Drug Discovery Services Market by Process (Target Selection, Hit-to-lead), Type (Chemistry, Biology), Drug Type (Small Molecule, Biologics), Therapeutic Area (Oncology, Neurology, Infectious), End User (Pharma, Biotech, Academic) & Region - Global Forecas

Drug Discovery Services Market by Process (Target Selection, Hit-to-lead), Type (Chemistry, Biology), Drug Type (Small Molecule, Biologics), Therapeutic Area (Oncology, Neurology, Infectious), End User (Pharma, Biotech, Academic) & Region - Global Forecasts to 2028

The global Drug discovery services market is projected to reach USD 41.3 billion by 2028 from USD 20.6 billion in 2023, at a CAGR of 14.9% during the forecast period of 2023 to 2028. Growing R&D expenditure in pharma-biotech sector, increasing drug R&D pipeline and rising reliance on outsourcing, initiatives for research on rare diseases and orphan drugs, and high cost of in-house drug development are expected to provide growth to the market.

Oncology is expected to account for the largest share for therapeutic area segment

Based on therapeutic are the oncology segment has the largest market share. The list of drugs in development for oncology has increased over the years due to the rising number of clinical trials and the growing R&D expenditure by pharmaceutical companies on oncology-based drugs. The incidence of cancer has increased rapidly across the globe. According to GLOBOCAN, the number of new cases is projected to reach 28.9 million by 2040 from 19.3 million in 2020, at a CAGR of ~2% from 2020 to 2040. Owing to this, companies are increasingly focusing on developing novel medicines for cancer; this is expected to drive the growth of this therapeutic segment.

The Hit-to-lead identification segment accounted for the largest share of the process segment in the drug discovery services market

Based on process, the drug discovery services market is broadly classified into target selection, target validation, hit-to-lead identification, lead optimization, and candidate validation. Hit-to-lead identification segment accounted for the largest share of the drug discovery services market in 2022. Due to its crucial role in the drug discovery process, the hit-to-lead identification is the maximum revenue generating process, and currently many drug discovery companies are specifically offering these services to pharmaceutical companies.

Europe is the second largest region in the drug discovery services market

The drug discovery services market is segmented into North America, Europe, Asia Pacific, Latin America (LATAM) and Middle East and Africa (MEA). After North America, Europe is the second-largest regional pharmaceutical market globally. The research-based pharmaceutical industry can play a critical role in ensuring future competitiveness in an advancing global economy (Source: EFPIA). The development of new chemical and biological molecules, alongside increased R&D activities, will help drive the growth of the drug discovery services market in Europe.

The primary interviews conducted for this report can be categorized as follows:

By Respondent: Supply Side- 70% and Demand Side 30%

By Designation: Managers- 45%, CXOs and Director level - 30%, and Executives - 25%

By Region: North America -20%, Europe -10%, Asia-Pacific -55%, Latin America -10%, and Middle East and Africa – 5%

Prominent Players of the drug discovery services market are Laboratory Corporation of America Holdings (US), Thermo Fisher Scientific Inc. (US), Charles River Laboratories International, Inc. (US), WuXi AppTec (China), Eurofins Scientific SE (Germany), Evotec SE (Germany), Syngene International Limited (India), Curia Global Inc. (US), Dr. Reddy Laboratories Ltd. (Aurigene Discovery Technologies) (India), Pharmaron Beijing Co., Ltd. (China), Piramal Enterprises Limited (India)

Research Coverage:

This report provides a detailed picture of the drug discovery market. It aims at estimating the size and future growth potential of the market across different segments such as the product, application, end user and region. The report also includes an in-depth competitive analysis of the key market players along with their company profiles recent developments and key market strategies.

Key Benefits of Buying the Report:

The report will help market leaders/new entrants by providing them with the closest approximations of the revenue numbers for the overall drug discovery market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their business and make suitable go-to-market strategies. This report will enable stakeholders to understand the market's pulse and provide them with information on the key market drivers, restraints, challenges, trends, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers (Growing R&D expenditure in pharma-biotech sector, Increasing drug R&D pipeline and rising reliance on outsourcing, Initiatives for research on rare diseases and orphan drugs, and High cost of in-house drug development), restraints (Stringent regulations governing drug discovery and animal usage), opportunities (Technological advancements and new drug discovery techniques, Rising demand for specialized testing services among end users, Patent expiries of key biologics, and High growth prospects in emerging markets), and challenges (Shortage of skilled personnel) influencing the growth of drug discovery services market.

Service Development/Innovation: Detailed insights on newly launched services, and technological assessment of the drug discovery market.

Market Development: Comprehensive information about lucrative markets – the report analyses the drug discovery services market across varied regions.

Market Diversification: Exhaustive information about new services, untapped geographies, recent developments, and investments in the drug discovery services market.

Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Laboratory Corporation of America Holdings (US), Thermo Fisher Scientific Inc. (US), Charles River Laboratories International, Inc. (US), WuXi AppTec (China) among others in the drug discovery services market. The report also helps stakeholders understand the pulse of drug discovery services market and provides them information on key market drivers, restraints, challenges, and opportunities.