Smart Life Sciences Market Share, Growth & Forecast [2031]

Report Description

The global smart life sciences market size was USD 18.64 Billion in 2022 and is likely to reach USD 62.56 Billion by 2031, expanding at a CAGR of 14.4% during 2023–2031. The market growth is attributed to the ­­need to increase efficiency, quality, and agility in the pharmaceutical manufacturing ecosystem by leveraging intelligent technologies such as virtual reality, data analytics, and artificial intelligence.

Smart life science is making disease prevention and treatments easier with evolving technology. The evolution of scientific practices with the implementation of AI and big data is making it possible for medical professionals to provide advanced treatments to patients. Data science and AI capabilities help pharmaceutical companies to conduct thorough analyses of living organisms through modern big data analytics tools and AI systems. This analysis helps researchers to create a predictive and prescriptive model for the targeted diseases and develop drugs with high efficacy rates. Emerging and fascinating innovations in the field of life science require professionals, thus the demand for smart life science is growing in healthcare.

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The pharmaceutical manufacturing ecosystem relies on comprehensive sets of data for drug development. Pharma and biotech companies deal with stringent compliances at every level including process validation, data integrity, and documentation. Biotech companies conduct analysis of living organisms and associated chemical compositions to deliver a high-quality product to consumers while optimizing the entire drug manufacturing and development workflow.

The pharmaceutical market players are focusing on adapting various smart technologies to achieve the ongoing digital transition. This can help companies to boost productivity through consistent process refinements, automating tedious tasks, and connecting digital & non-digital systems to organize workflows efficiently. The manufacturers make data-driven decisions with the help of real-time insights obtained through data analysis, machine learning, and AI.

• For instance, in August 2022, Accenture’s Life Sciences Technology Vision 2022 report reveals the technology trends that are expected to change the way biopharmaceutical and medical technology companies manufacture and device problems. The report states that life sciences leaders (91% of medical technology executives and 85% of biopharma executives) expect the metaverse to have a positive impact on their organizations and nearly half of the biopharma executives surveyed believe the metaverse will have a breakthrough or transformational impact on the organizations.

The Impact of Artificial Intelligence on the Smart Life Sciences Market

Artificial Intelligence has a significant impact on the smart life science market by providing real-time data. AI functions by reducing patient waiting times, and clinical decision-making, it further provides mobile alerts to inform nurses and doctors in case of any patient emergency. It further enables faster payments and provides accuracy in claims, hospitals are more confident about reimbursement time frames, which makes them more willing to accept a larger number of insurance plans. It helps in saving time and resources, artificial intelligence is boosting operations to save hours for other medical activities. Administrative errors are expected to be reduced with the implementation of AI, and SMEs are further involved in AI development helping to make the technology more informed.

However, it has potential risks in healthcare as well, as Artificial intelligence needs human surveillance. Certain AI robots need humans to operate on them during medical surgeries to prevent medical complications. It has created a potential threat to employment, as it is expected to result in job redundancy. A report from World Economic Forum 2018, AI is expected to create a net sum of 58 million jobs by 2022. However, the study further finds 75 million jobs can be destroyed by AI by the end of 2022 as AI is integrating into different sectors and repetitive tasks are going to be needless.

The COVID-19 pandemic accelerated the adoption of pharma 4.0 practices to deliver quality drugs and therapeutics fast without compromising quality. The vaccine programs were fast-paced during the pandemic due to policy pushes by governments and global healthcare institutions such as World Health Organization (WHO).  The biotech companies adopted smart life sciences practices to speed up vaccine development and drug discovery.

Smart Life Sciences Market Dynamics

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Major Drivers

The emergence of IoT to early diagnosis and rising adoption of pharma 4.0 practices by manufacturers to deliver quality products is expected to drive the market. Through early disease recognition, diseases such as cancer and other diseases are expected to be cured and prevented. The newly developed pill-shaped micro cameras also found the source of illness, thus the demand for IoT is increasing in life science which is propelling the market.  

Moreover, the smart life sciences framework helps biotech and pharma companies to achieve business objectives by accelerating drug development operations and reducing manufacturing costs with the help of digital tools.

Existing Restraints

The high cost of implementing and integrating digital technologies is likely to hinder the market. The high cost of designing digital devices and embedding the codes in the hardware components increases the overall cost of smart life sciences solutions. Moreover, potential data breach risks related to health care further restrain the market.

Emerging Opportunities

The emergence of telemedicine and digital therapeutics in healthcare is expected to create lucrative opportunities for the market. Telehealth can provide a platform to bring all parties together to share, collaborate, and innovate. It provides a large amount of patient data to accelerate performance across all aspects of the sector. Telemedicine solution industries are further collaborating with various pharma companies to revolutionize telemedicine for health-related issues.

• For instance, in July 2023, Blue Water Biotech, Inc., a biotechnology and pharmaceutical company focused on developing and commercializing transformational therapies to address significant health challenges globally, declared an agreement with UpScriptHealth to generate a rapid, online telemedicine platform to distribute Blue Water’s benign prostatic hyperplasia asset, ENTADFI.

Moreover, the rising adoption of smart life science frameworks by biotech companies for sustainable value creation through connectivity and visibility of potential data insights further creates opportunities for the market.  The smart life sciences framework allows real-time quality review of the drug development and manufacturing processes. The scientists and manufacturers leverage the data availed through data analytics to build predictive and analytical models for comprehensive drug development methods.

Scope of the Smart Life Sciences Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Smart Life Sciences Market Segment Insights

Technology Segment Analysis

Based on technology, the smart life sciences market is divided into Internet of Things (IoT), AR/VR Systems, Big Data, Cybersecurity, and Artificial Intelligence. The Internet of Things (IoT) segment is expected to expand at a significant growth rate during the projection period.  The adoption of IoT by major biotech companies to develop a data-driven and comprehensive manufacturing system is driving the segment. The number of IoT devices reached nearly 13 billion by 2022, it is expected to surpass the earth's population with integrated technology. IoT facilitates access to the network of computing devices interconnected via the internet helping biotech companies to exchange data. This data is used to discover novel treatments, optimize workflows in a manufacturing setup, and reduce costs.

The cybersecurity segment is projected to register a considerable CAGR during the forecast period. In pharma sectors and life science, there are threats of patient data or employee data being stolen, thus it is always important to encrypt those data. It helps in reducing data breaches and protects health data and other sensitive information.

• For instance, in July 2023, Sophos Announces a Partnership with Cysurance a next-generation risk mitigation company that insures, and certifies security solutions. The partnership provides unique, fixed-price cyber insurance to U.S.-based organizations using Sophos Managed Detection and Response (MDR). The policies are the first of their kind to recognize organizations for having a layer of threat detection and response services.

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Component Segment Analysis

On the basis of component, the global market is bifurcated into services and solutions. The solutions segment is projected to register a considerable CAGR during the forecast period due to the adoption of solutions-based systems by biotech companies to bring efficiency and flexibility to the manufacturing processes. The solutions-based services provide accurate, attributable, and contemporaneous data. This data is used for the quality management of the products and to reduce the overall operational costs. 

• For instance, in May 2023, Google Cloud announced two new AI-powered life sciences solutions to accelerate drug discovery and precision medicine for biotech companies, pharmaceutical firms, and others at the Bio-IT World Conference. The Target and Lead Identification Suite helps researchers better identify the function of amino acids and predict the structure of proteins and helps companies design precision treatments.

Application Segment Analysis

Based on application, the smart life sciences market is segmented into bio-pharma, medical devices, and pharma. The pharma segment is expected to register a robust growth rate during the forecast period due to the need for digital transformation in the pharmaceutical manufacturing ecosystems to efficiently organize and streamline development and manufacturing workflows. The pharma 4.0 framework reduces the operational complexities and manufacturing costs by monitoring end-to-end visibility in the pharmaceutical manufacturing ecosystem. Moreover, pharmaceutical companies are further partnering with organizations to provide free-of-cost services to patients.

• For instance, in November 2021, The World Health Organization (WHO) and the German multinational pharmaceutical and life sciences company, Bayer AG, renewed their collaboration that will expand treatment free of charge to hundreds of thousands of people against selected neglected tropical diseases (NTDs). 

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Regional Analysis

In terms of region, the global smart life sciences market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to the presence of strategic smart life solutions providers in the region. Healthcare service providers in the region are adapting smart life sciences practices to develop novel and targeted treatments with high rates of efficacy and affordability is expected to create new opportunities for the market.

• For instance, in May 2023, ValGenesis, Inc., the leader in enterprise validation lifecycle management systems (VLMS), and Life Science Consulting Pvt. Ltd., a reputed consulting and technology enabler to the life sciences industry, entered into a  partnership to offer best-in-class digital validation solutions to develop compliance and quality across life sciences disciplines such as production, information technology, and research and development (R&D).

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