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Increasing Adoption Of AI Driving Growth In The Market Due To Advancements In Technology: A Significant Driver Propelling The AI In Biotechnology Market In 2025
AI In Biotechnology
What Is the AI In Biotechnology Market Size and Projected Growth Rate?
Recent years have seen an exponential increase in the size of the biotechnology market powered by AI. The market, which is projected to expand from $4.46 billion in 2024 to $5.56 billion in 2025, boasts a compound annual growth rate of 24.8%. The advancement during the previous years can be credited to enhancements in computational power, the expansion of AI in drug discovery, the advancement of AI's role in microbiome research, its emerging importance in regenerative medicine, and the escalating utilization of AI in agricultural biotechnology.
The market size for AI in biotechnology is projected to experience a dramatic increase in the forthcoming years, with predictions forecasting a growth to $13.40 billion by 2029 at a compound annual growth rate (CAGR) of 24.6%. The expansion within this projection period is attributable to several key factors such as increasing uptake of AI, growing investment in AI-biotechnology start-ups, broader acceptance of AI in toxicology investigations, the emergence of AI-centered predictive models for cancer research, and the development of AI-oriented drug repositioning. Noteworthy trends throughout the forecast period comprise advancements in deep learning and neural networks, assimilation of AI into genomics and proteomics, progress in AI-driven CRISPR gene editing, AI incorporation in pharmacovigilance, and the fabrication of AI-centric companion diagnostics.
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What Are the Major Segments in the AI In Biotechnology Market?
The AI in biotechnology market covered in this report is segmented -
1) By Component: Software, Hardware, Services
2) By Application: Drug Discovery And Development, Clinical Trials And Optimization, Medical Imaging, Diagnostics, Other Applications
3) By End User: Pharmaceutical Companies, Biotechnology Companies, Academic And Research Institutes, Healthcare Providers, Contract Research Organization (CRO) And Contract Development And Manufacturing Organization (CDMO), Other End Users
Subsegments:
1) By Software: AI-Powered Data Analytics Tools: Machine Learning Algorithms, Bioinformatics Software, Drug Discovery Platforms, Clinical Trial Management Software
2) By Hardware: High-Performance Computing (HPC) Systems, AI-Integrated Imaging Devices: Data Storage Solutions, Laboratory Automation Equipment, Wearable Health Monitoring Devices
3) By Services: AI Implementation And Integration Services, Consulting And Training Services, Cloud-Based AI Solutions, Maintenance And Support Services, Custom AI Model Development
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What Are The Driving AI In Biotechnology Market Evolution?
The AI in biotechnology market is expected to thrive, spurred on by the growing use of artificial intelligence. AI, which emulates human cognitive abilities through machinery, specifically computer systems, is increasingly being adopted due to its capacity to boost efficiency, enhance accuracy, and aid decision-making across various industries. Its ability to mechanize intricate data analysis, consistently and with precision, is noteworthy. In the realm of biotechnology, AI contributes positively by expediting drug discovery, refining research processes, and facilitating advanced predictive modeling for superior healthcare outcomes. As per the October 2024 report by the Department for Science, Innovation & Technology (DSIT), a Government agency based in the UK, the burgeoning AI adoption in 2023 is manifested through a 17% rise in AI firms (+543), a 34% spike in AI-related revenues (+£3.6 billion), a 29% growth in jobs (+14,500), and a 57% steep increase in gross value added (GVA) (+£2.1 billion), relative to the 2022 report. Thus, the uptick in AI usage is propelling the expansion of the AI in biotechnology market.
Which Firms Dominate The AI In Biotechnology Market Segments?
Major companies operating in the AI in biotechnology market are Google LLC, Pfizer Inc., Johnson & Johnson Services Inc., F. Hoffmann-La Roche Ltd., International Business Machines Corporation (IBM), Bayer AG, Sanofi S.A., Bristol-Myers Squibb Company, AstraZeneca Plc, Abbott Laboratories, Novartis AG, Roivant Sciences Ltd., Gilead Sciences Inc., NVIDIA Corporation, Amgen Inc., Novo Nordisk A/S, Merck KGaA, Biogen Inc., CareDx Inc., Clario Inc., BenevolentAI Limited, Recursion Pharmaceuticals Inc., Insilico Medicine Inc., Genesis Therapeutics Inc.
What Trends Are Expected to Dominate the AI In Biotechnology Market in the Next 5 Years?
Leading firms in the AI in biotechnology sector are focusing on creating advanced technologies, such as AI-enabled antibody discovery platforms, to secure a competitive advantage. An AI-enabled antibody discovery platform is a technologically-powered system that exploits artificial intelligence to swiftly spot and optimise therapeutic antibodies. This process accelerates and reduces the cost of drug development and enhances biopharmaceutical outcomes. For example, in February 2023, AION Labs, a venture studio based in Israel, introduced DenovAI, a platform specifically created for the de novo discovery of therapeutic antibodies. By combining machine learning and computational biophysics, this groundbreaking solution can recognize high-affinity antibody candidates with increased precision and a wider range of sequence diversity, significantly reducing development timeframes. DenovAI signifies a major breakthrough in biotechnology, enabling more efficient, cost-effective drug discovery and increasing the likelihood of clinical success for a broader range of diseases.
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Which Is The Largest Region In The AI In Biotechnology Market?
North America was the largest region in the AI in biotechnology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in biotechnology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the AI In Biotechnology Market?
2. What is the CAGR expected in the AI In Biotechnology Market?
3. What Are the Key Innovations Transforming the AI In Biotechnology Industry?
4. Which Region Is Leading the AI In Biotechnology Market?
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