AI for Drug Discovery Market Analysis, Size, Share, and Forecast by 2031

The Ai For Drug Discovery Market size is expected to reach US$ 11.71 Billion by 2031. The market is anticipated to register a CAGR of 21.2% during 2025-2031.

The report is segmented by Drug Type (Small Molecule, Large Molecules); Technology (Deep Learning, Machine Learning, Others); Therapeutic Area (Metabolic Disease, Cardiovascular Disease, Oncology, Neurodegenerative Diseases, Others); End User (Pharmaceutical and Biotechnological Companies, Academic and Research Institutes, Others). The global analysis is further broken-down at regional level and major countries. The report offers the value in USD for the above analysis and segments

Purpose of the Report

The report AI for Drug Discovery Market by The Insight Partners aims to describe the present landscape and future growth, top driving factors, challenges, and opportunities. This will provide insights to various business stakeholders, such as:

1. Technology Providers/Manufacturers: To understand the evolving market dynamics and know the potential growth opportunities, enabling them to make informed strategic decisions.
2. Investors: To conduct a comprehensive trend analysis regarding the market growth rate, market financial projections, and opportunities that exist across the value chain.
3. Regulatory bodies: To regulate policies and police activities in the market with the aim of minimizing abuse, preserving investor trust and confidence, and upholding the integrity and stability of the market.

AI for Drug Discovery Market Segmentation Drug Type

1. Small Molecule
2. Large Molecules

Technology

1. Deep Learning
2. Machine Learning

Therapeutic Area

1. Metabolic Disease
2. Cardiovascular Disease
3. Oncology
4. Neurodegenerative Diseases

End User

1. Pharmaceutical and Biotechnological Companies
2. Academic and Research Institutes

AI for Drug Discovery Market: Strategic Insights

AI for Drug Discovery Market Growth Drivers

1. R&D in the Drug Discovery: There has been a rapid investment in the drug discovery. This factor drives the adoption of advanced technology required for efficient drug discovery. AI streamlines the drug discovery procedure. It helps researchers to use machine learning algorithms to detect molecules, among billions of options, that might have the properties they are seeking to develop new medicines.
2. Personalized Medicine and Targeted Therapies: AI's ability to analyze large datasets and identify patterns in genetic, molecular, and clinical information is enabling the development of personalized medicine. This approach allows for the creation of targeted therapies that are tailored to the genetic makeup of individual patients or specific subpopulations. As the demand for precision medicine grows, AI is playing a critical role in discovering new drug candidates that address unmet medical needs and enhance the effectiveness of treatments for complex diseases like cancer and rare genetic disorders.
3. Advancements in Computational Chemistry and Drug Design: AI-powered tools are transforming computational chemistry and drug design by simulating molecular interactions, predicting compound properties, and identifying promising drug candidates more accurately. AI can model and optimize drug molecules at a faster pace, identifying new chemical entities that might otherwise have been overlooked. The ability to rapidly test virtual drug compounds using AI-driven simulations is accelerating drug development timelines, making it a crucial factor in the growth of the AI-driven drug discovery market.

AI for Drug Discovery Market Future Trends

1. Focus on the cost-effective solution: The demand for AI tools that can rapidly and cost-effectively discover drugs will gain traction in the coming years. This factor will encourage the market players to develop cost-effective drug discovery solutions. For example, in June 2024, Australian researchers led by Monash University developed a new AI tool that improves scientists' ability to identify potential new medicines.
2. Government investment in AI for healthcare: Government investment in AI technology, specifically for the healthcare sector, will drive the market. Such investment by the government to improve the healthcare facilities and to modernize the old & traditional drug discovery methods will fuel the market growth in the coming years.

AI for Drug Discovery Market Opportunities

1. Growing Pharmaceutical Industry: The rise in demand for healthcare products, coupled with the growing population, is fueling the pharmaceutical industry. The growing pharmaceutical industry demands various computers and mathematical models for the designing of drugs, which can create opportunities for the use of AI technology in drug discovery.
   
2. Investment in Digital Health: Government support, such as AustraliaReport Scope

   AI for Drug Discovery Market Regional Insights

   The regional trends and factors influencing the AI for Drug Discovery Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses AI for Drug Discovery Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

   AI for Drug Discovery Market Report Scope

   By Technology

   • Deep Learning
   • Machine Learning

   By Therapeutic Area

   • Metabolic Disease
   • Cardiovascular Disease
   • Oncology
   • Neurodegenerative Diseases

   By End User

   • Pharmaceutical and Biotechnological Companies
   • Academic and Research Institutes

   Europe

   • UK
   • Germany
   • France
   • Russia
   • Italy
   • Rest of Europe

   Asia-Pacific

   • China
   • India
   • Japan
   • Australia
   • Rest of Asia-Pacific

   South and Central America

   • Brazil
   • Argentina
   • Rest of South and Central America

   Middle East and Africa

   • South Africa
   • Saudi Arabia
   • UAE
   • Rest of Middle East and Africa

   Report Attribute	Details
   Market size in 2024	US$ XX Billion
   Market Size by 2031	US$ 11.71 Billion
   Global CAGR (2025 - 2031)	21.2%
   Historical Data	2021-2023
   Forecast period	2025-2031
   Segments Covered	By Drug Type Small Molecule Large Molecules
   Regions and Countries Covered	North America US Canada Mexico
   Market leaders and key company profiles	IBM Watson Exscientia Benevolent AI NVIDIA Corporation Euretos BPGbio Inc. Owkin Inc Cyclica Merck KGaA

   
   

   AI for Drug Discovery Market Players Density: Understanding Its Impact on Business Dynamics

   The AI for Drug Discovery Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

   
   
   
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