Global Drug Discovery Services Market, By Type (Medicinal Chemistry Services, Biology Services, Drug Metabolism and Pharmacokinetics), Process (Target Validation, Target Selection, Hit-To-Lead Identification, Candidate Validation, Lead Optimization), Drug Type (Biologics, Small Molecules), Therapeutic Area (Neurology, Diabetes, Oncology, Respiratory Diseases, Cardiovascular Diseases, Others) – Industry Trends and Forecast to 2030.
Drug Discovery Services Market Analysis and Size
According to the American Cancer Society, approximately 1.8 million new cancer cases were diagnosed in 2020, with an estimated 606,520 cancer deaths occurring in the United States. Thus, the increasing burden of diseases and its global burden drive demand for drug discovery services. For better drug candidate identification, there has been an increase in the use of advanced technologies such as bioinformatics, high throughput, and combinatorial chemistry. With emerging technologies, drug discovery has evolved significantly, making the process more refined, accurate, and time-consuming.
Data Bridge Market Research analyses that the drug discovery services market, which was USD 14.68 billion in 2022, is expected to reach USD 44.91 billion by 2030, at a CAGR of 15.00% during the forecast period 2023 to 2030. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.
Drug Discovery Services Market Scope and Segmentation
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Report Metric
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Details
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Forecast Period
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2023 to 2030
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Base Year
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2022
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Historic Years
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2021 (Customizable to 2015 - 2020)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Type (Medicinal Chemistry Services, Biology Services, Drug Metabolism and Pharmacokinetics), Process (Target Validation, Target Selection, Hit-To-Lead Identification, Candidate Validation, Lead Optimization), Drug Type (Biologics, Small Molecules), Therapeutic Area (Neurology, Diabetes, Oncology, Respiratory Diseases, Cardiovascular Diseases, Others)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
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Market Players Covered
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General Electric (U.S.), Eurofins Scientific (U.S.), PPD Inc. (U.S.), Syngene International Limited (India), Wuxi AppTec (China), Frontage Labs (U.S.), Galapagos NV (Belgium), Aurigene Discovery Technologies (India), Genscript (U.S.), Domainex (U.K.), WIL Research Laboratories LLC (U.S.), Shanghai Medicilon, Inc. (China), Labcorp Drug Development (U.S.), Jubilant Biosys Ltd. (India), Evotec (Germany), Shanghai ChemPartner (China), Charles River Laboratories (U.S.), Merck & Co. Inc. (U.S.), and Thermo Fisher Scientific Inc. (U.S.)
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Market Opportunities
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Market Definition
Drug discovery is the process of identifying a compound that can be used to treat and cure diseases. A drug discovery effort typically addresses a biological target that has been shown to play a role in disease development or begins with a molecule with interesting biological activities. Drug discovery has recently evolved significantly as a result of emerging technologies, allowing the process to become more refined, accurate, and time-consuming. Drugs were discovered by identifying the active ingredient in traditional remedies or by chance, as in the case of penicillin.
Global Drug Discovery Services Market Dynamics
Drivers
- Rising demand for novel therapies for various therapeutic purposes
Drug discovery services market growth is expected to be driven by rising demand for novel medicine for chronic diseases and development in the global healthcare sector. Pharmaceutical and biopharma companies continue to outsource their research and development activities to contract research organisations (CROs), which provides R&D services and develop engagement models to maximise R&D productivity. The rising burden of chronic diseases is compelling governments and pharmaceutical companies to seek solutions and increase investment in clinical trials. As a result, the demand for drug discovery services will increase.
- Rising chronic disease burden
Chronic conditions such as diabetes, dementia, and cardiovascular disease have high socioeconomic costs and a high and rising patient illness burden. They cause seven out of every ten fatalities worldwide, accounting for more than 40 million deaths yearly. Chronic diseases, which are the leading causes of death and disability in the United States, account for the majority of healthcare costs. As a result, the global market for drug discovery services is expected to be driven by the prevalence of chronic diseases over the forecast period, resulting in an increase in R&D spending and research activities for developing novel drugs. There is a high demand for medications due to the increased prevalence of these chronic diseases which creates new economic opportunities for companies that provide drug discovery services.
Opportunities
- Increasing spending on R&D activities
The biopharmaceutical industry's increased R&D spending is driving demand for clinical trial and analytical test outsourcing. The global drug discovery services market is being propelled forward by increased research efforts on orphan pharmaceuticals and uncommon research diseases. The growing demand for biopharmaceutical treatments is propelling the biologics industry forward globally. Biopharmaceuticals alone account for approximately 20% of the pharmaceutical industry. The development of numerous novels and effective life-saving biologics treatments has increased demand. Biologics companies are encouraged to invest in developing new drugs for a wide range of common and uncommon diseases. Furthermore, patent expiration and rising demand for biologics in emerging markets propel the global drug discovery services market.
Restraints/Challenges
- High cost of drug molecules
A lack of skilled labor and a high target drug molecule failure rate will be the major impediments to the market. The drug development costs are high as millions of dollars are spent in preclinical research to identify a compound or design a drug.
This drug discovery services market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the drug discovery services market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on the Drug Discovery Services Market
The SARS-sudden CoV-2's emergence and spread prompted international multilateral organizations and private funders to pool their resources to support the development of an effective vaccine to combat the coronavirus and its variants. Around the world, a large number of scientists, technologists, and data managers are involved in everything from laboratory investigations to clinical trials. The COVID-19 intervention has assisted the government and healthcare sectors in understanding the importance of drug discovery in developing effective medications. As a result, many businesses have increased their R&D spending, and the government has prioritized drug discovery and development, which positively impacts the market for drug discovery services.
Countries' health systems are rapidly investing in research and development to combat the COVID-19 pandemic. Potential compounds were selected from the CHEMBL, ZINC, FDA-approved drugs, and clinical trial molecules. Worldwide, research teams are identifying drugs for the treatment of COVID-19 by screening both novel and existing drugs for their ability to alleviate symptoms and halt viral replication. As a result of the ongoing pandemic, the drug discovery services market is expected to benefit from the desire to find a cure for COVID-19.
Recent developments
- On December 3, 2021, Toxikon Corporation, a contract research company, acquired by Labcorp. Toxikon's acquisition is expected to broaden the company's product portfolio.
- On January 25, 2022, Evotec and Boehringer Ingelheim formed a target and drug development collaboration focused on iPSC-based disease modelling for ophthalmologic illnesses.
Global Drug Discovery Services Market Scope
The drug discovery services market is segmented on the basis of type, process, drug type and therapeutic area. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Medicinal Chemistry Services
- Biology Services
- Drug Metabolism and Pharmacokinetics
Process
- Target Validation
- Target Selection
- Hit-To-Lead Identification
- Candidate Validation
- Lead Optimization
Drug Type
- Biologics
- Small Molecules
Therapeutic Area
- Neurology
- Diabetes
- Oncology
- Respiratory Diseases
- Cardiovascular Diseases
- Others
Drug Discovery Services Market Regional Analysis/Insights
The drug discovery services market is analysed and market size insights and trends are provided by country, type, process, drug type and therapeutic area as referenced above.
The countries covered in the drug discovery services market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the drug discovery services market because of the availability of cutting-edge techniques, instruments, and facilities for drug discovery research in this region due to many qualified researchers and low-cost operations in emerging countries such as India and China.
Asia-Pacific is expected to grow at the highest growth rate in the forecast period of 2023 to 2030 owing to the strong presence of well-established CROs, and rising R&D expenditure by pharmaceutical and biopharmaceutical companies.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Drug Discovery Services Market Share Analysis
The drug discovery services market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to drug discovery services market.
Some of the major players operating in the drug discovery services market are:
- General Electric (U.S.)
- Eurofins Scientific (U.S.)
- PPD Inc. (U.S.)
- Syngene International Limited (India)
- Wuxi AppTec (China)
- Frontage Labs (U.S.)
- Galapagos NV (Belgium)
- Aurigene Discovery Technologies (India)
- Genscript (U.S.)
- Domainex (U.K.)
- WIL Research Laboratories LLC (U.S.)
- Shanghai Medicilon, Inc. (China)
- Labcorp Drug Development (U.S.)
- Jubilant Biosys Ltd. (India)
- Evotec (Germany)
- Shanghai ChemPartner (China)
- Charles River Laboratories (U.S.)
- Merck & Co. Inc. (U.S.)
- Thermo Fisher Scientific Inc. (U.S.)
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