The global artificial intelligence (AI)-based biotechnology market is expected to grow 6.5 times in 11 years and reach approximately 34 trillion won by 2035. Analysts predict that the introduction of machine learning and data analysis technologies will accelerate as demand for research and development (R&D) overall, including new drug development, increases.
According to the “Current status and outlook of the global AI-based biotechnology market” released by the Korea Biotechnology Industry Corporation on the 8th, the AI-based biotechnology market is expected to reach $22.7 billion (33,582.4 billion won) by 2035, and will reach $3.5 billion (5,177.9 billion won) in 2024, growing at an average annual growth rate. 18.5% over the 11 years to 2035.
The AI-based biomarket includes technologies that utilize AI in various fields such as new drug development, genomics, and personalized medicine. There is a growing trend of deploying machine learning and data analytics technologies to increase R&D efficiency. A notable AI-driven drug development company is Hong Kong-listed Insilico Medicine.
The report states that rising R&D investments and increasing focus on cost-effective processes for new drug development will drive market growth. Increased demand for government policy support and data standardization is also expected to be a positive factor. On the other hand, it was confirmed that high introduction costs, lack of skilled experts, and limited awareness levels at research sites are constraints on market growth.
By function, research and development accounted for the largest share. In 2024, it will reach 1.4 billion dollars (2,071.2 billion won), accounting for 39% of the total. This was driven by the expansion of personalized medicine, laboratory automation, and advances in predictive analytics technology. The sector is expected to grow at an average annual rate of 19.7% and reach $9.9 billion (14,646.1 billion won) by 2035.
By region, North America will form the largest market at $1.5 billion in 2024, accounting for 42.6% of the total. This was followed by Europe (28.2%) and Asia-Pacific (22.4%).
The Asia-Pacific region is expected to have the highest growth rate in the future. The regional market is expected to expand from $800 million (1,183.5 billion won) in 2024 to $5.7 billion (8,432.6 billion won) by 2035 at an average annual growth rate of 19.7%. Growth drivers include a boost in AI-based drug development, policy support, increased foreign investment, and an increase in the number of startups.
North America and Europe are also expected to grow at average annual growth rates of 17.9% and 18.9%, respectively, and expand to $9.2 billion (13,608.6 billion won) and $6.6 billion (9,762.7 billion won) by 2035. The Latin American, Middle East, and African markets are expected to expand to $900 million (1,331.3 billion won) and $400 million (591.7 billion won). each over the same period of time.
