Market Overview

The global artificial intelligence in life sciences market size was valued at USD 2.9 Billion in 2024 and is projected to reach USD 16.7 Billion by 2033. The market is expected to grow at a CAGR of 21.5% during the forecast period from 2025 to 2033. Growth is driven by rising prevalence of complex diseases, integration of AI into genomics and medical imaging, and convergence of AI with emerging technologies.

Study Assumption Years

• Base Year: 2024

• Historical Year/Period: 2019-2024

• Forecast Year/Period: 2025-2033

Artificial Intelligence in Life Sciences Market Key Takeaways

• The global market size stood at USD 2.9 Billion in 2024 with a forecast to reach USD 16.7 Billion by 2033 at a CAGR of 21.5%

• Major growth drivers include increased biomedical data generation necessitating AI tools for data management and analysis

• AI is accelerating drug discovery and development processes, reducing time and cost significantly

• Regulatory support and advancements in machine learning further enhance market expansion

• Key trends: AI integration with cloud computing and IoT, AI-driven predictive models, growing ethical AI considerations, and use of RPA in healthcare

• North America dominates the market due to advanced technology infrastructure and strong regulatory support

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Market Growth Factors

Artificial intelligence in life sciences is chiefly driven by the rapid increase in biomedical data volumes from genomic sequencing and electronic health records (EHRs). This surge demands use of sophisticated AI tools capable of effectively managing and analyzing such complex datasets. AI significantly accelerates drug discovery and development by streamlining various processes, thus reducing associated costs and development timelines. Regulatory endorsement for AI implementation in clinical contexts combined with continual improvements in machine learning algorithms further propels substantial market growth.

A key trend accelerating growth is the seamless integration of AI with cloud computing and Internet of Things (IoT) devices, enhancing data accessibility and enabling real-time analytical capabilities. Concurrently, AI-driven predictive models that forecast disease progression and patient outcomes are improving clinical decision-making efficacy. Rising collaboration between AI technology firms and pharmaceutical companies focuses intensively on drug development and patient monitoring leveraging AI capabilities.

The market is further supported by regulatory bodies favoring AI-driven healthcare solutions alongside growing concerns over patient data security, ushering ethical AI and transparent algorithm development. Additionally, the utilization of robotic process automation (RPA) powered by AI to streamline administrative healthcare tasks is driving operational efficiency. Collectively, these drivers contribute to robust expansion of the artificial intelligence in life sciences market during 2025-2033.

Market Segmentation

Breakup by Offering:

• Software: Dominates the market, encompassing AI tools designed for complex data interpretation in life sciences research including genomics, proteomics, and clinical data. Scalable and adaptable, software solutions enable customization for drug target identification, biomarker discovery, and patient stratification.

• Hardware: Included as a segment but with lesser market share compared to software.

• Services: Comprise supporting AI implementation and operational services in life sciences.

Breakup by Deployment:

• Cloud-based: Represents the largest segment offering scalability, flexibility, cost-effectiveness through pay-as-you-go pricing, and facilitating remote access and collaboration.

• On-premises: Present as an alternate deployment method.

Breakup by Application:

• Drug Discovery: Largest application segment where AI expedites various drug development stages, predicts toxicity and pharmacokinetics profiles, assists drug repurposing, and enables personalized medicine.

• Medical Diagnosis

• Biotechnology

• Clinical Trials

• Precision and Personalized Medicine

• Patient Monitoring

Regional Insights

North America holds the largest market share in the artificial intelligence in life sciences market. This dominance is attributed to its advanced technological infrastructure, substantial investments in AI research and development, a strong regulatory framework favoring AI innovations, and a robust healthcare ecosystem providing ample opportunities for AI application testing and commercialization.

Recent Developments & News

In 2024, Atomwise's AIMS initiative demonstrated success with the AtomNet AI Platform discovering novel chemical compounds for 235 out of 318 targets, highlighting its efficacy as an alternative to traditional high-throughput screening. Additionally, in 2024, IBM partnered with the Government of Canada and Quebec, investing approximately CAD 187 million to enhance semiconductor industry capabilities, focusing on R&D and chip packaging advancements at IBM's Bromont plant.

Key Players

• AiCure LLC

• Apixio Inc. (Centene Corporation)

• Atomwise Inc

• Enlitic Inc.

• International Business Machines Corporation

• Insilico Medicine Inc.

• Nuance Communications Inc.

• NuMedii Inc.

• Sensely Inc.

• Sophia Genetics SA.

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