The global next-generation AI in life sciences market is undergoing rapid growth, with revenues expected to soar into the hundreds of millions by the end of the 2025–2034 forecast period. This expansion is fueled by evolving industry trends and increasing demand across critical life sciences sectors.
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Development of precision medicine and targeted therapies relies on genetic profiles, clinical measurements, with a growing drug discovery process by detecting targets, molecular design, and drug-target interaction predictions are assisting the market growth.
Along with this, advancements in diagnostic tools, enhanced R&D investments, with robust, encouraging regulatory policies are fueling the overall market expansion. As well as advances in ML, deep learning, and big data analytics are supporting for development of AI models with their application in life sciences.
The Next-Generation AI in Life Sciences Market: Highlights
• North America dominated the next-generation AI in life sciences market with a revenue of 50% in 2024.
• Asia Pacific is expected to grow at the fastest CAHR of 27-30% during the forecast period.
• By application, the drug discovery & design segment captured the market share of 34% in 2024.
• By application, the clinical trials & patient simulation segment is expected to be the fastest-growing with a CAGR of 30% during the forecast period.
• By AI technology type, the foundation models & generative AI segment led the next-generation AI in life sciences market with a revenue of 42% in 2024 and is expected to grow at the fastest CAGR of 37% during the forecast period.
• By deployment type, the cloud-based platforms segment captured the dominant market share of 58% in 2024.
• By deployment type, the hybrid architectures segment is expected to achieve the highest CAGR of 25% during the forecast period.
• By end-user, the biopharmaceutical companies segment led the market with a revenue share of 54% in 2024.
• By end-user, the AI startups & tech providers segment is expected to grow at the fastest CAGR of 28% during the forecast period.
• By therapeutic area, the oncology segment captured the largest revenue share of 36% in 2024.
• By therapeutic area, the infectious diseases segment is expected to be the fastest-growing with a CAGR of 26% during the forecast period.
• By data source, the genomic & omics data segment dominated the next-generation AI in life sciences market by capturing 50% of the revenue share in 2024.
• By data source, the imaging & pathology data segment is expected to grow at the highest CAGR of 29% during the forecast period.
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Market Overview & Potential:
Primarily, the market is fueled by GenAI, which is transforming drug discovery, clinical trials, and healthcare delivery by leveraging advanced algorithms and huge datasets. Nowadays, this GenAI assists in boosting drug development, enhancing clinical trial effectiveness, and developing tailored medicine approaches. Besides this, the next-generation AI in life sciences market is being widely applied in medical imaging by optimizing the precision and the pace of medical image analysis, especially in domains such as radiology and pathology, resulting in prior and highly accurate diagnoses.
Broad Application in Manufacturing and Public Health: Major Potential
In 2025, in the case of manufacturing and supply chain, AI algorithms support the improvements in production processes, enhancing efficiency, reducing waste, and minimizing expenses. Also, this estimates probable equipment failures, allowing proactive maintenance and minimizing downtime. Moreover, the next-generation AI in life sciences market has major importance in public health, as AI-driven systems help in the quick detection and identification of pathogens, with disease surveillance. Also, it is widely employed in synthetic biology for the development of novel biologics and biosimilars.
Recent Updates in the Imaging Pathology in Life Science Sector:
|
Company/Organization |
Recent Updates |
|
Radiology Partners (July 2025) |
Introduced the enterprise imaging platform, MosaicOS allows faster cloud-based deployment and offers intuitive AI-driven technology |
|
PathAI (July 2025) |
Launched Precision Pathology Network (PPN), a first-of-its-kind network of digital anatomic pathology laboratories powered by PathAI’s AISight®1 Image Management System (IMS) |
|
FUJIFILM Healthcare Europe (June 2025) |
Partnered with IBEX to streamline workflows and enhance diagnostic capabilities in Digital Pathology |
|
Nvidia (January 2025) |
Collaborated with the Mayo Clinic on AI-driven digital pathology |
|
IKS Health (October 2024) |
Announced a partnership with Radiology Partners to accelerate radiology services with a care enablement platform |
|
Startup Harrison.ai (September 2024) |
Launched a radiology-specific language model as a building block for healthcare AI |
|
Koelis, SAS (September 2024) |
Partnership and successful initial experience using the DeepHealth Prostate software to simplify the prostate MRI reading process and seamless fusion of MRI with Koelis Trinity 3D Ultrasound Platform for prostate fusion biopsy and treatment. |
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Technical and Computational Barriers: Major Challenge
Limitations in the market are the growing need for computational resources and specialized expertise for development and maintenance, in smaller research institutions or companies possessing restricted resources. Along with this, need for strong data security solutions and adherence to privacy regulation will help in increasing breaches and unauthenticated access.
The Next-Generation AI in Life Sciences Market: Regional Analysis
In 2024, North America dominated the market by 50% share due to combined factors, like progressing drug discovery processes, optimizing precision medicine, and enhancing clinical trials and production approaches. Furthermore, North America is a major region in this market, possessing major investments and faster adoption of AI techniques in various areas of life science. Besides this, many life science industries are widely focusing on efficient data governance considerations to confirm the ethical and secure application of AI-driven insights, to highlight issues about data privacy and security.
However, the next-generation AI in life sciences market in the US is driven by the adoption of AI to automate the generation and review of regulatory documents, simplifying the submission process and enhancing regulatory intelligence. The US is increasingly focused on the AI-powered innovations in medical device design and development, along with to boost the speed, precision, and effectiveness of clinical diagnostics and medical imaging.
For this market,
• In June 2025, Caris Life Sciences, a global patient-centric, next-generation AI TechBio company and precision medicine pioneer, launched the map for its initial public offering of its common stock.
On the other hand, Health Canada is broadly putting efforts into digital health by using digital technologies (DTs) in clinical and community care to accelerate health outcomes and offer person-oriented care that is associated, simple, effective, and cost-effective.
The Asia Pacific is Estimated to be the Fastest-Growing Region in the Upcoming years
In the predicted timeframe, Asia Pacific will show rapid expansion, coupled with the quick digitalization of different areas, like healthcare, finance, and telecommunications is creating a large volume of data that AI can assess to expand innovation and efficiency. Besides this, the accelerating 5G networks are providing the location of AI solutions, especially in computer vision and real-time data analysis is driving the ASAP market.
Although in China rising burden of chronic conditions, such as cancer and heart issues, with diverse infectious diseases, as well as highly step towards the analysis of massive datasets, such as genetic, clinical, and lifestyle information, to evolve customized treatments and therapies. However, major developments in drug discovery, major investments in AI-driven diagnostics, medical imaging, and enhancing clinical trials in China are fueling the market growth.
For instance,
• In April 2025, Beijing launched a mega science plan, focused on advancements in life sciences research and significant diseases by employing AI and other digital technologies.
Whereas India is an emerging contributor to the ASAP’s market, it is propelled by enormous patient populations and optimizing digital health considerations. As well as in India, increasing collaborations between academic institutions, biotech firms, and healthcare providers are boosting innovations and overall market growth.
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The Next-Generation AI in Life Sciences Market: Segmentation Analysis
By application analysis
The drug discovery & design segment led the market, mainly due to factors like rising demand for robust drug development, breakthroughs in AI and machine learning, enhancements in accessibility of biomedical data, and increasing investments in this segment. Moreover, the segment is fueled by broad incorporation of AI to boost the detection of novel drug molecules, improve drug characteristics, and tailored treatments.
During 2025-2034, the clinical trials & patient simulation segment will expand fastest, with rising usage of AI in data collection, analysis, and patient matching, resulting in rapid and more precise clinical trial processes. Additionally, the segment will allow the growing analysis of electronic health records to accelerate the effective patient selection process. Moreover, AI can modulate trial results based on real-time data, supporting researchers to extract protocols and estimate possible risks.
By AI technology type analysis
In 2024, the foundation models & generative AI segment dominated the next-generation AI in life sciences market and is anticipated to register the fastest growth during the projected period. Because of involved many factors, including the ongoing progress of AI tools and ML technologies are allowing advanced foundation models and GenAI uses. In addition, accessibility to massive and varied datasets in life sciences, coupled with enhanced computational power, which facilitates the training for complex foundation models.
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By deployment type analysis
The cloud-based platforms segment was dominant in the market in 2024. Due to its many advantages, including scalability, flexibility, and affordable. These platforms leverage AI-powered tools and services to simplify numerous life science processes, like drug discovery, clinical trials, and data analysis. Also, it offers strong security solutions and data protection pathways, which help in confirming the confidentiality and integrity of sensitive life science data.
The hybrid architectures segment is predicted to experience rapid growth, with the benefits of a combined on-premises infrastructure with cloud resources to provide the flexibility and measurability required to manage demanding workloads. In drug discovery, this segment enables researchers to achieve high-performance computing resources for complex simulations and modeling, while using cloud resources for data storage and collaboration.
By end-user analysis
In 2024, the biopharmaceutical companies segment led the next-generation AI in life sciences market. Mainly emerging factors in this segment’s growth are the growing adoption of AI in drug discovery, boosting clinical trials, and optimizing operational efficiency. Besides this, rising incidences of chronic diseases, increasing demand for precision medicine, and advancements in biotechnology.
On the other hand, the AI startups & tech providers segment will grow at the fastest CAGR, due to the aim to evolve AI algorithms, platforms, and tools for numerous life science applications. Particularly in drug discovery, genomics, and medical imaging this segment is showing major expansion. This segment provides AI execution, integration, and consulting services to life science firms, supporting them to adopt and leverage AI techniques.
By therapeutic area analysis
The oncology segment held the largest revenue share of the market in 2024. The segment is fueled by the growing prevalence of cancer, advancements in AI technologies, and the need for more efficacious and personalized cancer treatments. Major growth factors include the ability of AI to accelerate diagnostics, a rise in drug discovery, and improved treatment strategies and patient care. With this, significant investment from pharmaceutical companies, research institutions, and venture capitalists in this sector is driving the segment's growth.
And the infectious diseases segment will expand rapidly in the next-generation AI in life sciences market. Widespread use of AI in diagnostic tools, like pneumonia detection in chest X-rays, and natural language processing for analyzing medical literature and patient records, is enhancing the speed and accuracy of disease detection, especially in early stages. Also, in case of epidemiological data, climate patterns, and social media trends, to assess the potential spread of infectious diseases and provide timely public health responses.
By data source analysis
In 2024, the genomic & omics data segment registered dominance in the next-generation AI in life sciences market. Primarily, the emergence of advances in high-throughput sequencing, AI-powered bioinformatics, with accelerating volume of genomic data, and the need for effective data analysis tools, and the potential for AI to boost drug discovery and development.
By data source, the imaging & pathology data segment is predicted to grow rapidly, as these AI algorithms support the analysis of medical images, including X-rays, MRIs, CT scans, and histology, cytology slides with greater pace and precision, detecting subtle profiles and anomalies. Also, this segment extracts significant data from pathology images, like tissue architecture, cellular characteristics, and biomarkers.
Next-Generation AI in Life Sciences Market Companies:
• NVIDIA (Clara, BioNeMo)
• Google DeepMind (AlphaFold, MedPaLM)
• Insilico Medicine
• Recursion Pharmaceuticals
• Exscientia
• BenevolentAI
• Owkin
• Atomwise
• PathAI
• Valo Health
• Tempus AI
• Aria Pharmaceuticals
• BioAge Labs
• IBM Watson Health
• Microsoft Azure AI for Health
• Genesis Therapeutics
• XtalPi
• Enveda Biosciences
• AbSci
• nference
What is Going Around the Next-Generation AI in Life Sciences Market?
• In July 2025, Veeda Lifesciences, a leading contract research organization (CRO), invested in Mango Sciences, a Boston-based healthcare AI and data company, to bring novel AI creations in clinical trial services.
• In June 2025, IQVIA, a global provider of clinical research services, commercial insights, and healthcare intelligence to the life sciences and healthcare industries, launched new artificial intelligence (AI) agents for the life science and healthcare sector.
• In March 2025, Switzerland-based Tenthpin Management Consultants, a global consulting leader in technology advisory for life sciences companies, unveiled Tenthpin AI Labs (TAIL) in Hyderabad, developing a Global Centre of Excellence dedicated to AI-powered transformation in Life Sciences.
Next-Generation AI in Life Sciences Market Segmentation
By Application
• Drug Discovery & Design
• Generative Chemistry & Molecule Design
De Novo Drug Design
• Clinical Trials & Development
Synthetic Patient Simulation
AI-Powered Trial Design & Patient Matching
• Diagnostics & Imaging
Histopathology AI
AI in Radiogenomics
• Omics Data Interpretation
Genomics, Transcriptomics, Proteomics
• Digital Pathology
• Pharmacovigilance
AE Prediction & Signal Detection
By AI Technology Type
• Foundation Models & Generative AI
Generative Pretrained Transformers (GPT-style models)
Large Multimodal Models (LMMs)
• Reinforcement Learning
• Graph Neural Networks
• Self-Supervised Learning
• Federated & Privacy-Preserving AI
• Causal AI
By Deployment Type
• Cloud-Based Platforms
• Hybrid AI Architectures
• On-Premise AI Engines
By End User
• Biopharmaceutical Companies
• AI Startups & Tech Providers
• Academic Institutions
• CROs & CDMOs
• Diagnostic Labs
• Regulatory & HTA Bodies
By Therapeutic Area
• Oncology
• Infectious Diseases
• Rare Diseases
• Cardiovascular Diseases
• Neurological Disorders
• Immunology
• Metabolic Disorders
By Data Source
• Genomic & Omics Data
• Imaging & Pathology Data
• Clinical Trial Data
• Real-World Evidence (RWE)
• EHR & Claims Data
• Wearables & Patient-Reported Outcomes (PROs)
By Region
• North America
• U.S.
• Canada
• Asia Pacific
• China
• Japan
• India
• South Korea
• Thailand
• Europe
• Germany
• UK
• France
• Italy
• Spain
• Sweden
• Denmark
• Norway
• Latin America
• Brazil
• Mexico
• Argentina
• Middle East and Africa (MEA)
• South Africa
• UAE
• Saudi Arabia
• Kuwait
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Global Life Sciences Market Overview (2024–2034)
Life Science & Analytical
Instruments Market
The life
science & analytical instruments market was valued at USD
56.56 billion in 2024, grew to USD 59.98 billion in 2025, and is
projected to reach USD 101.31 billion by 2034, expanding at a CAGR of
6.04% during the forecast period.
Life Sciences Enterprise Storage Market
The life
sciences enterprise storage market size stood at USD 2.71
billion in 2024, increased to USD 2.86 billion in 2025, and is
expected to reach USD 4.67 billion by 2034, growing at a CAGR of
5.65%.
Life Science Chemical Biotech
Instrumentation Market
The life
science chemical biotech instrumentation market was valued at USD
34.23 billion in 2024, rose to USD 35.62 billion in 2025, and is forecasted
to reach USD 50.85 billion by 2034, expanding at a CAGR of 4.05%.
Life Sciences BPO Market
The life
sciences BPO market size was USD 258 billion in 2024, grew
to USD 293.2 billion in 2025, and is projected to hit USD 895.54
billion by 2034, registering a strong CAGR of 13.64%.
Life Science Reagents Market
The life
science reagents market was estimated at USD 62.37 billion in
2024, increased to USD 65.91 billion in 2025, and is projected to
reach USD 108.74 billion by 2034, with a CAGR of 5.74%.
Genomics Life Science Analytics Market
The genomics
life science analytics market is witnessing robust growth and is
poised to generate significant revenue potentially reaching into the hundreds
of millions—between 2025 and 2034.
Generative AI in Life Sciences Market
The generative
AI in life sciences market was valued at USD 250 million in 2024,
increased to USD 302.05 million in 2025, and is expected to reach USD
1,657.02 million by 2034, growing at a CAGR of 20.82%.
Natural Language Processing (NLP) in
Healthcare and Life Sciences Market
The NLP
in healthcare and life sciences market stood at USD 6.66 billion
in 2024, grew to USD 8.97 billion in 2025, and is forecasted to
reach USD 132.34 billion by 2034, expanding rapidly at a CAGR of
34.74%.
Life Science Tools Market
The life
science tools market is projected to grow from USD 156.52
billion in 2025 to USD 470.20 billion by 2034, at a strong CAGR
of 13% over the forecast period.
Life Science Analytics Market
The life
science analytics market was valued at USD 10.47 billion in 2024,
rose to USD 11.27 billion in 2025, and is anticipated to reach USD
21.85 billion by 2034, expanding at a CAGR of 7.63%.
