Global Generative AI in Life Sciences Market by Technology (Novel molecule Generation, Protein Sequence Design, and Other ), By Application (Drug Discovery, Biotechnology, and other ), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Global Generative AI in Life Sciences Market size is expected to be worth around USD 947 million by 2032 from USD 155.7 million in 2022, growing at a CAGR of 20.35 %, during the forecast period from 2023 to 2032.

The ability to generate different types of content, such as text, images, voice, and synthetic data, is a unique feature of generative AI. Due to the technique, this technology is receiving huge attention. This technology is very beneficial as it offers simplicity for creating high-quality text, graphics, etc., in a few seconds.

Today, generative AI models can manipulate biology and predict protein structure and properties. In the life sciences, generative AI is useful for developing innovative protein-based small-molecule therapeutics. Broadly, it is used in drug discovery, healthcare privacy, personalized medicine, medical imaging, prosthetic design, population health management, and other applications.

Generative AI applications are expanding in various functional areas within biopharmaceutical companies, and recent technological advancements have further expanded their boundaries. Growing demand for advanced solutions has led to an increase in the adoption of generative AI in the life sciences sector. Also, major organizations’ high investment in the healthcare sector will likely aid the market’s expansion throughout the projected period.

Driving Factors

Rising prevalence of chronic diseases

Chronic diseases are becoming a serious concern all over the world. According to National Health Council (NHC), around 133 million Americans, more than 40% of the country’s population, are affected due to various chronic diseases. By 2020, that number is expected to rise to around 157 million, of which 81 million have multiple ailments. Also, about 8% of children aged 5 to 17 have at least one chronic illness or disability that limits their activities. More and more people are suffering from more than one chronic disease.

Moreover, nearly one-third of the population suffers due to multiple chronic diseases. In 2009, 7 out of 10 deaths in the United States were due to chronic diseases. Major chronic diseases like cardiovascular, neurological diseases, cancer, etc., account for more than half of all deaths yearly. Thus, an increase in the prevalence of chronic diseases is likely to drive the demand for advanced solutions like generative AI, which can be beneficial for treating these diseases, as the technology is useful in drug discovery, clinical trials, medical diagnostic applications, etc.

Digital Transformation of the Life Sciences Sector

Leading pharmaceutical companies worldwide are emphasizing digital transformation as an innovative way of resolving their critical issues due to rising costs and stringent regulations. This has led to increased investment in advanced technologies by pharma and biotech companies. Also, due to the implementation of various technological initiatives, generative AI and machine learning are gaining momentum in the pharmaceutical industry.

To achieve better results and enhance productivity, various life science organizations have started to utilize these technologies due to implementing these strategic initiatives. It will likely positively impact the adoption of generative AI,  a key factor expected to boost the market’s growth over the forecast period.

Role of Generative AI in Personalized Healthcare

Over the years, various thorough and elaborative studies have been initiated globally by several life science organizations in studying how digital technologies like predictive analytics and machine learning might play a key role in developing a suitable treatment for a patient’s unique medical history. An optimized treatment process can be developed through these research studies.

Nowadays, medical professionals can use this technology to identify what a patient is suffering from based on their genetics and symptoms, through which they can make more informed decisions. Thus, personalized healthcare can be enhanced through the use of generative AI.

Restraining Factors

Data privacy regulations

The use of generative AI by pharmaceutical marketers should comply with privacy laws such as GDPR in the EU and HIPAA in the US. The HIPAA Privacy Rule, enacted by the United States Department of Health and Human Services (HHS), sets national standards for protecting certain health information. In addition, it establishes a set of national security standards for protecting certain health information stored or transmitted in electronic form.

The Security Rules included under HIPAA protect the Privacy Rules by addressing the technical and non-technical safeguards organizations must implement to protect personal electronic PHI (e-PHI) data. HHS enforces privacy and security regulations with voluntary compliance activities and civil penalties. Thus, stringent data privacy regulations may limit the adoption of the technology, thereby restraining the growth of Generative AI in the Life Sciences market.

Technical issues

With respect to security, some individuals use generative AI for unethical purposes like deceiving others. This is a serious concern in the healthcare sector, as life sciences research involves sensitive medical information and patients’ private data. Additionally, there are some unexpected results due to an unrealistic use of the technology. Managing the behavior of some generative AI models, such as GANs, can be tedious.

They exhibit erratic behavior and produce unexpected results. Generative AI algorithms require large amounts of training data to complete their tasks. However, GANs cannot generate completely original images and messages. They’re just mixing up what they already know in different ways. Therefore, these technical issues are expected to negatively affect the growth of the market during the estimated time period.

Lack of skilled professionals in emerging nations

Despite high economic growth, many developing nations in the Asia Pacific and Latin America are experiencing severe shortages of essential workers and skilled professionals. According to the Talent Shortage Survey from global staffing firm ManpowerGroup, 45% of employers in the Asia-Pacific region could not fill vacancies due to talent shortages. In India, that number rose to 61% of employers, while 68% were having trouble recruiting the right workforce in Brazil. Developing countries also lack sufficient resources to acquire the tools to build modern skills. There are also difficult numbers: In the case of the two fastest-growing emerging economies in the world, Turkey and Brazil, nearly 10% of all firms say an uneducated workforce is the main obstacle to growth. Thus, a reasonable shortage of essential workers and skilled professionals is projected to impact negatively.

COVID-19 Impact Analysis

The COVID-19 pandemic has disrupted many operations in the life sciences sector like manufacturing and marketing of medicines and medical devices etc. But, regardless of several challenges created by the pandemic, the life sciences and pharmaceutical sectors have grown to a significant extent during this time period.

The pandemic has re-emphasized the importance of efficient therapeutics in treating several chronic diseases and comorbidities, which were a major cause of COVID-19 fatalities worldwide. It has shifted the attention of several healthcare researchers in developing advanced therapeutics, leading to a rise in demand for technologically advanced solutions. Also, due to high investment by governments and private institutions in the research and development of therapeutics for the treatment of COVID-19, the drug development and research sector has progressed tremendously.

Moreover, during the pandemic, life science research related to the development of new drugs has gained attention to a high extent, leading to the rise in the adoption of generative AI in life sciences. It is anticipated to impact the market growth positively. Moreover, technological advancements and the implementation of key strategic initiatives will likely provide significant growth opportunities for key market players during the estimated time period.

By Technology Analysis

The Novel molecule generation segment is expected to lead the market

Generative AI models can be used to design new molecules similar to drugs. These molecules are designed with crucial properties such as high binding affinity. It is important in targeting proteins and maintaining low toxicity. This has led to a rising demand for advanced technologies like generative AI.

Also, the protein sequence design segment will likely grow rapidly during the forecast period. Using generative AI, new protein sequences are designed with specific functions or characteristics, which helps develop new drugs for treating rare genetic diseases.

By Application Analysis

The Drug Discovery application is expected to witness the highest growth.

The increasing prevalence of various chronic and genetic diseases is a major driver of growth in pharmaceutical research and development investments. Leading pharmaceutical and biotechnology companies constantly focus on drug discovery to develop new and innovative medicines to treat various chronic diseases such as cancer, diabetes, cardiovascular disease, musculoskeletal disorders, etc. It is a key factor driving the demand for generative AI for the drug discovery process.

The clinical trials segment is projected to grow rapidly during the estimated time period. Increased drug discovery activity has led to more clinical trials, generating vast data. The generation of such large amounts of data and the increasing availability of this data in the public domain have accelerated the adoption of generative AI in various academic as well as research institutions. It is expected to drive the segment growth during the projected time period.

Key Market Segments

By Technology

• Novel molecule generation
• Protein sequence design
• Synthetic gene design
• Single-cell RNA sequencing
• Data augmentation for model training
• Other technologies

By Application

• Drug Discovery
• Biotechnology
• Medical Diagnosis
• Clinical Trials
• Precision and Personalized Medicine
• Patient Monitoring

Opportunity

Healthcare investments by developing nations are likely to present lucrative growth opportunities for the market.

Over the years, there has been a high development in the life sciences and healthcare sector among developing countries, particularly in the Asia Pacific and Latin America. Many countries in these regions focus on investing to a great extent in the healthcare sector. According to the latest issue of China Briefing Magazine, overall healthcare spending represented around 16% of China’s total overall spending for all sectors during the first half of 2020.

The life sciences and healthcare sector generated a revenue of approximately RMB 10 trillion in 2021. Also, the Chinese government has prioritized developing the healthcare sector due to the rising geriatric population and increased demand for quality health services. It is creating lucrative opportunities for major players operating in the market.

Trends

Investments in generative AI

According to estimates provided by CB Insights, in 2022, venture capitalists and investors in the United States are likely to invest $2.6 billion in 110 generative AI-focused start-ups. It is a major step towards reducing drug discovery costs and saving time. Thus, rising investments in generative AI by major investors is a promising trend likely to drive the demand for the technology in the upcoming years.

Regional Analysis

The North America region is expected to hold the highest market share of 40% during the forecast period. This growth is due to the growing demand for generative AI technology in almost all life science applications. Additionally, the United States benefits from the presence of several major pharmaceutical and biotechnology companies. Large-scale investments by US-based pharmaceutical companies in drug discovery and clinical trials have created a huge demand for AI in the life sciences.

The United States is largely involved in developing new drugs and is constantly focused on advanced R&D for drug discovery. According to Pharmaceutical Research and Manufacturers of America (PhRMA), various key pharmaceutical companies in the region invest about 19% of their sales in research and development. Also, these pharmaceutical and clinical research companies are increasingly investing in adopting AI technologies that will maintain North America’s dominance in the near future.

The Asia-Pacific region is expected to grow rapidly over the forecast period. Many countries in Asia Pacific region are looking to adopt generative AI-based tools. Also, an increase in the presence of biotech companies is a key factor driving market growth in the region. Also, increasing investments in the healthcare sector by key nations like China, India, Japan, Australia, Malaysia, Indonesia, etc., are expected to generate lucrative growth opportunities for key players operating in the market.

Key Regions and Countries

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

The global Generative AI in the Life Sciences market is reasonably competitive. The market is growing gradually due to the increasing demand for technologically-advanced solutions like generative AI for treating chronic diseases. Also, strategic investments in technology by governments as well as private organizations are one of the main factors boosting competition among major industry players.  Additionally, technologically advanced product launch solutions will likely positively impact market expansion.

Top Key Players in Market

• IBM Corporation
• AiCure LLC
• MosaicML
• NVIDIA
• Insilico Medicine Inc.
• Writer
• HealthArk
• Other Key Players

Recent Development

Mentioned below are some of the latest developments by key players in the Generative AI in the Life Sciences Market:

• April 23: Insilico Medicine used a structure-based generative chemistry approach enabled by the multimodal generative reinforcement learning platform Chemistry42 to develop a potent, selective, and orally bioavailable small molecule inhibitor of CDK8 for cancer treatment.
• April 23: NVIDIA, in partnership with a Japanese company, Mitsui, launched a supercomputer named Tokyo-1, which features 16 NVIDIA DGX H100 AI systems. Tokyo-1 is a component of the NGX, the company’s AI platform, created to generate AI models for accelerated drug discovery.

Report Scope