GVR Report cover AI In Life Science Analytics Market Size, Share & Trends Report

AI In Life Science Analytics Market Size, Share & Trends Analysis Report By Component (Software, Hardware, Services), By Deployment (On-premise, Cloud), By Application, By End-user, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68040-012-6
  • Number of Pages: 53
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Healthcare

Report Overview

The global AI in life science analytics market size was valued at USD 1.5 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 11.1% from 2023 to 2030. AI-powered technology can examine and cross-reference large and complex datasets, resulting in offering more reliable data in less time. AI is enabled by complex algorithms that make a measurable impact on the life science industry. AI, with the assistance of machine learning, assists life science companies in developing treatments more quickly and efficiently. When it comes to developing and manufacturing treatments for cancers and other rare diseases, AI plays a significant role. As a result of such a significant impact, AI adoption is increasing. Clinical trial requires an intensive process that can be tackled with the help of AI. Screening and analysis of a small portion of molecules are time-consuming and expensive and hence, to cope with such processes, pharma companies have been actively investing in the development of AI tools that help to interpret or scan complex databases faster and more accurately. Thus, the growth of AI in life science analytics has been drastic.

 U.S. AI in life science analytics market size, by deployment, 2020 - 2030 (USD Million)

Different governments worldwide are taking initiatives for promoting AI and its impact on the healthcare and life science industry. For instance, the White House established the National Artificial Intelligence Initiative Office in early January 2021 to overview and adopt the United States' national AI strategy. As a result of the Trump Administration's actions, the United States remains the world leader in artificial intelligence.

The key players operating in the market are focusing on improving their Artificial intelligence-based tools with enhanced quality and capability. In March 2022, Sorcero announced the launch of Clarity which provides the medical affairs team with an integrated view across all areas of scientific engagement. Moreover, through the use of Sorcero’s advanced analytics, the medical teams can visualize and track medical content at scale.  In addition, in 2022, CloudMedx launched an ACO REACH Explorer with a motto to provide unifying and visualizing disparate data as well as to improve health equity and Omni channel patient engagement.

Furthermore, the COVID-19 pandemic had a positive impact on the health and life science industries. The outbreak forced the industry to manage the disruption of supply chain and clinical development during the pandemic, which encouraged the industry to accelerate innovation in order to respond to the crisis, resulting in a significant increase in the adoption of AI for life science analytics. Increasing clinical trials, drug discoveries and technological advancements in deep learning are the factors that are fueling the market growth

Component Insights

In 2022, the service component segment dominated the market with a share of 37.5%. The service segment is also anticipated to record the fastest growth during the forecast period. The primary factor driving the growth of the segment is an increase in the trend of outsourcing services. The majority of companies lack proper analytic components, which makes it difficult for them to perform better and more accurate analyses; thus, outsourcing is extremely crucial. The use of analytics requires experts for analyzing the large amounts of data generated, which drives the demand for AI in order to analyze the data accurately and effectively, thereby driving the growth of the segment during the forecast period.

AI is gaining trust in the analytics field because it is capable of providing fast, precise, and reliable data on which companies can rely. As a result, companies are more interested in investing in the integration of artificial intelligence algorithms into analytical solutions. The expansion of data analytics companies' services and growing technological collaborations are positively impacting the growth of the segment.

Deployment Insights

The cloud segment dominated the market with a revenue share of 50.6% in 2022 and is anticipated to grow at the fastest rate during the forecast period. Factors contributing to this growth are high penetration of the internet, development of cloud-based services, adoption of cloud technologies, and shift in preference toward cloud-based technologies from on-premise technologies owing to benefits provided by the former. In addition, cloud-based AI services are ideal for many organizations because they eliminate the need for large data centers, which require a significant investment. As a result, cloud-based AI is cost-effective, thereby demonstrating lucrative growth.

Cloud-based AI ensures smooth workloads and automates repetitive processes, increasing overall efficiency. The major advantage of cloud-based AI deployment is that the organization can cut down the costs associated with hardware administration and maintenance. Furthermore, by utilizing reliable real-time data, AI significantly improves seamless data management

End-user Insights

By end-user, the pharmaceutical segment held the largest share of 46.7% in 2022. Factors such as the increasing adoption of AI tools in the process of manufacturing, clinical trials, and drug discovery are some of the factors driving the growth of the segment. The use of these tools can fast-track the discovery of new molecules, and considerably reduce cycle times and costs while improving clinical outcomes. Moreover, through the use of AI tools, pharmaceutical manufacturers can identify quality control issues, and predict the proven bottlenecks, which are expected to further drive the adoption of this technology.

The biotechnology segment is anticipated to witness lucrative growth during the forecast period owing to the advantages offered by the incorporation of this technology, such as accelerated R&D, effective decision-making, analysis of homogenous databases, and cost-effectiveness. Moreover, through the integration of these tools, biotechnology firms can improve their organizational workflows in order to gain competitive advantages. Furthermore, machine learning is used for interpreting large genomic data sequences and genomic data sets, which is expected to drive the growth of the segment during the forecast period.

Application Insights

The sales and marketing segment held the largest share of 33.4% in 2022. The factors that boost the growth are the benefits provided by AI such as marketing automation, increased personalization, reduced errors, as well as smart and faster decision-making abilities. The demand for analytical solutions is constantly increasing, thus the competition is also high, so to cope with the competition major organization that provides solutions are implementing AI in the sales and marketing department. AI effectively analyses customer data and automates repetitive tasks by utilizing its advanced algorithms.

 Global AI in life science analytics market share, by application, 2022 (%)

During the forecast period, the research and development segment is expected to grow at the fastest rate. The rising adoption of analytical solutions in drug development and clinical trials is one of the driving factors for growth. Leading companies are constantly investing in the development of new innovative drugs for the treatment of severe diseases such as cancer, diabetes, and other infectious diseases that necessitate extensive research and development. As a result, the segment is expected to expand at a lucrative rate in the coming years.

Regional Insights

North America dominated the market in 2022 with a revenue share of 50.6%. This growth is contributed by higher demand for AI technology, increased digital literacy as well as advancements in life science analytics in the region. Moreover, increasing initiatives undertaken by the governments and collaborations among government bodies and private players for the development of technological solutions are anticipated to drive market growth. Furthermore, the rapid adoption of the solutions by healthcare institutions in order to organize organizational workflows is anticipated to boost the market growth.

AI In Life Science Analytics Market Trends by Region

Asia Pacific is expected to witness the highest growth during the forecast period. The rising number of countries aiming to adopt AI-based tools and the extensive presence of biotech companies are the reasons that are fueling the growth of the market. Major players in Asia Pacific are more focused on the adoption of AI-based analytical tools to enhance operational efficiency, which also plays a crucial role in market growth.

Key Companies & Market Share Insights

The market is competitive, and various companies across the globe are investing in AI-based tools to offer more effective analytic solutions. For instance, in September 2021, IQVIA launched AI-powered MI Contact Center for life sciences, which enables companies to share information about new and recent products while also monitoring product safety and quality. The center is deployed with AI-enabled virtual agents alongside human experts in order to prioritize and respond to inquiries. Some of the prominent players in the AI in life science analytics market include:

  • Indegene

  • Lexalytics

  • Databricks

  • SAS Institute Inc.

  • Sisense

  • IQVIA

  • IBM

  • Sorcero

AI In Life Science Analytics Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 1.7 billion

Revenue forecast in 2030

USD 3.6 billion

Growth rate

CAGR of 11.1% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, deployment, application, end-user, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; UK; Germany; France; Italy; Spain; Denmark; Sweden; Norway; China; India; Japan; Australia; South Korea; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE; Kuwait

Key companies profiled

Indegene; Lexalytics; Databricks; SAS Institute Inc.; Sisense; IQVIA; IBM; Sorcero

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global AI In Life Science Analytics Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global AI in life science analytics market report based on component, deployment, application, end-user, and region:

  • Component Outlook (Revenue, USD Billion, 2018 - 2030)

    • Software

    • Hardware

    • Services

  • Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

    • On-premise

    • Cloud

  • Application Outlook (Revenue, USD Billion, 2018 - 2030)

    • Research and Development

    • Sales and Marketing support

    • Supply chain analytics

    • Others

  • End-user Outlook (Revenue, USD Billion, 2018 - 2030)

    • Medical Devices

    • Pharmaceutical

    • Biotechnology

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Italy

      • France

      • Spain

      • Denmark

      • Sweden

      • Norway

    • Asia Pacific

      • China

      • Japan

      • Australia

      • South Korea

      • India

    • Latin America

      • Mexico

      • Brazil

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

      • Kuwait

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