A New Turning Point in Biotech Innovation: 2026 AI-Based Drug Development and Precision Medicine Market Analysis
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Industrial Revolution in AI-Based Drug Development
As of 2026, the global biotech industry is undergoing fundamental changes with the introduction of artificial intelligence and machine learning technologies. According to a recent PwC report, the AI-based drug development market is projected to grow from $4.5 billion in 2025 to $31.2 billion in 2030, with an average annual growth rate of 48.2%. This rapid growth is driven by the pharmaceutical industry’s urgent need to overcome the limitations of traditional drug development. Research indicates that AI technology can reduce the average 13-15 year development period and $2.6 billion cost of traditional drug development to 7-10 years, cutting costs by 40-60%. Consequently, global pharmaceutical companies are significantly increasing their investments.
Particularly noteworthy is the innovation in protein structure prediction. AI models like Google DeepMind’s AlphaFold and Meta’s ESMFold have accurately predicted 3D protein structures, dramatically improving the drug target discovery and optimization process. By the end of 2025, the AlphaFold database contained over 200 million protein structures, supporting more than 3,200 drug development projects worldwide. Swiss-based Roche announced a $1.5 billion investment in AI-based drug development by 2025, a 120% increase from the previous year.
This transformation is also evident in the Korean market. Samsung Biologics, headquartered in Seongnam, launched the AI-based biopharmaceutical development platform ‘Samsung Bio Intelligence’ in Q4 2025, expanding collaborations with global pharmaceutical companies. This platform supports the entire process from antibody design to production optimization with AI, reducing the development period from 18 months to 12 months. Additionally, Celltrion, based in Incheon, announced plans to establish the AI drug development subsidiary ‘Celltrion AI Therapeutics’ in the second half of 2025, investing 50 billion won over three years to build an AI platform specialized in immuno-oncology drug development.
In the U.S., investments are even more aggressive. Moderna, headquartered in Cambridge, Massachusetts, announced a $2 billion investment in AI-based mRNA vaccine and therapeutic development by 2025. The core of this investment is the development of personalized mRNA therapeutics, where AI designs optimized mRNA sequences by analyzing individual patient genetic information. Meanwhile, BioNTech, based in Mainz, Germany, is focusing on AI-based personalized cancer vaccine development, with the BNT122 project entering clinical trials in 2025. This vaccine uses an innovative approach where AI analyzes tumor tissues to select optimal antigens and create personalized mRNA vaccines.
Market Expansion of Precision Medicine and Personalized Therapy
The precision medicine sector has become the fastest-growing area in the biotech industry as of 2026. According to the latest analysis by McKinsey & Company, the global precision medicine market is expected to grow from $184 billion in 2025 to $397 billion in 2030, with an average annual growth rate of 16.7%. The key drivers of this growth are the sharp decline in genome analysis costs and advancements in AI-based data analysis technologies. The cost of whole genome sequencing has dropped from $100,000 in 2010 to below $300 by 2025, making personalized therapy a practical reality.
Precision medicine’s application is rapidly expanding, particularly in cancer treatment. According to 2025 data from the U.S. National Cancer Institute (NCI), 78% of newly diagnosed cancer patients receive personalized treatment based on genetic testing, a significant increase from 42% in 2020. The CAR-T cell therapy market is showing particularly notable growth. The global CAR-T market size reached $8.9 billion in 2025, a 2.3-fold increase from $3.8 billion in 2022. Johnson & Johnson’s CAR-T therapy ‘Carvykti,’ headquartered in New Jersey, recorded $3.2 billion in sales in 2025, establishing itself as a new standard in multiple myeloma treatment.
In Korea, the adoption of precision medicine is accelerating. The Ministry of Health and Welfare announced the ‘Precision Medicine National Strategy 2030’ in 2025, planning to invest 1.2 trillion won over the next five years to establish a Korean precision medicine ecosystem. The core of this strategy is the development of personalized treatments reflecting the unique genetic characteristics of Koreans and the establishment of AI-based diagnostic and treatment systems. Samsung Medical Center and Seoul National University Hospital have been operating AI-based cancer precision diagnostic systems since the second half of 2025, reporting a 15-20% improvement in diagnostic accuracy compared to traditional methods.
Innovative developments continue in the gene therapy sector as well. Gene editing therapies using CRISPR-Cas9 technology are being launched consecutively, with the global gene therapy market reaching $16.7 billion in 2025. Notably, significant achievements are being made in the treatment of rare diseases, with the sickle cell disease therapy ‘Casgevy’ (CTX001) recording $800 million in sales in 2025, proving the commercial viability of gene editing therapies. As these success stories increase, global pharmaceutical companies are significantly boosting their R&D investments in gene therapies. As of 2025, the total R&D investment in gene therapies by the top 20 pharmaceutical companies reached $24 billion, a 38% increase from the previous year.
Another innovative area in personalized therapy is microbiome therapeutics. This new approach, which treats diseases by regulating the human microbiome, is gaining attention, with the microbiome therapeutics market reaching $1.2 billion in 2025. ‘SER-109’ by Seres Therapeutics, headquartered in Cambridge, Massachusetts, received FDA approval as a treatment for recurrent C. difficile infection, achieving commercial success with $280 million in sales in 2025. Based on these success stories, applications are expanding into various fields, including cancer treatment and autoimmune disease treatment using gut microbiota.
Along with the growth of the precision medicine market, innovations in diagnostic technology are also accelerating. Liquid biopsy technology is particularly noteworthy, enabling early cancer detection and treatment response monitoring with just a blood sample. The global liquid biopsy market size reached $6.7 billion in 2025, a 76% increase from $3.8 billion in 2022. GRAIL, headquartered in California, offers the multi-cancer early detection blood test ‘Galleri,’ capable of detecting over 50 types of cancer early, with 1.2 million tests conducted in 2025. These innovative diagnostic technologies are enhancing the accessibility of precision medicine and accelerating the shift towards a prevention-focused healthcare paradigm.
Meanwhile, concerns about data security and privacy are growing alongside the spread of precision medicine. As the use of sensitive personal medical data, such as genetic information, increases, regulatory authorities are establishing new guidelines. Existing regulatory frameworks, such as Europe’s GDPR (General Data Protection Regulation) and the U.S.’s HIPAA (Health Insurance Portability and Accountability Act), are being strengthened, and new legal frameworks for genetic information protection are being discussed. While these regulatory changes may pose certain constraints on the growth of the precision medicine market, they are also expected to enhance the market’s credibility and sustainability.
These innovative changes in the biotech industry are also significantly impacting the investment market. The global biotech venture investment size reached $28.7 billion in 2025, a 22.6% increase from $23.4 billion in 2024. Startups focused on AI-based drug development received 35% of the investments, attracting the most attention, followed by precision medicine-related companies at 28%. Notably, investment growth in the Asian market is remarkable, with Korea’s biotech investment reaching $3.4 billion in 2025, a 67% increase from the previous year, and China’s reaching $8.9 billion, a 45% increase. This investment growth is enhancing the maturity of the Asian biotech ecosystem and contributing to strengthening global competitiveness.
The future outlook for the biotech industry is very bright. As AI technology continues to advance and precision medicine spreads, new therapies and diagnostic methods are expected to emerge continuously. Innovative solutions are likely to appear in previously challenging areas such as brain diseases, rare diseases, and geriatric diseases. Additionally, as precision medicine accessibility improves in developing countries, the global market is expected to expand further. Based on these growth drivers, experts predict that the global biotech market will continue to grow at an average annual rate of 12-15% until 2030, providing ongoing opportunities for investors and companies.
*This analysis is for informational purposes only and does not constitute investment advice or recommendations. Investment decisions should be made at the individual’s discretion and responsibility.*
