Drug Discovery Outsourcing Market Size, Share, Growth Analysis, By Workflow(Target Identification & Screening, Target Validation & Functional Informatics, Lead Identification & Candidate Optimization, Preclinical Development), By Therapeutics Area(Respiratory system, Pain and Anesthesia, Oncology, Ophthalmology), By Service Type(Chemistry Services, Biology Services), By End User(Pharmaceutical & Biotechnology companies, Academic Institutes, and Others), By Region - Industry Forecast 2024-2031

Global Drug Discovery Outsourcing Market size was valued at around USD 3.4 billion in 2022 and is expected to rise from USD 3.6 billion in 2023 to reach a value of USD 6.3 billion by 2031, at a CAGR of 7.2% over the forecast period (2024–2031).

Rising partnerships between public and private entities accelerate drug discovery processes, which, in turn, increases the global demand for outsourcing services for drug discovery. The ultimate goal of a preclinical drug discovery program is to deliver one or more clinical candidate molecules, each of which has sufficient evidence of biological activity at a target relevant to the disease and sufficient safety and drug-like properties so that it can be entered into human testing.

Growing R&D expenditure in the pharmaceutical & biopharmaceutical industry, increasing demand for outsourcing analytical testing services, initiatives for research on rare diseases and orphan drugs, and the high cost of in-house drug development are creating new revenue pockets in the drug discovery services market.

To expedite the R&D process, many pharmaceutical and biotechnology companies teamed up with CROs through long-term agreements, partnerships, and collaborations across the globe. For instance, in May 2021, Eurofins Scientific SE (France) launched Adaptive immune response models to understand the immune consequences of SARS-CoV-2 and other infectious diseases for drug discovery.

US Drug Discovery Outsourcing Market is poised to grow at a sustainable CAGR for the next forecast year.