Global Drug Discovery Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Drug Discovery Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Drug discovery software enables pharmaceutical companies and clinical researchers to discover and develop new drugs and study the efficacy of potential new drugs on treatment outcomes. Drug discovery software capabilities typically include screening, predictive analytics, modeling, simulation, and computational capabilities. These capabilities facilitate tasks such as image analysis and submission of clinical trial results and ensure data accuracy. Researchers and scientists in the medical device and pharmaceutical industries use drug discovery software and computational medicine technologies to dramatically speed up the process of drug development, testing, and bringing to market.

Market Overview:

The latest research study on the global Drug Discovery Software market finds that the global Drug Discovery Software market reached a value of USD 1065.57 million in 2022. It’s expected that the market will achieve USD 2373.54 million by 2028, exhibiting a CAGR of 14.28% during the forecast period.

During the COVID-19 pandemic, health systems around the world have been investing heavily in medicines to treat COVID-19. Researchers need computer tools to aid in the discovery and testing of new drugs. The drug development software market has witnessed high growth owing to increased R&D activities by scientists, researchers, and biotech and biopharmaceutical companies to limit the spread of the coronavirus disease. The increased mutation rate of coronaviruses has prompted scientists around the world to search for an effective treatment or drug to combat the deadly virus. Hence, the importance of research and drug discovery has skyrocketed, thereby driving the growth of the drug development software market.

Advantages of Drug Discovery Software

Drug discovery software has many advantages. Drug discovery software typically supports the workflow of drug researchers and scientists; aggregates and analyzes disease, chemical, drug, and other types of stored data; can extract meaningful information from large amounts of data; and integrates with third-party modeling and visualization tools. The sheer size of the databases used to screen new drug candidates means that it is nearly impossible for individual researchers to review everything themselves and artificial intelligence and machine learning can help. Artificial intelligence can predict the properties of potential compounds, which helps researchers select only compounds with desired properties for synthesis, which can save a lot of time and money. Machine learning can reduce the need for repetitive tasks, freeing researchers to focus on discovering effective new drugs. Drug discovery software automates the process of quantitative method and mechanism development for diagnosis, treatment, and development of new therapeutic drugs, facilitating the application of computational science in synthesis, screening, and practical therapeutic efficiency. With the discovery of efficacy and the success of the screening, further drug development process takes place before clinical trials. Overall, drug discovery software enables access to a wealth of market intelligence, leveraging advances in drug design and synthesis for evolving and adapting diseases. And maintain and manage data integrity as drugs transition from discovery to clinical trials, utilizing many innovative technologies to shorten the time to drug development testing and marketing. The drug discovery software market is growing continuously as the benefits of the software become more and more known.

High R&D spending by pharmaceutical and biotech companies in drug discovery

The pharmaceutical industry is responsible for the research, development, production, and distribution of medicines. The pharmaceutical industry is more dependent on R&D than any other industry. Pharmaceutical companies typically spend 20 percent or more of their sales revenue on research and development programs. High R&D spending in the pharmaceutical industry covers a variety of activities including the discovery and testing of new drugs, drug expansion, and clinical testing for safety monitoring or marketing purposes. The Discovery of new drugs is critical to the continued growth of pharmaceutical companies, and sales of new branded drugs can contribute considerably to overall revenue. However, the expiration of product patents can result in a significant reduction in revenue. The increasing number of drug patents expiring has led to a surge in the demand for drug discovery in the pharmaceutical industry. One option for large pharmaceutical companies to increase the number of drugs is to acquire a smaller company that is developing a new drug. With the rising prevalence of chronic diseases and cancers across the globe, there is an increasing demand for novel drugs to treat various diseases. Both private drug R&D spending and new drug approvals have increased significantly in recent years. Many drugs are high-priced specialty drugs for a relatively small number of potential patients. Every year, the pharmaceutical industry develops several new drugs with valuable medical benefits. Many of these drugs are expensive, driving up healthcare costs for the private sector and the federal government. Many countries are enacting policies to lower drug prices and reduce drug expenditures, which may reduce the incentives of the pharmaceutical industry to develop new drugs. To this end, pharmaceutical companies are employing various strategies to reduce the cost of drug discovery. Examples include collaborations between pharmaceutical companies and academic institutions, increased funding of drug discovery research by government agencies and private foundations, and the use of advanced tools such as drug development software. Drug development software helps pharmaceutical companies with preclinical research and development, target identification, compound screening, and lead identification, and streamlines the drug discovery process. Researchers and the pharmaceutical industry can also use the software to access all relevant and up-to-date data generated by the scientific community. Hence, the booming pharmaceutical industry is an important driver for the growth of the drug development software market.

Lack of awareness of drug discovery software among end users

There is a considerable knowledge gap in the utilization of drug discovery software by downstream users. Many academic institutions underutilize software tools because some researchers are not trained in digital tools and how to use them. Drug discovery software-assisted drug discovery is a relatively new technology that is poorly understood by many professionals and lacks knowledge of how to use it for drug discovery. Users with poor computer skills dislike manual intervention and lengthy installation times. Drug discovery software requires high operating skills, and users need a lot of time to master the use of the software. Personnel dealing with artificial intelligence systems should be familiar with and understand artificial intelligence technologies such as machine intelligence, deep learning, cognitive computing, and image recognition. Integrating AI technologies into existing systems is a challenging task. A slight error can lead to system failure and negatively affect expected results. Additionally, many medical practices in developed regions have financial incentives to explore new technologies as a way of differentiating themselves from competitors. Poor broadband access in developing regions and a lack of relevant technical proficiency among community health workers render most emerging digital health solutions ineffective. Hence, the market expansion of drug discovery software is hampered due to a lack of adequate understanding among many life science and medical researchers.

Region Overview:

In 2022, the share of the Drug Discovery Software market in United States stood at 40.21%.

Company Overview:

The major players operating in the Drug Discovery Software market include Schrodinger, Dotmatics, Instem, insitro, Dassault Systems, etc. Among which, Schrodinger ranked top in terms of sales and revenue in 2023.

Schrodinger

Schrödinger’s industry-leading computational platform facilitates the research efforts of biopharmaceutical and industrial companies, academic institutions, and government laboratories worldwide. Schrödinger also has wholly-owned and collaborative drug discovery programs in a broad range of therapeutic areas.

Dotmatics

Dotmatics is the global leader in R&D scientific software that connects science, data, and decision-making. Combining a workflow and data platform with best-of-breed applications, we offer the first true end-to-end solutions for biology, chemistry, formulations, data management, flow cytometry, and more.

Segmentation Overview:

By type, Web Based segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Pharma Companies segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Drug Discovery Software market covered in Chapter 3:

Instem
Collaborative Drug Discovery (CDD)
Dotmatics
Schrodinger
insitro
PerkinElmer
Optibrium
Chemical Computing Group
Certara
Dassault Systems
LabVantage
IBDS

In Chapter 4 and Chapter 14.2, on the basis of types, the Drug Discovery Software market from 2018 to 2029 is primarily split into:

Cloud Based
Web Based

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Drug Discovery Software market from 2018 to 2029 covers:

CROs and Universities
Pharma Companies
Research Laboratory
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)