AI-Enabled Drug Discovery and Clinical Trials Market Size, Share, By Offering (Software Solutions and Services), Therapeutic Area (Oncology, Cardiovascular Diseases, Nervous System Diseases, Respiratory Diseases, Infectious Diseases, and Others), Application (Data Aggregation and Analysis, Clinical Trials, Drug Design, Drug Characterization, and Biomarker Research), End-User (Biopharmaceutical Industry, Contract Research Organizations (CROs), Academic and Research Centers, and Others), and Region - Trends, Analysis, and Forecast till 2035

• The AI-enabled drug discovery and clinical trials market size is expected to reach a USD 19.8 Billion valuation by 2035.
• The market accounted for a valuation of USD 1.3 Billion in 2024.
• Target market is developing at a CAGR of 30.9% during 2025-2035.

With the goal of creating more effective therapies, AI-enabled drug discovery and clinical trials use AI technology to speed up the identification and testing of novel medications. This is done by analyzing large amounts of data to predict efficacy, toxicity, and patient response. The increasing adoption of technology in healthcare, favorable reimbursement policies, the growing need for improved diagnosis and treatment, rise of chronic diseases, and the prevalence of cancer is contributing in driving AI-enabled drug discovery and clinical trials market diversification. Moreover, AI-enabled drug discovery and clinical trials can help in reducing costs, improve efficiency, and speed up the development of new drugs, thereby, further fueling the market growth.

AI Impact on the Market:

Through the optimization of target identification, lead compound selection, preclinical testing, and clinical trial design, AI-enabled drug discovery and clinical trials use artificial intelligence to significantly speed up the process of developing new drugs. This can result in shorter development times, lower costs, and potentially more effective treatments by analyzing large amounts of data to predict drug efficacy and toxicity with greater accuracy than traditional methods. This impact is seen in improved patient selection, success rates, and streamlined data analysis across the drug development pipeline, driving AI-enabled drug discovery and clinical trials market growth.

Key Drivers of Target Market:

High Prevalence of Cancer is Propelling the Market Expansion

Since AI technologies can effectively analyze large amounts of cancer data to identify potential drug targets, personalize treatment plans, and accelerate the development of new therapies, the high prevalence of cancer worldwide significantly fuels the growth of the AI-enabled drug discovery and clinical trials market. This, in turn, leads to faster and more effective cancer drug development.

• For instance, in February 2025, according to an article published by WHO, Cancer is a leading cause of death worldwide, accounting for nearly 10 million deaths in 2020, or nearly one in six deaths. The most common cancers are breast, lung, colon and rectum and prostate cancers. Thus, AI-enabled drug discovery and clinical trials come to the rescue by using AI technology, and speeding up the testing processes and help discover novel medications.

Restraints:

Incomplete Information Provided by Datasets can Obstruct the Market Growth

Large datasets, which may contain biases or insufficient information, are crucial to AI-enabled drug discovery and clinical trials, which might result in predictions that are not correct. These biases may cause some groups to be excluded, which would limit how broadly the findings may be applied. Furthermore, it may be difficult to comprehend judgments in crucial healthcare settings due to the lack of transparency in AI models. Concerns around permission and patient data protection also come up ethically. Regulatory approval and trust may be hampered by these issues.

• Counterbalance Statements: To reduce biases, employing varied, representative datasets and strong data validation procedures should adopting. Additionally, adopting explainable AI models to increase stakeholder confidence and transparency can help in rectifying this problem.

Opportunities:

Increasing the Patient Care can Help in Opening Up Opportunities in the Upcoming Years

Growing patient care can support the growth of the market for AI-enabled drug discovery and clinical trials by supplying a large amount of real-time patient data that AI algorithms can use to spot trends, forecast treatment outcomes, improve clinical trial designs, and eventually create more individualized and potent drugs. This will improve patient outcomes and encourage more investment in AI-powered drug development.

• For instance, in January 2025, NVIDIA announced new partnerships to transform the USD 10 trillion healthcare and life sciences industry by accelerating drug discovery, enhancing genomic research and pioneering advanced healthcare services with agentic and generative AI. The main aim of this partnership was computing capabilities with the expertise of industry leaders, thereby, improving patient care and treatment worldwide.

The market is segmented into offering, application, end-user, and region.

Offering

By offering, the market is bifurcated into software solutions and services. The software solutions segment is attributed to lead in the market due to its capacity to quickly and precisely evaluate large datasets, which improves the effectiveness and success rates of drug discovery and clinical trial procedures.

Therapeutic Area

Based on therapeutic area, the market is segmented into oncology, cardiovascular diseases, nervous system diseases, respiratory diseases, infectious diseases, and others. The oncology segment is projected to govern the AI-enabled drug discovery and clinical trials market share. This is due to the high unmet medical need for cancer, complexity of cancer biology, availability of genomic and clinical data in oncology for training AI-models, and significant investment provided by public and private sectors.

• For instance, in May 2024, Lantern Pharma Inc., a leading artificial intelligence (AI) oncology drug discovery and development company, announced a strategic AI-driven collaboration with biotechnology company, Oregon Therapeutics to optimize the development of its first-in-class protein disulfide isomerase (PDI)(1) inhibitor drug candidate XCE853 in novel and targeted cancer indications. Lantern would be leveraging its proprietary RADR AI platform to uncover biomarkers and efficacy-associated signatures of XCE853 across solid tumors that can aid in precision development.

Application

Under application, the market is classified into data aggregation and analysis, clinical trials, drug design, drug characterization, and biomarker research. The drug design segment is expected to rule over the AI- enables drug discovery and clinical trials market due to the efficiency and cost-effectiveness associated with optimizing existing drug candidates and repurposing approved drugs for new therapeutic areas. These strategies can leverage existing data on safety and efficacy.

End-User

On the basis of end-user, the market is pigeonholed into biopharmaceutical industry, contract research organizations (CROS), academic and research centers, and others. The biopharmaceutical industry segment is expected to dominate the market due to significant expenditure on research and development, which are intended to simplify drug discovery and clinical trials procedures and lower the related expenses.

• For instance, in June 2023, BPT Analytics LTD, a biotechnology company took the next step in its company-wide digital transformation and rolls-out plai at scale. plai, BPT Analytics LTD’s industry-leading app developed with artificial intelligence (AI) platform company Aily Labs, delivered real-time, reactive data interactions and gave an unprecedented 360° view across all BPT Analytics LTD activities, thereby also fueling the drug discovery and clinical trials in the company.

Region

Geographically, the market is analyzed North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This is the region with the largest AI-enabled drug discovery and clinical trials market share by 69.52%. This is due to this region’s increased investments on research and development, its robust healthcare infrastructure, widespread implementation of AI-technology in medical development, and the presence of crucial AI technology companies such as Microsoft.

• For instance, in September 2024, Lindus Health Limited and Genesis Therapeutics, Inc. announced that the companies had entered into a strategic collaboration to discover and develop novel, small molecule therapies across multiple targets. Genesis was pioneering generative and predictive artificial intelligence (AI) technologies to help create therapeutics for challenging targets. The companies collaborated closely on preclinical research activities using AI and Gilead had exclusive rights for potential clinical development and clinical trials and commercialization of collaboration compounds.

Asia Pacific: This is the region, which has the fastest growing market during the forecast period. The region’s growth is driven by the increasing investment in AI and biotechnology, supportive regulatory environments, developing AI technologies to accelerate drug discovery and clinical trials to address unmet medical needs, and collaborations research initiatives. 

• For instance, in June 2023, Insilico Medicine, a generative artificial intelligence (AI)-driven clinical-stage biotechnology company, announced that it had completed the first dose in patients in the Phase II clinical trial of INS018_055, that marked the world's first anti-fibrotic small molecule inhibitor discovered and designed using generative AI, initiating Phase II clinical trials for further evaluation.

AI-Enabled Drug Discovery and Clinical Trials Market Report Scope:

Segmentation:

By Offering:

• Software Solutions
  • Data Aggregation and Analysis
  • Clinical Trials
  • Drug Design
  • Drug Characterization
  • Biomarker Research
  • Others
• Services
  • Clinical Services
  • Commercial Services
  • Patient Recruitment and Engagement Services

By Therapeutic Area:

• Oncology
• Cardiovascular Diseases
• Nervous System Diseases
• Respiratory Disorder
• Infectious Diseases
• Others

By Application:

• Data Aggregation and Analysis
• Clinical Trials
• Drug Design
• Drug Characterization
• Biomarker Research
• Others

By End User:

• Biopharmaceutical Industry
• Contract Research Organizations (CROs)
• Academic Institutes and Research Centers
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of the Middle East & Africa

The companies operating in the AI-enabled drug discovery market are Accutar Biotechnology Inc., Atomwise Inc., Recursion, Insilico Medicine, Pfizer Inc., and others. The key players are adopting strategies, such as new product launches, collaborations of biopharmaceutical companies with AI companies, advancements in computing power, and large scale data generation in the life sciences to enhance their market position.  

List of Key Players in the Market:

• Accutar Biotechnology Inc.
• Atomwise Inc.
• Recursion
• Insilico Medicine
• Pfizer Inc.
• Ardigen
• AiCure
• Biovista
• BPT Analytics LTD
• BenevolentAI
• Lindus Health Limited
• IQVIA
• ReviveMed Inc.
• Saama

• In July 2023, Exscientia plc, announced that it would be expanding its work with Amazon Web Services (AWS) to use the cloud provider’s artificial intelligence (AI) and machine learning (ML) services to power its platform for end-to-end drug discovery and automation that aim to better target specific diseases and patients, with the goal of accelerating early drug development at a lower cost.
• In January 2024, Accenture announced that it had made a strategic investment, through Accenture Ventures, in QuantHealth, an AI-powered clinical trial design company that simulated clinical trials in the cloud, and predicted trial outcomes with significant accuracy allowing pharmaceutical and biotech companies to more quickly and cost-effectively develop treatments for patients.

Analyst View:

The AI-enabled drug discovery and clinical trials market diversification is being driven by a number of factors, including the rising demand for better diagnosis and treatment, the development of chronic illnesses, the incidence of cancer, advantageous reimbursement policies, and the expanding usage of technology in healthcare. Additionally, AI-enabled clinical trials and drug discovery can speed up the creation of new medications, lower prices, and increase efficiency, all of which will contribute to the market's continued expansion.

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