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

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).

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.  '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)'

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.  

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.  

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.