Global Artificial Intelligence (AI) in Precision Medicine Market 2023-2030

Global Artificial Intelligence (AI) in Precision Medicine Market 2023-2030

Global Artificial Intelligence (AI) in Precision Medicine Market Size, Share & Trends Analysis Report by Component (Hardware and Software & Services), by Treatment (Oncology, Neurology, Cardiology, and Respiratory), and by Application (Drug Discovery & Repurposing, Clinical Research Trial, and Personalized Medicine), Forecast Period (2023-2030)

The global AI in precision medicine market is anticipated to grow at a CAGR of 19.2% during the forecast period (2023-2030). Precision medicine uses an individual's unique clinical, molecular and lifestyle information to guide disease diagnosis, treatment and prevention for cancer, inherited diseases and other complex disorders. The market growth is primarily driven by the increasing investments in R&D along with the rising adoption of personalized medications. For instance, the National Institute of Biotechnology Information (NCBI) estimated that the cost of discovering and developing a new drug is around $3 billion, with an approval rate close to 13% when considering all the compounds that reached clinical trials.

Moreover, strategic initiatives such as collaborations among the key market organization also play an important role in driving the industry’s growth around the globe. For instance, in February 2023, a multi-year, strategic partnership between Tempus, a company that specializes in AI and precision medicine, and Pfizer has been revealed. The collaboration aims to advance the use of AI and machine learning (ML) in the forthcoming pharmaceutical research.

Segmental Outlook

The global AI in precision medicine market is segmented on the component, treatment, and application. Based on the component, the market is sub-segmented into hardware and software and services. Based on the treatment, the market is sub-segmented into oncology, neurology, cardiology, and respiratory. Further, on the basis of application, the market is sub-segmented into drug discovery & repurposing, clinical research trials, and personalized medicine. Among the application, the sub-segment is anticipated to hold a considerable share of the market owing to the rising artificial intelligence algorithms in precision medicine and will enable a fully individualized approach to drug design, ultimately influencing clinical practice. Drug development is increasingly adapted to the heterogeneity of patients across their molecular profiles.

The Neurology Sub-Segment is Anticipated to Hold a Considerable Share of the Global AI in Precision Medicine Market

Among the treatment, the neurology sub-segment is expected to hold a considerable share of the global artificial intelligence in the precision medicine market. The segmental growth is attributed to the increasing importance of neurology and psychiatry approaches that could offer screening options, implement time-sensitive detection/diagnosis, and adapt treatment plans to a patient's unique clinical-genetic-biological characteristics and risk factors. Significant contributions to segmental growth are also made through collaborations between major companies. For instance, in December 2021, TheraPanacea and Biogen Inc. announced a partnership focused on a number of neurotherapeutic areas. The goal is to develop digital health solutions using ML and AI analytics that could improve patient care, accelerate drug discovery, and further our understanding of the pathologies that underlie neurological disorders.

Regional Outlook

The global artificial intelligence in precision medicine market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia- Pacific is anticipated to hold a prominent share of the market across the globe, owing to the growing number of startups that focus on AI-based healthcare technology and are getting support in the form of funding from both individual investors and venture capitalists. The key market players include Novo Nordisk A/S, GE Healthcare, NVIDIA Corp., Alphabet Inc., IBM Corp. BioXcel Therapeutics Inc., Enlitic Inc., and AstraZeneca.

The North America Region is Expected to Grow at a Significant CAGR in the Global AI in Precision Medicine Market

Among all regions, the North America region is anticipated to grow at a considerable CAGR over the forecast period. Strong healthcare infrastructure, increasing investment from major players in the development of advanced devices, a high adoption rate of minimally invasive procedures, the availability of reimbursements, an ageing population, high healthcare spending combined with the onset of the COVID-19 pandemic, and an increase in research activities are all factors that contribute to the region's growth. The most effective method of therapy for each patient is determined by various precision medicine institute using innovative methods to incorporate large quantities of data, including genomic data, into each individual patient's care plan. For instance, in July 2023, the Precision Medicine Institute has been launched by Children's Institution Colorado (Children's Colorado), enabling specialists to more effectively incorporate precision medicine into patient care across the institution.

An effective learning healthcare system necessitates the implementation of health IT, active patient involvement, the collaboration between healthcare professionals and academics inside and across institutions, and policies that encourage knowledge exchange. Government initiatives that are supportive and look into new technologies (such omics) are helping to advance significant advancements in disease diagnosis, prognosis, and therapy. They all contributed significantly to market expansion and quickening the adoption of AI in the healthcare industry in the region. For instance, in June 2022, Precision FDA, a cloud-based platform designed by the FDA for community research and development, enables users from around the globe to exchange data and tools to test, pilot, and verify both established and novel bioinformatics methodologies for NGS processing.

Market Players Outlook

The major companies serving AI in the precision medicine market include BioXcel Therapeutics Inc., Intel Corp., Microsoft Corp., Modernizing Medicine Inc., Sanofi S.A., NVIDIA Corp., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in October 2022, the US-based precision medicine company Tempus and GSK plc signed a three-year collaboration agreement. This agreement grants GSK access to Tempus' AI-enabled platform and repository of identified patient data. Leveraging its industry AI and ML capabilities, GSK will work with Tempus to improve clinical trial design, EXPEDITE enrolment processes, and identify therapeutic targets.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global AI in the precision medicine market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.