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Table Of Content
October 2024
Next-Generation AI in Life Science Market (By Application Area: Drug Discovery & Development, Clinical Diagnostics, Precision Medicine, Medical Imaging, Healthcare Operations & Workflow Automation, Remote Monitoring & Digital Therapeutics, Omics Data Analytics, Other Emerging Use Cases; By Technology Type: Machine Learning Deep Learning, Natural Language Processing, Computer Vision, Generative AI, Knowledge Graphs & Ontology-Based AI, Federated Learning & Privacy-Preserving AI, Explainable AI; By End User: Pharmaceutical & Biotechnology Companies, Contract Research Organizations, Academic & Research Institutes, Hospitals & Healthcare Providers, Diagnostics Laboratories, Medical Device Companies, Government & Regulatory Agencies; HealthTech & AI Startups By Deployment Mode: On-Premise, Cloud-Based, Edge AI;) - Global Industry Analysis, Size, Trends, Leading Companies, Regional Outlook, and Forecast 2025 to 2034
The global next-generation AI in life science market is witnessing rapid growth as AI-powered platforms enable faster drug discovery, predictive diagnostics, and personalized healthcare solutions. The increasing demand for personalized medicine, rapid advancements in computing power and multiomics data, increasing focus on clinical trial optimization, and favorable government support for AI integration in life science industry are expected to drive the growth of the global market for next-generation AI in life science over the forecast period. Several key players in the industry are widely adopting effective strategies, such as new product launches and mergers, to expand their market share and gain a competitive edge. Additionally, the market is increasing in emerging regions, particularly North America, fuelled by the presence of robust healthcare infrastructure and the increasing prevalence of chronic diseases.
As technology continues to evolve, the next-generation AI in life science market is transforming the field of life sciences through drug discovery, personalized medicine, clinical development, diagnostics, and commercialization. Next-generation AI can be a powerful catalyst driving strategic outcomes, such as speed to market, personalized customer engagement, improved compliance, enhanced patient-centricity, and lower costs. The next-generation AI in life science market encompasses the deployment of advanced artificial intelligence (AI) technologies, including foundation models, multimodal learning, generative AI, self-supervised learning, and quantum-AI hybrids, to drive innovation across the life sciences.
| Report Coverage | Details |
| Dominating Region | North America |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Application Area, Technology Type, End User, Deployment Mode, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Increasing Demand for Drug Development and Clinical Trials
The rising demand for drug development and clinical trials is expected to boost the growth of the next-generation AI in life science market during the forecast period. next-generation AI can accurately design new molecules by analyzing chemical and biological datasets. These models can predict molecular structures that meet certain criteria, including solubility, binding affinity, and toxicity. This process is widely adopted to accelerate the lengthy and expensive drug discovery timeline, which allows the quicker identification of potential drug candidates. Next-generation AI assists researchers in identifying potential drug targets by effectively analyzing protein structures and mapping interactions.
Additionally, the integration of AI significantly optimizes trial operations by utilizing intelligent strategies for patient recruitment and predictive modeling for dropout risks. These tools can improve patient diversity, reduce trial duration, and increase regulatory success rates. AI also aids in patient stratification by analyzing massive datasets to enhance trial outcomes and predict patient responses. AI platforms can optimize clinical trial protocols, reducing protocol amendments by 40% and increasing patient enrolment by 25%.
Integration Complexities Restrain Growth in the Next-Generation AI in Life Science Market
The rising integration complexities are anticipated to hamper the market's growth. The market often faces challenges with integrating new AI systems with traditional healthcare and life science workflows. In addition, the data privacy & security concerns and shortage of specialized expertise in both life sciences and next-generation AI technology are likely to hinder the growth of the global next-generation AI in life science market during the forecast period.
How is the increasing demand for precision medicine impacting the expansion of the Next-Generation AI in Life Science Market?
The rising demand for precision medicine is projected to offer lucrative growth opportunities to the next-generation AI in life science market during the forecast period. Precision medicine is increasingly becoming the new standard of care. next-generation AI integrates genomics, clinical data, and behavioral data to provide personalized treatment plans, improving treatment outcomes and significantly reducing adverse reactions across high-risk segments. The precision targeting improves outcomes and reduces trial-and-error prescribing. To improve therapy response and intervention accuracy, AI algorithms assist the caregiver in predicting the response of various patients to a wide range of treatments.
Moreover, with the stricter mandates of regulatory bodies such as EMA, FDA, HIPAA, and GDPR, next-generation AI is becoming fully transparent and traceable. Any decision made by a model must be ready for audit, compelling life sciences companies to incorporate compliance into their AI pipelines from the beginning.
What Made the Drug Discovery & Development Segment Lead the Next-Generation AI in Life Science Market in 2024?
The drug discovery & development segment dominated the market with a 32.4% share in 2024. Next-generation AI is rapidly progressing in drug discovery and development. In the ever-evolving world of life sciences, next-generation AI is transforming the earliest stages of drug development, offering several capabilities, including predictive modeling, drug repurposing, and in silico compound screening. These technologies significantly reduce the time and cost of identifying viable therapeutic candidates, which offer advanced treatments into the pipeline faster.
By leveraging advanced generative AI technologies, drug development researchers study the components of molecular sequence, function, and structure. This assists them in creating or designing new molecules that are anticipated to have the necessary and required qualities.
On the other hand, the omics data analytics segment is witnessing the fastest growth with a CAGR of 11.3%. The growth of the segment is driven by the increasing need for sophisticated analysis of complex biological data, particularly omics (genomic, proteomic, transcriptomic, and metabolomic). The vast and complex nature of omics data from genomic and other studies spurs the demand for Next-generation AI solutions. Thus, bolstering the segment’s expansion in the coming years.
What Has Led the Cloud-Based Segment to Dominate the Market With the Largest Market Share in 2024?
The cloud-based segment held the largest share of the next-generation AI in life science market with a share of 52.8% in 2024. The cloud-based deployment model is widely preferred for its flexibility, scalability, and cost-effectiveness for handling vast amounts of life science data. Cloud-based solutions are ideal for complex data analysis in drug discovery and clinical trials. Cloud technology offers smooth data sharing and collaboration among global research teams.
Several companies are shifting their generative AI projects to the cloud. The top cloud platforms include Microsoft Azure, AWS, and Google Cloud Platform. Cloud providers provide solutions to effectively manage sensitive data securely, assisting firms in meeting stringent regulatory requirements.
On the other hand, the edge AI segment is expected to experience significant growth in the coming years with a CAGR of 12%. Edge AI enables AI-powered models to run directly on devices or local servers, which allows the real-time processing of sensitive life science data, improving security and efficiency for applications such as real-time diagnostics and decentralized clinical trials without sending it to the cloud. In clinical settings, Edge AI facilitates rapid decision-making, particularly in monitoring patient health.
What Made the Machine Learning (ML) Segment Lead the Next-Generation AI in Life Science Market in 2024?
The Machine Learning (ML) segment was dominant, with the biggest share of the global next-generation AI in life science market accounting for 29.6% in 2024. The integration of Machine Learning (ML) is rapidly revolutionizing the life sciences industry by improving patient diagnostics, accelerating drug discovery, enhancing personalized treatments, and effectively streamlining research through the analysis of massive biological, genomic, and chemical datasets. Machine Learning (ML) assists in managing the complexity of biological systems by accurately analyzing patterns in proteins, genes, and environmental factors, which leads to valuable insights and faster research progress. On the other hand, the Generative AI segment is also experiencing the most rapid growth.
Generative AI is expected to grow at a significant CAGR of 12.5%. Generative AI is marking a groundbreaking revolution by significantly reducing the time and cost associated with bringing new medicines to market. Generative AI is transforming the life sciences industry across various areas, such as drug discovery and improving patient care. Several companies in the life science industry are widely adopting this Generative AI technology and embracing this paradigm shift to remain competitive. Generative AI has the potential to identify new compounds and accelerate the development as well as approval of those compounds.
How Did the Pharmaceutical & Biotechnology Companies Segment Dominate the Next-Generation AI in Life Science Market in 2024?
The pharmaceutical & biotechnology companies segment dominated the next-generation AI in life science market with a massive 41.2% share in 2024. These pharmaceutical & biotechnology companies are leveraging advanced algorithms of next-generation AI to identify drug candidates, design molecules, and shorten development timelines. next-generation AI is an AI-driven platform that assists pharmaceutical & biotechnology companies in drug discovery and development. This intelligent technology enables the development of personalized treatments tailored to individual patients based on their genetic makeup, past medical history, and other crucial data.
On the other hand, the healthtech & AI startups segment is expected to register the fastest growth of 11.7%. The life sciences industry is witnessing a significant rise in the number of healthtech & AI startup companies, particularly in developed and developing nations that widely adopt the use of next-generation AI to accelerate drug discovery, optimize clinical trials, improve treatment outcomes, and streamline healthcare delivery.
How Did North America Lead the Next-Generation AI in Life Science Market in 2024?
North America held the dominant share of the next-generation AI in life science market, holds a massive 41.8% share in 2024. The region benefits from a well-developed healthcare infrastructure and supportive healthcare regulations.  This comprises advanced medical facilities, academic & research centers, and a robust network of hospitals that are widely adopting generative AI technology for drug development, precision medicine, enhancing patient care, streamlining healthcare delivery processes, and more effectively managing resources. The region’s rapid growth is attributed to the rising prevalence of chronic disorders, a surge in the aging population, rising healthcare spending, and rising technological advancements in drug delivery systems. The U.S. is a major contributor to the market for next-generation AI in life sciences.
Asia Pacific is projected to be the fastest-growing region in the next-generation AI in life science market, expected to grow by a CAGR of 11.2%, backed by massive government and private investments in biotech, digital health, and AI infrastructure. The region’s rapidly expanding biotech and medtech ecosystems, including advancements in cell therapy, genomics, and precision medicine, are fueling adoption. A large, diverse population with unmet healthcare needs and rising affluence is creating strong demand for AI-driven diagnostics and treatment innovations. At the same time, improved data infrastructure, from electronic health records to cloud computing, is enabling scalable AI deployment. Combined with supportive regulatory reforms and global pharma partnerships, these factors position Asia-Pacific for the strongest growth momentum during the forecast period.
By Application Area
By Technology Type
By End User
By Deployment Mode
By Region
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