The global artificial intelligence (AI) in drug discovery market is projected to grow from USD 1.86 billion in 2024 to USD 6.89 billion by 2029, registering a CAGR of 29.9% during the forecast period, according to a recent market research report published by MarketsandMarkets™.
The report highlights increasing adoption of AI-powered drug discovery platforms, machine learning algorithms, deep learning technologies, generative AI models, and predictive analytics solutions across pharmaceutical and biotechnology research workflows as a major factor supporting market growth.
Growing demand to reduce drug discovery timelines, lower R&D costs, improve target identification accuracy, and accelerate lead optimization processes is further driving adoption of AI in drug discovery technologies across the global pharmaceutical and biotechnology industry.
Access key market insights and highlights from the report
brochure:
Download
Report Brochure
The study evaluates the AI in drug discovery market across multiple segments, including:
- Process
- Use case
- Therapeutic area
- AI tool
- Deployment
- End user
- Region
According to the report, the hit-to-lead identification and lead generation segment accounted for the largest share of 29.2% of the AI in drug discovery market in 2023 due to increasing adoption of AI-driven virtual screening, predictive modeling, and generative chemistry technologies for early-stage drug development.
By use case, the de novo drug design segment accounted for the largest market share of 31.7% in 2023, supported by growing use of generative AI models and deep learning algorithms to create novel molecular structures with optimized drug properties.
The oncology segment accounted for the largest share of the therapeutic area segment due to increasing use of AI-based drug discovery technologies in cancer target identification, precision oncology, and biomarker analysis applications.
By AI tool, the machine learning segment is expected to register the highest growth during the forecast period due to its increasing application in molecular modeling, predictive analytics, virtual screening, and drug response prediction.
The cloud-based deployment segment accounted for the largest share of the market due to increasing demand for scalable computing infrastructure, real-time collaboration capabilities, and cost-efficient access to AI-powered drug discovery platforms.
Pharmaceutical and biotechnology companies accounted for the largest share of the end-user segment in 2023 due to growing investments in AI-enabled drug development, biologics research, precision medicine, and digital transformation initiatives.
The report identifies several major factors driving growth of the global AI in drug discovery industry:
- Rising need to reduce drug discovery and development costs
- Increasing use of machine learning and deep learning technologies
- Growing availability of multi-omics and biological datasets
- Rising adoption of AI-driven target identification and molecule screening
- Increasing demand for precision medicine and personalized therapies
- Expanding collaborations between pharmaceutical, biotechnology, and technology companies
- Growing use of generative AI in molecular design and optimization
The report also provides detailed insights into:
- Market forecasts through 2029
- Regional revenue analysis
- Competitive landscape assessment
- AI platform benchmarking
- Product portfolio analysis
- Strategic collaborations and partnerships
- Product launches and technological advancements
- Regulatory landscape assessment
- AI adoption trends in drug development
Key Players Featured in the Report
The report profiles leading companies operating in the AI in drug discovery market, including:
- NVIDIA Corporation
- Schrödinger, Inc.
- Insilico Medicine
- Predictive Oncology
- IQVIA Inc.
- Cytoreason Ltd.
- Exscientia
- BenevolentAI
- Recursion
- Evaxion Biotech
- AbCellera
The report further highlights increasing industry focus on AI-enabled molecular simulation, virtual screening, generative chemistry, protein structure prediction, multimodal biological data analysis, and automated drug development workflows to accelerate therapeutic innovation.
North America accounted for 44.8% of the global AI in drug discovery market revenue share in 2023 due to strong pharmaceutical R&D infrastructure, increasing adoption of AI technologies, and growing investments in precision medicine initiatives.
Asia Pacific is expected to register the highest CAGR during the forecast period driven by increasing biotechnology investments, expanding pharmaceutical R&D activities, strong government support for AI adoption, and growing collaborations between life sciences and technology companies across China, Japan, South Korea, and India.
As pharmaceutical companies increasingly focus on accelerating drug development timelines, improving R&D productivity, and enhancing drug discovery success rates, AI-powered drug discovery technologies are expected to remain a strategically important component of the global biopharmaceutical industry.
Connect with the research team for customized insights,
regional analysis, enterprise-specific requirements, or analyst consultation:
Request
Inquiry / Speak to Analyst
Explore Related AI and Drug Discovery Market Reports
Drug Discovery Services Market
Drug Discovery Technologies Market
Injectable Drug Delivery Market
Pharmaceutical Drug Delivery Market
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe.
Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem.
The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts.
MarketsandMarkets™ SalesPlay is an AI-driven Revenue Intelligence Co-Pilot designed to help revenue teams prioritize the right accounts, identify critical changes early, and surface opportunities ahead of demand, so pipeline builds naturally and deals close with greater consistency.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter , LinkedIn and Facebook .
Contact:
Mr. Rohan Salgarkar
MarketsandMarkets™ INC.
1615 South Congress Ave.
Suite 103, Delray Beach, FL 33445
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com
Visit Our Website: https://www.marketsandmarkets.com/
