Global Drug Discovery Services Market - 2023-2030

Global Drug Discovery Services Market - 2023-2030

The Global Drug Discovery Services Market reached US$ 13.7 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 39.9 billion by 2030. The global drug discovery market is expected to exhibit a CAGR of 14.8% during the forecast period (2023-2030).

The global drug discovery services market has shown tremendous growth and development in recent years, owing to a number of major developments. The rising prevalence of chronic diseases such as cancer, neurological disorders, and cardiovascular disease has produced a strong demand for novel medications and therapies. This has resulted in an increase in pharmaceutical companies outsourcing drug development services to specialized contract research organizations (CROs).

The global drug discovery services market is being fueled primarily by the rising prevalence of chronic diseases such as cancer, which has created a significant need for advanced medication and therapies. For instance, the increasing prevalence of lung cancer has prompted significant drug research efforts, resulting in the development of targeted treatments such as tyrosine kinase inhibitors (TKIs) such as osimertinib and crizotinib.

Market Dynamics

The Advancements in Technology and Research Tools is Propelling the Growth of the Global Drug Discovery Services Market

Technological and research tool advancements, notably in the realm of 3D bioprinting, are propelling the global drug discovery services market. For instance, in January 2023, Molecular Devices and Advanced Solutions Life Sciences have formed a collaboration to develop 3D biology automation tools for drug discovery. As part of this collaboration, Molecular Devices will market Advanced Solutions' BioAssemblyBot 400 (BAB 400) bioprinting platform.

BAB 400 is a six-axis intelligent robotic arm that allows life scientists to create 3D model systems with greater throughput and precision. This method eliminates common issues associated with manual processes by automating the bioprinting process, resulting in increased productivity and dependability in drug discovery. This collaboration signifies the incorporation of cutting-edge bioprinting technology into the drug discovery services market, propelling innovations in the sector even further.

The Increasing Geriatric Population is Driving the Growth of the Global Drug Discovery Services Market

The global drug discovery services market is likely to be driven by the expanding elderly population. The elderly population has a greater incidence of chronic diseases and age-related ailments, which increases the demand for novel medications and therapies. As a result, pharmaceutical companies and research institutions are concentrating their efforts on developing medications that address the special healthcare needs of the aged.

For instance, according to World Health Organization (WHO) 2022 report, by 2030, about one out of every six people on the planet will be 60 or older. Within this time span, the share of the world population aged 60 and up is expected to increase from 1 billion in 2020 to 1.4 billion. In 2050, the number of persons aged 60 and up will more than treble, approaching 2.1 billion. Hence, owing to the above factors, the global drug discovery services market is expected to drive over the forecast period.

Stringent Regulations Governing Drug Discovery and Animal Usage is Hampering the Growth of the Global Drug Discovery Services Market

The strict limits limiting the use of animals in drug development present difficulties for research practices. Animals such as mice, rats, fish, amphibians, and reptiles are routinely used in research, but ethical concerns have pushed nations to enact animal safety and use legislation. This has prompted businesses to use alternate methods to reduce the use of animals. This aspect, however, is projected to impede the growth of the worldwide drug discovery services market during the forecast period.

COVID-19 Impact Analysis

The global drug discovery services market has been significantly impacted by the COVID-19 pandemic in a positive way. The epidemic has increased government financing for drug development research, as well as pharmaceutical company investment. As a result, demand for drug discovery services has increased, notably in the areas of target identification, lead optimization, and preclinical development.

Furthermore, the pandemic has caused a number of modifications in the way drug research is conducted. For example, a larger emphasis has been placed on the use of artificial intelligence and machine learning in drug discovery. This is because these technologies can help to speed drug discovery while also lowering drug development costs

Russia-Ukraine Conflict Analysis

The war between Russia and Ukraine has posed considerable obstacles to the global drug discovery services industry. These issues include growing energy prices and supply chain disruptions, research delays caused by lab evacuation or relocation, and an increased risk of cyberattacks on organizations' data and intellectual property. As a result, the market is expected to slow down in the near future.

However, the market is projected to rebound in the long run as demand for new drugs remains high. Despite its severe consequences, the war has promoted research into diseases prevalent in Ukraine and fostered collaboration among drug discovery companies, potentially leading to novel treatments. Thus, the overall impact of the war on the market is a mix of challenges and opportunities.

Segment Analysis

The global drug discovery services market is segmented based on process type, service type, application type, end user, and region.

The Pharmaceutical & Biotechnology companies Segment is expected to hold a Dominant Position for the Global Drug Discovery Services Market over the Forecast Period

The pharmaceutical & Biotechnology companies segment accounted for the highest market share accounting for approximately 34.8% of the drug discovery services market in 2022. Pharmaceutical & biotech companies, which are at the forefront of the research and commercialization of novel treatments, are positioned to dominate the global drug discovery services industry. Their significant investments in R&D, and collaborations with CROs will fuel demand for drug discovery services market.

For instance in November 2022, IQVIA, a leading global provider of advanced analytics, technological solutions, and clinical research services to the life sciences industry, announced today a long-term partnership with Clalit, Israel's largest health services organization, to open the country's first Prime Site. Thus, owing to the above factors, the market segment is expected to hold the largest market share for global drug discovery services market over the forecast period.

Geographical Analysis

North America holds a Dominant Position in the Global Drug Discovery Services Market

North America is estimated to hold around 38.6% of the total market share throughout the forecast period, owing to the rising prevalence chronic diseases, strong presence of pharmaceutical and biotechnology companies, significant investment in R&D activities, and favorable government initiatives supporting drug discovery and development are some of the key are the factors expected to drive the drug discovery services market in North America region over the forecast period.

Chronic diseases, such as cardiovascular disease, cancer, diabetes, and respiratory disorders, are a significant burden in North America. For instance, according to Centers for Disease Control and Prevention 2022 report, chronic diseases impact 6 out of 10 persons in the U.S. alone, and they are not only primary causes of mortality and disability, but also key contributors to the country's astounding yearly healthcare expenses of $4.1 trillion. Hence, owing to the above factors, the market is expected to drive over the forecast period.

Competitive Landscape

The major global players in the market include Piramal Pharma Solutions, Biopta, Charles River Laboratories International, Domainex, Evotec AG, Albany Molecular Research Inc., GenScript, Pharmaceutical Product Development, LLC (PPD), WuXi AppTec, and Merck & Co., Inc., among others.

Why Purchase the Report?
• To visualize the global drug discovery services market segmentation based on the process type, service type, application type, end user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of drug discovery services market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global drug discovery services market report would provide approximately 49 tables, 53 figures, and 195 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies