AI in Life Science Analytics Market Size & Share, by Component (Services, Software, Hardware); Application; Deployment; End use - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 6453
  • Published Date: Sep 19, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

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.


AI in Life Science Analytics Market Overview
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AI in Life Science Analytics Sector: Growth Drivers and Challenges

Growth Drivers

  • AI in drug research and development: AI is gaining widespread adoption including in the life science sector. AI algorithms integrate with various datasets including chemical structure, biological, data, and patient records, which further aids in drug differentiation and interaction at a molecular level. This is positively influencing the overall AI in life science analytics market growth as AI is opening new avenues for drug discovery and streamlining clinical trials.

    Also, by predicting issues early and optimizing trial processes, AI helps reduce the costs associated with drug development. For instance, in September 2024, Google DeepMind launched AlphaProteo the first AI system that aids researchers in drug designing and disease understanding more effectively.
  • Public and private sector investments: The growing investments from both private and public sectors are significantly influencing the adoption of AI in life sciences. Governments across the world are allocating sustainable funding to research organizations and universities for AI-related life science projects. Government agencies such as the U.S. National Institutes of Health and funding and research programs including Europe Commission’s Horizon Europe are contributing to the increasing use of AI in biomedical research and healthcare.

Challenges

  • Data security and privacy concerns: AI and ML algorithms generate vast amounts of data and ensuring the confidentiality and security of this sensitive health data is most important. Attacks from cybercriminals can lead to a loss of vital data and high-profit opportunities for end users. Even though digital technologies are offering vast opportunities the concerns related to data security and privacy are expected to hamper the overall AI in life science analytics market growth to some extent.
  • High investment costs: The development and installation of AI solutions require high investments in technology, infrastructure, and expertise that can be prohibitive for organizations running on tight budgets. AI applications need high-performance computing infrastructure and specialized hardware for processing large volumes of datasets, these hardware solutions are quite expensive to install and maintain.

AI in Life Science Analytics Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

11.8%

Base Year Market Size (2024)

USD 1.5 billion

Forecast Year Market Size (2037)

USD 6.5 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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AI in Life Science Analytics Segmentation

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

Component

  • Services
  • Software
  • Hardware

Application

  • Sales & Marketing Support
  • Supply Chain Analytics
  • Research & Development

Deployment

  • Cloud-based
  • On-premise

End use

  • Pharmaceutical & Biotech Companies
  • Medical Device Manufacturers
  • Contract Research Organizations

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AI in Life Science Analytics Industry - Regional Scope

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.

Research Nester
AI in Life Science Analytics Market Share
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Companies Dominating the AI in Life Science Analytics Market Landscape

    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:

    • IBM Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Indegene
    • Lexalytics
    • Google, Inc.
    • AiCure LLC
    • Atomwise
    • Axtria, Inc.
    • Databricks
    • Oracle Corporation
    • Saama
    • SAS Institute, Inc.
    • Nuance communications

In the News

  • In March 2024, Axtria Inc., a prime producer of cloud software and data analytics for the life sciences revealed the opening of its new center in Hyderabad, India. The company offers advanced data analytics and AI-driven services, including generative AI.
  • In September 2023, SAS Institute, Inc. launched an AI and analytics solution ‘SAS Health’ to drive healthcare innovation and patient care. This platform is widely adopted by health providers, insurers, and public health agencies.
  • In October 2023, BioLizard revealed the AI-empowered framework ‘BioVerse’ to facilitate data-driven R&D for the global life sciences community. The framework includes 3 applications: Bio|Reflect, Pro|Biome, and Bio|Mx.

Author Credits:  Abhishek Verma


  • Report ID: 6453
  • Published Date: Sep 19, 2024
  • Report Format: PDF, PPT
AI in Life Science Analytics Market Report Scope
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