Automated Patent Drafting Tool Market Size, Share, Trends, Growth, 2032

Automated Patent Drafting Tool Industry Prospective:

The global automated patent drafting tool market size was worth around USD 1.28 billion in 2023 and is predicted to grow to around USD 4.20 billion by 2032, with a compound annual growth rate (CAGR) of roughly 14.10% between 2024 and 2032.

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Automated Patent Drafting Tool Market: Overview

Automated patent drafting tools are modern automated solutions that rely on advanced technologies to draft patents. These solutions allow end-users to focus on more strategic and substantial aspects of work while patent drafting is undertaken by the software. A patent is defined as a legal right of an individual, a group of individuals, or an organization that exists to protect a novel development of innovation from being sold, used, or imported without the permission of the original owner.

Some of the most common objects patented include pharmaceutical drugs or innovations, new substances, devices, processes, & methods, new plants, mechanical devices, appliances, and medical technology. Patent drafting is a tedious and time-consuming method that requires extensive attention to detail and thorough knowledge of the subject. Additionally, since patents are a form of legal document, compliance with regional regulations and rules is critical.

In addition, patent standards continue to evolve, making it difficult for end-users to stay updated on the latest trends. These factors and other influences have created an extensive demand for automated patent drafting tools. Most of these solutions are Artificial Intelligence (AI) powered and simplify the process of drafting patents. The forecast period has several growth opportunities for the industry players while also facing challenges in the form of cybersecurity concerns.

Key Insights:

• As per the analysis shared by our research analyst, the global automated patent drafting tool market is estimated to grow annually at a CAGR of around 14.10% over the forecast period (2024-2032)
• In terms of revenue, the global automated patent drafting tool market size was valued at around USD 1.28 billion in 2023 and is projected to reach USD 4.20 billion by 2032.
• The automated patent drafting tool market is projected to grow at a significant rate due to the rising applications in the pharmaceutical industry.
• Based on type, the on-premises segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on application, the law firms segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Automated Patent Drafting Tool Market: Growth Drivers

Rising applications in the pharmaceutical industry to drive market demand rate

The global automated patent drafting tool market is expected to be driven by the rising applications in the pharmaceutical industry. The burgeoning pressure on the healthcare infrastructure due to the rising number of patients worldwide is fueling demand for novel and effective medications.

In addition, disease surveillance indicates a growing rate of emerging diseases worldwide. While some medical conditions are manageable, drug companies are increasingly focusing on developing new and effective cures or treatment methods.

Furthermore, the pharmaceutical industry is also witnessing a surge in investments toward treatment development for existing incurable conditions such as certain types of cancer, diabetes, and Acquired Immunodeficiency Syndrome (AIDS). The growing number of rare and genetically induced medical conditions is expected to forge demand for innovative treatments in the coming years.

For instance, in February 2024, a team of researchers at the United Institute of Pharmacy (UIP), India, announced they had discovered and patented a new molecule that can be used in anti-diabetic medicines and will offer better results as compared to the existing medicines. The researchers have obtained a patent from the Patent Office of the Government of India titled Synthesis of Amide Derivatives of Vanillic Acid: In Silico Evaluation Docked Against Antidiabetic Target.

Complexity of the patenting process to create market demand for automated solutions in the long run

The process of patenting an innovation or finding is extremely complex. Laws and legal frameworks governing the patenting process and criteria continue to change from one region to another. They are also ever-evolving depending on several external market factors calling for higher application of solutions available in the global automated patent drafting tool market.

For instance, in 2023, the European Union welcomed several new changes to the region’s patent system with the introduction of the Unitary Patent System (UPS). The new rules allow patent owners to introduce a multijurisdictional court in matters related to patent infringement and validity proceedings in up to 24 member states of Europe.

Furthermore, patent owners can seek patent protection in EU member states through a single request. The dynamic complexities of patent legalities will be essential for the market’s overall revenue.

Automated Patent Drafting Tool Market: Restraints

Concerns related to cybercrime and intellectual property theft will limit the industry’s growth rate

The global automated patent drafting tool industry is expected to be restricted due to the growing concerns related to the application being vulnerable to cybercrimes. Since these applications are powered by digital solutions such as cloud systems and store highly sensitive information related to intellectual property (IP), automated patent drafting tools are constantly under the radar of cybercriminals.

In addition, these applications are also subject to insider threats, such as stakeholders within the organization, and access to the tool can leak confidential information to a third party.

Automated Patent Drafting Tool Market: Opportunities

Rising introduction of improved tools to generate growth opportunities in the long run

The global automated patent drafting tool market is expected to generate growth opportunities due to the rising introduction of new tools in the market.

Furthermore, Artificial Intelligence is gaining more importance among automated patent drafting tool developers since the advanced technology aids in the deployment of high-performance applications. In November 2024, PowerPatent, a leading provider of IP and patent drafting solutions, announced the launch of a new range of  AI-powered tools.

The company has thus delivered more accurate and highly reliable upgrades for patent applications. Some of the main characteristics of automated patent drafting tools include advanced patent structure analysis, AI-powered consistency checks, and automated cross-referencing between descriptions, claims, and drawings.

In December 2024, ClaimMaster, a software application for patent professionals such as patent agents and attorneys, announced the release of version 2024.5. The new feature allows the local document workspace to improve Generative Pre-trained Transformer and Large Language Model output along with enhancements in core patent proofreading tools. In addition, advancements in AI technology will further create higher applications for engineering solutions across patent drafting software.

Automated Patent Drafting Tool Market: Challenges

High cost of initial investment and lack of expertise to challenge market expansion

The global automated patent drafting tool industry is expected to be challenged by the high cost of initial investment required for setting up the software and ensuring coherence between existing systems and new tools.

Furthermore, automated tools lack the expertise of human patent drafters, especially in terms of minor yet critical details in regard to regional and international patent legal requirements.

Automated Patent Drafting Tool Market: Report Scope

Automated Patent Drafting Tool Market: Segmentation

The global automated patent drafting tool market is segmented based on type, application, and region.

Based on the type, the global market segments are cloud-based and on-premises. In 2023, the highest growth rate was listed in the on-premises segment. It held control over 88% of the final revenue due to the safety offered by on-premises tools. Cloud-based solutions are not considered ideal for patent drafting since they are vulnerable to cyber-attacks. On-premises systems are more expensive and offer higher safety and control over tool access. However, ongoing advancements in security features of cloud tools will generate segmental revenue for the cloud-based segment.

Based on the application, the automated patent drafting tool industry divisions are research institutions, enterprises, law firms, and others. In 2023, the highest demand was listed in the law firms segment, leading with control over a large part of the total market share.

Law firms have a higher use of automated patent drafting software since they deal with multiple clients across industries that are developing patent-worthy innovations. The growing incorporation of the latest technology in the legal sector will fuel the segmental demand rate. In 2025, legal technology spending worldwide is expected to grow by around 12.05% during the forecast period.

Automated Patent Drafting Tool Market: Regional Analysis

North America to deliver the highest results during the forecast period

The global automated patent drafting tool market will be led by North America during the forecast period. In 2023, the region dominated nearly 70% of the global market revenue, with the US leading the regional industry. The presence of several pharmaceutical companies in the US, along with technological advancements requiring patents, has created more demand and application for automated tools.

In June 2024, researchers at the University of North Florida (UNF) in the US were awarded a patent for a targeted cancer-fighting peptoid.

According to scientists, the compound is effective in treating certain lung, colon, and breast cancers. Furthermore, it can also stop cancer cells from progressing.

In March 2024, Sarah Du, Ph.D, an associate professor in the Department of Ocean and Mechanical Engineering of Florida Atlantic University, was provided a patent for developing a new tool that can reliably diagnose and monitor sickle cell disease. It is a widely prevalent medical condition in the US caused by genetic mutation and affecting nearly 2 million American people.

Furthermore, advancements in the field of the automotive industry and defense-based technologies will escalate the regional market demand rate.

Automated Patent Drafting Tool Market: Competitive Analysis

The global automated patent drafting tool market is led by players like:

• LexisNexis PatentOptimizer®
• Solve Intelligence
• PowerPatent
• Rowan Patents
• Patent Bots
• Patent Theory
• ClaimMaster
• Checkbox
• Edge
• PatentPal
• Black Hills IP
• DeepIP (formerly davinci)
• IP Toolworks
• Polsinelli PatentCAD
• XLSCOUT

The global automated patent drafting tool market is segmented as follows:

By Type

• Cloud-Based
• On-Premises

By Application

• Research Institutions
• Enterprises
• Law Firms
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa