AI in Drug Development & Clinical Trials Market to Reach $3.0 Billion by 2024
Published: February 25, 2021
25th February 2021 – Written by Imogen Fitt – The world market for AI used in drug development and clinical trials is set to reach almost $3.0 billion by 2024. This is according to a new report from Signify Research, an independent supplier of market intelligence and consultancy to the global healthcare technology industry.
In the coming months market growth is projected to accelerate as the importance of rapid therapeutic development is highlighted by the recent COVID-19 pandemic. As interest in partnerships and investment increases, the overall market is predicted to reach a peak annual growth rate of 46.95% forecast for 2022.
Whilst over 250 vendors are currently promoting solutions in the market, the majority are not yet revenue generating, with many vendors expected to accelerate their commercial launches in the next few years while interest in the sector is high. This will be supported by a variety of business models which enable the entire scope of potential clients to be addressed, whilst also de-risking investment for major sponsors.
The worldwide market is comprised of software solutions for information engines & disease modelling, drug design and optimisation, as well as clinical trials and end-to-end solutions. Growth for drug design and optimisation is predicted to drive the market, with a CAGR of 40% through to 2024. This is largely due to the higher proportion of partnership-based business models structured on success-based milestones, which Signify Research found accounted for 36% of the market in 2019.Whilst applications like Oncology are forecast to remain a significant portion of the total market, recent worldwide events are also expected to promote a boost in the development of infectious disease programmes. This is expected to peak in 2022 with an annual growth rate of 112% expected, whilst applications for general use will see sustained long-term as programmes are initiated for non-communicable diseases like diabetes.
There remain many challenges before AI can be fully utilised across the industry, however. The large number of vendors competing for available partnerships coupled with a lack of standardised benchmarks for comparison increases the difficulty sponsors have in selecting the most suitable partners. This in turn, muddies the waters on which algorithms can be evaluated and considered most effective for further development. There also remains a comparative lack of economic studies which truly address and quantify the value added by including each type of AI.
Despite this Market Analyst at Signify Research, Imogen Fitt, is optimistic.
“The widespread hype for AI in drug development might be treated with scepticism today, as no AI-designed drugs have yet been approved for sale. However, it is becoming increasingly clear that relatively soon, AI will be embraced. Further, adoption will not be just as a cut-and-paste solution with a singular use, but as a portfolio of algorithms designed to augment every stage of the drug development process. From drug design to clinical trial recruitment, a plethora of companies are today evolving their solutions to meet real customer demand. The market is thus on the cusp of seeing real progress and tangible return on substantial investment.”
For more information regarding the report, please contact Imogen.Fitt@signifyresearch.net or download the brochure here.Share on LinkedIn
AI in Drug Development & Clinical TrialsPublished December 2020.
AI in Drug Development & Clinical Trials
This is a brochure for Signify Research’s 2020 report on the global market for AI in drug development & clinical trials published in December 2020.
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