A New Turning Point in Biotechnology Convergence: AI and Synthetic Biology Driving Healthcare Innovation in 2025

As of November 2025, the global biotechnology industry stands at the forefront of fundamental changes through the convergence of artificial intelligence and synthetic biology. According to McKinsey’s latest report, the global biotechnology market size grew by 12.9% from $833 billion in 2024 to $941 billion in 2025, and it is projected to maintain an average annual growth rate of 15.3%, reaching $2.4 trillion by 2030. The core drivers of this rapid growth are the commercialization of AI-based drug discovery platforms and the practical application of synthetic biology technologies.

A particularly noteworthy change is the shift in the traditional drug development paradigm. The average drug development period, which previously took 15 years, has been reduced to 7-10 years with the introduction of AI and machine learning technologies, and development costs have decreased by 31% from the previous $2.6 billion to an average of $1.8 billion. Recursion Pharmaceuticals, based in California, identified 147 new compounds using AI in the first half of 2025 alone, marking a 230% increase compared to the same period last year. The UK-based Exscientia reported in its recent third-quarter results that its AI-based drug pipeline expanded from 12 to 23.

Korea’s biotechnology ecosystem is also rapidly adapting to these global trends. According to the 2025 industry status report by the Korea Biotechnology Association, domestic biotech companies’ R&D investment increased by 28.4% year-on-year, reaching 4.21 trillion won, with AI and digital bio sectors accounting for 34% of this investment. Samsung Biologics announced in October 2025 that it had introduced an AI-based biopharmaceutical manufacturing optimization system, improving production efficiency by 22%.

In the field of synthetic biology, even more innovative advancements are being made. This technology involves the engineering and construction of biological systems, bringing innovation to various fields such as pharmaceuticals, chemicals, fuels, and food. According to Boston Consulting Group’s analysis, the global synthetic biology market grew by 21% from $39 billion in 2024 to $47.2 billion in 2025, and it is expected to continue its high growth with an average annual growth rate of 25.2%, reaching $145 billion by 2030.

Commercial Success and Market Dynamics of AI-Based Drug Development

One of the most notable cases in the field of AI-based drug development is DeepMind (a Google subsidiary) in California and Isomorphic Labs in London, UK. As of 2025, DeepMind’s AlphaFold 3 has predicted over 200 million protein structures, improving the success rate of drug candidate discovery by 3.7 times compared to previous methods. Isomorphic Labs has demonstrated the commercial value of AI drug development by entering into partnerships worth a total of $3 billion with Novartis (Switzerland) and Eli Lilly (Indiana, USA) this year.

A significant change in the competitive landscape is the acceleration of mergers and acquisitions of AI biotech companies by traditional pharmaceutical giants. Pfizer (New York, USA) expanded its total investment to $43 billion by acquiring additional shares of Seagen, an AI-based cancer drug developer, in August 2025. Roche (Basel, Switzerland) has built an AI drug development platform utilizing real-world data through its partnership with Flatiron Health in California, improving the clinical trial success rate of its nine pipeline projects from 12% to 31%.

In the Asian market, China, Japan, and Korea are engaged in fierce competition. China’s XtalPi raised $400 million in Series D funding in the first half of 2025, achieving a corporate value of $2 billion. Japan’s Preferred Networks, in collaboration with the University of Tokyo, discovered three Alzheimer’s drug candidates through its AI drug platform ‘MolCLR,’ with one receiving FDA Phase 1 clinical approval in November 2025. In Korea, Syntekabio announced that its AI-based cancer drug ‘STB-HO1’ improved survival rates by 47% compared to standard treatments in Phase 2 clinical trials, attracting attention from global pharmaceutical companies.

Looking at investment trends, global venture capital investment in the AI biotech sector in 2025 increased by 34% year-on-year, reaching $18.7 billion. North America accounted for 52% ($9.7 billion), Europe for 28% ($5.2 billion), and Asia-Pacific for 20% ($3.8 billion). Notably, the average Series A investment size increased by 67% year-on-year to $28.4 million, indicating a significant improvement in the technological maturity and commercial potential of AI biotech startups.

Industrial Applications and New Business Models in Synthetic Biology

In the field of synthetic biology, bio-manufacturing using microorganisms is emerging as a new industrial paradigm. Ginkgo Bioworks in California is collaborating with over 150 partner companies to design custom microorganisms, with annual revenues reaching $470 million, an 89% increase from the previous year. Particularly noteworthy is the ability to achieve environmentally friendly production while reducing production costs by an average of 35% compared to traditional chemical synthesis methods in the fragrance, cosmetics, and pharmaceutical raw materials sectors.

Netherlands-based DSM-Firmenich has achieved groundbreaking results in vitamin B2 production using synthetic biology. It reduced energy consumption by 62% and carbon dioxide emissions by 71% compared to traditional chemical synthesis methods, while increasing production by 28%. Based on these achievements, DSM-Firmenich announced that its synthetic biology division’s revenue is expected to reach €1.2 billion in 2025. Denmark’s Novozymes (now renamed Novonesis) applied synthetic biology in enzyme production to develop a new laundry enzyme, improving performance by 40% compared to existing products while reducing production costs by 25%.

The application of synthetic biology is also expanding in the agricultural sector. Pivot Bio in Illinois, USA, developed nitrogen-fixing microorganisms to reduce crops’ reliance on chemical fertilizers. As of 2025, this technology is applied to a total of 4 million acres of farmland in the USA and Brazil, reducing fertilizer costs by an average of $180 per hectare per farm while increasing yields by 12%. Israel’s Evogene developed a drought-resistant corn variety through a crop development platform combining AI and synthetic biology, reducing water usage by 30% while maintaining the same yield as existing varieties.

In Korea, LG Chem has officially entered the production of bio-plastics based on synthetic biology. The Daesan plant, completed in October 2025, is expected to produce 70,000 tons of biodegradable plastics annually through microbial fermentation, reducing carbon emissions by 65% compared to conventional petrochemical-based plastics. SK Bioscience has established a vaccine production platform using synthetic biology, reducing mRNA vaccine production time from 6 months to 3 months and cutting production costs by 40%.

In terms of investment, global venture capital investment in the synthetic biology sector in 2025 increased by 45% year-on-year, reaching $8.9 billion. Investments related to bio-manufacturing accounted for 42% of the total, making it the most active field. France’s Global Bioenergies recently raised €75 million in Series C funding to expand its bio-based chemical production facilities, and Canada’s Lygos announced that it expects to achieve $120 million in revenue in 2025 through the production of bio-based industrial chemicals.

Changes in the regulatory environment also have a significant impact on the development of the synthetic biology industry. In September 2025, the US FDA announced new guidelines for synthetic biology-based pharmaceuticals, reducing the approval process from an average of 18 months to 12 months. The European Union (EU) relaxed environmental safety assessment standards for synthetic biology products, shortening the commercialization period by an average of 14 months, accelerating the product launches of synthetic biology startups in Europe. Korea’s Ministry of Food and Drug Safety also revised its guidelines for the approval of synthetic biology-based biopharmaceuticals in August 2025, establishing a regulatory framework aligned with global standards.

However, alongside this rapid development, several challenges are also emerging. First, high development costs and long development periods due to technical complexity remain major barriers. According to Gartner’s analysis, 60% of AI biotech projects fail to transition from the proof-of-concept (PoC) stage to commercialization, and the average development period for synthetic biology products still takes 5-7 years. Second, the shortage of skilled personnel is becoming a serious issue. According to a McKinsey survey, 73% of global biotech companies reported difficulties in securing interdisciplinary talent with expertise in both AI and biology.

In the second half of 2025, the biotechnology industry is exhibiting several new trends. First, the spread of the ‘Biotech-as-a-Service (BaaS)’ model. Amazon (Washington, USA) is providing a cloud-based bio-research platform through AWS Bio, currently used by over 2,400 biotech companies and research institutions. Microsoft (Washington, USA) also launched a molecular simulation service using Azure Quantum, revolutionizing the drug development process. Second, the practical application of personalized medicine is accelerating. 23andMe (California, USA) is providing personalized supplements and healthcare services based on genetic analysis data, with expected revenue of $400 million in 2025.

Looking ahead, the biotechnology industry is predicted to experience even more accelerated growth from 2026. According to PwC’s latest analysis, the convergence of AI and synthetic biology is expected to create an economic value of $280 billion annually by 2030. Particularly, Korea aims to enter the top five in the global biotech market by 2030, driven by the government’s ‘K-Bio Belt’ project and large-scale private investments. The Samsung Group announced plans to invest 25 trillion won in the bio sector over the next five years, and the LG Group also unveiled a bio investment plan worth 15 trillion won. The combination of these large-scale investments and technological innovations is expected to secure continuous growth momentum for biotechnology beyond 2025, with the convergence of AI and synthetic biology technologies forming a new industrial ecosystem and expanding their impact on the global economy.