Artificial Intelligence (AI) In Life Sciences Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Offering (Hardware, Software, Services), By Application (Drug Discovery, Clinical Trials, Medical Diagnosis, Personalized Medicine, Others), And By Geography - Forecasts From 2022 To 2027
- Published : Jul 2022
- Report Code : KSI061613572
- Pages : 119
Artificial intelligence (AI) in life sciences market is estimated to grow at a CAGR of 40.54% to reach a market size of US$64.580 billion in 2027 from US$5.963 billion in 2020.
The life sciences industry, among many industries, is witnessing a transformation owing to rising costs and a greater need for productivity. Artificial Intelligence (AI) is generally employed in the life sciences sector to make meaningful relationships from loosely coupled data. Growing data volume across the life sciences industry has significantly accelerated the growth of AI in the life sciences market. Rising investments in medical research are paving the way for the development of advanced treatment options, which depend 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 to turn unstructured data into actionable insights. Thus, the rising adoption of artificial intelligence technology in the field of R&D across the life sciences industry is spurring the market’s 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 the case of drug discovery. With a high proportion of costs remaining in the discovery phase, reducing the cost as well as the 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 the Tufts Center for the Study of Drug Development, the cost of developing a new prescription medicine that gains marketing approval is estimated at US$2.6 billion, up from US$802 million in 2003, while the rate of success has declined by almost half to just 12%. Rising drug development costs have been majorly driven by an increase in out-of-pocket costs for individual drugs along with higher failure rates for drugs tested on human subjects. According to a recent study by researchers from the London School of Economics and Political Science, biopharmaceutical companies spent an estimated US$985 million on new drug development and research between 2009 and 2018, including expenditures on failed trials.
The growing prevalence of complex diseases such as cancer is another major driver of AI in the life sciences market globally. This is because these diseases require effective drug combinations to have any therapeutic impact. Since combination therapies are specific to molecular targets, it is highly necessary 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 focusing 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 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 tumours and hematologic malignancies.
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 are also hampering the market growth.
North America holds a significant market share
Geographically, the global AI in Life Sciences market has been segmented into North America, South America, Europe, the Middle East and Africa (MEA), and 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 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 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, providing information for the development of precision medicine diagnostics and treatments.
Recent Developments and expansions
- The University of Kentucky and Atomwise, a pioneer in the use of artificial intelligence (AI) for small chemical discovery, established a research partnership in June 2020 to investigate potential COVID-19 treatments.
- In September 2020, IBM Watson Health and Pharmaspectra announced a strategic partnership, under which IBM Watson Health would remove IBM Stakeholder Manager from its portfolio and provide a path for clients to switch to LINK, a product from Pharmaspectra that offers key opinion leader (KOL) management solutions. By concentrating on fresh approaches and innovations that can assist life sciences, and clients, through the later stages of digital transformation, IBM Watson Health plans to reduce its portfolio.
The world's inaugural single-cell sequencing atlas for idiopathic pulmonary fibrosis was unveiled by NuMedii Inc. in July 2020 as part of a strategic research partnership between the Baylor College of Medicine, Yale School of Medicine, Brigham & Women's Hospital, and NuMedii. The intricacy and diversity of 35 abnormal cellular populations in IPF are demonstrated through catalogue. With such a comprehensive dataset, the business used NuMedii's AI-driven technology to further its IPF pharmaceutical discovery initiatives and create better knowledge of the mechanisms underlying pulmonary fibrosis.
COVID-19 Impact on the Artificial Intelligence (AI) in Life Sciences Market
The COVID-19 outbreak has spiked the adoption of AI in life sciences. Pharmaceutical companies across the globe are using AI technology to screen 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 the high potency of atazanavir (a drug for HIV treatment) against the novel coronavirus.
Artificial Intelligence (AI) in Life Sciences Market Scope:
|Market size value in 2020||US$5.963 billion|
|Market size value in 2027||US$64.580 billion|
|Growth Rate||CAGR of 40.54% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Offering, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||IBM Corporation, Google, Microsoft Corporation, Concerto HealthAI, Atomwise, Inc., CytoReason, Accenture, IKTOS, AiCure, NuMedii Inc., NVIDIA Corporation, A2A Pharma|
|Customization scope||Free report customization with purchase|
- By Offering
- By Application
- Drug Discovery
- Clinical Trials
- Medical Diagnosis
- Personalized Medicine
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
Q1. What will be the artificial intelligence (AI) in life sciences market size by 2027?
A1. The AI in life sciences market is estimated to reach a value of US$64.580 billion by 2027.
Q2. What is the size of the global Artificial intelligence (AI) in life sciences market?
A2. Artificial Intelligence (AI) In Life Sciences Market was valued at US$5.963 billion in 2020.
Q3. What are the growth prospects for the AI in life sciences market?
A3. The global AI in life sciences market is estimated to grow at a CAGR of 40.54% over the forecast period.
Q4. Which region holds the largest market share in the AI in life sciences market?
A4. 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.
Q5. What factors are anticipated to drive the AI in life sciences market growth?
A5. Growing data volume across the life sciences industry has significantly accelerated the AI in life sciences market growth.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters 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
5. Artificial Intelligence (AI) in Life Sciences Market Analysis, By Offering
6. Artificial Intelligence (AI) in Life Sciences Market Analysis, By Application
6.2. Drug Discovery
6.3. Clinical Trials
6.4. Medical Diagnosis
6.5. Personalized Medicine
7. Artificial Intelligence (AI) in Life Sciences Market Analysis, By Geography
7.2. North America
7.2.1. North America Artificial Intelligence (AI) in Life Sciences Market, By Offering, 2020 to 2027
7.2.2. North America Artificial Intelligence (AI) in Life Sciences Market, By Application, 2020 to 2027
7.2.3. By Country
7.3. South America
7.3.1. South America Artificial Intelligence (AI) in Life Sciences Market, By Offering, 2020 to 2027
7.3.2. South America Artificial Intelligence (AI) in Life Sciences Market, By Application, 2020 to 2027
7.3.3. By Country
7.4.1. Europe Artificial Intelligence (AI) in Life Sciences Market, By Offering, 2020 to 2027
7.4.2. Europe Artificial Intelligence (AI) in Life Sciences Market, By Application, 2020 to 2027
7.4.3. By Country
184.108.40.206. United Kingdom
7.5. Middle East and Africa
7.5.1. Middle East and Africa Artificial Intelligence (AI) in Life Sciences Market, By Offering, 2020 to 2027
7.5.2. Middle East and Africa Artificial Intelligence (AI) in Life Sciences Market, By Application, 2020 to 2027
7.5.3. By Country
220.127.116.11. Saudi Arabia
7.6. Asia Pacific
7.6.1. Asia Pacific Artificial Intelligence (AI) in Life Sciences Market, By Offering, 2020 to 2027
7.6.2. Asia Pacific Artificial Intelligence (AI) in Life Sciences Market, By Application, 2020 to 2027
7.6.3. By Country
18.104.22.168. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. IBM Corporation
9.3. Microsoft Corporation
9.4. Concerto HealthAI
9.5. Atomwise, Inc.
9.10. NuMedii Inc.
9.11. NVIDIA Corporation
9.12. A2A Pharma
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