The Integration of AI in the Biotechnology Industry and the Future of Personalized Medicine: Market Analysis for 2026
Editor
Rapid Growth of the AI-Integrated Biotechnology Market
In 2026, the biotechnology industry is experiencing unprecedented changes through the integration of artificial intelligence technologies. The global biotech market size has reached $1.2 trillion in 2026, reflecting a 28% growth compared to 2023. Notably, the AI-based drug development market alone forms a $45 billion segment, recording an impressive annual growth rate of 35%. This growth is driven by the increasing demand for personalized medicine and the industry’s efforts to address inefficiencies in traditional drug development processes.
The conventional drug development process typically requires an average of 15 years and $2.8 billion, with a success rate of only 8%. However, the introduction of AI technology is fundamentally transforming this paradigm. Google’s DeepMind developed AlphaFold, which has increased the accuracy of protein structure prediction to over 90%, reducing the time to discover drug candidates from 5-7 years to 2-3 years. U.S. biotech company Atomwise garnered industry attention by using AI to identify potential COVID-19 treatments in just three days.
The Korean biotechnology industry is also rapidly growing in line with these global trends. The domestic bioindustry’s production value surpassed 23 trillion won in 2025 and is projected to exceed 26 trillion won in 2026. Through the government’s K-Bio Grand Challenge project, Korea aims to become one of the top five global biotech powerhouses by 2030, planning to invest a total of 6.8 trillion won over the next five years. The focus is particularly on AI-based drug development, digital healthcare, and personalized medicine.
Samsung Biologics solidified its position as the leader in the global CMO (Contract Manufacturing Organization) market with a revenue of 3.2 trillion won in 2025. The company significantly expanded its production capabilities for mRNA vaccines and antibody drugs, planning to increase its annual production capacity to 360,000 liters by starting operations at its fifth plant in the first half of 2026. Celltrion also demonstrated strong performance in the biosimilar sector, achieving global sales of 4.1 trillion won in 2025. The sales of its Herceptin biosimilar, Herzuma, exceeded 1.2 trillion won in Europe and the U.S., driving growth.
Innovation in Personalized Medicine and Gene Therapy
The personalized medicine market has grown to $780 billion as of 2026 and is expected to reach $1.3 trillion by 2030, with an average annual growth rate of 11.8%. The core of this field is to provide optimal treatment by comprehensively analyzing patients’ genetic characteristics, lifestyle, and environmental factors. As the cost of gene sequencing has drastically decreased from $3 billion in 2003 to $200 in 2026, the popularization of personalized medicine is accelerating.
In the gene therapy sector, gene editing therapies centered around CRISPR-Cas9 technology are entering the commercialization phase. The U.S. FDA approved a total of 28 gene therapies by the end of 2025, a 75% increase compared to 2023. Notably, Casgevy, a treatment for sickle cell disease and beta-thalassemia, recorded global sales of $1.5 billion since its launch in 2024, demonstrating the growth potential of the gene therapy market. As of 2026, the gene therapy market size is $18 billion and is projected to expand to $45 billion by 2030.
The CAR-T cell therapy field is also experiencing rapid advancements. CAR-T therapies, led by Gilead Sciences’ Yescarta and Kymriah, have shown remarkable results in treating blood cancers. The global CAR-T therapy market recorded $8.9 billion in 2025 and is expected to grow to $28 billion by 2030 with the expansion of applications to solid tumors. The extension of applications to autoimmune diseases and solid tumor treatments is a major driver of market growth.
In Korea, investment and R&D in the gene therapy field are actively progressing. ToolGen is focusing on developing therapies using CRISPR-based gene editing technology and successfully completed Phase 1 clinical trials for a Duchenne muscular dystrophy treatment in 2025. Genexine has embarked on developing CAR-T cell therapies for brain tumor treatment, aiming for clinical trial approval in the second half of 2026. The government is pursuing regulatory relaxation for gene therapy development and commercialization through the amendment of the Advanced Regenerative Medicine Act, supporting the global competitiveness of domestic biotech ventures.
Global pharmaceutical companies like Roche are leading the companion diagnostics market, which integrates diagnostics and treatment to provide comprehensive solutions in personalized medicine. Roche’s FoundationOne CDx helps select the optimal targeted therapy by analyzing genetic mutations in tumors, recording $1.2 billion in sales in 2025. The companion diagnostics market is currently valued at $8.5 billion in 2026 and is projected to grow at an average annual rate of 14% to reach $14.5 billion by 2030.
Moderna is focusing on developing personalized cancer vaccines using its mRNA technology platform. Results from Phase 2 clinical trials of its personalized melanoma vaccine, announced at the end of 2025, showed a 44% reduction in recurrence rates compared to existing treatments. Moderna currently has 13 personalized cancer vaccine candidates in its pipeline as of 2026, aiming for full-scale commercialization by 2027. The company has set a goal to achieve annual sales of $5 billion in the personalized medicine field by 2030.
The Expansion of Digital Healthcare and Telemedicine
The digital healthcare market, which rapidly expanded due to the COVID-19 pandemic, has grown to $690 billion as of 2026 and is expected to reach $1.7 trillion by 2030, with an average annual growth rate of 25.1%. Innovative developments continue in telemedicine, wearable healthcare devices, and AI diagnostic solutions. In the U.S., telemedicine usage surged from 0.1% before the pandemic to 38% in 2026, significantly contributing to improved healthcare accessibility and cost reduction.
In the wearable healthcare device market, Apple Watch and Fitbit are leading, with global shipments reaching 320 million units in 2025. The blood glucose monitoring and sleep apnea detection features in the Apple Watch Series 9 present new possibilities in preventive healthcare. Samsung’s Galaxy Watch series is also strengthening its position as a medical device with blood pressure measurement and ECG monitoring features, capturing a 22% market share in the global smartwatch market in 2025.
In the AI-based medical diagnostic solutions sector, Google’s Med-PaLM and Microsoft’s Nuance Dragon Medical are gaining attention. Med-PaLM, a conversational AI with physician-level medical knowledge, received a 92% positive evaluation in a 2025 U.S. medical staff satisfaction survey. It demonstrates equal or higher accuracy than human specialists in radiology image interpretation and pathology diagnosis, reducing diagnostic time by an average of 60%. The global AI medical diagnostic market is currently valued at $14.5 billion in 2026 and is expected to grow at an average annual rate of 44% to reach $48 billion by 2030.
The domestic digital healthcare market is also experiencing rapid growth. VUNO has gained global competitiveness in the AI-based medical imaging diagnostic solutions sector, with seven FDA-approved products by 2025. VUNO Med DeepBrain, an AI for diagnosing brain hemorrhages, achieved a diagnostic accuracy of 97.8% and has been adopted by over 300 hospitals domestically and internationally. MediWhale’s AI-based drug interaction verification system was introduced in over 7,000 pharmacies in 2025, contributing to the prevention of drug side effects.
In the telemedicine field, DoctorNow and GoodDoc are competing for leadership. DoctorNow surpassed 5 million cumulative users in 2025, contributing to improved healthcare accessibility through its 24-hour remote consultation service. It shows high satisfaction in chronic disease management and mental health counseling, with a reuse rate of 78%. The government plans to expand telemedicine pilot projects starting in 2026, providing remote healthcare services to medically underserved areas and chronic patients, expecting to save 2 trillion won annually in medical costs.
Johnson & Johnson is actively investing in the digital healthcare sector, recording $3.5 billion in revenue from its digital health division in 2025. The company is expanding its presence in the chronic disease management and mental health care markets through its diabetes management platform OneTouch Reveal and mental health app Mind Strong. Johnson & Johnson aims to achieve $10 billion in revenue from its digital health division by 2030, planning to invest $1.5 billion annually to reach this goal.
In 2026, the biotechnology industry stands at the forefront of a paradigm shift centered on AI integration and personalized medicine. The era of precision medicine, focused on prevention, is becoming a reality, offering an innovative approach that improves patients’ quality of life and reduces medical costs. The success of biotech companies in the future will depend not only on technological capabilities but also on their ability to utilize data and provide personalized solutions.
As the global biotech market continues to grow, changes in the regulatory environment and ethical considerations are emerging as important challenges. Issues such as gene editing and data privacy must be addressed alongside industry development. Despite these challenges, the potential of biotechnology to contribute to human health and well-being is limitless, and 2026 is expected to be a turning point where this vision of future medicine becomes a reality.
