Drug Discovery Outsourcing Services Market - By Service Type (Chemistry, Biological), Dug Type (Small & Large-molecule), Disease Model (In-vitro, Cellular & Animal Models), Therapeutic Area (Diabetes, Neurology, Oncology), Global Forecast (2023 - 2032)

Drug Discovery Outsourcing Services Market - By Service Type (Chemistry, Biological), Dug Type (Small & Large-molecule), Disease Model (In-vitro, Cellular & Animal Models), Therapeutic Area (Diabetes, Neurology, Oncology), Global Forecast (2023 - 2032)

Drug Discovery Outsourcing Services Market size is poised to record 8.2% CAGR from 2023-2032, on account of the rapid advances in biologics, including gene therapies and monoclonal antibodies.

The surging developments in novel biologics and personalized medicine solutions to cater to individual patients is leading to the greater demand for outsourcing services in biopharmaceutical R&D activities. To cite an instance, in January 2021, Charles River Laboratories International partnered with biopharma service provider JADE Biomedical to expand its global biologics testing capabilities while accommodating the demand for biologics therapeutics, mainly cell and gene therapies. The growing focus of outsourcing providers on services, such as real-world evidence generation as well as patient-centric trial designs for improved efficiency of clinical research will also contribute to the market growth.

The drug discovery outsourcing services industry is segmented based on service type, drug type, disease model, therapeutic area, and region.

In terms of service type, the market size from the chemistry services segment will record appreciable CAGR from 2023-2032. Drug discovery outsourcing chemistry services are playing pivotal role in the pharmaceutical and biotechnology industries in streamlining and expediting the drug development process. The surging importance of outsourcing computational chemistry services to cater to uses in virtual screening, molecular modeling, and structure-based drug design will also contribute to the segment growth.

On the basis of therapeutic area, the drug discovery outsourcing services industry value from the neurology segment is projected to expand up to 2032. The growth can be attributed to the higher burden of Alzheimer's disease, Parkinson's disease, and multiple sclerosis along with the subsequent need for the development of their effective treatments. Accelerated R&D activities, reduces costs, and the improved access to specialized expertise are some advantages of outsourcing neurology drug discovery services.

Regionally, the APAC drug discovery outsourcing services market size is projected to observe notable CAGR through 2032 due to the presence of large talent pools, cost-effective labor, and favorable regulatory environments. The surging need for reducing costs, accessing specialized expertise, and accelerating the drug development process has compelled numerous pharmaceutical and biotechnology companies to turn to outsourcing for drug discovery services. The evolving regulatory landscape related to intellectual property, clinical trials, and data security will also add to the regional industry growth.