Drug Discovery Services Market Drivers, Restraints, Opportunities, Competitive Analysis and Challenges for the manufacturers

The total drug Discovery Services Market was valued at USD 16.8 Billion in 2021 and is expected to reach USD 53.58 Billion by 2029 at a CAGR of 15.6% during the forecast period. The process of identifying potential new medicines is known as drug discovery. It involves several scientific fields, including biology, chemistry, and pharmacology. Each year, CDER (Center for Drug Evaluation and Research) approves a wide range of new drugs. In 2021, CDER approved 50 new drugs, either as new molecular entities under New Drug Applications or as new therapeutic biologics under Biologics License Applications. There are around 5,100 pharmaceutical companies that have an active research and development (R&D) department for drug discovery. Major pharmaceutical companies are collaborating with clinical research organizations (CROs) to provide drug discovery services to boost profitability and reduce total R&D expenditures. To minimize the total cost of drug discovery and development, pharmaceutical firms are looking for fully integrated outsourcing services to assist their drug research and development. Many new services were introduced in the market during COVID-19 for the research and development of COVID-19 vaccines, medicines, and diagnostics globally in 2020. According to a survey conducted by Life Science Strategy Group of 120 clinical development decision-makers in the United States Europe, and China industry professionals are undertaking major strategic adjustments to keep their share of the market in the midst of the COVID-19 pandemic. The pharmaceutical sector has seen significant changes in the last two decades, including a shift toward biologics, patent expiration, and a significant reduction of big pharmaceuticals' internal discovery. Growing R&D investment in the pharmaceutical and biopharmaceutical industry, increased demand for outsourced analytical testing services, and initiatives for rare disease and orphan drug research are all generating new sources of revenue in the drug discovery services market. The Drug Discovery Services Market report forecasts revenue growth at global, and country levels and provides an analysis of the latest industry trends in each of the sub-segments during the forecast period. MMR has segmented the global drug discovery Service market report based on process, therapeutics area, type, end-user, and region. The report contains strategic profiling of top key players in the market, a wide-ranging analysis of their core competencies, and their strategies like new product launches, growths, agreements, joint ventures, partnerships, and acquisitions that apply to the businesses. Our team of analysts can also provide you with data in excel files and pivot tables or can assist you in creating presentations from the data sets available in the report. Drug Discovery Services MarketTo know about the Research Methodology   :- Request Free Sample Report

Drug Discovery Services Market Dynamics:

Artificial Intelligence in Drug Discovery AI is a potential technique for improving drug discovery. The use of artificial intelligence (AI) to analyze the research and result of the drug is expected to help drug discovery services. Artificial intelligence may help in analyzing the structure of proteins before a chemical is synthesized or produced, which can help predict how it will influence the target as well as safety issues. As a result, the market for drug discovery services is expected to develop significantly throughout the forecast period. The gradual increase in regional healthcare spending supports new pharmaceutical technology advancements. For example, Bayer and Exscientia, a company that uses artificial intelligence in drug discovery, signed a collaboration agreement in January 2020 to develop and optimize integrated drug discovery services for prospective therapeutic candidates in the treatment of cardiovascular and oncological disorders. Drug Discovery Services Market Growth in drugs and biologics The FDA approved 160 drugs in the previous three years (2018-2020), compared to only 21 drugs approved in 2010. This increase in the number of authorized drugs globally can be attributed to increased investments by biopharmaceutical companies in the development of biologics and biosimilars. More than half of the drug candidates in the discovery stage are biologics, such as proteins, peptides, and monoclonal antibodies. In 2022, biologics are estimated to provide almost half of the revenue earned by the top 100 pharmaceutical product sales. Although small-molecule drugs dominate the worldwide pharmaceutical industry, the share of biologics, biosimilars, and large-molecule drugs is increasing, owing to the introduction of new biologic-based treatments and rising revenues from existing biologics. Biologics and biosimilars need more specialized testing services at each level than small molecules. The growing demand for outsourcing these services to CROs is expected to propel the growth of the drug discovery services market in the coming years. Rising Chronic Disease Burden The increased incidence of chronic diseases such as cancer, diabetes, cardiovascular disease, and respiratory diseases as a result of bad eating habits, rising pollution levels, and rising smoking consumption has significantly boosted the growth of the drug discovery services industry. They are responsible for seven out of every 10 fatalities worldwide, accounting for more than 40 million deaths per year. The majority of healthcare expenses in the United States are caused by chronic diseases, which are the significant reason for disability and death. As a consequence, the prevalence of chronic diseases is expected to drive the global market for drug discovery services throughout the forecast period. Furthermore, the rapidly growing geriatric population throughout the world, as well as the increased sensitivity of the aged to various diseases, are expected to positively affect the growth of the drug discovery services market in the near future. According to the United Nations, the global elderly population is expected to exceed 2 billion by 2050. Furthermore, the active involvement of several agencies such as the FDA and EMA in the approvals of various newly created medicines is helping the growth of the drug discovery services market. The existence of multiple contract research enterprises in both developed and developing countries attracts investors in research and development activities. Drug Discovery Services Market Increasing spending on R&D activities The biopharmaceutical industry's increasing spending on R&D activities is increasing demand for clinical trial and analytical test outsourcing. The increasing research efforts on orphan pharmaceuticals and research on uncommon diseases are driving the global drug discovery services market forward. The growing demand for biopharmaceutical treatments is causing the biologics business to grow significantly across the world. Biopharmaceuticals account for around 20% of the pharmaceutical industry on their own. The creation of multiple novels and effective life-saving biologics treatments has driven its demand, and biologics businesses are encouraged to invest in the research and development of new drugs for a variety of common and uncommon diseases. Furthermore, the expiry of patents and rising demand for biologics in emerging countries are propelling the worldwide drug discovery services market forward. Drug Discovery Services Market Rising Demand for Novel Therapies in a Variety of Therapeutic Areas The increased need for innovative medicines for chronic diseases, together with growth in the global healthcare industry, is expected to fuel drug discovery services market growth. Pharmaceutical and biopharma companies continue to outsource their research and development (R&D) activities to contract research organizations (CROs), which have positioned themselves to provide best-in-class R&D services and create engagement models to maximize R&D productivity and reduce the financial burden placed on pharmaceutical corporations. The growing burden of chronic illnesses is pushing governments and pharmaceutical companies to look for solutions and increase their investment in clinical trials. As a result, the need for drug discovery services will increase. However, the market will be hampered by a lack of skilled labor and a high rate of target drug molecule failure. Stringent regulations governing drug discovery and clinical research on animals Regulatory agencies prioritize safety and efficacy during drug approval. Although these approaches help to assure the quality of medicines released to the market, they significantly raise the cost of medication development and the final product. Aside from that, different legislations that ensure product quality (such as GMP) often increase manufacturing costs. Animals are used in drug discovery under strict guidelines. Mice, rats, fish, amphibians, and reptiles are the most common animals that are used in Drug Discovery research. Concerns regarding the ethical use of animals in research have pushed governments to introduce legislation for animal safety and use, which presents several challenges to the smooth functioning of drug discovery research. This has forced companies to implement other techniques to minimize animal use. Novo Nordisk, for example, uses biosimulation, which involves utilizing computer models to simulate human biology. However, this has not been fully implemented throughout the industry.

Drug Discovery Services Market Segment Analysis:

By Type, the Medicinal chemistry services segment held the largest share of the market in 2021. The growing use of chemistry in different early drug development stages to provide robust candidates is driving growth in this market segment. The growing trend of pharmaceutical companies outsourcing R&D services, as well as the increasing number of drug discovery and development activities and R&D expenditures, are propelling the medicinal chemistry segment growth during the forecast period. By Therapeutic Area, the respiratory systems segment accounted for approximately 16.8% of global revenue In 2021. The high prevalence of respiratory illnesses such as bronchitis, TB, Chronic Obstructive Pulmonary Disease (COPD), and asthma, combined with rising drug resistance, has driven segment growth. Furthermore, the development of innovative drug delivery systems, such as nasal sprays, has been highlighted as the primary driver of segment revenue. Lung illnesses account for about 700,000 hospital admissions and over 6 million inpatient bed days in the United Kingdom each year. The oncology segment is dominated the drug discovery services market in terms of therapeutic categories and is expected to do so for the foreseeable future. Cancer drugs are in strong demand due to an increase in cancer cases globally, which will make the segment a significant shareholder soon.

Drug Discovery Services MarketDrug Discovery Services Market Regional Insights

North America is the largest regional market for drug discovery services in 2020. This can be attributed to the presence of well-established CROs, rising R&D expenditure by pharmaceutical and biopharmaceutical companies, rapid growth in the biosimilar and biologics markets, and the availability of cutting-edge techniques, instruments, and facilities for drug discovery research in the region. Traditional drug development, as well as testing and inspection of approval procedures, are some significant issues not only for patients but also for the drug industry, which has been waiting for novel drugs against diseases. These factors are also expected to create opportunities for growth in the drug discovery services market in the future years. Drug Discovery Services MarketAsia Pacific Drug Discovery Services Market is expected to have the highest CAGR during the forecast period. the area is emerging as a hub for outsourcing drug discovery operations because of the availability of skilled labor, lower costs, a good regulatory framework, and high-quality data. Japan, the world's second-largest pharmaceutical sector is expected to present a significant potential for CROs, thus propelling the market. The revised Pharmaceutical Affairs Law in Japan supports research activities in tissue diagnostics and cancer, which is expected to enhance the market growth in this region.

Drug Discovery Services Market Scope: Inquire before buying

Drug Discovery Services Market
Report Coverage Details
Base Year: 2021 Forecast Period: 2022-2029
Historical Data: 2017 to 2021 Market Size in 2021: US $ 16.8 Bn.
Forecast Period 2022 to 2029 CAGR: 15.6% Market Size in 2029: US $ 53.58 Bn.
Segments Covered: by Process • Target Selection • Target Validation • Hit-to-Lead identification • Lead Optimization • Candidate Validation
by Type • Medicinal Chemistry • Biology Services • Drug Metabolism and Pharmacokinetics
by Therapeutic Area • Oncology • Neurology • Cardiovascular Diseases • Respiratory Diseases • Diabetes and Other Therapeutic Areas
by End-User • Pharmaceutical & Biotechnology companies • Academic Institutes • Other End Users (small CROs, IVD companies, and clinical laboratories)

Drug Discovery Services Market, by Region

• North America • Europe • Asia Pacific • Middle East and Africa • South America

Top Leading Companies in the Drug Discovery Services Market are:

• Thermo Fisher Scientific (US) • Merck (US) • GE Healthcare (US) • Pharmaceutical Product Development, LLC. (Ppd) (US) • Covance (US) • Genscript Biotech Corporation (US) • Laboratory Corporation of America Holdings (US) • SRI International (US) • BioDuro (US) • Cullgen (US) • Nanosyn (US) • Radyus Research (US) • Visikol Inc (US) • Aurobindo Pharma (India) • Dr. Reddy's Laboratories (India) • Jubilant Biosys Ltd. (India) • Lupin Pharmaceuticals (India) • Sun Pharmaceutical Industries Ltd. (India) • Serum Institute of India Pvt. Ltd. (India) • Syngene International Limited (India) • Piramal Enterprises Ltd (India) • Eurofins Advinus Limited (India) • Dalton Pharma Services (Canada) • Domainex (UK) • Selcia Limited (UK) • Selvita S.A. (Poland) • Wuxi Apptec (China) • Viva Biotech (China) • SYNthesis Med Chem (Australia) • Lonza Group AG (Switzerland) • Evotec A.G. (Germany) FAQs: 1. Which is the potential market for Drug Discovery Services in terms of the region? Ans. In the Asia Pacific region, the availability of skilled labor, lower costs, a good regulatory framework, and high-quality data, are expected to drive the market. 2. What is expected to drive the growth of the Drug Discovery Services market in the forecast period? Ans. The Rising Chronic Disease Burdenis a major factor driving the market growth during the forecast period. 3. What is the projected market size & growth rate of the Drug Discovery Services Market? Ans. The total drug Discovery Services Market was valued at USD 16.8 Billion in 2021 and is expected to reach USD 53.58 Billion by 2029 at a CAGR of 15.6% during the forecast period. 4. What segments are covered in the Drug Discovery Services Market report? Ans. The segments covered are process, therapeutics area, type, end-user, and region.
1. Global Drug Discovery Services Market: Research Methodology 2. Global Drug Discovery Services Market: Executive Summary 2.1 Market Overview and Definitions 2.1.1. Introduction to the Global Drug Discovery Services Market 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global Drug Discovery Services Market: Competitive Analysis 3.1 MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2 Consolidation in the Market 3.2.1 M&A by region 3.3 Key Developments by Companies 3.4 Market Drivers 3.5 Market Restraints 3.6 Market Opportunities 3.7 Market Challenges 3.8 Market Dynamics 3.9 PORTERS Five Forces Analysis 3.10 PESTLE 3.11 Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • South America 3.12 COVID-19 Impact 4. Global Drug Discovery Services Market Segmentation 4.1 Global Drug Discovery Services Market, by Process (2021-2029) • Target Selection • Target Validation • Hit-to-Lead identification • Lead Optimization • Candidate Validation 4.2 Global Drug Discovery Services Market, by Type (2021-2029) • Medicinal Chemistry • Biology Services • Drug Metabolism and Pharmacokinetics 4.3 Global Drug Discovery Services Market, by Therapeutic Area (2021-2029) • Oncology • Neurology • Cardiovascular Diseases • Respiratory Diseases • Diabetes and Other Therapeutic Areas 4.4 Global Drug Discovery Services Market, by End-user (2021-2029) • Pharmaceutical & Biotechnology companies • Academic Institutes • Other End Users (small CROs, IVD companies, and clinical laboratories) 5. North America Drug Discovery Services Market(2021-2029) 5.1 North America Drug Discovery Services Market, by Process (2021-2029) • Target Selection • Target Validation • Hit-to-Lead identification • Lead Optimization • Candidate Validation 5.2 North America Drug Discovery Services Market, by Type (2021-2029) • Medicinal Chemistry • Biology Services • Drug Metabolism and Pharmacokinetics 5.3 North America Drug Discovery Services Market, by Therapeutic Area (2021-2029) • Oncology • Neurology • Cardiovascular Diseases • Respiratory Diseases • Diabetes and Other Therapeutic Areas 5.4 North America Drug Discovery Services Market, by End-user (2021-2029) • Pharmaceutical & Biotechnology companies • Academic Institutes • Other End Users (small CROs, IVD companies, and clinical laboratories) 5.5 North America Drug Discovery Services Market, by Country (2021-2029) • United States • Canada • Mexico 6. Europe Drug Discovery Services Market (2021-2029) 6.1. European Drug Discovery Services Market, by Process (2021-2029) 6.2. European Drug Discovery Services Market, by Type (2021-2029) 6.3. European Drug Discovery Services Market, by Therapeutic Area (2021-2029) 6.4. European Drug Discovery Services Market, by End-user (2021-2029) 6.5. European Drug Discovery Services Market, by Country (2021-2029) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest Of Europe 7. Asia Pacific Drug Discovery Services Market (2021-2029) 7.1. Asia Pacific Drug Discovery Services Market, by Process (2021-2029) 7.2. Asia Pacific Drug Discovery Services Market, by Type (2021-2029) 7.3. Asia Pacific Drug Discovery Services Market, by Therapeutic Area (2021-2029) 7.4. Asia Pacific Drug Discovery Services Market, by End-user (2021-2029) 7.5. Asia Pacific Drug Discovery Services Market, by Country (2021-2029) • China • India • Japan • South Korea • Australia • ASEAN • Rest Of APAC 8. Middle East and Africa Drug Discovery Services Market (2021-2029) 8.1 Middle East and Africa Drug Discovery Services Market, by Process (2021-2029) 8.2. Middle East and Africa Drug Discovery Services Market, by Type (2021-2029) 8.3. Middle East and Africa Drug Discovery Services Market, by Therapeutic Area (2021-2029) 8.4. Middle East and Africa Drug Discovery Services Market, by End-user (2021-2029) 8.5. Middle East and Africa Drug Discovery Services Market, by Country (2021-2029) • South Africa • GCC • Egypt • Nigeria • Rest Of ME&A 9. South America Drug Discovery Services Market (2021-2029) 9.1. South America Drug Discovery Services Market, by Process (2021-2029) 9.2. South America Drug Discovery Services Market, by Type (2021-2029) 9.3. South America Drug Discovery Services Market, by Therapeutic Area (2021-2029) 9.4. South America Drug Discovery Services Market, by End-user (2021-2029) 9.5. South America Drug Discovery Services Market, by Country (2021-2029) • Brazil • Argentina • Rest Of South America 10. Company Profile: Key players 10.1 Thermo Fisher Scientific (US) 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2 Merck (US) 10.3 GE Healthcare (US) 10.4 Pharmaceutical Product Development, LLC. (Ppd) (US) 10.5 Covance (US) 10.6 Genscript Biotech Corporation (US) 10.7 Laboratory Corporation of America Holdings (US) 10.8 SRI International (US) 10.9 BioDuro (US) 10.10 Cullgen (US) 10.11 Nanosyn (US) 10.12 Radyus Research (US) 10.13 Visikol Inc (US) 10.14 Aurobindo Pharma (India) 10.15 Dr. Reddy's Laboratories (India) 10.16 Jubilant Biosys Ltd. (India) 10.17 Lupin Pharmaceuticals (India) 10.18 Sun Pharmaceutical Industries Ltd. (India) 10.19 Serum Institute of India Pvt. Ltd. (India) 10.20 Syngene International Limited (India) 10.21 Piramal Enterprises Ltd (India) 10.22 Eurofins Advinus Limited (India) 10.23 Dalton Pharma Services (Canada) 10.24 Domainex (UK) 10.25 Selcia Limited (UK) 10.26 Selvita S.A. (Poland) 10.27 Wuxi Apptec (China) 10.28 Viva Biotech (China) 10.29 SYNthesis Med Chem (Australia) 10.30 Lonza Group AG (Switzerland) 10.31 Evotec A.G. (Germany)

About This Report

Report ID 6672
Category Healthcare
Published Date Nov 2022
Updated Date
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