The global artificial intelligence (AI)-based bio market is projected to grow 6.5-fold over 11 years to reach approximately 34 trillion won by 2035. Analysts expect the adoption of machine learning and data analytics technologies to accelerate as demand expands across research and development (R&D), including new drug development.
According to a brief titled "Status and Outlook of the Global AI-Based Biotechnology Market" published by the Korea Biotechnology Industry Organization on the 8th, the AI-based biotechnology market is expected to reach $22.7 billion (33.5824 trillion won) by 2035. The market, valued at $3.5 billion (5.1779 trillion won) in 2024, is forecast to grow at a compound annual growth rate of 18.5% over 11 years through 2035.
The AI-based bio market encompasses technologies that utilize AI across various fields including new drug development, genomics and personalized medicine. The adoption of machine learning and data analytics technologies to enhance R&D efficiency is an expanding trend. A notable AI-driven drug development company is Insilico Medicine, listed in Hong Kong.
The report found that expanding R&D investment for new drug development and growing interest in cost-efficient processes will drive market growth. Government policy support and rising demand for data standardization are also expected to serve as positive factors. On the other hand, high adoption costs, a shortage of skilled professionals and limited awareness levels at research sites were identified as constraints on market growth.
By function, R&D accounted for the largest share. It represented 39% of the total in 2024 at $1.4 billion (2.0712 trillion won). This was driven by the expansion of personalized medicine, laboratory automation and advances in predictive analytics technology. The segment is expected to grow at an annual average rate of 19.7% to reach $9.9 billion (14.6461 trillion won) by 2035.
By region, North America formed the largest market with $1.5 billion in 2024, accounting for 42.6% of the total. Europe (28.2%) and Asia-Pacific (22.4%) followed.
Asia-Pacific is the region expected to post the highest growth rate going forward. The regional market is forecast to expand from $800 million (1.1835 trillion won) in 2024 at a compound annual growth rate of 19.7% to $5.7 billion (8.4326 trillion won) by 2035. Growth drivers include the activation of AI-based drug development, policy support, increased foreign investment and a rising number of startups.
North America and Europe are also expected to grow at annual average rates of 17.9% and 18.9%, respectively, expanding to $9.2 billion (13.6086 trillion won) and $6.6 billion (9.7627 trillion won) by 2035. The Latin American and Middle East and Africa markets are projected to expand to $900 million (1.3313 trillion won) and $400 million (591.7 billion won), respectively, over the same period.