Nov 143 min read

From Molecules to Money: How AI is Catalyzing Growth in the Pharmaceutical Industry

Have you imagined the future of pharmaceuticals without AI, or are we already experiencing a shift that will redefine the industry?

How long can pharmaceutical companies stay competitive without AI-driven development?

Are there any economic benefits of AI integration in the healthcare sector?

Can your pharmaceutical enterprise afford to overlook the precision and cost-efficiency AI offers in drug discovery and manufacturing?

From expediting drug discovery to automating production and assuring compliance, AI is transforming everything, including the future of pharmaceuticals. Artificial intelligence is becoming increasingly important in many industries, including pharmaceuticals.

Let’s dive into trends and insights of AI in the Pharmaceutical industry and the business value it offers to the industry.

Global Market Size of AI in Pharmaceuticals by 2030

Over the years, AI has assumed a significant role in the operations of numerous industries. The influence of AI on the pharmaceutical sector is rapidly expanding. According to Precedence Research, here are the insights on the global market value of AI in the pharma sector:

2023: The global AI in the pharmaceuticals market reached approximately $1,169.5 million, showing a substantial growth in adoption.
2024: By 2024, the market is expected to grow to $1,507.49 million, driven by demand for precision drug development.
2025: Forecasts suggest the market will reach $1,944.6 million in 2025, fueled by advancements in clinical trial efficiency.
2026: By 2026, the market size will rise to $2,510.59 million as AI integration deepens across R&D and supply chains.
2027: The AI in pharmaceuticals market is projected to hit $3,243.6 million in 2027, emphasizing predictive analytics for personalized treatments.
2028: Expected to reach $4,194 million by 2028, AI will become indispensable in drug safety monitoring and compliance.
2029: The market is anticipated to grow to $5,427 million, with AI revolutionizing supply chain management and research.
2030: In 2030, the market will expand to $7,028 million, transforming drug discovery with advanced simulations.
2031: Forecasts predict the market will reach $9,108.3 million in 2031, focusing on AI-driven patient-specific drug customization.
2032: The market will surge to $11,813.5 million, cementing AI's role in global pharmaceutical innovation.

AI in the Pharmaceutical Sector: Benefits

AI offers myriad benefits to the Pharma sector, a few of them are depicted below.

https://www.sciencedirect.com/science/article/pii/S2949866X24000327

https://www.mdpi.com/1999-4923/15/7/1916

Trends and Ways that are Transforming the Pharma Sector

AI applications in the pharmaceutical industry span from research to patient care. Here’s how AI is reshaping this sector, according to insights by Scilife5:

Accelerated Drug Discovery: AI has improved pharmaceutical and life sciences professionals by 80%.
Cost Saving in clinical trials: AI-driven efficiency could save the industry billions annually by optimizing processes and reducing trial failure rates by 70% per trial.
AI Investment in Pharmaceutical Companies: 95% of pharmaceutical companies reported investing in AI capabilities.
Clinical Trial Efficiency: AI could reduce timelines by 80%.
AI Market Growth in Genomics (2021-2028): Expected to grow at an annual rate of 52.7%.
Automated Manufacturing: Robotics and AI streamline drug production, ensuring precision and consistency due to which 65% of respondents believe AI will have the highest impact.

AI’s Role in Major Economies by 2030

AI will have a varied impact on pharmaceutical markets globally:

India: India is all set to expect a whopping $ 130 billion, according to Vision 2030, it could expect bold aspirations to 11-12% CAGR.[2]
China: The chronic and autoimmune drug market is expected to be a significant growth area in China, with an estimated market size of $20 billion by 2030, where AI could play a major role.[3]
Germany: AI will drive $0.9 Billion growth in Germany’s market by 2030, with predictive modeling for drug efficacy.[7]
South Korea: The AI pharmaceutical market will reach $13.31 billion by 2030, powered by innovations in biosimilars and generics.[6]
France: France’s market will grow by $82.87 billion, with AI enhancing regulatory processes and patient monitoring.[8]
US: The U.S. market will reach $708.9 billion by 2030, driven by AI advancements in regulatory processes and patient monitoring.[9]

The Impact of AI: How Much Have Leading Pharma Companies Gained?

Various pharma giants are integrating AI into their operations for tasks like handling administration operations and automated functions. Here’s a glimpse at how AI contributes to the revenue of leading pharma giants.