The Artificial Intelligence (AI) in Life sciences market is estimated at US$4.327 billion for the year 2019. Life Sciences industry, amongst many industries, is witnessing a transformation owing to rising cost pressure and a greater need for productivity. Artificial Intelligence (AI) is generally employed in the life sciences sector to make meaningful relations from loosely coupled data. Growing data volume across the life sciences industry has significantly accelerated the growth of AI in life sciences market. Rising investments in medical research is paving the way for the development of advanced treatment options which depends on researchers’ ability to access key data sets faster and more efficiently. This, in turn, is leading to a growing deployment rate of artificial intelligence tools in order to turn unstructured data into actionable insights. Thus, rising adoption of artificial intelligence technology in the field of R&D across the life sciences industry is spurring the market growth significantly.
High expenditure on drug discovery is also boosting the adoption of artificial intelligence across the life sciences industry. As such, life sciences market players are using artificial intelligence technology to reduce the cost while increasing the probability of success in case of drug discovery. With high proportion of cost remain in the discovery phase, reducing the cost as well as time of drug discovery while increasing the clinical trial success rate has become imperative which is augmenting the adoption of artificial intelligence across this industry. According to the 2019 study by Tufts Center for the Study of Drug Development, the cost of developing a new prescription medicine that gains marketing approvals is estimated at $2.6 billion, up from $802 million in 2003, while the rate of success has declined by almost half to just 12%. Rising drug development cost have been majorly driven by increase in out-of-pocket costs for individual drugs along with higher failure rates for drugs tested on human subjects. According to the recent study by researchers from the London School of Economics and Political Science, biopharmaceutical companies spent an estimated $985 million on new drug development and research between 2009 and 2018, including expenditures on failed trials.
Growing prevalence of complex diseases such as cancer is another major driver of AI in life sciences market globally. This is because these diseases required effective drug combinations to make any therapeutic impactful. Since combination therapies are specific to molecular targets, it is highly required to choose the right combination for the right patient. There has been a rise in the incidence rate of rare and orphan diseases across different regions. As such, pharmaceutical companies are increasingly focus on the development of precision medicine and personalized drugs which, in turn, is propelling the market growth of AI in life sciences.
Many pharmaceutical companies are partnering or collaborating with AI solution providers in order to apply artificial intelligence in various life sciences applications. For example, in April 2019, Pfizer announced its collaboration with Boston-based Concerto HealthAI to apply Concerto’s eurekaHealth AI technology to precision oncology research for the treatment of solid tumors and hematologic malignancies.
The recent COVID-19 global pandemic outbreak has also spiked the adoption of AI in life sciences. Pharmaceutical companies across the globe are using AI technology screening the effectiveness of already existing drugs against this virus. Companies are running trial and error experiments with already-approved drugs, with established safety profiles in humans, as per the basic understanding of this novel virus. For instance, the Indo-German company, Innoplexus, is evaluating the potential of therapies such as Remdesivir and Hydroxycholroquine against COVID-19 by using patients’ data. The Korean company, Deargen, in collaboration with Dankook University, has used the AI platform and found high potency of atazanavir (a drug for HIV treatment) against the novel coronavirus.
However, major challenges that are restraining the market growth of AI in life sciences include the lack of skilled professionals across the healthcare sector to use new technologies and tools to harness complex data while understanding their patients and tailor-precise treatments. Moreover, growing concerns over data privacy is also hindering the market growth.
North America holds the significant market share
Geographically, the global AI in Life Sciences market has been segmented into North America, South America, Europe, Middle East and Africa (MEA), and the Asia Pacific (APAC). North America accounts for the noteworthy share in the global AI in life sciences market owing to the early adoption of advanced technologies coupled with the presence of major market players in the U.S. The country is witnessing a high demand for AI solutions for various life sciences applications. The presence of global pharmaceutical companies such as Pfizer and Johnson & Johnson in the country supports the demand for artificial intelligence solutions in R&D. These companies are either developing in-house AI operations or collaborating with several AI start-ups to support drug discovery and patient monitoring processes. For example, recently in January 2020, Pfizer has collaborated with AI biotech firm, Insilico Medicine, leveraging its technology to identify drug targets for a variety of diseases.
APAC will also witness a substantial CAGR during the forecast period owing to the growing investments in AI technology coupled with supportive government policies to ramp up the use of this technology across the life sciences industry in countries like China and India. The government of China is already willing and able to encourage the data sharing, providing the country’s healthcare AI companies a lucrative advantage. Shenzhen’s Beijing Genomics Institute (BGI), for example, is already the world’s largest sequencer and repository of genetic material, the information for the development of precision medicine diagnostics and treatments.
Prominent key market players in the artificial intelligence in life sciences market include IBM Corporation, Google, Microsoft Corporation, Concerto HealthAI, Atomwise, Inc., CytoReason, Accenture, IKTOS, andAiCure. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the artificial intelligence in life sciences market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.