Drug Discovery Services Market - By Process (Hit-to-Lead Identification, Lead Optimization), Type (Chemistry Services, Biological) Drug Type (Small-molecule), Therapeutic Area (Oncology), End-user (Pharma/Biotech Companies) & Forecast 2023 - 2032
Published Date: August - 2024 | Publisher: MIR | No of Pages: 240 | Industry: Healthcare | Format: Report available in PDF / Excel Format
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Drug Discovery Services Market size
Drug Discovery Services Market size accounted for USD 16.3 billion in 2022 and is estimated to grow at 14.1% CAGR between 2023 and 2032. Increasing R&D investments by government as well as by private players for novel drug discovery and development coupled with growing demand for novel therapies. For instance, in 2021, according to the Congressional Budget Office report, in 2019, the pharmaceutical sector spent USD 83 billion in R&D activities for development of novel therapies.
Drug discovery services refer to specialized services encompass a range of activities and expertise required to identify, optimize, and develop potential drug candidates for evaluation and clinical testing. These drug discovery services help pharmaceutical and biotechnology companies augment their internal capabilities, access specialized expertise, accelerate the drug discovery process, and mitigate risks associated with developing new therapies.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Drug Discovery Services Market Size in 2022 | USD 16.3 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 14.1% |
| 2032 Value Projection | USD 61.6 Billion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 180 |
| Tables, Charts & Figures | 332 |
| Segments covered | Process, Type, Drug Type, Therapeutic Area, End-user, and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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COVID-19 Impact
The COVID-19 outbreak has hit the world's economies hard. In 2020, every industry took a major hit. The healthcare industry was one of the hardest hit. The medical systems were under a lot of pressure to stop the virus from spreading. At first, some research and development on drugs for diseases other than COVID-19 slowed down. Many businesses had to lower how much they spent on clinical trials compared to what they had planned. But things quickly got better as the demand for vaccines and medicines to fight COVID-19 rose.
Drug Discovery Services Market Trends
Escalating disease burden has created the demand for effective therapeutics and diagnostic solutions. The emergence of severe infectious disorders including COVID-19 and the Ebola pandemic has resulted in the rising need for R&D across the globe. Therefore, catering to such huge demand for novel drugs and treatment therapies, the companies are compelled to broaden their R&D capabilities with significant investments. Some of the leading pharmaceutical and medical device companies are noted to significantly increase spending on their research activities.
Drug Discovery Services Restraint
Stringent regulations governing drug discovery services may significantly hamper the drug discovery services market gains. The drug discovery process is subject to rigorous regulations and guidelines imposed by regulatory authorities to ensure safety, efficacy, and quality of new drugs. Compliance with complex regulatory requirements increases the time and cost involved in drug discovery and development. Furthermore, strict regulations can lead to longer approval timelines, higher development costs, and increased risk of regulatory hurdles. These factors can hamper innovation and investment in drug discovery, particularly for smaller companies with limited resources.
Drug Discovery Services Market Analysis
The drug discovery process involves several steps, like picking the right target, checking if it works, finding promising drug candidates, making them better, and then checking if they're good enough. In 2022, the most important step, called "lead optimization," accounted for over a quarter of the market. This step is crucial because it helps us improve the potential drug candidates to make them more effective, safer, and better at interacting with the body. Lead optimization also aims to enhance how the drug behaves in the body, like how it's absorbed, distributed, broken down, and excreted. By improving these characteristics, we make the drug more effective and less likely to cause side effects, making it safer for patients to use.
Based on type, the drug discovery services market is segmented into chemistry services and biological services. The chemistry services are expected to register around USD 32.8 billion by 2032. Chemistry services in drug discovery involve the synthesis and analysis of chemical compounds to identify and optimize potential drug candidates. These services provide pharmaceutical and biotechnology companies with expertise in medicinal chemistry, synthesis of novel compounds and structure-activity relationship studies. Also, they enable the design and synthesis of diverse compound libraries for screening and identification of potential drug candidates.
When it comes to finding new drugs, they can be broadly divided into two typessmall-molecule drugs and large-molecule drugs. In 2022, small-molecule drugs brought in a huge chunk of the market, and this is predicted to keep growing at a rate of 14.4% every year until 2032. Small-molecule drugs are a popular choice because they can be taken orally, have a wide range of chemical structures, and have desirable properties like being absorbed and distributed well in the body. Using drug discovery services for small-molecule drugs helps companies find and improve drug candidates that are effective, specific, and safe. Another advantage of small-molecule drugs is that they tend to be cheaper to make and easier to develop, which makes them more affordable to produce and distribute.
The Drug Discovery Services MarketUnlocking the Key to New Treatments Imagine a world where we could find cures for diseases faster and more effectively. That's where drug discovery services come in. This field focuses on identifying and developing new medications to tackle various conditions. One of the biggest areas in drug discovery is oncology, the study of cancer. It's a massive industry, with over $4 billion in revenue just last year. And as cancer becomes more common, the need for new treatments is growing. Here's why it's so importantcancer is complex, and targeted therapies are crucial. Pharmaceutical companies rely on drug discovery services to speed up the process of finding and developing these cutting-edge treatments. These services provide specialized knowledge, tools, and technology to make this happen. So, by investing in drug discovery in oncology, we're working towards a future where cancer patients have better chances of beating the disease.
The end-user in drug discovery services market is divided into pharmaceutical & biotechnology companies, contract research organizations and other end-users. Pharmaceutical & biotechnology companies segment accounted for nearly 69% market share in 2022. Pharmaceutical and biotechnology companies are the major end-users of drug discovery services, as these services enable to access a broader range of chemical libraries and screening platforms. The drug discovery service helps pharmaceutical and biotechnology to increase the chances of identifying potential drug candidates and enhance their product offerings.
North America drug discovery services market accounted for over 43.8% revenue share in 2022. The increasing prevalence of chronic disease and rising value for novel drugs is expected to boost the market growth. For instance, in 2020, according to the American Cancer Society, over 1.8 million new cancer cases were reported, and 606,520 people died of cancer in U.S. This has led to increasing demand for drug discovery services and novel therapeutics for oncology treatment. Furthermore, presence of major pharmaceutical and biotechnology companies and contract research organizations along with favorable regulatory environment.
Drug Discovery Services Market Share
Major business players operating in the drug discovery services market include
- Charles River Laboratories International, Inc.
- Thermo Fisher Scientific, Inc.
- Wuxi AppTec
- Eurofins Scientific
Drug Discovery Services Industry News
- In January 2023, Charles River Laboratories International, Inc. acquired SAMDI Tech, Inc to significantly accelerate and augment clients discovery efforts by measuring biochemical activities and identifying binding interactions for virtually any small molecule drug target. The acquisition is expected to help the company and its clients with seamless access to the premier, label-free HTS MS platform and create a comprehensive, industry-leading library of drug discovery solutions.
- In November 2020, Selvita acquired Fidelta to expand the company’s integrated drug discovery services. This strategy helped the company to consolidate its market position and drive revenue progress.
The drug discovery services market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments
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By Process
- Target Selection
- Target Validation
- Hit-to-Lead Identification
- Lead Optimization
- Candidate Validation
Type
- Chemistry Services
- Biological Services
Drug Type
- Small-molecule Drugs
- Large-molecule Drugs
Therapeutic Area
- Diabetes
- Neurology
- Oncology
- Infectious Diseases
- Other therapeutic areas
End-user
- Pharmaceutical & Biotechnology Companies
- Contract Research Organizations
- Other end-users
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Rest of MEA
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