in life science analytics market is segmented by deployment, application, and end-users. Based on the deployment, the market is sub-segmented into on-premise and cloud. Based on the application, the market is sub-segmented into pharmaceutical, biotechnology, medical devices, and others (personalized medicine and medical diagnosis). Further, based on end-users, the market is sub-segmented into pharmaceutical and biotechnology companies, medical device companies, and research centers. Among the end-users, the medical device company sub-segment is anticipated to hold a considerable share of the market owing to the growth in AI-based medical device development for data management, remote surgery, diagnostic and procedural assistance, clinical trials, and more.

Cloud-based AI Sub-Segment is Anticipated to Hold a Considerable Share of Global AI in Life Science Analytics Market.

The cloud-based AI segment is expected to grow significantly during the forecasted period of 2025- 2035. The market is growing unexpectedly owing to developments in AI in life science analytics. As cloud computing is affordable and easier to handle large datasets, it has grown more popular in healthcare sectors and is being adopted more rapidly. As demand for personalized medicine, predictive analysis, and better drug development expands, companies are looking to cloud-based solutions to enhance decision-making, enhance data security, and optimize operations. The creation of AI-driven cloud solutions and compliance with regulations also drive this market's growth, making it the best choice for biotech and pharmaceutical companies across the world.

Global AI in Life Science Analytics Market Share By Application, 2024 (%)

Regional Outlook

The global AI in life science analytics market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, Australia & New Zealand, ASEAN Countries and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, Asia-Pacific is anticipated to hold a prominent share of the market around the globe, owing to the rising acquisitions of start-ups developing AI-based life sciences solutions to enhance the capabilities of product lines.

The Asia-Pacific region is Expected to Grow More Significantly.

The AI-powered life science analytics cloud-based deployment space will see the strongest growth, especially in the Asia Pacific, with fast-paced AI adoption coupled with a high biotech presence. Cloud-based solutions have scalability, cost-savings, and unobstructed data integration, making it possible for pharma and biotech firms to accelerate drug discovery, de-risk clinical trials, and enhance decision-making. While solutions based on-premises are not supported by real-time access, off-site collaboration, and increased security, cloud-based platforms are more in demand. Asia Pacific is at the helm of this advancement, with India and China setting the pace of AI adoption, as noted by an IBM report. Governments and top biotech firms in the area are making large investments in AI-based cloud infrastructure to spur innovation. Cloud deployment for life sciences and precision medicine is growing more important as major IT companies such as Tencent Cloud, Alibaba Cloud, and AWS continue to expand AI capabilities. Because of this, Asia Pacific is a key area for advancements in healthcare driven by AI.

Market Players Outlook

The major companies serving AI in the life science analytics market include Accenture plc, Amazon Web Services, Inc., Microsoft Corp., Optum, Inc., Saama Technologies, LLC, Sisense Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, In April 2024, Pfizer introduced "Pfizer Insight," an innovative AI analytics system developed specifically for the pharmaceutical industry. The method examines complex data sets from clinical trials and empirical evidence to leverage artificial intelligence to accelerate the process of drug development. The goal of Pfizer Insight is to cut down on the expenses and time needed to introduce innovative medications to the market. Researchers may more precisely predict drug efficacy and safety outcomes with the platform's predictive analytics capabilities.

Recent Developments

• In March 2024, Microsoft introduced its new AI-powered analytics solution for life sciences, called Azure Life Sciences Analytics. The platform draws on the strength of Azure's cloud computing infrastructure to provide real-time analytics for clinical information and study results. Embedded AI models, the solution detects patterns and insights within large data sets, enabling quicker decision-making in drug development. Microsoft seeks to facilitate greater cooperation between the pharmaceutical industry and research organizations and enable easier collaboration and sharing of insights to develop better patient outcomes. 

• In February 2024, IBM announced the release of its newest AI-driven life sciences analytics platform, Watson Health 2.0. The high-tech platform utilizes advanced machine-learning algorithms to parse massive amounts of data from clinical trials, genomic studies, and patient health records. The new tech seeks to improve drug discovery processes so researchers can screen for potential drug candidates more quickly. IBM Watson Health 2.0 was developed to promote personalized medicine by offering customized insights that allow healthcare workers to make decisions based on data. 

The Report Covers

• Market value data analysis of 2025 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global artificial intelligence in life science analytics market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.