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AI for Drug Discovery Market

AI for Drug Discovery Market

Global Industry Analysis (2018 - 2021) - Growth Trends and Market Forecast (2022 - 2029)

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Industry: Healthcare IT

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Deeper Cloud Penetration in Healthcare to Underpin Market Expansion

The growing penetration of Artificial Intelligence (AI) in healthcare sector has opened infinite opportunities for medical diagnosis, and treatment of various diseases. AI finds its application in surgeries, robotics, and maintenance of electronic health records (EHR). AI has also made its way into the drug discovery market. Many companies are funding, financing, and deploying AI through various partnerships to launch their products at a rapid pace. The global AI for drug discovery market was valued to be US$350 Mn in 2022 and is expected to reach US$1,600 Mn by 2027 at a stupendous growth rate of 41% from 2022 to 2027. Shorter time-to-market, collaborations, and raising capital through funding are some of the major factors driving AI in drug discovery market growth. Moreover, growing usage of cloud-based applications and services is expected to boost the overall performance of AI for drug discovery market. The lack of skilled labour, and availability of appropriate data sets is expected to restrain the growth of AI for drug discovery market.

Venture Capital, and Series Funding to Drive AI for Drug Discovery Market

A typical traditional drug would take 4-5 years to be considered as an eligible drug candidate however, with the application of AI this has drastically reduced to 8-10 months. Exscientia, one of the leading players in AI for drug discovery market, has its flagship suite named Centaur Chemist. This system uses computational biology to sort and compare numerous probable small molecules and helps in the selection of potential 10 to 20 molecules for synthesis, experimentation, and eventually choosing one drug candidate for the initial stage of a clinical trial.

The main strategy of these companies is to raise significant capital through funding and formulate their proprietary tools to fast-track the process of a small molecule drug candidate. In 2020, Exscientia collaborated with a Japanese company named Sumitomo Dainippon Pharma and announced a drug candidate, this helped the company to raise funds worth US$100 million via Series C Funding. This drug candidate was designed to treat (Obsessive Compulsive Disorder) OCD and oncology drug are the first initial molecules developed from this molecule named selective serotonin reuptake inhibitor. Some of the recent deals of funding include Schrodinger, a drug discovery software firm that closed US$232 in 2020 and was backed by Bill Gates, and David Shaw. In May 2020, AbCellara raised US$105 Mn through a B Series funding round to expand its antibody drug discovery platform.

Collaborations, and Partnerships to Drive AI for Drug Discovery Market

Although there have not been any significant mergers and acquisitions in this segment, the big pharma companies are presently making partial purchases to show their presence in this field. For instance, AstraZeneca collaborated with BenevolentAI in 2019. This partnership has helped the former cull out data from the various disparate sources, and processes to understand the chemical or pharmacological experiments. This has aided the company in identification of a new drug target candidate for chronic renal disease, enabling its announcement in 2021. Similarly, Insilico Medicine recently collaborated with Jansen (J&J) for designing small molecule drug candidates for several drug targets of Jansen.

North America to Dominate Global AI For Drug Discovery Market

North America will continue to dominate AI for drug discovery market by accounting for the largest market share moreover, it will continue to have the highest market growth during the forecast period. North America includes the US and Canada. The US accounts to have the largest market share by country globally. The presence of AI firms and biotech and pharma hubs have helped in easy collaborations and robust funding. The early adoption of AI technology has boosted the overall market of AI for drug discovery in the country.  This region will be followed by Europe which accounts for the second-largest market after North America. Slow adoption of AI in Asian countries is expected to have a smaller market share compared to North America and Europe and is also expected to a sluggish growth during the forecast.

Key Competitors in AI For Drug Discovery Market

Big tech companies and big pharma companies are collaborating and applying AI algorithms to pharma’s large datasets. Novartis launched an alliance with Microsoft for a similar program. These companies were determined to use the image analysis approach to develop personalized medicine. Recently Nvidia partnered with Schrodinger to increase the accuracy and speed of prediction molecules. The major players include Microsoft, Deep Genomics, BioAge Labs, Cloud Pharmaceuticals, Insilico Medicine, Verge Genomics, Atomwise, Inc, Numerate and BERG LLC, Exscientia, Google, and IBM.

Global AI in drug discovery market is segmented as below:

By Offering

  • Software
  • Services

By Technology

  • Machine Learning
    • Deep Learning
    • Supervised Learning
    • Reinforcement Learning
    • Unsupervised Learning
    • Other Machine Learning Technologies
  • Others Technologies

By Application

  • Immuno-oncology
  • Neurodegenerative Diseases
  • Cardiovascular Diseases
  • Metabolic Diseases
  • Other Applications         

By End User

  • Pharmaceutical & Biotechnology Companies
  •  Contract Research Organizations
  • Research Centres and Academic & Government Institutes

By Region

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Rest of Europe (RoE)
  • APAC
    • Japan
    • China
    • India
    • Rest of the APAC
  • Rest of the World (RoW)

Key Elements Included In The Study: Global AI for Drug Discovery Market

  • AI for Drug Discovery Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

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