Increasing Adoption Of AI Driving Growth In The Market Due To Advancements In Technology: Powering Innovation and Expansion in the Global AI In Biotechnology Market by 2025

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AI In Biotechnology Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The size of the ai in biotechnology market has seen a significant expansion in the past few years. The market, which stood at $4.46 billion in 2024, is anticipated to increase to $5.52 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 23.9%. The historical growth of this market has been fueled by several factors such as enhanced computational strength, the expanding role of AI in drug discovery, the burgeoning field of AI in microbiome research, the emergence of AI in the arena of regenerative medicine and the rise in the application of AI in agricultural biotechnology.

AI In Biotechnology Market Size Forecast: What's the Projected Valuation by 2029?
It is anticipated that the ai in biotechnology sector will experience an astronomical surge in the upcoming years. The market is set to reach a valuation of $13.18 billion in 2029, with a CAGR of 24.3%. Factors contributing to this development in the designated period encompass the increasing integration of AI, surging investment within AI-biotech startups, and a significant rise in the application of AI for toxicology studies. Additionally, the prevalence of AI-powered predictive models for cancer research and AI's influence in drug repurposing also contribute to this growth. Over the course of the forecasted period, major trends expected to emerge are the progress in deep learning and neural networks, the implementation of AI in the study of genomes and proteins (genomics and proteomics), enhancement in AI-powered CRISPR gene editing, the amalgamation of AI in drug monitoring (pharmacovigilance), and the evolution of AI-dependent companion diagnostics.

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What Are the Drivers Transforming the AI In Biotechnology Market?
The growth of the AI in biotechnology market is expected to be catalyzed by the escalating utilization of artificial intelligence (AI). AI is essentially the replication of human intelligence processes by machines, particularly computer networks, enabling them to handle responsibilities like learning, reasoning, and problem-solving. The escalating utilization of AI is powered by its capacity to boost efficiency, precision, and decision-making throughout different sectors, demonstrated by its ability to automate intricate data analysis with regular precision. AI serves a beneficial function in the biotechnology domain by hastening drug discovery, streamlining research operations, and facilitating superior predictive modeling for enhanced health care results. For instance, in October 2024, the Department for Science, Innovation & Technology (DSIT), a government agency based in the UK, stated that the escalating adoption of AI in 2023 manifested in a 17% increase in the quantity of AI companies (+543), a 34% boost in AI-associated revenues (+£3.6 billion), a 29% surge in employment (+14,500), and an approximately 57% rise in gross value added (GVA) (+£2.1 billion) in relation to the 2022 report. Therefore, the escalating use of AI is spurring the growth of the AI in biotechnology market.

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What Long-Term Trends Will Define the Future of the AI In Biotechnology Market?
Major companies that are active in the AI in biotechnology market are concentrating on creating technological breakthroughs, such as AI-powered antibody discovery platforms, to gain a strategic advantage. An AI-fuelled antibody discovery platform is a tech-oriented system that employs artificial intelligence to swiftly spot and enhance therapeutic antibodies, resulting in faster, more cost-efficient drug development, and superior biopharmaceutical outcomes. For example, in February 2023, AION Labs, a venture studio based in Israel, introduced DenovAI, a platform developed for the de novo discovery of therapeutic antibodies. This innovative tool merges machine learning and computational biophysics to spot high-affinity antibody candidates with elevated precision, expanded sequence diversity, and significantly shaved down development timelines. The advent of DenovAI signifies a revolutionary development in biotechnology, accelerating cost-effective drug discovery while enhancing the likelihood of clinical success for a broader range of ailments.

Which Segments in the AI In Biotechnology Market Offer the Most Profit Potential?
The ai in biotechnologymarket 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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Which Firms Dominate the AI In Biotechnology Market by Market Share and Revenue in 2025?
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.

Which Regions Offer the Highest Growth Potential 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.

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