Quantum Computing in Drug Discovery Services Market, 2023-2035

Quantum Computing in Drug Discovery Services Market, 2023-2035

INTRODUCTION

The early stages of research related to drug discovery, including the identification of a relevant biological target and a viable lead compound, play an important role in the overall success of a drug candidate in preclinical and clinical studies. The process of drug development, beginning from the discovery of a pharmacological lead to its commercial launch, is estimated to take around 10-15 years, involving capital investments in the range of USD 4 billion - USD 10 billion. Over time, the complexities associated with drug discovery have increased, specifically, for large molecules, which are inherently more complex than small molecule drugs. In order to overcome various challenges related to drug discovery, such as rising capital requirements and failure of late-stage programs, several pharmaceutical players are currently exploring the implementation of quantum computing in drug discovery processes. Quantum computing is a process that uses laws of quantum mechanics to solve large and complex problems in a short span as compared to the computer aided drug discovery. Currently, there are several quantum computing related approaches that are being used in the drug discovery process alone, such as structure-based drug design, fragment-based drug discovery and ligand-based drug discovery. The predictive power of quantum computing has proven to reduce the complexity, cost and time investment in the overall drug discovery procedure by allowing researchers to bypass the random screening of billions of molecules in a short span of time. As a result, the pharmaceutical industry stakeholders have started relying on the players offering services for quantum computing in drug discovery. Furthermore, considering the various initiatives being undertaken actively by players based in this domain, we are led to believe that the opportunity for stakeholders in this niche, upcoming industry is likely to grow at a steady pace in the foreseen future.

KEY MARKET INSIGHTS

The Quantum Computing in Drug Discovery Services Market: Distribution by Drug Discovery Service Offered (Target Identification / Validation, Hit Generation / Lead Identification and Lead Optimization), Therapeutic Area (Cardiovascular Disorders, CNS Disorders, Dermatological Disorders, Endocrine Disorders, Gastrointestinal Disorders, Immunological Disorders, Infectious Diseases, Musculoskeletal Disorders, Oncological Disorders, Respiratory Disorders and Others), and Key Geographical Regions (North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Latin America and Middle East and North Africa): Industry Trends and Global Forecasts, 2023-2035 report features an extensive study of the current market landscape and future potential of quantum computing in drug discovery services market. The report highlights the efforts of several stakeholders engaged in this rapidly emerging segment of the pharmaceutical industry. The report answers many key questions related to this domain.

What is quantum computing and how does it work in drug discovery?

Quantum computing is a rapidly emerging technology that uses quantum mechanism to solve large and complex problems in a short span of time as compared to traditional computers. Presently, quantum computing is used for the discovery and development of drugs owing to its capability of screening billions of molecules for specific targets in a short span of time. This procedure reduces the complexity and helps in saving time and cost associated with the drug discovery process.

What is the current market landscape of the quantum computing market focused on drug discovery?

The current market landscape of quantum computing comprises of both software and hardware providers. Software providers claim to offer services across various types of drug discovery steps. Further, these are focused on different types of therapeutic areas, primarily including oncological disorders, infectious diseases and cardiovascular disorders. Hardware providers primarily offer hardware as a service; some of the players also offer the option of purchasing the hardware directly.

What are the key trends across grants awarded for quantum computing in drug discovery?

Currently, more than 170 grants have been awarded to various organizations, primarily focused on quantum computing in drug discovery. Further, it is important to mention that the maximum number of grants have been awarded under type 5 category.

What are the key trends in the partnerships and collaborations for quantum computing in drug discovery?

Currently, various partnerships have been inked for quantum computing in drug discovery domain. Majority of these partnerships are research and development agreements, followed by platform utilization agreements.

What is the impact of quantum computing on the pharmaceutical industry?

Quantum computing has created a huge impact on the pharmaceutical industry in a short time period. Various industry stakeholders are integrating quantum computing for the discovery and development of drugs. Owing to the various benefits of quantum computing, such as big data processing and complex molecular modeling for minimizing cost and time investment, the adoption rate in pharmaceutical industry is expected to increase rapidly in the coming future.

What is the market size of quantum computing in drug discovery services market?

As the adoption of quantum computing in drug discovery increases amongst innovators in the pharmaceutical and biopharmaceutical industries, lucrative opportunities are expected to emerge for players offering services for quantum computing in drug discovery. The global quantum computing market, focused on drug discovery is expected to grow at a CAGR of 14% from 2023 to 2035.

Note 1: Illustrations are not as per actual scale.

Note 2: The Quantum Computing in Drug Discovery Services Market, 2023-2035 report takes into consideration the following drug discovery services offered: target identification / validation, hit generation / lead identification and lead optimization.

Note 3: The Quantum Computing in Drug Discovery Services Market, 2023-2035 report takes into consideration the following regions: North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Middle East and North Africa and Latin America

Who are the players in the quantum computing in drug discovery services market?

Examples of service providers engaged in this domain (which have also been captured in this report) include (in alphabetic order) Accenture, Aurora Fine Chemicals, Amazon Web Services, Huawei, IBM, Microsoft, Fujitsu, Xanadu and XtalPi. 

SCOPE OF THE REPORT

The study features an in-depth analysis of various firms / organizations that are engaged in this domain, across different segments as defined in the table below:

Quantum Computing in Drug Discovery Services Market:

Report Attribute / Market Segmentations

Report Attribute Details

Forecast Period 2023 – 2035

Type of Drug Discovery Services Offered Target Identification / Validation, Hit Generation / Lead Identification and Lead Optimization

Therapeutic Area Cardiovascular Disorders, CNS Disorders, Dermatological Disorders, Endocrine Disorders, Gastrointestinal Disorders, Immunological Disorders, Infectious Diseases, Musculoskeletal Disorders, Oncological Disorders, Respiratory Disorders and Others

Key Geographical Regions North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Middle East and North Africa and Latin America

Key Companies Profiled Accenture, Amazon Web Services, Atos, Fujitsu, Huawei, IBM, Microsoft, Xanadu and XtalPi

(Full list of 75+ companies captured in the market landscape analysis of the report)

Customization Scope 15% Free Customization Option (equivalent to 5

Analyst working days)

Excel Data Packs (Complimentary) Market Landscape Analysis, Company Competitiveness Analysis, Grant Analysis, Partnership and Collaboration Analysis, Market Forecast and Opportunity Analysis

Source: Roots Analysis

The study presents an in-depth analysis, highlighting the capabilities of various stakeholders engaged in this domain, across different geographies. Amongst other elements, the report includes:

An executive summary of the insights captured during our research. It offers a high-level view on the current state of quantum computing in drug discovery services market and its likely evolution in the short to mid and long term.

A general overview of quantum computing in drug discovery services, along with information on its types and applications across various industries. It also highlights the applications of quantum computing, specifically related to drug discovery. Further, the chapter features a discussion on the challenges, key growth drivers, and future perspectives.

A detailed assessment of the overall market landscape of quantum computing software providers, based on several relevant parameters, including year of establishment, company size (in terms of number of employees), location of headquarters, business capabilities (platform / software, quantum as a service, drug discovery service and in-house pipeline), platform capabilities (drug discovery, drug design, supply chain management and drug development(clinical trials)), type of drug discovery service(s) offered (target discovery / identification, target validation / selection, hit generation / identification / discovery, hit to lead / hit expansion / target to lead / lead identification / select lead series and lead optimization), type of molecule(s) supported (small molecules and large molecules), compatible computational approaches (artificial intelligence and cloud computing), end user(s) (pharmaceutical companies, contract research organizations and academic / research institutes) and therapeutic area(s) (cardiovascular disorders, infectious diseases, neurological disorders , oncological disorders and others)

A detailed competitiveness analysis of quantum computing service providers based on company strength (in terms of years of experience), portfolio strength (in terms of type of drug discovery services offered, type of molecule(s) supported, type of computational approaches and type of end-user(s)), and portfolio diversity (in terms of business capabilities).

Elaborate profiles of quantum computing software providers. Each profile includes a brief overview of the company, financial information (if available), details on service portfolio, recent developments and an informed future outlook.

A detailed assessment of the overall market landscape of quantum computing hardware providers, based on several parameters including year of establishment, company size (in terms of number of employees), location of headquarters, type of offering(s) (hardware as a service and hardware for purchase), data storage on cloud and compatible computational approaches (artificial intelligence and cloud computing)

Detailed profiles of quantum computing hardware providers. Each profile includes a brief overview of the company, financial information (if available), details on service portfolio, recent developments and an informed future outlook.

A detailed review of over 170 academic grants focused on quantum computing in drug discovery, based on several relevant parameters, such as year of grants awarded, amount awarded, support period, type of study section, administering institute center, type of grant, activity code, funding mechanism and amount granted, funding institute and support period, prominent program officers (by number of grants), location of recipient organizations, popular recipient organizations, organization type and amount granted to popular recipient.

A detailed analysis of recent partnerships inked between stakeholders engaged in this domain, since 2017, based on several relevant parameters, such as year of partnership, type of partnership, most active players (in terms of number of partnerships), and regional distribution of partnership activity in this domain.

A use case study highlighting the applications of quantum computing across various industries, such as chemical industry, cybersecurity, financial modeling, space sciences, oil and gas industry and weather forecasting, and its likely evolution in the foreseen future.

A qualitative analysis, highlighting the five competitive forces prevalent in this domain, including threats for new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitute product and rivalry among existing competitors.

A detailed analysis of the current and future market based on blue ocean strategy, covering a strategic plan / guide for emerging players in this domain to help unlock an uncontested market, featuring thirteen strategic tools that can help software providers to shift towards a blue ocean strategic market.

One of the key objectives of the report was to estimate the current opportunity and future growth potential of quantum computing in drug discovery services market over the coming years. We have provided informed estimates on the likely evolution of the market for the period, 2023-2035. Our year-wise projections of the current and future opportunity have further been segmented based on relevant parameters, such as drug discovery services offered (target identification / validation, hit generation / lead identification and lead optimization), therapeutic area (cardiovascular disorders, CNS disorders, dermatological disorders, endocrine disorders, gastrointestinal disorders, immunological disorders, infectious diseases, musculoskeletal disorders, oncological disorders, respiratory disorders and others), and key geographical regions ((North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Latin America and Middle East and North Africa). In order to account for future uncertainties associated with some of the key parameters and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s evolution.

The opinions and insights presented in the report were influenced by discussions held with stakeholders in this domain. The report features detailed transcripts of interviews held with the industry stakeholders.

All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this report are in USD, unless otherwise specified.

RESEARCH METHODOLOGY

The data presented in this report has been gathered via secondary and primary research. For all our projects, we conduct interviews / surveys with experts in this domain (academia, industry, medical practice, and other associations) to solicit their opinions on emerging trends in the market. This is primarily useful for us to draw out our own opinion on how the market will evolve across different regions and technology segments. Wherever possible, the available data has been checked for accuracy from multiple sources of information.

The secondary sources of information include:

Annual reports

Investor presentations

SEC filings

Industry databases

News releases from company websites

Government policy documents

Industry analysts’ views

While the focus has been on forecasting the market till 2035, the report also provides our independent views on various technological and non-commercial trends emerging in the industry. This opinion is solely based on our knowledge, research, and understanding of the relevant market gathered from various secondary and primary sources of information.

FREQUENTLY ASKED QUESTIONS

Question 1: What is the growth rate of quantum computing market focusing on drug discovery?

Answer: The global quantum computing market focusing on drug discovery is expected to grow at an annualized rate of 14% from 2023 to 2035.

Question 2: Which region is likely to hold the largest share in the quantum computing market focused on drug discovery?

Answer: North America is anticipated to capture the highest market share by 2035. In addition, the market in Asia-Pacific is likely to grow at a relatively faster pace, in the long term.

Question 3: Which type of service providers are most likely to dominate the quantum computing market for drug discovery?

Answer: Currently, software providers hold the largest share in the quantum computing in drug discovery services market; this is followed by hardware providers.

Question 4: What kind of partnership models are most commonly being adopted by stakeholders engaged in this domain?

Answer: Research and development agreements emerged as the most popular type of partnership model adopted by players engaged in offering quantum computing services for drug discovery. This is followed by platform utilization agreements.

CHAPTER OUTLINES

Chapter 1 is a preface providing an introduction to the full report, Quantum Computing in Drug Discovery Services Market, 2023-2035.

Chapter 2 is an executive summary of the key insights captured in our report. It offers a high-level view of the current scenario of quantum computing in drug discovery services market and its likely evolution in the short term to mid-term and long term.

Chapter 3 provides an overview of quantum computing, along with information on its business and platform capabilities with respect to its use across various industries Additionally, it highlights the application of quantum computing, specifically in drug discovery. Further, the chapter features a discussion on the challenges, key growth drivers, and future perspectives associated with the use of quantum computing in drug discovery services.

Chapter 4 provides a detailed assessment of the overall market landscape of quantum computing software providers, based on several relevant parameters including year of establishment, company size (in terms of number of employees), location of headquarters, business capabilities (platform / software, quantum as a service, drug discovery service and in-house pipeline), platform capabilities (drug discovery, drug design, supply chain management and drug development(clinical trials)), type of drug discovery service(s) offered (target discovery / identification, target validation / selection, hit generation / identification / discovery, hit to lead / hit expansion / target to lead / lead identification / select lead series and lead optimization), type of molecule(s) supported (small molecules and large molecules), compatible computational approaches (artificial intelligence and cloud computing), end user(s) (pharmaceutical companies, contract research organizations and academic / research institutes) and therapeutic area(s) (cardiovascular disorders, infectious diseases, neurological disorders , oncological disorders and others).

Chapter 5 provides an insightful company competitiveness analysis of quantum computing service providers based on company strength (in terms of the years of experience), portfolio strength (in terms of type of drug discovery services offered, type of molecule(s) supported, type of computational approaches and type of end-user(s)), and portfolio diversity (in terms of business capabilities).

Chapter 6 features elaborate profiles of quantum computing software providers . Each profile includes a brief overview of the company, financial information (if available), details on service portfolio, recent developments and an informed future outlook.

Chapter 7 features a detailed assessment of the overall market of quantum computing hardware providers based on various parameters including year of establishment, company size (in terms of number of employees), location of headquarters, type of offering(s) (hardware as a service and hardware for purchase), data storage on cloud and compatible computational approaches (artificial intelligence and cloud computing).

Chapter 8 features detailed profiles of quantum computing hardware providers. It includes a brief overview of the company, financial information (if available), details of service portfolio, recent developments and an informed future outlook.

Chapter 9 features a detailed review of academic grants related to research on quantum computing in drug discovery, based on several relevant parameters, such as year of grants awarded, amount awarded, support period, type of study section, administering institute center, type of grant, activity code, funding mechanism and amount granted, funding institute and support period, prominent program officers (by number of grants), location of recipient organizations, popular recipient organizations, organization type and amount granted to popular recipient.

Chapter 10 provides an in-depth analysis of the various collaborations and partnerships that have been inked by stakeholders engaged in this domain, during the period 2017-2022. It includes a brief description of the partnership models (including acquisitions, joint ventures, platform development agreements, platform installation agreements, platform integration agreements, platform integration and development agreements, platform utilization agreements, product installation agreements, research and development agreements, service agreements and service alliances) adopted by stakeholders in this domain. Further, the partnership activity in this domain has been analyzed based on various parameters, such as year of partnership, type of partnership, analysis on most active players, regional analysis.

Chapter 11 provides a detailed use-case study on the applications of quantum computing across various industries, such as chemical industry, cybersecurity, financial modeling, space sciences, oil and gas industry and weather forecasting, and its likely evolution in the foreseen future.

Chapter 12 provides information on five competitive forces prevalent in this domain, including threats for new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitute product and rivalry among existing competitors.

Chapter 13 provides the detailed analysis of the current and future market based on blue ocean strategy, covering a strategic plan / guide for emerging players in this domain to help unlock an uncontested market, featuring thirteen strategic tools that can help software providers to shift towards a blue ocean strategic market.

Chapter 14 presents an insightful market forecast, highlighting the likely growth of the quantum computing in drug discovery services market till the year 2035. In order to provide details on the future opportunity, our projections have been segmented based on relevant parameters, such as drug discovery services offered (target identification / validation, hit generation / lead identification and lead optimization), type of therapeutic area (cardiovascular disorders, CNS disorders, dermatological disorders, endocrine disorders, gastrointestinal disorders, immunological disorders, infectious diseases, musculoskeletal disorders, oncological disorders, respiratory disorders and others), and key geographical regions ((North America (US and Canada), Europe (UK, France, Germany and Rest of the Europe), Asia-Pacific (China, Japan and Rest of the Asia Pacific), Latin America and Middle East and North Africa).

Chapter 15 provides the transcripts of interviews conducted with key stakeholders in the industry.

Chapter 16 is an appendix, which contains tabulated data and numbers for all the figures provided in the report.

Chapter 17 is an appendix, which contains a list of companies and organizations mentioned in this report.