Boston, Oct. 24, 2025 (GLOBE NEWSWIRE) -- Artificial intelligence (AI) is transforming biotechnology, from accelerating drug discovery and streamlining clinical trials to enhancing diagnostics and genomic research. Valued at $3.8 billion in 2024, the global market for AI in biotechnology is projected to grow from $4.6 billion in 2025 to $11.4 billion by the end of 2030, at a CAGR of 20%. Leading companies such as Nvidia, Tempus AI Inc., Recursion Pharmaceuticals, Schrödinger Inc., and Sophia Genetics are driving this momentum through innovations in machine learning (ML), generative AI, and federated learning.
The North American market is driven by its mature healthcare infrastructure and AI adoption in drug pipelines, while Europe follows with strong research funding, regulatory advances, and collaborative innovation across biotech hubs.
Market Insights and Strategic Investment Trends Shaping Growth
AI is playing a pivotal role in transforming the drug development value chain, starting from target identification and protein structure prediction to preclinical trial simulations and personalized therapies. Pharmaceutical and biotech companies are deploying AI-powered platforms to reduce trial timelines, lower R&D costs, and improve precision medicine outcomes. These innovations are streamlining manufacturing and data management across the sector.
(Chapter 2: Market Overview; Chapter 3: Market Dynamics)
As major biologic companies like Keytruda and Opdivo approach their patent cliff by 2030, the industry is shifting towards AI solutions to sustain innovation and revenue growth. Investors are placing bets on AI-enabled platforms that can generate novel drug candidates and simulate efficacy in silico. Federated learning and agentic AI are also emerging as key technologies for secure data collaboration and multi-modal decision-making. (Chapter 5: Emerging Technologies and Developments; Chapter 6: Market Segmentation Analysis)
Regulatory frameworks are evolving to address the complexities of AI integration in biotech workflows. Regulatory agencies are working toward clearer guidance on algorithm validation, data quality, and transparency—especially in clinical trial applications. For market players, early alignment with emerging compliance requirements will be critical for achieving approval and scaling AI-enabled products globally. (Chapter 4: Regulatory Landscape)
Venture capital and corporate funding for AI-focused biotech startups is increasing, with firms like Insilico Medicine, Deep Genomics, and Aizen Therapeutics developing proprietary AI engines for de novo molecule generation and genomic insight extraction. These investments are not only accelerating early-stage drug pipelines but also enabling adaptive clinical trial designs.
(Chapter 6: Market Segmentation Analysis; Chapter 7: Competitive Intelligence)
Academic research institutes, CROs, and CDMOs are increasingly embracing cloud-based deployments for scalable, collaborative AI solutions. Cloud-native platforms are unlocking real-time data analysis, interoperability, and global collaboration in biotech research. Meanwhile, companies are also embracing ESG initiatives by improving transparency, data ethics, and sustainability practices within their AI development pipelines.
(Chapter 6: Market Segmentation Analysis; Chapter 8: ESG Perspective)
Report Synopsis
| Report Metric | Details |
| Base year considered | 2024 |
| Forecast period considered | 2025-2030 |
| Base year market size | $3.8 billion |
| Market size forecast | $11.4 billion |
| Growth rate | CAGR of 20.0% for the forecast period of 2025-2030 |
| Segments covered | Product Type, Application, Deployment Type, End User, and Region |
| Regions covered | North America, Europe, Asia-Pacific and the Rest of World (RoW) |
| Market drivers |
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Additional Insights:
- Drug development is a lengthy, expensive, and complex process that involves multiple clinical studies, high risks, and strict regulatory requirements.
- AI has the potential to streamline clinical trials, accelerate drug discovery, and enhancing logistics and manufacturing operations across the supply chain.
- The industry will face a significant patent cliff soon, as several blockbuster drugs such as Keytruda, Opdivo, and others are set to lose exclusivity by 2030.
- As a result, companies are adopting new technologies and strategies to offset revenue declines and accelerate drug innovation and development.
Market leaders include:
- ABCELLERA BIOLOGICS INC.
- ABSCI CORP.
- ATOMWISE INC.
- BENEVOLENTAI
- DNANEXUS INC.
- EUROFINS SCIENTIFIC
- ILLUMINA INC.
- INSILICO MEDICINE
- NVIDIA CORP.
- QIAGEN
- RECURSION
- SCHRODINGER INC.
- SOPHIA GENETICS
- TEMPUS AI INC.
- XTALPI INC.
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