AI in Cancer Drugs Market Sizing, Value Chain Analysis and Competitive Strategies

The AI in cancer drugs market is growing due to its ability to accelerate drug discovery and optimize personalized treatment strategies, reports Towards Healthcare a sister firm of Precedence Research.

Ottawa, Oct. 01, 2025 (GLOBE NEWSWIRE) -- The global AI in cancer drugs market is rapidly growing and is expected to see significant revenue increases, potentially reaching hundreds of millions between 2025 and 2034. Advances in technology and evolving customer needs are driving this transformation in the market.

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Key Takeaways

North America registered dominance in the market in 2024.
Asia-Pacific is expected to be the fastest-growing region during 2025-2034.
By component, the software segment led the AI in cancer drugs market in 2024.
By component, the services segment is expected to witness rapid expansion during the forecast period.
By technology, the machine learning segment held a major revenue share of the market in 2024.
By technology, the deep learning segment is expected to register the fastest growth in the predicted timeframe.
By application, the drug discovery segment was dominant in the AI in cancer drugs market in 2024.
By application, the precision medicine segment is expected to grow at the fastest CAGR in the studied years.
By cancer type, the breast cancer segment registered dominance in the market in 2024.
By cancer type, the lung cancer segment is expected to be the fastest-growing in the coming years.
By end user, the pharmaceutical & biotech companies segment dominated the market in 2024.
By end user, the contract research organizations (CROs) segment is expected to grow rapidly during 2025-2034.

What is the AI in Cancer Drugs?

In 2025, the wider adoption of AI algorithms is expected in a variety of drug developments, including cancer drugs. For this, the global AI in cancer drugs market is boosting developments in molecular modeling, simulation techniques, and the detection of new molecules, consisting of anti-tumor and antibodies, with the investigation of mechanisms of drug toxicity. AI is widely merged in evolving personalized medicines, where technologies, such as IBM Watson for Oncology, are employed to assist customized therapy in the analysis of mutations to recommend targeted treatments.

What are the Key Drivers in the AI in Cancer Drugs Market?

The global market is mainly driven by the broader advantages of AI and machine learning in offering rapid, robust drug discovery, precision medicine, and earlier cancer detection. The emergence of AI-powered enhancements of clinical trials, supply chains, and production processes is accelerating scalability and effectiveness, while adaptable regulatory environments in regions like North America expand the adoption of AI-enabled solutions.

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What are the Major Trends in the AI in Cancer Drugs Market?

AI-enabled approaches are encouraging the expansion of production facilities, drug discovery solutions, and repurposing, which ultimately enhances the market progression.

In September 2025, Delta Pharma Ltd, through its subsidiary Delta Life Science PLC, invested $100 million in a new facility at the National Special Economic Zone (NSEZ) for biopharma, oncology, and AI-enabled production.
In July 2025, Predictive Oncology made $10 million share purchase agreement in partnership with Yorkville Advisors to advance AI-powered drug discovery and repurposing.
In July 2025, SandboxAQ and iOncologi collaborated to expand brain cancer treatment with AI-driven drug discovery for glioblastoma.

What is the Evolving Limitation in the Market?

The growing need for high-quality, comprehensive, and varied datasets is vital for training strong AI models. Whereas, required access to such data is challenging due to regulations like HIPAA and GDPR, and inconsistencies or incompleteness in available datasets can compromise model precision.

Regional Analysis

What Made North America Dominant in the Market in 2024?

North America’s AI in cancer drugs market accounted for the biggest revenue share in 2024. This regional market is mainly fueled by wider technological breakthroughs, a huge burden of cancer prevalence, and strategic investments. Recently, the National Cancer Institute has developed AI tools, such as the PERCEPTION model, which can support the analysis of complex data in the prediction of how individual cancer cells and tumors will respond to specific drugs or drug combinations.

For instance,

In February 2025, Datar Cancer Genetics introduced next next-generation multi-analyte, AI-enabled decision support platform for personalized treatment of difficult-to-treat cancers.

Why did the Asia Pacific Grow Significantly in the Market in 2024?

In the prospective period, the Asia Pacific is predicted to expand at a rapid CAGR in the AI in cancer drugs market. ASAP’s certain regions are facing a rise in instances of lung, breast, and gastric cancers, especially among the increasing geriatric population. Besides this, ongoing funding for AI startups and alliances among well-developed pharmaceutical companies and AI providers are also impacting the overall ASAP market progression. Recently, the National Cancer Centre Singapore jointly partnered with GE Healthcare to apply AI for data analytics and clinical workflow improvements, simplifying processes and expanding cancer trials in the region.

For instance,

In February 2025, China Medical University and Healthcare System partnered on AI-powered drug discovery and allogeneic CAR-T therapy, an innovative milestone in cancer treatment.

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AI in Cancer Drug Regulatory Landscape: Global Regulations

Country	Regulatory Body	Focused Areas	Notable Initiatives
U.S.	US FDA (United States Food & Drug Administration)	AI-Enabled Medical Device List	An AI-enabled companion diagnostic tool for non-small cell lung cancer, this device was granted Breakthrough Device Designation in April 2025.
China	NMPA (National Medical Products Administration)	Policies for AI-Driven Diagnostic Systems	The NMPA updated its registration guidance for chemical and biological drugs in 2025.
India	CDSCO (Central Drugs Standards Control Organization)	AI in Healthcare	IndiaAI Independent Business Division (IBD) collaboration with the National Cancer Grid (NCG), launched the Cancer AI & Technology Challenge (CATCH) Grant Program, with funding of ₹50 lakh per project.

Segmental Insights

By component analysis

Which Component Led the AI in Cancer Drugs Market in 2024?

The software segment captured a dominant share of the market in 2024. Due to the rising volume of complex data, the need for higher expenses in traditional discovery approaches, and continuous advances in computational power, support the widespread adoption of diverse software. In recent years, the AIDDISON and Insilico Medicine's tools have been designed for simplifying drug design, as well as the utilization of multi-omics data analysis platforms, like SOPHiA GENETICS, to customize treatment plans.

On the other hand, the services segment is anticipated to expand rapidly in the coming era. Different AI services are assisting in the identification of new drug targets, optimization of treatments, and expansion of clinical trials by studying huge biological and clinical datasets. Moreover, AI supports the enhancement of inventory, prospective demand, and prevents supply chain limitations for oncology drugs, particularly those with short shelf lives or specialized storage requirements. Also, machine learning is escalating the automation of visual inspections for defects in drug products or packaging, by complying with stricter oncology regulations.

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By technology analysis

How did the Machine Learning Segment Dominate the Market in 2024?

In 2024, the machine learning segment registered dominance in the AI in cancer drugs market. The segment is fueled by its broader application in drug repurposing, drug response prediction, improving immunotherapy, and virtual screening. The contribution of recent ML algorithms, such as RepCOOL, supports the detection of existing drugs that could be repurposed for novel cancer treatments, including finding novel GSK-3 inhibitors for acute myeloid leukemia.

Whereas the deep learning segment will register rapid growth during 2025-2034. This type of technology assists in the integration of multi-omics data, learning from biological networks, interpretation of models, and raw sequence analysis. The emerging developments are ReLeaSE, a tool that employs deep and reinforcement learning to evolve novel molecules and models, such as MoleGuLAR, which boosts molecules for properties like drug-likeness and binding affinity.

By application analysis

Why did the Drug Discovery Segment Lead the Market in 2024?

The drug discovery segment held a major revenue share of the AI in cancer drugs market in 2024. The accelerating expenses, prolonged timelines, and greater failure rates connected with traditional drug development processes are propelling the demand for AI solutions. In the last few months, Pfizer's partnered with PostEra for AI-powered small molecules and antibody-drug conjugates (ADCs), and AI is assisting the determination of patient eligibility for PARP inhibitors by identifying homologous recombination-deficient (HRD) cancer cells.

However, the precision medicine segment will register the fastest growth. A surge in groundbreaking approaches in drug development by examining complex biological and clinical data supports the development of highly personalized therapies. Involvement of AI systems, particularly IBM Watson for Oncology, assists in the analysis of a patient's genetic profile and medical history to recommend tailored treatment choices and enhance drug combinations. The contribution of AI-powered biomarker discovery, such as PathAI's platform, which fosters the detection of cancer biomarkers from pathology slides, and OncoXerna Therapeutics' Xerna platform.

By cancer type analysis

Which Cancer Type Dominated the AI in Cancer Drugs Market in 2024?

The breast cancer segment held the biggest share of the market in 2024. The growing breast cancer prevalence is promoting the use of digital mammography (DM), digital breast tomosynthesis (DBT), ultrasound, and MRI by facilitating large, complex datasets for AI to analyze. AI solutions are further helping the identification of HER2 status for anti-HER2 therapies or studying the advantage of endocrine therapies based on hormone receptor status. Recently, in 2025, Germany demonstrated that AI-based screening accelerated breast cancer detection rates by 17.6% as compared to traditional solutions.

Furthermore, the lung cancer segment is estimated to register rapid expansion. The emergence of AI-driven image analysis, like low-dose computed tomography (LDCT), further escalates early detection of pulmonary nodules that might otherwise be missed. The use of deep learning algorithms, especially Convolutional Neural Networks (CNNs), is increasingly efficient at the analysis of medical images, including CT scans and chest X-rays. The latest application of AI supports the extraction of "radiomic" features from imaging data to describe lesions, offering a "virtual biopsy" without invasive tissue sampling.

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By end user analysis

How did the Pharmaceutical & Biotech Companies Segment Lead the Market in 2024?

The pharmaceutical & biotech companies segment captured the largest share of the AI in cancer drugs market in 2024. The leading players range from large pharmaceutical companies with crucial investments to innovative biotech startups specializing in AI-enabled platforms. AI solutions in these companies are supporting improvements in drug design, manufacturing, and supply chains for robust effectiveness, and allowing personalized medicine customized to individual patient needs.

Whereas the contract research organizations (CROs) segment is predicted to expand fastest in the coming era. CROs are widely adopting AI in streamlining time-consuming processes, such as patient recruitment, data management, and trial design. This further results in rapid decisions, fewer errors, and lower expenditure for sponsors. The widespread contribution of AI in CROs is automating tasks, boosting clinical trials, and accelerating data analysis, with the latest developments emphasizing a human-AI collaborative model instead of AI replacement.

Recent Developments in the AI in Cancer Drugs Market

In September 2025, Beijing-based biotech unicorn METiS TechBio launched the world's first AI-driven nano delivery platform, NanoForge, an advancement supporting reprogrammable drugs.
In July 2025, Tevogen.AI introduced PredicTcell to minimize drug discovery timelines and expenses and expand into oncology for cancer research.
In January 2025, Tech investor and LinkedIn co-founder Reid Hoffman partnered with cancer researcher Siddhartha Mukherjee on an artificial-intelligence drug discovery startup to unveil $24.6 million of initial funding.

Browse More Insights of Towards Healthcare:

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The global cancer drug manufacturing market is also experiencing rapid growth, with revenues expected to increase significantly, reaching several hundred million dollars by the end of the forecast period (2025–2034).

The cellular immunotherapy market recorded a size of USD 11.33 billion in 2024, is projected to reach USD 13.87 billion in 2025, and could expand dramatically to nearly USD 85.78 billion by 2034, growing at a CAGR of 22.45% throughout the forecast timeline.

The cancer biopsy market is estimated at USD 30.81 billion in 2024, growing to USD 36.61 billion in 2025. By 2034, the market is projected to reach USD 163.29 billion, with a CAGR of 18.84% between 2025 and 2034.

The advanced liver cancer market is valued at USD 2.65 billion in 2024 and expected to reach USD 2.97 billion in 2025. Projections indicate growth to around USD 8.2 billion by 2034, at a CAGR of 11.94%.

The CDK4/6 inhibitors market is calculated at USD 11.38 billion in 2024 and anticipated to grow to USD 13.12 billion in 2025. By 2034, the market is projected to reach USD 46.96 billion, expanding at a CAGR of 15.34% over the forecast period.

The compounding chemotherapy market is valued at USD 5.34 billion in 2024, expected to increase to USD 5.68 billion in 2025, and projected to reach USD 9.97 billion by 2034, growing at a CAGR of 6.44%.

AI in Cancer Drugs Market Key Players List

EarlySign
Cancer Center.ai
Microsoft
FLATIRON HEALTH
PathAI, Inc.
Therapixel
Tempus AI, Inc.
Paige AI Inc.
Kheiron Medical Technologies Limited
SkinVision

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Segments Covered in the Report

By Component

Software
Services
Hardware

By Technology

Machine Learning (ML)
Natural Language Processing (NLP)
Computer Vision
Others

By Application

Drug Discovery
Drug Development
Clinical Trials
Precision Medicine
Diagnosis & Screening

By Cancer Type

Breast Cancer
Lung Cancer
Prostate Cancer
Colorectal Cancer
Others

By End User

Pharmaceutical & Biotech Companies
Healthcare Providers
Academic & Research Institutes
Contract Research Organizations (CROs)

By Region

North America
- U.S.
- Canada
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

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