by The global Artificial Intelligence in Drug Discovery Market is estimated to be valued at US$1,016.1 Mn in 2022 and is expected to exhibit a CAGR of 5.7% over the forecast period (2023-2030), as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Artificial Intelligence in Drug Discovery Market involves the application of AI technologies such as machine learning and data analytics in drug discovery and development processes. AI-driven platforms enable pharmaceutical companies to accelerate the drug development process, improve decision-making, and reduce the time and cost associated with clinical trials. These technologies enhance the accuracy and efficiency of target identification, lead optimization, and toxicity prediction. The rising demand for personalized medicine and the need for efficient drug development processes are driving the adoption of AI in the pharmaceutical industry.
Market Key Trends:
One key trend in Artificial Intelligence in Drug Discovery Market is the use of AI in drug repurposing. AI algorithms analyze large datasets to identify new therapeutic uses for existing drugs. This approach reduces the time and cost required for drug development, as repurposing existing drugs eliminates the need for time-consuming clinical trials. Furthermore, AI can help identify drug combinations that can improve efficacy and minimize adverse effects. Drug repurposing using AI has the potential to revolutionize the pharmaceutical industry by unlocking new treatment options and extending the lifespan of existing drugs.
Please note that the key players mentioned in the data are not included in the report overview and market key trends, as per the given instructions.
Porter’s Analysis
Threat of new entrants:
The threat of new entrants in the Artificial Intelligence in Drug Discovery Market is moderate. Although the market requires significant expertise and investment in AI technology, the increasing demand for AI solutions in the pharmaceutical industry makes it an attractive opportunity for new players to enter. However, established companies already have a strong foothold and extensive knowledge, making it difficult for new entrants to compete.
Bargaining power of buyers:
The bargaining power of buyers in the Artificial Intelligence in Drug Discovery Market is moderate. The pharmaceutical industry relies heavily on AI solutions to improve drug discovery and development processes. However, buyers have several options to choose from, which reduces their dependence on a single supplier. This gives them some leverage in negotiating prices and terms with AI solution providers.
Bargaining power of suppliers:
The bargaining power of suppliers in the Artificial Intelligence in Drug Discovery Market is low. There are several AI solution providers in the market, giving pharmaceutical companies ample choices. Additionally, the advancements in AI technology and the availability of open-source AI software have lowered the barrier to entry for suppliers. This increased competition puts pressure on suppliers to offer competitive pricing and quality solutions.
Threat of new substitutes:
The threat of new substitutes in the Artificial Intelligence in Drug Discovery Market is low. AI solutions have become an integral part of the pharmaceutical industry due to their ability to improve drug discovery and development processes. There are currently no viable alternatives that can offer the same level of efficiency and accuracy as AI solutions.
Competitive rivalry:
The competitive rivalry in Artificial Intelligence in Drug Discovery Market is high. There are several key players operating in the market, including IBM Corporation, Exscientia, GNS Healthcare, Alphabet, Inc. (DEEPMIND), and Benevolent AI, among others. These companies are constantly innovating and investing in research and development to gain a competitive edge. The market is also witnessing collaborations and partnerships among key players to enhance their market presence and expand their product offerings.
Key Takeaways
The global Artificial Intelligence in Drug Discovery Market is expected to witness high growth, exhibiting a CAGR of 5.7% over the forecast period (2023-2030), due to increasing investments in research and development activities for improving drug discovery and development processes. The market size for 2022 was recorded at US$ 1,016.1 million.
In terms of regional analysis, North America is the fastest-growing and dominating region in the Artificial Intelligence in Drug Discovery Market. It is driven by the presence of major pharmaceutical companies, extensive research and development activities, and increasing government initiatives to promote the adoption of AI in the healthcare sector.
Key players operating in the Artificial Intelligence in Drug Discovery Market include IBM Corporation (IBM Watson Health), Exscientia, GNS Healthcare, Alphabet, Inc. (DEEPMIND), Benevolent AI, Biosymetrics, Euretos, Berg LLC., Atomwise, Inc., Insitro, and others. These key players are focusing on strategic collaborations, partnerships, and mergers and acquisitions to strengthen their market position and expand their product portfolios.
In conclusion, the Artificial Intelligence in Drug Discovery Market is expected to witness significant growth in the coming years. The increasing demand for AI solutions in the pharmaceutical industry, along with advancements in AI technology, will drive market growth. Key players in the market are actively investing in research and development activities to stay ahead in the competitive landscape.
