USD 3.26 billion
Drug Discovery Services Market Size, Share, Growth Analysis, By Process(Target Selection, Target Validation, Hit-To-Lead Identification, Lead Optimization), By Type(Chemistry Services, Biology Services), By Drug Type(Small-Molecule Drugs, Biologics), By Therapeutic Area(Oncology, Infectious Diseases, Cardiovascular Diseases, Neurological Diseases), By End User(Pharmaceutical & Biotechnology Companies [Tier 1 Companies, Tier 2 Companies, Tier 3 Companies], Academic Institutes), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG35J2059 |
Region:
Global |
Published Date: September, 2024
Pages:
157
|Tables:
59
|Figures:
75
Drug Discovery Services Market Insights
Drug Discovery Services Market size was valued at USD 3.50 billion in 2022 and is poised to grow from USD 3.76 billion in 2023 to USD 6.60 billion by 2031, growing at a CAGR of 7.30% during the forecast period (2024-2031).
There remains an ongoing need for new drugs to meet the spectrum of unmet medical needs. Many diseases, including neurodegenerative, cancer, rare genetics and cardiovascular diseases are still without treatment. New diseases are appearing and have devoured the need for new treatments. According to the estimations, the drug discovery services market is going to increase multiple times, owing to rising novel drugs development and discovery. It requires a huge amount of time and resources, to conduct drug discovery. Drug discovery is intricate and the requirement for unique skills within various scientific domains continually increases. The process of new drug discovery typically involves collaboration between experts in disciplines such as toxicology, medicinal chemistry, pharmacology and formulation development. By outsourcing these services, research institutions and pharmaceutical companies benefit from significant cost and time savings. Outsourced drug delivery services market gives you access to specialized infrastructure and expertise without the need for any huge investments.
Top pharma companies are investing massively in R&D by enhancing their R&D efficiencies to benefit from long-term gains. New revenue streams in the market are driven by initiatives for rare diseases and orphan drug research. Strict regulations on new drug development and animal testing can hinder some of the market expansion. In addition, the drug discovery service companies still required to cope with the issue about shortage of trained professionals.
US Drug Discovery Services Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Pharmaceutical & Biotechnology companies
Fastest Growth
Pharmaceutical & Biotechnology companies
Growth Rate
7.3% CAGR
Global Drug Discovery Services Market ($ Bn)
Country Share for North America Region (%)
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Drug Discovery Services Market Segmental Analysis
Global Drug Discovery Services Market is segmented by Process, Type, Drug Type, Therapeutic Area, and region. Based on Process, the market is segmented into Target Selection, Target Validation, Hit-To-Lead Identification, Lead Optimization, and Candidate Validation. Based on Type, the market is segmented into Chemistry Services, and Biology Services. Based on Drug Type, the market is segmented into Small-Molecule Drugs, and Biologics. Based on Therapeutic Area, the market is segmented into Oncology, Infectious Diseases, Cardiovascular Diseases, Neurological Diseases, Immunological Disorders, Endocrine & Metabolic Disorders, Respiratory Disorders, Digestive System Diseases, Genitourinary Diseases & Women’s Health, and Other Therapeutic Areas. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Drug Discovery Services Market Analysis by Therapeutic Area
In 2023, the global drug discovery services market was heavily dominated by oncology therapeutics. This majorly is attributed to the rising drug discovery activities pertaining to cancer. Growing numbers of various cancers in the public population has helped encourage further development from the oncology sector. The International Agency for Research on Cancer estimates that the world will record 28.4 million cases of cancer by 2040. This is an increase of up to 12,000 disappearances every day, or one each seventh second. Lung cancer, breast cancer, prostate cancer and colorectal cancer are among the most common cancers. Thus, the growing incidence of different cancers is anticipated to dominate the drug discovery services market share throughout the coming years.
The diabetes is projected to be one of the most rapidly growing segments. This segment is witnessing a boost owing to the increasing number of diabetes patients among the population as lifestyles have shifted towards more and more convenience with people eating unhealthy foods. The International Diabetes Federation estimates that by 2045, there will be approximately 783 million people worldwide suffering from diabetes. Lastly, there are 1.2 million children and teens living with type 1 diabetes. Diabetes is indeed the number one reason for a stroke, kidney failure and even blindness.
Drug Discovery Services Market Analysis by Drug Type
Based on drug type, the small molecules segment accounted for the largest drug discovery market share in 2023 in terms of revenue. Due to their low molecular weight, small molecules have a high likelihood of successfully traversing cell membranes to access intracellular pathways. This class of compounds accounted for greater than 75% of the market demand in 2023. Several reasons exist for the dominance of small molecules in drug discovery. The pharma industry has long been capable of producing small molecule-based drugs to good effect across a wide range of therapeutic indications.
The large molecule segment is poised to witness the fastest growth in drug discovery services industry during the forecast period. Biologics are large molecules, and they come from living organisms which include a large variety of substances such as peptides, proteins, antibodies, nucleic acids and macromolecules. Several reasons have fueled the rise of large molecules. Advancements in genetic engineering tools and biotechnologies have significantly simplified the steps needed to build and produce these large molecules. Recombinant DNA technology and monoclonal antibody production are a few techniques that have ushered in a paradigm shift in the biologics space leading to remarkably targeted therapies.
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Drug Discovery Services Market Regional Insights
North America is dominating the drug discovery services market with the largest share and is anticipated to witness considerable growth over the forecast period. The drug discovery services market is expected to be propelled by the number of CROs and CMOs in the region, alongside the indenture of several top biopharmaceutical and pharmaceutical companies. North America patents most of the new drugs Due to the growing incidences of several chronic diseases and rising elderly people population in US, the market is expected to grow. Chronic disease affects an estimated 60% of the population, with chronic conditions comprising one or more such diseases in approximately half the US population. The rising awareness about the biologics is fueling demand for innovative drugs in the region, thereby supporting North America drug discovery services market growth.
According to drug discovery services market analysis, the Asia Pacific region is witnessing the fastest growth in the market. Owing to the availability of skilled manpower, lower cost, favorable regulatory environment and quality data, the Region is fast emerging as a Centre for outsourcing drug development activities. Japan, the second largest pharmaceutical market globally, is projected to fuel competition for CROs by offering them a significant opportunity. Moreover, the latest pharmaceutical affairs law of Japan also improving cancer and tissue diagnostics research, which is expected to increase the continuous growth of the market.
Global Drug Discovery Services Market By Geography
- Largest
- Fastest
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Drug Discovery Services Market Dynamics
Drug Discovery Services Market Drivers
Rising Reported Cases of Chronic Conditions
- Chronic diseases like diabetes, dementia, and cardiovascular disease are responsible for more than 40 million fatalities each year, they make up seven of every ten deaths globally. This increase in chronic disease incidence is expected to boost the global drug discovery services market size throughout forecast period. Increasing chronic diseases are creating new economic opportunities for companies providing drug discovery services as there is a greater demand for medications.
Increasing R&D Spending of Pharmaceuticals
- The increase in R&D spending in the biopharma industry is fuelling demand for drug discovery services, both for clinical trials and analytical tests. The increasing acceptance of biopharma therapies is driving the global biologics market forward. Biopharmaceuticals alone represent about 20 percent of the pharmaceutical industry. Companies making biologics are being incentivized to create new medications for a variety of diseases that range from common to rare.
Drug Discovery Services Market Restraints
Stringent Regulatory Guidelines
- The fundamental focus for regulatory agencies when approving drugs is safety and efficacy. While these processes are necessary to ensure market reassurance of medicine quality, they dramatically increase the cost of drug development and the end product. This is a very important factor in price-sensitive emerging economies that can exert significant impact on medicine uptake.
Lack of Skilled Professionals
- Pharmaceutical and biopharmaceutical industry is much more dynamic and thus professionals need to keep pace of changing technologies & methodologies, quality services, good laboratory practices compliance. The drug discovery service providers are encountering dilemma in attracting and keeping seasoned professionals since these private sector players are against the burgeoning pharmaceutical and biotechnology companies with research institutions for proficient scientists.
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Drug Discovery Services Market Competitive Landscape
The drug discovery services market is fragmented with large number of companies that operate at both at a local and global level. The key strategies adopted by leaders in the drug discovery services industry include acquisitions & mergers or investments and partnership with other product manufacturers. The development strategies of pharmaceutical companies are based on market trends and intelligence. They partner with research institutions and Contract Research Organizations (CRO) to study certain diseases for specific populations. Hence, growing pharmaceutical companies funding for new drug discovery is driving the growth of the market. Additionally, innovative drug development and launch are expected to propel the market growth.
Drug Discovery Services Market Top Player’s Company Profiles
- Laboratory Corporation of America Holdings (US)
- Charles River Laboratories International, Inc. (US)
- Wuxi APPTEC (China)
- Pharmaron Beijing Co., Ltd. (China)
- Evotec SE (Germany)
- Eurofins Scientific SE (Luxembourg)
- Piramal Enterprises Limited (India)
- Syngene International Limited (India)
- Genscript Biotech Corporation (China)
- Jubilant Pharmova Limited (India)
- Frontage Holdings Corporation (China)
- Shanghai Medicilon Inc. (China)
- Aurigene Discovery Technologies (Dr. Reddy’s Laboratories) (India)
- Sygnature Discovery Ltd. (UK)
- Oncodesign Services (France)
- Selvita S.A. (Poland)
- Viva Biotech Holdings (China)
- TCG Lifesciences Pvt Ltd. (India)
- Shanghai Chempartner Co., Ltd. (China)
- Domainex Ltd. (UK)
- Nuvisan Pharma Holding GmbH (Germany)
- Dalton Pharma Services (Canada)
- Aragen Life Sciences Pvt. Ltd. (India)
- Promega Corporation (US)
Drug Discovery Services Market Recent Developments
- In January 2023, Genetech received grant for developing Glofitamab. The novel drug will be a bispecific antibody for T-cells of the immune system.
- In January 2023, Otsuka Pharmaceuticals announced that it has received NDA approval for Brexpiprazole. Brexpiprazole is antipsychotic drug for schizophrenia.
- In January 2023, UCB announced that its drug Rozanolixizumab received FDA approval for final Phase III development.
Drug Discovery Services Key Market Trends
- Growing Number of Novel Therapies: Imminent demand for novel medicine development, emerging need pertaining to rapid growth in healthcare sector across globe is fueling drug discovery services market growth. High prevalence of chronic diseases is pushing government & pharmaceutical establishments for solutions and have started spending more on clinical trials. Thus, rise in demand for drug discovery services will be high.
- Implementation of AI in Drug Discovery: Artificial intelligence (AI) has been anticipated to provide assistance, especially with the analysis of drugs through research and result synthesis. It is also possible to use artificial intelligence to examine the protein structure before a chemical is created or manufactured in order to potentially predict how it will affect the goal and safety concerns. This, in turn, is expected to expand the drug discovery services market substantially during the forecast period.
Drug Discovery Services Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, factors like the increasing trend of outsourcing by pharmaceutical companies to reduce R&D costs and accelerate time-to-market for new pharmaceuticals, along with the rising demand for innovative therapies and biotechnology advancements are steering drug discovery services market. Increasing investment in pharmaceutical R&D and the competitive use of partnerships are also catalyzing the drug discovery services market, along with rapid developments in genomics and proteomics, coupled demand for specialized skills to utilize those techniques during the different procedures of these developmental drugs. In addition, they have various applications such as fast-tracking the development of novel drugs, giving access to innovative technologies and experience, enhancing the productivity of drug research processes and thus reducing costs & time resources needed to bring new medicines into clinical use.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 3.50 billion |
| Market size value in 2031 | USD 6.60 billion |
| Growth Rate | 7.30% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Drug Discovery Services Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Drug Discovery Services Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Drug Discovery Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Drug Discovery Services Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Drug Discovery Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Drug Discovery Services Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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