SNS Insider projects the U.S. Artificial Intelligence (AI) in Biotechnology Market to grow from USD 1.14 billion in 2024 to USD 4.24 billion by 2032, at a CAGR of 17.90%.
Austin, Nov. 17, 2025 (GLOBE NEWSWIRE) — Artificial Intelligence (AI) in Biotechnology Market Size & Growth Analysis
According to SNS Insider, the global Artificial Intelligence (AI) in Biotechnology Market was valued at USD 3.28 billion in 2024 and is expected to reach USD 13.30 billion by 2032, expanding at a CAGR of 19.13% during the forecast period of 2025–2032. The U.S. remained the largest market in 2024 with a valuation of USD 1.14 billion and is projected to increase to USD 4.24 billion by 2032. Market momentum is driven by rapid integration of AI platforms into drug discovery, genomic sequencing, protein structure prediction, and clinical trial optimization. Pharmaceutical companies, CROs, CDMOs, and research institutions are accelerating adoption of AI-based workflows to reduce R&D costs, compress development timelines, and increase precision in therapeutic innovation. Advancements in generative AI, large language models, and predictive analytics continue to reshape biotechnology pipelines globally.
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Growing reliance on computational drug design tools, high-throughput modeling, and cloud-based life science data platforms is fueling widespread investment. The industry is experiencing significant transformation through partnerships between biotech firms and leading AI innovators, supported by government funding and an expanding ecosystem of AI-driven drug discovery startups. Increasing demand for personalized medicine, biomarker discovery, and genomic diagnostics further contributes to market expansion across both developed and emerging economies.
Artificial Intelligence (AI) in Biotechnology Market Segment Insights:
By Component
The software segment dominated the artificial intelligence (AI) in biotechnology market, with a revenue share of 46% in 2024 due to the increasing use of AI platforms in computational drug design, genomic analysis, and predictive models in biotechnology processes. Services became the fastest-growing segment as demand increased for AI consulting, customization, and deployment services.
By Application
In 2024, the drug discovery and development segment had the highest artificial intelligence (AI) in biotechnology share, with 42% and it was the dominant segment in 2024. This growth was driven by the fast application of AI algorithms in molecular target identification, compound screening, and lead optimization activities. The clinical trials and optimization segment was identified as the fastest segment due to the rising adoption of AI for patient screening, real-time monitoring of the trials, and designing protocols.
By End-User
Pharmaceutical companies dominated the market share of artificial intelligence (AI) in biotechnology in 2024, with a share of 38.3% of the market due to big pharma companies making significant investments in AI technologies to transform drug discovery pipelines, lower costs associated with clinical trials, and optimize precision medicine approaches. CROs and CDMOs were the fastest-growing type of end-user as pharma is also now outsourcing more and more of its R&D.
Artificial Intelligence (AI) in Biotechnology Market Regional Analysis:
North America held artificial intelligence (AI) in biotechnology market share in 2024, owing to the presence of robust R&D facilities, a well-established healthcare system, and large investments by biotech and pharmaceutical companies.
The Asia Pacific AI in biotechnology market is projected to register the highest CAGR in the coming years, primarily due to growing investments, favorable government initiatives, and the rapid digitalization of healthcare.
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Major Players Analysis Listed in the Artificial Intelligence (AI) in Biotechnology Market Report are
- Tempus
- NVIDIA
- Insilico Medicine
- Schrödinger
- Deep Genomics
- SOPHiA GENETICS
- Exscientia
- Recursion Pharmaceuticals
- Illumina
- BenevolentAI
Recent Developments:
- In May 2025, Insilico Medicine reported via Nature Communications the AI-enabled design of ISM5939, a next-gen ENPP1 inhibitor tackling immune checkpoint resistance, demonstrating AI’s growing efficacy in fast-tracking drug candidate development.
- In January 2025, Illumina integrated its DRAGEN multi-omics analysis platform with NVIDIA’s BioNeMo and MONAI AI frameworks to accelerate large-scale genomic data processing for drug discovery and clinical research.
Exclusive Sections of the Report (The USPs):
- AI ADOPTION RATE IN BIOTECHNOLOGY COMPANIES – helps you understand regional adoption patterns of AI technologies across biotech firms, highlighting early adopters and growth-leading regions.
- AI-DRIVEN DRUG DISCOVERY PROJECTS – helps you identify key therapeutic areas leveraging AI for molecule prediction, target validation, and clinical trial optimization.
- R&D EFFICIENCY GAINS ATTRIBUTED TO AI – helps you evaluate the global impact of AI on reducing research timelines, lowering development costs, and accelerating innovation cycles.
- VENTURE CAPITAL & GOVERNMENT FUNDING TRENDS – helps you track regional funding flows into AI-biotech startups, showcasing investment hotspots and innovation clusters.
- AI PATENT FILINGS & PUBLICATION METRICS – helps you assess country-level innovation intensity, technological leadership, and emerging research directions in AI-based biotechnology.
- TECHNOLOGICAL & STRATEGIC COLLABORATION INDEX – helps you uncover partnerships between AI firms, pharma companies, and research institutions driving breakthroughs in precision biotech solutions.
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Artificial Intelligence (AI) in Biotechnology Market Report Scope
| Report Attributes | Details |
| Market Size in 2024 | USD 5.14 Billion |
| Market Size by 2032 | USD 7.47 Billion |
| CAGR | CAGR of 4.8 % From 2025 to 2032 |
| Base Year | 2024 |
| Forecast Period | 2025-2032 |
| Historical Data | 2021-2023 |
| Key Segments | By Component (Software, Hardware, and Services)
By Application (Drug Discovery & Development, Clinical Trials & Optimization, Medical Imaging, Diagnostics, and Others) By End User (Pharmaceutical Companies, Biotechnology Companies, Academic & Research Institutes, Healthcare Providers, CRO & CDMO, and Others) |
| Regional Analysis/Coverage | North America (US, Canada), Europe (Germany, UK, France, Italy, Spain, Russia, Poland, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN Countries, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Mexico, Colombia, Rest of Latin America). |
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