AI in Drug Discovery and Development Market Size, Trends, Growth Forecast 2025–2033 | DataM Intelligence

The Global AI in Drug Discovery and Development Market is expected to reach at a CAGR of 18.5% during the forecast period 2025-2033.

AUSTIN, TX, UNITED STATES, June 19, 2025 /EINPresswire.com/ -- The Global AI in Drug Discovery and Development Market was valued at $6.24 billion in 2024 and is predicted to reach $34.05 billion by 2033, increasing at a CAGR of 18.5% between 2025 and 2033.

Market Overview:

The AI in Drug Discovery and Development Market is expanding rapidly because to increased demand for precision medicine and the need to shorten R&D cycles. AI algorithms provide for speedier identification of drug candidates, improved clinical trial designs, and lower failure rates. The market is being molded by ongoing investments, strategic alliances, and regulatory backing for AI-driven advancements in medical sciences.

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Market Drivers and Opportunities:

Data-Driven Precision Medicine: Increasing reliance on large-scale data analytics to develop targeted therapies is a key growth driver.

Cost and Time Efficiency: AI helps reduce the average drug development cost and timelines, offering a competitive edge.

Growing Investment in Biotech Startups: Venture capital funding and government support are boosting the adoption of AI in biotech R&D.

AI-Powered Drug Repurposing: Growing potential for identifying new uses for existing drugs, especially in rare and complex diseases.

Expansion of Cloud-Based Infrastructure: Enhances access to computational power for AI model training and deployment.

Market Segmentation:

By Technology:
Machine Learning
Natural Language Processing
Generative AI
Others.

By Application:
Target Discovery & Validation
Hit Discovery & Virtual Screening
Hit-to-Lead
Lead Optimization
Pre-Clinical Testing
Clinical Trials
Others.

By Region:
North America
Latin America
Europe
Asia Pacific
Middle East
Africa.

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Geographical Share:

North America dominates the market, with the U.S. leading in AI innovation and pharma-biotech collaboration.

Asia-Pacific is witnessing rapid growth, especially in Japan, due to strong R&D support and government initiatives.

Europe maintains a steady share, with countries like the UK and Germany focusing on regulatory compliance and AI ethics in medicine.

Key Players:

Prominent companies shaping the market include:

Alphabet (Google DeepMind)
Atomwise Inc.
BenevolentAI
BioMap
BioSymetrics
DEEP GENOMICS.
Euretos.
Exscientia
IBM
Iktos.

These players are focusing on AI platform development, drug screening, and partnering with academic institutions and biopharmaceutical giants.

Recent Developments:

United States
Atomwise announced a next-generation AI platform using quantum computing in February 2025 to accelerate target discovery for neurodegenerative illnesses.

August 2024 – Insilico Medicine announced a partnership with Pfizer to develop novel drug candidates using its AI platform for fibrosis-related disorders.

Japan
March 2025 – Astellas Pharma collaborated with Tokyo-based AI startup Elix, Inc. to enhance molecular property prediction and drug design pipelines.

September 2024 – Takeda Pharmaceuticals initiated an AI-driven platform with the University of Tokyo to repurpose drugs for rare pediatric diseases.

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Conclusion:

AI is revolutionizing the drug discovery and development landscape, transforming how treatments are researched, designed, and delivered. As global pharmaceutical companies and tech innovators converge, the market is set to experience sustained growth. With continuous advancements, regulatory encouragement, and increasing cross-border collaborations, AI is paving the way for the next era of efficient, data-driven drug innovation.

Related Reports:

Generative AI in Healthcare Market

Artificial Intelligence in Healthcare Market

Sai Kiran
DataM Intelligence 4Market Research
+1 877-441-4866
Sai.k@datamintelligence.com
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