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AI In Biotechnology Market Size To Grow At 19.04% CAGR By 2034
| Table | Scope | |
| Market Size in 2025 | USD 3.89 Billion | |
| Projected Market Size in 2034 | USD 19.04 Billion | |
| CAGR (2025 - 2034) | 18.76 | % |
| Leading Region | North America by 50% | |
| Market Segmentation | By Primary Application / Use Case, By Core AI Technology, By Commercial Model, By End User / Buyer Type, By Region | |
| Top Key Players | Exscientia, Recursion Pharmaceuticals, Insilico Medicine, Atomwise, BenevolentAI, Schrödinger, Deep Genomics, Valo Health, Cyclica / Numinus, Relay Therapeutics, NVIDIA, Microsoft / Azure, Alphabet / DeepMind, IQVIA, Certara, Evotec, Charles River / Labcorp, Atomwise, Benchling / Collaborative data platforms, Startups & aggregators |
What are the Major Growth Drivers in the AI in Biotechnology Market?
The growing advancements in AI technologies act as the major driver in the market. This is increasing the development of various models, solutions, and tools, which are enhancing drug development and diagnostic approaches. Moreover, increasing investments, demand for personalized medicinesWhat are the Key Drifts in the AI in Biotechnology Market?
The market has been expanding due to the growing funding to launch and enhance the use of various AI solutions.
- In November 2025, a total of $100 million was secured by Busy Iambic Therapeutics, which will be utilized to advance its AI-discovered therapeutics portfolio. In November 2025, to advance the clinical use of AI-driven brain health biomarkers and expand the neurodiagnostic dataset, a total of $86 million raised in the Series B funding round will be utilized by Beacon Biosignals. In July 2025, $2.8 million in pre-seed funding was secured by Algocell, which is an Israeli startup focused on AI-driven bioprocess optimization. To accelerate the scale-up and efficiency of cell-based manufacturing, this funding will be used to advance its platform.
What is the Significant Challenge in the AI in Biotechnology Market?
Data privacy concerns act as a major challenge in the market. These platforms handle sensitive patient or clinical data, where their breaches can lead to decreased use, so they must comply with the strict regulatory standards. Additionally, high implementation cost, limited quality data, skilled personnel shortage, and regulatory challenges are other market restraints.
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Why did North America Dominate the AI in Biotechnology Market in 2024?
In 2024, North America captured the biggest revenue share of 50% in the market, due to the presence of large biotech companies, which heavily invested in AI solutions. Moreover, the growing generation of biomedical data has also increased its demand. Additionally, the companies contributed to their increased innovation, launches, adoption, and use in the R&D, which enhanced the market growth.
What Made the Asia Pacific Show the Fastest Growth in the AI in Biotechnology Market in 2024?
Asia Pacific is expected to host the fastest growth in the market during the forecast period, due to expanding biotech and pharmaceutical industries precision medicine developmentSegmental Insights
By primary application/use case analysis
Why Did the Drug Discovery & Lead Generation Segment Dominate in the AI in Biotechnology Market in 2024?
By primary application/use case, the drug discovery & lead generation segment led the market with approximately 36% share in 2024, due to its faster experiments. It was used to evaluate a vast amount of chemical libraries with accuracy and identify ADME properties, which increased their use in various R&D processes.
By primary application/use case, the agriculture/industrial biotech applications segment is expected to show the highest growth during the predicted time, driven by increasing food demands. The growing climatic changes and government initiatives are increasing their use during innovations and sustainable biomanufacturing.
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Which Core AI Technology Type Segment Held the Dominating Share of the AI in Biotechnology Market in 2024?
By core AI technology, the classical ML/deep learning models segment held the dominating share of approximately 30% in the market, driven by its compatibility, accuracy, and performance in various imaging, sequencing use in genomicsBy core AI technology, the generative AI segment is expected to show the fastest growth rate during the predicted time, due to its ability to develop new drug candidates. This accelerates the R&D, which is increasing their use in the development of new models, backed by investments.
By commercial model analysis
What Made SaaS/Cloud AI Platforms the Dominant Segment in the AI in Biotechnology Market in 2024?
By commercial model, the SaaS/cloud AI platforms segment led the market with approximately 48% share in 2024 and is expected to show the highest growth during the upcoming years, due to their ability to handle massive datasets and lower upfront cost. Moreover, their easy integration and high performance enhanced their use in R&D activities, where their security updates helped in protecting the data.
By end-user/buyer type analysis
How did the Large Pharma & Big Biotech Segment Dominated the AI in Biotechnology Market in 2024?
By end user/buyer type, the large pharma & big biotech segment held the dominating share of approximately 52% of the market in 2024, driven by their high R&D activities and investments. This increased the use of AI technologies to accelerate drug discovery
By end user/buyer type, the biotech startups & virtual biotechs segment is expected to show the fastest growth rate during the upcoming years, due to their affordability and minimal infrastructure requirements. They are being used to accelerate the R&D, where the outsourcing trends are also promoting their use.
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Recent Developments in the AI in Biotechnology Market
- In November 2025, to discover novel therapeutics with the use of the Pharma platform of Insilico Medicine, a collaboration between Insilico Medicine and Eli Lilly was announced. In June 2025, the U.S.-India Innovation Bridge for next-gen innovation and R&D focusing on AI, biotech, startup ecosystems, and quantum, was launched in Bengaluru.
AI in Biotechnology Market Key Players List
- Insilico Medicine Exscientia Atomwise Recursion Pharmaceuticals Deep Genomics BenevolentAI Valo Health Schrodinger NVIDIA Cyclica/Numinus Microsoft/Azure Relay Therapeutics Alphabet/DeepMind Evotec IQVIA Startups & aggregators Certara Atomwise Charles River/Labcorp Benchling/Collaborative data platforms
Segments Covered in The Report
By Primary Application/Use Case
- Drug discovery & lead generation Preclinical research & biomarker discovery Clinical development & trial optimization Bioprocessing & manufacturing optimization (PAT, yield, QC) Diagnostics & companion-diagnostics (AI for image/omics readouts) Agriculture/industrial biotech applications
By Core AI Technology
- Classical ML/Deep Learning models Graph Neural Networks (molecular GNNs) Generative AI NLP / Knowledge graphs for literature & IP mining Digital twins & physics-hybrid models Explainable AI/uncertainty quantification
By Commercial Model
- SaaS/Cloud AI platforms (platform subscriptions, API access) Collaborative partnerships/discovery alliances (shared milestones) Fee-for-service (project CRO style engagements) Licensed on-prem deployments (large pharma) Model & dataset licensing/marketplaces
By End User/Buyer Type
- Large Pharma & Big Biotech Biotech Startups & Virtual Biotechs CROs / CDMOs using AI internally Academic & translational research centers Diagnostics / Agri-bio companies
By Region
North America
- U.S. Canada Mexico Rest of North America
South America
- Brazil Argentina Rest of South America
Europe
- Western Europe
- Germany Italy France Netherlands Spain Portugal Belgium Ireland UK Iceland Switzerland Poland Rest of Western Europe
- Austria Russia & Belarus Türkiye Albania Rest of Eastern Europe
Asia Pacific
- China Taiwan India Japan Australia and New Zealand, ASEAN Countries (Singapore, Malaysia) South Korea Rest of APAC
MEA
- GCC Countries Saudi Arabia United Arab Emirates (UAE) Qatar Kuwait Oman Bahrain South Africa Egypt Rest of MEA
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