Global Artificial Intelligence (AI) in Biotechnology Market Size, Share, and COVID-19 Impact Analysis, By Component (Software, Hardware, and Services), By Application (Drug Discovery & Development, Clinical Trials & Optimization, Medical Imaging, Diagnostics, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035.

Global Artificial Intelligence (AI) in Biotechnology Market Insights Forecasts to 2035

• The Global Artificial Intelligence (AI) in Biotechnology Market Size Was Estimated at USD 3.12 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 18.8% from 2025 to 2035
• The Worldwide Artificial Intelligence (AI) in Biotechnology Market Size is Expected to Reach USD 20.75 Billion by 2035
• Asia Pacific is expected to grow the fastest during the forecast period.

The global artificial intelligence (AI) in biotechnology market size was worth around USD 3.12 Billion in 2024 and is predicted to grow to around USD 20.75 Billion by 2035 with a compound annual growth rate (CAGR) of 18.8% from 2025 and 2035. Improvements in machine learning, more available biological data, increased demand for personalized medicine, governmental assistance, and requirements for rapid, economical drug discovery methods are Growing artificial intelligence (AI) in biotechnology market. 

Market Overview

The global artificial intelligence (AI) in biotechnology market refers to the integration of AI technologies with biotech processes to improve research, development, and production of biological products. AI applications in biotechnology include drug discovery, genomics, personalized medicine, diagnostics, and bioinformatics, improving efficiency and accuracy. Key strengths lie in AI’s ability to analyze vast datasets rapidly, predict molecular behavior, and optimize experiments, accelerating innovation. Opportunities arise with machine learning advancements, growth in healthcare adoption of AI, and surging demand for customized treatments.

Government support worldwide, including funding for research in AI, regulation, and public and private partnerships, supports market expansion even further. The market for artificial intelligence (AI) in biotechnology is driven by growing investment in biotech and AI, acute pressure to develop drugs faster, growth in genomic data, and awareness of how AI can revolutionize healthcare. 

Report Coverage

This research report categorizes the artificial intelligence (AI) in biotechnology market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the artificial intelligence (AI) in biotechnology market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the artificial intelligence (AI) in biotechnology market. 

Driving Factors

The artificial intelligence (AI) in biotechnology market is influenced by the increasing demand for rapid and efficient drug development and discovery drives AI adoption. The increasing availability of big biological datasets like genomic and proteomic data supports sophisticated machine learning applications. Increased investments by governments and the private sector in AI and biotech research further drive growth. Also, the necessity of precision healthcare and personalized medicine drives AI integration. Algorithmic and computing power technological growth, combined with biotech-AI firm collaborations, further drive market growth.

Restraining Factors

The issue of data privacy, very high implementation expenses, shortage of skilled personnel, complexities of integrating within current systems, as well as regulatory issues, hinder the adoption of AI across the entire biotechnology market.

Market Segmentation

The artificial intelligence (AI) in biotechnology market share is classified into component and application.

• The software segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the component, the artificial intelligence (AI) in biotechnology market is divided into software, hardware, and services. Among these, the software segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. This is due to the increased applications of AI in computational drug design, genomics analysis, and predictive modeling are fuelling biotech innovation. Solutions such as Schrödinger's software and AlphaFold increase R&D efficiency, while cloud-based AI integration into lab informatics offers scalable, high-throughput data analysis and simulation.

• The drug discovery & development segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. 

Based on the application, the artificial intelligence (AI) in biotechnology market is divided into drug discovery & development, clinical trials & optimization, medical imaging, diagnostics, and others. Among these, the drug discovery & development segment accounted for the largest share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. This is attributed to the rapid adoption of AI across molecular target identification, compound screening, and lead optimization. Generative AI is used by companies for de novo drug design, while machine learning is used for predicting compound efficacy and toxicity, lowering R&D expenses and accelerating the timelines for drug discovery.

Regional Segment Analysis of the Artificial Intelligence (AI) in Biotechnology Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the artificial intelligence (AI) in biotechnology market over the predicted timeframe.

North America is anticipated to hold the largest share of the artificial intelligence (AI) in biotechnology market over the predicted timeframe. North America worldwide AI in biotechnology market due to high demand for AI throughout life sciences, as well as by large pharmaceutical and biotech firms. American companies heavily invest in clinical trials and drug discovery, accelerating the adoption of AI. Specifically, approximately 19% of pharmaceutical revenue is spent on R&D. This concentration has led to the majority of new medicines being developed in the U.S. Also, rising investments by pharma organizations and clinical research institutions in AI solutions are credible to make North America retain its leadership in the global biotech AI market.

Asia Pacific is expected to grow at a rapid CAGR in the artificial intelligence (AI) in biotechnology market during the forecast period. The increasing investments by research companies in AI software and hardware to increase productivity and efficiency are driving the artificial intelligence (AI) in biotechnology market in the Asia Pacific. Top research organizations in the region are driving this growth. Japan, China, and South Korea are leading the AI development and adoption, with numerous other companies also considering advanced AI applications in various industries, including biotechnology and the aerospace sector.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the artificial intelligence (AI) in biotechnology market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• NVIDIA
• BenevolentAI
• AstraZeneca
• Illumina
• Recursion Pharmaceuticals
• Insilico Medicine
• Abbott Laboratories
• Biogen
• Novartis AG
• Bristol-Myers Squibb
• Schrödinger Inc.
• SOPHiA GENETICS
• Tempus
• Gilead Sciences
• Merck KGaA
• Others 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In June 2025, Insilico Medicine launched its Nach01 foundation model on AWS Marketplace, improving access to advanced AI tools for drug design. Nach01, a large language model processing structural and spatial data, combines strengths from previous models to tackle diverse chemical tasks within Insilico’s Pharma.AI Platform collaboration with AWS.

• In January 2025, Nvidia and Illumina partnered to combine genomics and AI for multi-omic data analysis in drug discovery and clinical research. Illumina’s DRAGEN software will run on Nvidia’s platforms, while Nvidia’s BioNeMo tools will be available on Illumina’s ICA platform, expanding global multi-omics access.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the artificial intelligence (AI) in biotechnology market based on the below-mentioned segments:

Global Artificial Intelligence (AI) in Biotechnology Market, By Component

• Software
• Hardware
• Services

Global Artificial Intelligence (AI) in Biotechnology Market, By Application

• Drug Discovery & Development
• Clinical Trials & Optimization
• Medical Imaging
• Diagnostics
• Others

Global Artificial Intelligence (AI) in Biotechnology Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa