Global AI in Drug Repurposing Market Size Likely to Grow at a CAGR of 23.4% By 2035

The global market size of AI in drug repurposing is USD 1.28 billion in 2025 and the market size is forecast to grow to USD 1.51 billion in 2026 and USD 10.56 billion by 2035 at an annual CAGR of 23.4% from 2026 to 2035.

AI in Drug Repurposing Market Revenue and Trends

The AI in Drug Repurposing Market is a substantial part of the global healthcare & pharmaceuticals industry and it's primarily driven by the growing need for the drug discovery acceleration and cost reduction. With the prevalence of rare diseases and chronic diseases becoming higher, the demand for swift and effective identification of existing drugs for the purpose of their use in new treatment areas is growing. AI-powered platforms allow researchers to delve into large amounts of data, predict the success rate of certain drug candidates and identify potential drug targets more effectively, and thereby enhancing success rates.

The integration of AI with clinical trial data, biomedical data and real-world data is further empowering the decision-making and streamlining of drug repurposing procedures. Innovation in technology, rise in funding for AI-driven solutions, and increased collaborations between pharmaceutical and technology companies will likely escalate the market growth to a new level. The market growth is further influenced by favorable regulatory environments and an increasing shift toward personalized medicine.

Which have been the major drivers behind the huge growth of the AI in Drug Repurposing Market?

The AI in Drug Repurposing Market is mainly fueled by growing needs of decreasing drug discovery period and development costs. With growing instances of chronic, rare and infectious diseases, a great need for discovery of an effective therapy at a greater pace has led to an increase in the AI market to help in analysis of huge data of biological and clinical parameters. The new applications of already known drugs can be efficiently found with more precision and accuracy than previously before by using artificial intelligence. Also, the development of an extensive collaboration between big pharmaceutical and technology firms, along with increasing use of data driven approach will lead to increase in the market

Also, technological advancement with in the field of machine learning, big data, clinical and real world data analysis are increasing the functionalities of the drug repurposing platform. With increasing investment on artificial intelligence based healthcare system, regulatory guidelines, and a paradigm shift towards a data-centric and precision-medicine approach, these are increasing the demand. The ever growing development in artificial intelligence algorithms, increasing healthcare infrastructure with particularly a boost in developing nations is expected to provide good growth in long term.

Segment Insight

By Component

Software & Platform dominates the AI in Drug Repurposing market share since they serve as the backbone of AI driven drug discovery through enabling integration of data, developing predictive models and identifying potential repurposing of existing drugs. These platforms are extensively adopted by pharma and biotech companies, resulting in reduced cost and rapid drug development. The Services market also registers robust growth and is attributed to rise in demand for consulting, implementation, and support services required for smooth integration and adoption of AI solutions into drug repurposing processes.

By Technology

Machine Learning Algorithms accounts for the largest share in AI in Drug Repurposing market share with a strong capability to analyze huge volumes of data and identify trends, enabling development of accurate predictive models. NLP is also anticipated to witness significant growth since it plays a pivotal role in extracting relevant information from the unstructured data, thus improving decision making.

By Application

The oncology sector held the largest market share owing to the higher incidence of cancer globally and thus the dire need to discover novel therapeutics at faster rates. Neurology and Cardiology sector hold significant share as there is a significant increase in cases of these diseases. Infectious Diseases sector is witnessing rapid growth post the global health crisis outbreak. Rare & Orphan Diseases segment is expected to be the fastest growing sector owing to less number of alternatives available and cost efficient development processes by AI whereas the other applications follow a consistent growth trend.

By Region

North America accounted for the highest market share owing to superior healthcare infrastructure and strong adoption rate of technology and proliferation of pharmaceutical and biotech companies. The Europe follows with a steady growth rate due to growing investments and initiatives to facilitate the use of AI in healthcare sector. The Asia Pacific is poised for the fastest growth rate owing to booming investments in healthcare, increasing adoption of AI, and flourishing pharmaceutical sector of countries like China and India. Latin America and Middle East & Africa are estimated to grow at a moderate growth rate owing to the upgradation of health care infrastructure and awareness level of AI based solution development in the respective regions.

Report Scope

Recent Developments

• In January 2024 BioXcel Therapeutics Inc announced it would further invest in its AI driven drug repurposing platform, aiming to boost machine learning functions and clinical data incorporation for accelerated new therapeutic area discovery and a reduction in drug development efficiency.

List of the prominent players in the AI in Drug Repurposing Market:

• BostonGene Corporation

• BenevolentAI

• Innophore

• Delta4.ai

• BioXcel Therapeutics Inc.

• BullFrog AI Holdings Inc.

• Graphwise

• Owkin Inc

• Insilico Medicine

• Healx.

• Others

The AI in Drug Repurposing Market is segmented as follows:

By Component

• Software & Platforms

• Services

By Technology

• Machine Learning/Deep Learning

• Natural Language Processing (NLP)

• Knowledge Graphs & Network-Based AI

• Generative AI & Large Language Models (LLMs)

• Computer Vision

By Application

• Oncology   

• Neurology

• Cardiology

• Infectious Diseases

• Rare & Orphan Diseases       

• Other

Regional Coverage:

North America

• U.S.

• Canada

• Mexico

• Rest of North America 

Europe

• Germany

• France

• U.K.

• Russia

• Italy

• Spain

• Netherlands

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• New Zealand

• Australia

• South Korea

• Taiwan

• Rest of Asia Pacific 

The Middle East & Africa

• Saudi Arabia

• UAE

• Egypt

• Kuwait

• South Africa

• Rest of the Middle East & Africa

Latin America

• Brazil

• Argentina

• Rest of Latin America