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Artificial Intelligence In Drug Repurposing Market CAGR Analysis And Future Market Development
The market for artificial intelligence in drug repurposing has experienced explosive expansion over the past few years. It is projected to increase from $1.05 billion in 2025 to $1.27 billion in 2026, reflecting a compound annual growth rate (CAGR) of 20.3%. This past growth has been driven by escalating research and development expenses in pharmaceutical development, the availability of public biomedical datasets, the development of computational biology tools, the urgent need to accelerate therapy time-to-market, and a growing number of partnerships between pharmaceutical companies and AI startups.
The artificial intelligence market focused on drug repurposing is anticipated to undergo exponential expansion over the coming years. It is projected to reach $2.63 billion by 2030, registering a compound annual growth rate of 20.1%. This forecasted growth is driven by factors such as the expansion of AI-assisted clinical decision support, the growing application of generative AI for analyzing molecular properties, the urgent requirement for faster repurposing during health emergencies, the increased use of real-world evidence analytics, and heightened funding for precision medicine initiatives. Key developments anticipated during this period encompass AI-powered identification of drug-target interactions using multi-omics data, repurposing strategies based on knowledge graph exploration, faster virtual screening and trial simulations, federated learning enabling collaborative research across institutions, and explainable AI to support clinical decisions regarding repurposing.
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Artificial Intelligence In Drug Repurposing Market Industry Drivers: What Is Driving Revenue Growth?
The rising need for precision medicine is anticipated to boost the artificial intelligence in drug repurposing market moving forward. This approach to healthcare tailors illness prevention and therapy to a person’s unique genetic makeup, behaviors, and environmental factors. An increasing pursuit of customized treatments propels precision medicine forward, with patients and medical professionals more frequently opting for therapies crafted around individual genetic and lifestyle details to boost efficacy and minimize adverse effects. Drug repurposing powered by AI advances precision medicine by identifying current medications that match a person’s genetic or molecular profile, delivering more precise and individualized therapeutic options. As an example, in February 2024, the Personalized Medicine Coalition, a non-profit organization based in the US, reported that the FDA authorized 16 personalized treatments for rare diseases in 2023, a substantial increase from the six approvals given in 2022. Consequently, the expanding appetite for precision medicine is fueling the progress of the artificial intelligence in drug repurposing market.
Artificial Intelligence In Drug Repurposing Market Segment Analysis: What Are The Major Market Categories?
The artificial intelligence in drug repurposing market covered in this report is segmented –
1) By Component: Software And Platforms, Services
2) By Technology: Machine Learning Or Deep Learning, Natural Language Processing (NLP), Knowledge Graphs And Network-Based Artificial Intelligence, Generative Artificial Intelligence And Large Language Models (LLMs), Computer Vision
3) By Deployment: Cloud-Based, On-Premises
4) By Therapeutic Area: Oncology, Neurology, Cardiovascular Diseases, Infectious Diseases, Immunology, Metabolic Disorders, Rare Diseases
5) By End-User: Pharmaceutical And Biotechnology Companies, Contract Research Organizations (CROs), Academic And Research Institutes, Healthcare Providers, Other End-Users
Subsegments:
1) By Software And Platforms: Predictive Analytics Tools, Machine Learning Frameworks, Data Integration Systems, Drug Discovery Platforms, Clinical Trial Simulation Tools
2) By Services: Consulting Services, Data Management Services, Model Training And Optimization Services, Implementation And Integration Services, Support And Maintenance Services
#Artificial Intelligence In Drug Repurposing Market Growth Trends: What Is Influencing The Future Outlook?
Key players in the artificial intelligence for drug repurposing market are prioritizing the incorporation of advanced technologies into drug repositioning, notably through computational drug repositioning systems that leverage data-driven analysis of literature and biological information to methodically uncover new therapeutic uses for existing medications. Such a system is defined as a platform powered by artificial intelligence, machine learning, and data mining, enabling the systematic evaluation of current drugs, compounds, and biological data. To illustrate, in November 2023, Tempus, an American provider of AI-driven precision medicine, entered into a multi-year strategic collaboration with Recursion, a US-based clinical-stage biotechnology firm, with a total value reaching up to $160 million over five years. Under this agreement, Recursion gains access to Tempus’s extensive collection of de-identified, multimodal oncology data, which supports biomarker-informed therapeutic development. By combining Tempus’s large-scale patient datasets with Recursion’s AI-enhanced discovery capabilities, the partnership bolsters oncology drug repurposing efforts, showcasing how sophisticated computational platforms paired with real-world clinical evidence can speed up the identification of novel treatment possibilities.
Artificial Intelligence In Drug Repurposing Market Leading Companies Driving Competitive Growth
Major companies operating in the artificial intelligence in drug repurposing market are IBM Corporation, Evogene Ltd., Ginkgo Bioworks Holdings Inc., BioAge Labs Inc., Insilico Medicine Inc., BostonGene Corporation, ISOMORPHIC LABS, Recursion Pharmaceuticals Inc., Deep Genomics Inc., Healx Ltd., Owkin Inc., BullFrog AI Holdings Inc., Aicura Medical GmbH, Kantify, Ignota Labs Ltd., OrphAI Therapeutics, Nabla Bio, Atomwise Inc., BioXcel Therapeutics Inc., Graph AI.
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Artificial Intelligence In Drug Repurposing Market Leading Geography: Which Region Generates The Most Revenue?
North America was the largest region in the artificial intelligence in drug repurposing market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in drug repurposing 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.
