Artificial Intelligence (AI) in Drug Discovery Market worth $4.0 billion by 2027
Exclusive Report by MarketsandMarkets™
Jul 28, 2022
CHICAGO, July 28, 2022 /PRNewswire/ -- AI in Drug Discovery Market size is projected to reach USD 4.0 billion by 2027 from USD 0.6 billion in 2022, at a CAGR of 45.7% during the forecast period, according to the new recent study published by MarketsandMarkets™.
North America is expected to dominate the Artificial Intelligence in Drug Discovery Market in 2022.
North America accounted for the largest share of the global AI in drug discovery market in 2021 and also expected to grow at the highest CAGR during the forecast period. North America, which comprises the US, Canada, and Mexico, forms the largest market for AI in drug discovery. These countries have been early adopters of AI technology in drug discovery and development. Presence of key established players, well-established pharmaceutical and biotechnology industry, and high focus on R&D & substantial investment are some of the key factors responsible for the large share and high growth rate of this market
Prominent players in Artificial Intelligence in Drug Discovery Market:
- NVIDIA Corporation (US),
- Microsoft Corporation (US),
- Google (US),
- Exscientia (UK),
- Schrödinger (US),
- Atomwise, Inc. (US),
- BenevolentAI (UK),
- NuMedii (US),
- BERG LLC (US),
- Cloud Pharmaceuticals (US),
- Insilico Medicine (US),
- Cyclica (Canada),
- Deep Genomics (Canada),
- IBM (US),
- BIOAGE (US),
- Valo Health (US),
- Envisagenics (US),
- twoXAR (US),
- Owkin, Inc. (US),
- XtalPi (US),
- Verge Genomics (US),
- Biovista (US),
- Evaxion Biotech (Denmark),
- Iktos (France),
- Standigm (South Korea), and
- BenchSci (Canada).
Players adopted organic as well as inorganic growth strategies such as product upgrades, collaborations, agreements, partnerships, and acquisitions to increase their offerings, cater to the unmet needs of customers, increase their profitability, and expand their presence in the global
AI in Drug Discovery Industry.
AI in Drug Discovery Market
The growth of this Artificial Intelligence in Drug Discovery Market is driven by the growing need to control drug discovery & development costs, and growing number of cross-industry collaborations and partnerships, On the other hand, a lack of data sets in the field of drug discovery and the inadequate availability of skilled labor are some of the factors challenging the growth of the market.
What benefits AI show in drug discovery and development process?
Drug discovery is a very costly and lengthy process, owing to which there is a need for alternative tools for discovering new drugs. Drug discovery and development are commonly conducted through in vivo and in vitro methods, which are very costly and time-consuming. Furthermore, it takes ~10 years on average for a new drug to enter the market at a cost of ~USD 2.6 billion (Source: Biopharmaceutical Research and Development.org). Several players operating in this market are developing platforms that can help in the rapid discovery of drugs. For instance, Insilico Medicine (US) developed an AI-based drug discovery system, GENTRL, with which it could develop six experimental novel molecules within 21 days.
How and why AI workforce shortage is important retraining factor holding back the growth of the market?
AI is a complex system, and companies require a workforce with specific skill sets to design, manage, and implement AI systems. Personnel dealing with AI systems should be familiar and aware of technologies such as machine intelligence, deep learning, cognitive computing, image recognition and other AI technologies. Additionally, integrating AI technologies into existing systems is a challenging task that necessitates substantial data processing in order to replicate human brain behavior. Even slight errors might cause system failure and have a negative impact on the desired outcome. The absence of professional standards and certifications in AI/ML technologies is restraining the growth of AI
What are the emerging markets for Artificial Intelligence in Drug Discovery?
Emerging economies such as India, China, and countries in the Middle East are expected to offer potential growth opportunities for players operating in the AI in drug discovery market. In most of these countries, the demand for pharmaceuticals is expected to increase significantly, owing to the rising incidence of chronic and infectious diseases, increasing income levels, and improving healthcare infrastructure. As a result, these markets are very attractive for companies whose profit margins are affected by stagnation in mature markets, the patent expiration of drugs, and increasing regulatory hurdles. |
