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AI In Biotechnology Market Size Forecast: How Big Could The Market Get By 2030?
The AI in biotechnology market size has expanded considerably in recent years. It is forecasted to grow from $5.52 billion in 2025 to $6.87 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 24.4%. The historical growth can be ascribed to elements such as the increasing availability of biological data, the early adoption of bioinformatics, rising expenditures in drug development, the demand for more rapid diagnostics, and the expansion of genomics research.
The AI in biotechnology market size is set for substantial expansion over the next few years. It is forecast to grow to $16.32 billion in 2030, demonstrating a compound annual growth rate (CAGR) of 24.1%. This anticipated increase during the forecast period can be attributed to enhancements in machine learning algorithms, the wider adoption of precision medicine, rising AI investment in life sciences, the requirement for cost-efficient drug development, and the integration of AI with laboratory automation. Significant trends expected during this period include AI-driven drug discovery, predictive genomics analysis, automated clinical trial optimization, AI-enabled diagnostics, and data-centric personalized medicine.
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AI In Biotechnology Market Demand Drivers: What’s Powering Industry Growth?
The escalating integration of AI is set to propel the expansion of the AI in biotechnology market moving forward. Artificial intelligence (AI) is defined as the simulation of human cognitive processes by machines, especially computer systems, to execute functions such as learning, reasoning, and problem-solving. The growing embrace of AI is driven by its capacity to improve efficiency, accuracy, and decision-making across diverse industries, exemplified by its ability to automate intricate data analysis with consistent precision. In the biotechnology domain, AI plays a beneficial role by accelerating the discovery of drugs, optimizing research workflows, and enabling sophisticated predictive modeling for enhanced healthcare outcomes. For instance, a report from October 2024 by the UK-based government agency, the Department for Science, Innovation & Technology (DSIT), highlights the significant adoption of AI in 2023, reflecting a 17% rise in the number of AI companies (+543), a 34% surge in AI-related revenues (+£3.6 billion), a 29% increase in employment (+14,500), and a nearly 57% jump in gross value added (GVA) (+£2.1 billion) compared to the 2022 report. Thus, the increasing adoption of AI is fundamentally driving the growth of the AI in biotechnology market.
AI In Biotechnology Market Segment Analysis And Revenue Potential
The AI in biotechnology market covered in this report is segmented –
1) By Component: Software, Hardware, Services
2) By Application: Drug Discovery And Development, Clinical Trials And Optimization, Medical Imaging, Diagnostics, Other Applications
3) By End User: Pharmaceutical Companies, Biotechnology Companies, Academic And Research Institutes, Healthcare Providers, Contract Research Organization (CRO) And Contract Development And Manufacturing Organization (CDMO), Other End Users
Subsegments:
1) By Software: AI-Powered Data Analytics Tools, Machine Learning Algorithms, Bioinformatics Software, Drug Discovery Platforms, Clinical Trial Management Software
2) By Hardware: High-Performance Computing (HPC) Systems, AI-Integrated Imaging Devices, Data Storage Solutions, Laboratory Automation Equipment, Wearable Health Monitoring Devices
3) By Services: AI Implementation And Integration Services, Consulting And Training Services, Cloud-Based AI Solutions, Maintenance And Support Services, Custom AI Model Development
AI In Biotechnology Market Innovation Trends: What Developments Are Reshaping The Industry?
Leading companies active in the AI in biotechnology market are focusing on developing technological advancements, such as AI-driven antibody discovery platforms, to gain a competitive edge. An AI-powered antibody discovery platform is a technologically advanced system that utilizes artificial intelligence to quickly identify and refine therapeutic antibodies, thereby enabling more rapid and cost-efficient drug development and better biopharmaceutical outcomes. For instance, in February 2023, AION Labs, an Israel-based venture studio, introduced DenovAI, a platform specifically designed for the de novo discovery of therapeutic antibodies. This innovative solution combines machine learning with computational biophysics to identify high-affinity antibody candidates with improved precision, broader sequence diversity, and notably reduced development timelines. DenovAI signifies a groundbreaking advancement in biotechnology, facilitating quicker, more economical drug discovery and enhancing the potential for clinical success across a wider variety of diseases.
AI In Biotechnology Market Key Players Shaping Industry Direction
Major companies operating in the AI in biotechnology market are Google LLC, Pfizer Inc., Johnson & Johnson Services Inc., F. Hoffmann-La Roche Ltd., International Business Machines Corporation (IBM), Bayer AG, Sanofi S.A., Bristol-Myers Squibb Company, AstraZeneca Plc, Abbott Laboratories, Novartis AG, Roivant Sciences Ltd., Gilead Sciences Inc., NVIDIA Corporation, Amgen Inc., Novo Nordisk A/S, Merck KGaA, Biogen Inc., CareDx Inc., Clario Inc., BenevolentAI Limited, Recursion Pharmaceuticals Inc., Insilico Medicine Inc., Genesis Therapeutics Inc.
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AI In Biotechnology Market Regional Analysis: Which Geography Leads On Revenue?
North America was the largest region in the AI in biotechnology market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in biotechnology market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
