AI in Life Science Analytics Market size is estimated at USD 1.5 billion in 2024 and is predicted to exceed USD 6.5 billion by the end of 2037, registering over 11.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of AI in life science analytics is evaluated at USD 1.7 billion.
AI-driven analytics are booming the life science sector by offering accurate and reliable data interpretation which further aids in drug discovery and clinical trials. The integration of life science tools with natural language processing and automation is gaining traction across the world.
Cloud-based solutions are anticipated to exhibit high demand throughout the forecasted period and capture a revenue share of 55.5% through 2037. Cloud’s flexibility, cost-effectiveness, and scalability are the prime pointers driving their adoption among end users. Many cloud-based solutions offer access to several advanced AI tools and platforms that accelerate development in life science. Also, several modern cloud-based solutions are enabled with advanced security features and compliance certifications, which help life science organizations protect vital data and meet regulatory requirements. For instance, in 2023, Google Cloud revealed the launch of next-gen AI-powered life sciences solutions Target and Lead Identification Suite and Multiomics Suite. These solutions are aiding scientists in identifying the function of amino acids more effectively and in discovering and interpreting genomic data for personalized treatment.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11.8% |
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Base Year Market Size (2024) |
USD 1.5 billion |
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Forecast Year Market Size (2037) |
USD 6.5 billion |
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Regional Scope |
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Component (Services, Software, Hardware)
Services segment is projected to dominate around 52.5% AI in life science analytics market share by the end of 2037 owing to rising demand for installation and maintenance of AI in life sciences. Life science organizations generate a high volume of data from various sources such as genomics, clinical trials, and electronic health records, this complex data requires advanced research and proper maintenance, leading to a high need for effective service providers.
End use (Pharmaceutical & Biotech Companies, Medical Device Manufacturers, Contract Research Organizations)
By the end of 2037, pharmaceutical & biotech companies segment is expected to hold over 50.5% AI in life science analytics market share. The advanced AI and ML algorithms are effective in analyzing the data generated and in accelerating the drug discovery process. These technologies can offer reliable information on which chemical compounds and biologics to rely on for potential drug designs. This increases their adoption in the pharma and biotech companies. Their effective approach to tailoring personalized treatments is further driving their use in pharma and biotech organizations.
Our in-depth analysis of the AI in life science analytics market includes the following segments
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Component |
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Application |
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Deployment |
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End use |
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North America Market Forecast
North America AI in life science analytics market is projected to grow at more than 11% CAGR through 2037 and is foreseen to capture 44.5% of the revenue share by 2037. The widespread adoption of digital technologies in the pharma biotech companies is positively influencing the AI in life science analytics market growth in the region. The increasing number of research and development activities in the healthcare sector are also augmenting the adoption of advanced life science tools.
The U.S. has a strong presence of several research organizations including the National Institutes of Health, which supports research for drug development using AI. The increasing collaborations between technology firms, research institutions, and healthcare providers are set to foster innovations and expand the adoption of advanced life science tools. For instance, in December 2023, the IBM Corporation and Meta Platforms, Inc., announced the launch of an AI alliance in collaboration with several technology firms, researchers, and adopters to advance open, safe, and responsible AI.
Canada is actively advancing its healthcare infrastructure and patient outcomes by adopting several digital technologies. Similar to the U.S. the presence of several research and funding organizations is further supporting the AI in life science analytics market growth in the country.
APAC Market Statistics
Asia Pacific AI in life science analytics market is expected to hold revenue share of over 28.5% by the end of 2037 owing to the increasing healthcare expenditure, adoption of advanced medical devices and infrastructure, and entrance of several multinational biopharma companies. Asia is home to 60% of the global population and the rising prevalence of chronic disorders in the region is driving the adoption of advanced digital technologies in the drug research and development process. India, China, Japan, and South Korea are some of the top marketplaces in the region.
India is a rapidly expanding healthcare market generating profitable opportunities for healthcare-related solutions as well as service providers. According to the India Brand Equity Foundation, the India healthcare sector is anticipated to reach USD 638 billion by 2025. As per the same source, the Government of India is set to invest USD 6.8 billion to enhance its healthcare infrastructure. Such initiatives are forecasted to drive the adoption of advanced life science tools in the coming years.
The key players in the AI in life science analytics market are employing several organic and inorganic strategies to boost their profit shares. The leading companies are forming strategic partnerships with pharmaceutical companies, research institutions, and other technology providers to develop advanced solutions. Industry giants are also entering emerging markets and expanding their business operations to tap into new revenue streams.
Some of the key players include:
Author Credits: Abhishek Verma
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