Next-Generation AI in Life Science Market Outlook to 2034: North America Leads, Drug Discovery Dominates, Generative AI Gains Ground

Next-Generation AI in Life Science: Market Outlook to 2034

Last Updated: 25 Sep 2025
Report Code: 6857
Category: ICT

What is the Next-Generation AI in Life Science Market?

AI-first platforms are reshaping how life sciences teams discover molecules, run trials, diagnose disease, and personalize care. Growth is fueled by demand for precision medicine, advances in compute and multiomics, and stronger policy support for AI adoption across discovery and development.

Vendors are scaling through new product launches, partnerships, and acquisitions. North America leads on adoption thanks to a well-developed healthcare system and the rising burden of chronic disease.

Key Takeaways

• North America held the largest share in 2024: 41.80%.
• Europe is projected to grow at a 27.90% CAGR (2025-2034).
• Drug discovery & development led by application with 32.40% share in 2024.
• Omics data analytics is the fastest-growing application at 11.30% CAGR.
• Machine learning led by technology with 29.60% share in 2024.
• Generative AI is projected at 12.50% CAGR (2025-2034).
• Pharma & biotech were the top end users with 41.20% share in 2024.
• Healthtech & AI startups are growing at 11.70% CAGR.
• Cloud-based deployment led with 52.80% share in 2024.
• Edge AI is expanding at 12% CAGR through the forecast period.

Market Overview

Next-generation AI in life sciences spans foundation models, multimodal learning, generative AI, self-supervised learning, and early quantum-AI hybrids. Impact shows up in cycle-time reduction, trial optimization, patient stratification, and lower costs across R&D and care delivery.

Strategic outcomes cited by adopters include faster time to market, better engagement, auditability, and measurable gains in protocol quality and trial performance.

Trends That Matter for R&D and Clinical Teams

• Pipeline pressure: AI for molecule design, target ID, repurposing, and in silico screening.
• Trial performance: AI for protocol design, site selection, patient matching, and dropout risk prediction.
• Precision medicine: Integrated genomics, clinical, imaging, and behavioral data for patient-specific decisions.
• Omics at scale: Genomics, proteomics, transcriptomics, and metabolomics analytics drive new biomarkers and stratification.
• Therapeutic breadth: Oncology, infectious disease, rare disease, cardiovascular, neuro, immunology, and metabolic disorders.
• Collaboration: Closer ties between AI teams and clinicians accelerate translation.
• Funding tailwinds: Public and private capital targeting AI-first discovery, diagnostics, and digital health.

Market Scope

• Dominating Region: North America
• Fastest Growing Region (scope note): Asia Pacific
• Base Year: 2024
• Forecast: 2025-2034
• Segments: Application Area, Technology Type, End User, Deployment Mode, Region
• Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

Note: Growth-rate estimates differ by dataset and modeling assumptions. Some analyses show Europe with the highest CAGR, while broader regional models point to Asia Pacific.

Market Dynamics

Drivers - Drug development and trials
AI models design new molecules from chemical and biological datasets, scoring for solubility, binding, and toxicity. Teams report faster hit-to-lead and lead optimization. In trials, AI improves recruitment, diversity, and retention via predictive matching and risk scoring. Reported impacts include up to 40% fewer protocol amendments and 25% higher enrollment.

Restraints - Integration and skills
Integrating AI with legacy workflows and data systems remains hard. Privacy, security, and a shortage of cross-trained experts in life sciences and AI slow execution and scale.

Opportunity - Precision medicine at scale
Pressure for individualized care is rising. AI that integrates genomics, EHRs, imaging, and behavior can reduce adverse events and guide therapy selection. Regulatory expectations from agencies such as FDA, EMA, HIPAA, and GDPR drive traceability and audit-ready pipelines from day one.

Segmental Insights

Application Area
Drug discovery & development led in 2024 with 32.40% share, driven by predictive modeling, repurposing, and in silico screening. Omics data analytics is the fastest-growing application at 11.30% CAGR as multiomics datasets expand and new biomarker programs mature.

Deployment
Cloud-based models held 52.80% share in 2024 due to scalability, collaboration, and compliance features across Azure, AWS, and Google Cloud. Edge AI is growing at 12% CAGR for on-device inference in diagnostics, monitoring, and decentralized trials.

Technology Type
Machine learning led with 29.60% share as teams apply supervised, unsupervised, deep learning, NLP, and CV to complex biological data. Generative AI is projected at 12.50% CAGR, accelerating molecule generation, synthetic data creation, and documentation workflows.

End User
Pharma & biotech held 41.20% share in 2024, using AI for target ID, molecule design, and patient-level personalization. Healthtech & AI startups show 11.70% CAGR, building specialized tools for discovery, trials, and clinical decision support.

Regional Insights

North America led with 41.80% share in 2024 on the back of advanced care delivery, leading research centers, and investment in AI-enabled discovery and precision medicine. Demand is amplified by aging populations and chronic disease prevalence.

Asia Pacific is projected as the fastest-growing region, with estimates around 11.2% CAGR. Government and private investments in biotech, genomics, and digital infrastructure, combined with growing medtech ecosystems and EHR/cloud maturity, support adoption.

Companies to Watch

• NVIDIA
• Google DeepMind
• Insilico Medicine
• Recursion Pharmaceuticals
• Exscientia
• BenevolentAI
• Owkin
• Atomwise
• PathAI
• Valo Health
• Tempus AI
• Aria Pharmaceuticals
• BioAge Labs
• IBM Watson Health
• Microsoft Azure AI for Health
• Genesis Therapeutics
• XtalPi
• Enveda Biosciences

Industry Updates

• Jan 2025 - Accenture launched AI Refinery for Industry with 12 agent solutions, built with NVIDIA AI Enterprise, to speed deployment of AI agents across sectors. Source
• Jun 2025 - IQVIA unveiled custom AI agents at GTC Paris using NVIDIA tech to enhance workflows and insights in life sciences. Source
• Jan 2025 - IQVIA and NVIDIA announced collaboration on foundation models and agentic AI to improve clinical development and launch planning. Source

Segments Covered

• Application Area
  • Drug Discovery & Development (target ID/validation, molecule screening & optimization, preclinical)
  • Clinical Trials (design, management)
  • Diagnostics (pathology & imaging analytics, disease risk scoring, genomic interpretation)
  • Precision Medicine (biomarkers, patient stratification, personalized treatment)
  • Medical Imaging & Radiology (enhancement, automated detection, radiomics)
  • Healthcare Operations (CDS, claims, workflow)
  • Remote Monitoring & Digital Therapeutics (wearables, behavioral interventions)
  • Omics Analytics (genomics, transcriptomics, proteomics, metabolomics)
  • Other: epidemiology, public health surveillance, AI for cell & gene therapy modeling
• Technology Type
  • Machine Learning (supervised, unsupervised, reinforcement, deep learning incl. CNNs, RNNs, transformers)
  • NLP (EHR notes, literature mining)
  • Computer Vision (imaging diagnostics, histopathology)
  • Generative AI (molecule generation, synthetic data, report drafting)
  • Knowledge Graphs & Ontologies
  • Federated & Privacy-Preserving AI
  • Explainable AI (XAI)
• End User
  • Pharmaceutical & Biotechnology Companies
  • CROs
  • Academic & Research Institutes
  • Hospitals & Providers
  • Diagnostics Labs
  • Medical Device Companies
  • Government & Regulators
  • HealthTech & AI Startups
• Deployment Mode
  • On-Premise
  • Cloud (public, private, hybrid)
  • Edge AI
• Region
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

FAQs

Who are the major players?
NVIDIA, Google DeepMind, Insilico Medicine, Recursion Pharmaceuticals, Exscientia, BenevolentAI, Owkin, Atomwise, PathAI, Valo Health, Tempus AI, Aria Pharmaceuticals, BioAge Labs, IBM Watson Health, Microsoft Azure AI for Health, Genesis Therapeutics, XtalPi, Enveda Biosciences.

What is driving growth?
Personalized medicine demand, advances in compute and multiomics, and a focus on clinical trial optimization.

Which region leads?
North America leads through the forecast window, with strong growth signals in Europe and Asia Pacific depending on the dataset.

Upskilling for R&D Teams

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