July 13, 2024
Artificial Intelligence (AI) In Biotechnology Market

The Artificial Intelligence (AI) in Biotechnology Market is poised to witness significant revenue growth

The Artificial Intelligence (AI) in Biotechnology Market is witnessing growth on account of the increasing use of AI in biotechnology for drug discovery, gene sequencing, and personalized medicine. AI helps researchers discover new biological insights and potential drug candidates through analysis of large and complex biomedical data sets. It also assists in accelerating the drug discovery process by reducing costs and time. Some key applications of AI in biotechnology include biomarker development, precision medicine, clinical trial monitoring, and computational biology.

The Global Artificial Intelligence (AI) in Biotechnology Market is estimated to be valued at US$ 7.11 Bn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Artificial Intelligence (AI) in Biotechnology are AstraZeneca, Bristol-Myers Squibb, Gilead Sciences, Inc., Sanofi, Abbott Laboratories, Biogen, Pfizer, Inc., Novo Nordisk A/S, Amgen, Inc., Merck KGaA, Johnson & Johnson Services, Inc., F. Hoffmann-La Roche Ltd., Novartis AG, Deep Genomics, NVIDIA Corporation, Verge Genomics, Recursion Pharmaceuticals. Major players are focusing on partnerships and adoption of AI technologies to gain a competitive advantage in drug discovery and precision medicine.

The demand for AI solutions in biotechnology is increasing due to rising applications in preclinical drug discovery and clinical trials. AI is helping researchers analyze huge amounts of biological and chemical data to identify new drug targets. It is also supporting clinical trials by improving patient recruitment, monitoring medical outcomes and reducing trial costs and duration.

The Artificial Intelligence (AI) in Biotechnology Market Demand is witnessing increased global adoption driven by growth in biotech startups, personalization of medicine and government funding for AI in healthcare. North America currently dominates the market owing to rapid technological advancements. However, Asia Pacific is expected to offer lucrative growth opportunities over the forecast period with increasing investment in healthcare AI by China, Japan and India.

Market key trends

One of the key trends in the AI in biotechnology market is the adoption of machine learning for gene sequencing and prediction of protein structures. Machine learning algorithms can analyze huge biological and genetic databases to accelerate genome sequencing and protein structure prediction. This helps researchers gain a better understanding of disease mechanisms and facilitates drug discovery. Other notable trends include increasing preference for cloud-based AI solutions and growth in venture capital funding for AI-focused biotech startups.

Porter’s Analysis

Threat of new entrants: New companies can enter the market through developing new AI technologies or acquiring smaller companies working on niche areas. However, developing deep expertise in diverse domains like biology and complex AI systems require huge investment and expertise.

Bargaining power of buyers: Biotech companies have significant bargaining power as buyers due to the urgent need of AI systems. They can negotiate on price and demand additional services.

Bargaining power of suppliers: Major AI software companies like IBM, Microsoft, Intel etc act as key suppliers. Their expertise and technology dominance gives them significant bargaining power over buyers.

Threat of new substitutes: New techniques like deep learning, computer vision, natural language processing can potentially disrupt existing solutions and substitute them.

Competitive rivalry: Fierce competition exists among large and specialized biotech/AI companies to provide comprehensive and customized solutions. Collaboration is also common to solve grand challenges.

Geographical Regions

North America dominates the market currently, accounting for over 45% share in 2024 due to presence of major biotech companies and growing AI adoption. Europe and Asia Pacific are rapidly emerging markets, driven by increasing R&D investments and availability of vast genetic/healthcare datasets to train AI models.

Fastest growing region

Asia Pacific region is poised to showcase highest growth during the forecast period, growing at over 23% CAGR till 2031. This can be attributed to rising biotechnology industry in China and growing focus of Indian government on healthcare and AI. Furthermore, increasing collaborations between global players and regional startups would support market growth in this region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

About Author - Ravina Pandya

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.  LinkedIn Profile

About Author - Ravina Pandya

Ravina Pandya,  Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.  LinkedIn Profile

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