Artificial Intelligence (AI) In Life Sciences Market Size, Share, Opportunities, And Trends By Offering (Hardware, Software, Services), By Application (Drug Discovery, Clinical Trials, Medical Diagnosis, Personalized Medicine, Others), And By Geography - Forecasts From 2024 To 2029

The AI in life sciences market is projected to witness a CAGR of 25.23% during the forecast period to reach US$4.352 billion by 2029, up from US$1.413 billion in 2024.

Life sciences is one of the industries witnessing a push toward more productive methods in response to escalating costs. In the life sciences industry, Artificial Intelligence (AI) typically helps to identify relationships from read-across data or generate mechanistic insight about how a tool is working. The substantial growth of AI in the life sciences market is due to the increasing volume of data generated in this sector. This data assists in producing predictable and accurate insights across various applications within the life sciences field.  

In addition, growing investments in medical research are driving the creation of new treatments that rely upon faster and more efficient means for researchers to reach essential data sets by making them easily accessible. This, in turn, is fueling an increasing adoption of AI services to analyze unstructured data and draw insights related to the specific requirements of the projects, propelling the market expansion.

What are the artificial intelligence (AI) in life sciences market growth drivers?

• Growing expenditure on drug discovery is predicted to accelerate the demand for AI in life science globally.

Additionally, the high costs of drug discovery are further supporting the use of AI in life sciences. Life sciences market players, therefore, deploy artificial intelligence technology to lower costs and increase the likelihood of success for drug discovery. Discovery consumes a significantly high proportion of the costs associated with it. Hence, decreasing cost and time in drug discovery & increasing clinical trial success rates are necessary and broadly influencing the usage of AI technology in this industry.

For instance, in October 2023, Insmed, a worldwide biopharmaceutical corporation, collaborated with Google Cloud to revolutionize the life sciences sector by employing generative AI. The association focuses on decreasing time and incrementing effectiveness in creating and delivering new medications to patients. Insmed's expertise in serious and rare illnesses will be utilized to progress the method. The collaboration will aim at four key life sciences industry angles: drug discovery, development, commercialization, and empowering capacities. Projects are anticipated to be completed within the following 18 months.

• Increasing patient outcomes through AI tools are anticipated to drive AI in the life science market growth.

The increasing burden of life-threatening diseases, including cancer, is the key factor driving the global AI in the life sciences market. These diseases are complex and need multiple active drugs for therapeutic effect. Since no single therapy proves effective in all patients, selecting an appropriate combination therapy is crucial. The increase in rare & orphan diseases across various countries also requires a focus on precision medication. Hence, the market of AI in life sciences is growing due to the rising manufacturing by pharmaceutical companies for precision medicine and personalized drugs.

Many pharmaceutical companies partner with AI solution providers to use AI in different life sciences sectors. For instance, in April 2024, PathAI collaborated with Google Cloud to quicken the adoption of AI and advanced pathology in biopharma companies and anatomic pathology labs. The organization will utilize PathAI's AISight1 Intelligent Image Management System (IMS) to coordinate PathAI and third-party algorithms into a single workflow and image analysis stage. This will give analysts and pathologists access to effective biomarker evaluation devices, expanding lab operational proficiency, and supporting illness organizing and scoring. The association focuses on bringing AISight to more biopharma companies and labs worldwide.

Ai in life sciences market restraint:

• The shortage of skilled professionals could hinder AI in the life sciences market expansion.

Life science applications of AI require deep domain knowledge, such as biology, chemistry, and medicine, and it can be difficult to find people with all these skills. AI model development and implementation require specialized technical skills like data science, machine learning, or bioinformatics. The market growth of AI in life sciences is being largely limited by the shortage of healthcare professionals capable of using new technologies and tools to understand their patients' conditions and provide customized medication or treatment for them.

What are the key geographical trends shaping the artificial intelligence (AI) in life sciences market?

• The North American region is anticipated to hold a substantial AI in life sciences market share.

North America shows significant growth in the global AI in life sciences market due to the early adoption of advanced technologies and the presence of key players in the U.S. The country is experiencing a growing surge in demand for AI solutions within life sciences end-user verticals. The existence of global pharmaceutical companies such as Pfizer and Johnson & Johnson in the country is expected to be a key driver for the proliferation of AI solutions for R&D in drug development and discovery. These companies are creating their own AI departments or partnering with multiple AI start-ups, which could assist them in drug discovery and patient monitoring.

Additionally, the market in the regions will experience upliftment due to increased funding of AI technology and supportive government policies for better adoption of this technology in the life sciences industry, such as the USA and Canada. The US government is promoting data sharing, which gives its healthcare AI companies an edge and can be utilized for the manufacturing of personalized medication and treatment.

Recent developments in the artificial intelligence (AI) in life sciences market

• November 2023- Boehringer Ingelheim and IBM collaborated to develop generative AI and establishment models for therapeutic antibody advancement. The collaboration will empower Boehringer to utilize IBM's establishment model advances to find novel candidate antibodies for proficient therapeutics, utilizing an IBM-developed AI prototype fine-tuned on extra proprietary information.
• May 2023- Google Cloud introduced its two AI-powered solutions for life sciences to quicken drug discovery and pharmaceutical medication. The Target and Lead Identification Suite assists researchers in distinguishing amino acid function and protein structure. In contrast, the Multiomics Suite quickens genomic information discovery and translation, empowering companies to plan precision medicines.
• September 2022- CytoReason expanded its partnership with Pfizer to utilize CytoReason's AI innovation for drug development. Pfizer will make a $20M equity venture, have choices to permit CytoReason's stage and disease models, and provide supplementary venture support financially, possibly worth up to $110M over the coming five years. This will upgrade Pfizer's drug development process.

Artificial Intelligence (AI) In Life Sciences Market Scope:

 

Report Metric	Details
AI in Life Sciences Market Size in 2024	US$1.413 billion
AI in Life Sciences Market Size in 2029	US$4.352 billion
Growth Rate	CAGR of 25.23%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Offering Application Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in AI in Life Sciences Market	IBM Corporation Google Microsoft Corporation Concerto HealthAI Atomwise, Inc.
Customization Scope	Free report customization with purchase

 

Market Segmentation:

The AI in Life Sciences Market is segmented and analyzed as below:

• By Offering
  • Hardware
  • Software
  • Services
• By Application
  • Drug Discovery
  • Clinical Trials
  • Medical Diagnosis
  • Personalized Medicine
  • Others
• By Geography
  • North America
    • USA
    • Canada              
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Australia
    • India
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI IN LIFE SCIENCES MARKET BY OFFERING

5.1. Introduction

5.2. Hardware

5.3. Software

5.4. Services

6. AI IN LIFE SCIENCES MARKET BY APPLICATION

6.1. Introduction

6.2. Drug Discovery

6.3. Clinical Trials

6.4. Medical Diagnosis

6.5. Personalized Medicine

6.6. Others

7. 6. AI IN LIFE SCIENCES MARKET BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Offering

7.2.2. By Application

7.2.3. By Country

7.2.3.1. USA

7.2.3.2. Canada

7.2.3.3. Mexico

7.3. South America

7.3.1. By Offering

7.3.2. By Application

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina

7.3.3.3. Others

7.4. Europe

7.4.1. By Offering

7.4.2. By Application

7.4.3. By Country

7.4.3.1. Germany

7.4.3.2. France

7.4.3.3. United Kingdom

7.4.3.4. Spain

7.4.3.5. Others

7.5. Middle East and Africa

7.5.1. By Offering

7.5.2. By Application

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. Israel 

7.5.3.3. UAE

7.5.3.4. Others

7.6. Asia Pacific

7.6.1. By Offering

7.6.2. By Application

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Japan

7.6.3.3. South Korea

7.6.3.4. Australia

7.6.3.5. India

7.6.3.6. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. IBM Corporation

9.2. Google

9.3. Microsoft Corporation

9.4. Concerto HealthAI

9.5. Atomwise, Inc.

9.6. CytoReason

9.7. Accenture

9.8. IKTOS

9.9. AiCure

9.10. NuMedii Inc

9.11. NVIDIA Corporation

9.12. A2A Pharma

IBM Corporation

Google

Microsoft Corporation

Concerto HealthAI

Atomwise, Inc.

CytoReason

Accenture

IKTOS

AiCure

NuMedii Inc

NVIDIA Corporation

A2A Pharma