AI in Genomics Market Size (2024 – 2030)

The AI in Genomics Market recorded a valuation of USD 343.09 million in 2023 and is poised to attain USD 4759.27 million by 2030. Projections indicate a remarkable Compound Annual Growth Rate (CAGR) of 45.6% throughout the forecast period. Artificial intelligence stands to expedite and mitigate risks in pharmaceutical production, facilitating enhanced exploration of complex ailments at the genetic level by healthcare professionals. Forecasts suggest further escalation in the AI in genomics market, driven by the emergence of innovative and efficacious solutions for illness diagnosis and monitoring.

INDUSTRY OVERVIEW

Genomics, a scientific discipline concerned with the study of genes, their functionalities, and the mapping, structure, and evolution of genomes in living organisms, plays a pivotal role in understanding human biology. Genetic testing is instrumental in discerning illness susceptibility, drug response patterns, and broader human biological traits. Genomics research encompasses various facets including structural and functional analysis, DNA sequencing, bioinformatics for sequencing, and recombinant DNA techniques. Artificial intelligence (AI) finds application in genomics through the development of computer systems capable of tasks like genome mapping, facilitating expedited exploration of genetic material's structure, evolution, and functionalities beyond human capabilities. Clinical genomics harnesses AI algorithms for genomic analysis encompassing genome annotation, variant calling, and phenotype-to-genotype correlations. Additionally, AI methodologies enhance the accuracy of predicting protein structures or DNA data with minimal manual intervention.

The pharmaceutical and healthcare sectors, particularly in precision medicine and drug discovery domains, leverage services from the global artificial intelligence in genomics industry. Employing diverse technologies such as computer vision and machine learning, these solutions find utility in healthcare diagnostics and can streamline arduous processes within drug development pipelines. The services and software offerings by participants in the global artificial intelligence in genomics market aim to automate or intelligently manage labor-intensive processes in drug development.

The imperative to control costs and timelines associated with pharmaceutical research and development is a driving force propelling the artificial intelligence in genomics industry forward. The global artificial intelligence in genomics market is anticipated to burgeon in the projected period as demand intensifies to curtail discovery costs and timeframes in new drug development endeavors. Despite the promising trajectory, challenges such as a scarcity of proficient professionals adept in AI technologies and the presence of ambiguous and stringent regulatory frameworks governing medical software tools and platforms may impede the market's growth trajectory in forthcoming years.

COVID-19 IMPACT ON AI IN THE GENOMICS MARKET

The COVID-19 outbreak catalyzed favorable growth dynamics within the healthcare sector. Moving forward, technological advancements, cost containment imperatives, and enhanced access to medical systems are anticipated to constitute key facets of healthcare reforms. Amid the ongoing pandemic, digital health and telemedicine have emerged prominently, underscoring the significance of remote diagnosis, care, and consultations. Regulatory and behavioral impediments notwithstanding, telehealth is poised for expansion in the coming years, driven by heightened adoption of video conferencing and telephonic consultations. The pandemic necessitated remote consultations, alleviating strain on overburdened healthcare facilities. At-home medical IoT devices are leveraged to optimize outpatient care, reduce revisits, and potentially address crises. The resource strain induced by the pandemic is expected to foster competitive and value-based pricing structures, thereby bolstering the AI in genomics market.

MARKET DRIVERS:

The escalating imperative to reduce costs and timeframes in drug development serves as a primary market driver for AI in Genomics.

In drug discovery and development, conventional in vivo and in vitro techniques are not only time-intensive but also costly. Artificial intelligence offers a promising avenue for expediting drug discovery processes, potentially yielding substantial time and cost savings. Consequently, AI in genomics is gaining traction as a viable solution for drug discovery endeavors, harnessing large datasets to expedite the identification of novel therapies compared to conventional approaches, thereby fueling market expansion.

The uptick in disease incidences such as cancer, diabetes, alongside the growing adoption of AI solutions in precision medicine, is fostering market growth.

Genomic testing enhances public awareness of genetic disorders while furnishing personalized insights into health, disease susceptibilities, and related factors. Technological advancements coupled with the rising prevalence of diverse genetic disorders including diabetes, cancer, cystic fibrosis, and Alzheimer's disease are driving global market growth. Anticipated advancements in real-time drug discovery, diagnostic technologies, and therapeutic interventions are expected to underpin market expansion. Consumers stand to adopt proactive healthcare approaches facilitated by this technology, with DNA sampling becoming routine, non-invasive, and prompt. Market growth is further fueled by heightened consumer awareness, disposable incomes, augmented healthcare spending, and increasing acceptance of personalized medicine for genetic disorders.

MARKET RESTRAINTS:

Rigorous regulatory frameworks governing the development and deployment of medical software tools and platforms pose a significant hurdle to artificial intelligence in the genomics market.

The sluggish approval processes and stringent regulatory environments surrounding the development and deployment of medical software tools and platforms worldwide are key impediments to market growth. Given the specialized nature of the genomics market, products must undergo rigorous standardization and quality testing procedures. Regulatory authorities enforce stringent norms and standards for approving products or drugs, leading to prolonged quality assurance and standardization processes that impede overall market growth.

The dearth of skilled workforce in the genomics market is poised to hinder market growth.

The burgeoning AI in genomics industry may encounter significant recruitment challenges, particularly in nascent industry segments like regenerative medicine. The persistent demand for skilled personnel and expertise remains a foundational requirement within the field. The scarcity of adequately trained professionals is anticipated to worsen, posing a substantial restraint to market expansion.

AI IN THE GENOMICS MARKET- BY OFFERING

• Software
• Services
• Consumables

Segmented by offering, the AI in the genomics market comprises Software, Services, and Consumables. Among these, the Consumables sector held the largest market share in 2021. This dominance is attributed to the widespread utilization of consumables in genomic systems, a trend expected to continue as genetic testing worldwide increases. The Software segment is also forecasted to witness significant expansion. This growth is fueled by the deployment of AI as software, capable of emulating and sometimes surpassing human intellect, particularly as researchers increasingly rely on artificial intelligence and machine learning to uncover vital correlations within complex genetic data.

AI IN GENOMICS MARKET- BY TECHNOLOGY

• Machine Learning
• Computer Vision

In terms of technology, the AI in genomics market is categorized into Machine Learning and Computer Vision. The Machine Learning segment notably led the global market in 2021 and is projected to maintain a higher compound annual growth rate (CAGR) throughout the forecast period. This dominance stems from the vast amount of data generated by genomics, with most bioinformatics algorithms employing machine learning techniques to discern patterns and predict outcomes. Moreover, the adoption of machine learning in pharmaceutical and biotechnology sectors for drug-genomic applications, facilitating information retrieval from extensive datasets, complements genomic research, thereby positively influencing market trends.

AI IN THE GENOMICS MARKET- BY APPLICATION

• Genome Sequencing
• Gene Editing
• Gene Mapping

Categorized by application, the AI in genomics market encompasses Genome Sequencing, Gene Editing, and Gene Mapping. Genome sequencing notably occupied the largest share of the genomics market in 2021. The benefits offered by sequencing technologies, including ultra-high throughput, scalability, and speed, empower researchers across various domains, driving demand, particularly in areas such as animal breeding, agriculture, and human genomics. Additionally, the Gene Editing segment is poised to gain significant market traction in the near future. Advancements in gene therapy are anticipated to supplant conventional treatments and medications, enabling disease treatment by introducing genes into patients' cells, marking a significant breakthrough in the genomics market.

AI IN THE GENOMICS MARKET- BY END-USER

• Pharmaceutical Companies
• Research Bodies

Segmented by end-user, the AI in the genomics market includes pharmaceutical companies and research bodies, with the former contributing the most to market share. This growth is primarily attributed to the ability of artificial intelligence to expedite development processes and mitigate risks in pharmaceutical production, facilitating in-depth studies of complex diseases at the genetic level. Further advancement in illness diagnosis and monitoring solutions is expected to fuel market expansion, as AI aids in the efficient and secure analysis of critical medication research data. The increasing prevalence of diseases such as cancer and genetic disorders, coupled with the imperative to reduce medication development time and costs, is poised to drive growth in this segment.

AI IN GENOMICS MARKET- BY REGION

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East
• Africa

Regionally, the AI in the genomics market is segmented into North America, Europe, Asia Pacific, and the rest of the world. North America emerged as the dominant regional market in 2021, accounting for the largest market share at 45.19%, a trend expected to persist in the forecast period. This dominance is attributed to increased funding and government initiatives aimed at fostering industrial research. Additionally, efforts and investments in precision medical practices in the United States are anticipated to bolster market growth. Technical advancements lowering sequencing costs have heightened interest in personal genome sequencing, further propelling market growth. North America's position as a leading AI marketplace sets a precedent for global adoption in genomics and medical diagnostics, with increased utilization of AI in genome sequencing and rising awareness among local pharmaceutical and biotechnology organizations anticipated to drive market growth.

The Asia Pacific region presents significant growth potential in consumer genomics due to increased genetic awareness and long-term research funding availability. It is anticipated to exhibit a higher compound annual growth rate (CAGR) in the coming years, with new market entrants further boosting regional market expansion.

AI IN GENOMICS MARKET- BY COMPANIES

Key players in the AI in genomics market include:

1. DNAnexus Inc.
2. Lifebit
3. Empiric Logic
4. Microsoft
5. MolecularMatch Inc.
6. Sophia GENETICS
7. Cambridge Cancer Genomics
8. Data4Cure Inc.
9. Genoox Ltd.
10. Diploid
11. Engine Biosciences Pte. Ltd.,
12. IBM
13. NVIDIA Corporation
14. Benevolent AI
15. Verge Genomics.

NOTABLE HAPPENINGS IN AI IN THE GENOMICS MARKET

• FUNDING- In March 2022, DNAnexus secured a $200 million investment from Perceptive Advisors, Innovatus Capital Partners, Foresite Capital, Northpond Ventures, and Alphabet's GV to develop a genetic data analytics platform.
• COLLABORATION- In October 2021, Eurofins Genomics and PoolbegPharma collaborated to conduct next-generation RNA sequencing of RSV (respiratory syncytial virus) illness progression samples from human viral challenge experiments.
• COLLABORATION- In July 2021, Verge Genomics partnered with Eli Lilly for a three-year collaboration focused on researching and developing novel medications for amyotrophic lateral sclerosis (ALS), leveraging Verge's all-in-human platform to identify and create novel ALS targets.
• COLLABORATION- In October 2020, NVIDIA Corporation collaborated with GSK to enhance vaccination and drug discovery processes using NVIDIA's platform, particularly benefiting GSK's AI department in the United Kingdom.