Increasing Investment in Novel Medication Therapies Globally Drive AI in Drug Discovery Market Growth

Published: Apr 2020

AI in drug discovery market is anticipated to grow at an exponential CAGR of 40.3% during the forecast period (2024-2031). The market growth is attributed to the growing demand for artificial intelligence (AI)-powered solutions in the drug discovery processes by the life science industries with growing production capacity and increasing demand for the discovery and development of novel medication therapies globally. The healthcare sector is recognizing that one of the main drivers of its rapid expansion is the potential of artificial intelligence and related platforms. To realize AI's full potential in drug discovery, industries all across the globe are choosing to invest and work together. For instance, in September 2022, CytoReason announced an extension of its multi-year partnership with Pfizer to use CytoReason’s artificial intelligence (AI) technology for Pfizer’s drug discovery and development. Under the terms of the agreement, Pfizer will make a $20.0 million equity investment, have options to license CytoReason’s platform and disease models, and fund supplementary project support, in a deal potentially worth up to $110.0 million over the next five years.

Browse the full report description of “AI in Drug Discovery Market Size, Share & Trends Analysis Report by Component (Software and Services), by Therapeutic Area (Oncology, Infectious Diseases, Neurology, Metabolic Diseases, Cardiovascular Diseases, Immunology, and others), by Application (Drug Optimization and Repurposing, Preclinical Testing and Drug Screening) and by End-Users (Pharmaceutical & Biotechnology Companies, Contract Research Organizations (CROs) and Research Centers and Academic & Government Institutes), Forecast Period (2024-2031)” at https://www.omrglobal.com/industry-reports/ai-in-drug-discovery-market

Companies in the market provide generative AI services for drug discovery, providing tools to swiftly adapt and implement innovative, domain-specific bimolecular models at large scale via cloud APIs. The use of generative AI in medical research is a revolutionary tool. For instance, in July 2023, Recursion announced a collaboration and a $50.0 million investment from NVIDIA to accelerate foundation models in AI-enabled drug discovery. Recursion also announced plans to accelerate the development of its AI foundation models for biology and chemistry, which, in collaboration with NVIDIA, intends to optimize and distribute to biotechnology companies using NVIDIA cloud services.

Market players have joint capabilities in human data and genetics with a strong hold in cardiometabolic diseases. A strategy for applying technologies to actual human data to produce fresh insights and convert them into possible treatments for patients with cardiometabolic disorders. For instance, in September 2023, Valo Health and Novo Nordisk to collaborate to discover and develop novel treatments for cardiometabolic diseases using human data and artificial intelligence. Valo will receive an upfront payment and a potential near-term milestone payment, totaling $60.0 million, and is eligible to receive milestone payments for up to 11 programmers, totaling up to $2.7 billion, plus R&D funding and potential royalty payments.

Market Coverage

The market number available for – 2023-2031

Base year- 2023

Forecast period- 2024-2031

Segment Covered- 

o By Component

o By Therapeutic Area

o By Application

o By End-Users

Regions Covered-

o North America

o Europe

o Asia-Pacific

o Rest of the World

Competitive Landscape- Merck KGaA, NVIDIA Corp., Recursion Pharmaceuticals Inc., Schrödinger, Inc., and Tencent Holdings Ltd., among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global AI in Drug Discovery Market Report Segment

By Component

  • Software
  • Services

By Therapeutic Area

  • Oncology
  • Infectious Diseases
  • Neurology
  • Metabolic Diseases
  • Cardiovascular Diseases
  • Immunology
  • Other (Inflammatory Diseases)

By Application

  • Drug Optimization and Repurposing
  • Preclinical Testing
  • Drug Screening

By End-Users

  • Pharmaceutical & Biotechnology Companies
  • Contract Research Organizations (CROs)
  • Research Centers and Academic & Government Institutes

Global AI in Drug Discovery Market Report Segment by Region

North America

United States

Canada 

Europe

UK

Germany

Italy

Spain

France

Rest of Europe 

Asia-Pacific

China

India

Japan

South Korea

Rest of Asia-Pacific 

Rest of the World

Latin America 

Middle East & Africa


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