According to the report, the global AI-based drug repurposing market is projected to expand from USD 0.3 billion in 2025 to USD 2.2 billion by 2035, registering a CAGR of 23.1%, the highest during the forecast period. The AI-based drug repurposing market is growing as pharmaceutical companies invest more in AI-driven drug discovery, and multimodal biological data analytics are becoming more popular and strategic business partnerships are emerging between AI technology providers and biopharmaceutical companies.
Chronic diseases are on the rise and the need for quicker, cheaper drug development is driving market growth. For instance, in March 2026, Insilico Medicine entered into a strategic partnership with Eli Lilly worth up to $2.75 billion, utilizing its Pharma. platform.AI system to identify and develop several therapeutics.
Moreover, according to the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA), the biopharmaceutical sector spends over US$200 billion each year on research and development, driving the further adoption of AI in drug discovery and repurposing processes. The commercialization and adoption of AI drug repurposing solutions are gaining momentum globally, driven by increasing investments in AI and growing pharmaceutical partnerships.
Key Driver, Restraint, and Growth Opportunity Shaping the Global AI-based Drug Repurposing Market
Intellectual property limits continue to be a major hurdle for the AI-based drug repurposing market, especially for off-patent pharmaceuticals with limited market exclusivity. Reduced patent protection and pricing pressures can reduce commercial profits, limiting investment in repurposed initiatives with strong clinical potential.
The increasing focus on rare and orphan diseases presents a significant opportunity for AI-based drug repurposing. The ability to rapidly identify existing compounds for rare diseases using AI can cut development times and costs, and increased regulatory support and precision medicine advances are driving commercial use across underrepresented therapeutic areas.
Expansion of the Global AI-based Drug Repurposing Market
Expansion of AI-powered Precision Medicine and Biomarker-Driven Drug Repurposing
Regional Analysis of Global AI-based Drug Repurposing Market
Prominent players operating in the global AI-based drug repurposing market is BenevolentAI Limited, BioXcel Therapeutics Inc, BullFrog AI Holdings, Inc., Healx Limited, Insilico Medicine, Inc., Lantern Pharma Inc., Recursion Pharmaceuticals, Inc., Other Key Players.
The global AI-based drug repurposing market has been segmented as follows:
Global AI-based Drug Repurposing Market Analysis, By Component
Global AI-based Drug Repurposing Market Analysis, By Deployment Mode
Global AI-based Drug Repurposing Market Analysis, By Technology
Global AI-based Drug Repurposing Market Analysis, By Drug Type
Global AI-based Drug Repurposing Market Analysis, By Workflow
Global AI-based Drug Repurposing Market Analysis, By Therapeutic Stage
Global AI-based Drug Repurposing Market Analysis, By Application
Global AI-based Drug Repurposing Market Analysis, By End User
Global AI-based Drug Repurposing Market Analysis, By Region
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