Drug Discovery Market Forecasts to 2028 – Global Analysis by Technology (Nanotechnology, High Throughput Screening, Combinatorial Chemistry, Pharmacogenomics, Bioanalytical Instruments, Biochips, Bioinformatics and Other Technologies), Service (Medicinal Chemical Services, Biological Services, Drug Metabolism and Pharmacokinetics (DMPK) Services and Other Pharmaceutical Services), Process (Target Selection, Target Validation, Hit-To-Lead Identification, Lead Optimization and Candidate Validation), Therapeutic Area (Respiratory Disease, Neurology, Infectious and Immune System Diseases, Oncology, Cardiovascular Diseases, Digestive System Diseases, Diabetes and Other Therapeutic Areas) , End Use and By GeographyAccording to Stratistics MRC, the Global Drug Discovery Market is accounted for $ 47.38 billion in 2022 and is expected to reach $ 84.86billion by 2028 growing at a CAGR of 10.2% during the forecast period. In the fields of medicine, biotechnology, and pharmacology, novel candidate medicines are found through the process of drug discovery. In the past, drugs were discovered by accident, as was the case with penicillin, or by identifying the active component in conventional treatments. A technique known as classical pharmacology involved screening chemical libraries of created small molecules, natural products, or extracts in whole cells or organisms to find substances that had desired therapeutic effects.
According to Cardiovascular diseases (CVDs) key facts published by the World Health Organization in June 2021, CVDs are the leading cause of death globally, representing around 32% of all global deaths. According to the American Cancer Society, in 2020, about 1.8 million new cancer cases were expected to be diagnosed and approximately 606,520 cancer deaths may have occurred in the United States. Thus, the increasing burden of a diverse range of diseases among all age groups and its burden, globally, drive the demand for drug discovery and its market.
Market Dynamics:
Driver:
Profound Impact of Oncology on Market Growth
Oncology's use of AI is thought to have tremendous growth potential. Researchers can design new therapies and modify drug use by better understanding how cancer cells develop resistance to anticancer medications with the aid of artificial intelligence (AI). Current research on anticancer drugs can be accelerated by AI technology like machine learning. A prime example of recent developments in the oncology sector is Paige's, a start-up that develops AI diagnostic technology. Through the application of machine learning, the business enables pathologists to accurately diagnose cancer using photographs of tissue samples.
Restrain:
Stringent regulations governing drug discovery and animal usage
During the drug approval process, regulatory agencies' main priorities are safety and efficacy. This aspect can have a considerable impact on the uptake of a certain treatment in emerging markets that are price sensitive. In addition, a number of laws that guarantee the quality of the product (such GMP) frequently raise the cost of manufacturing. The use of animals in the drug discovery process is governed by strict regulations. The most often employed animals in study are mice, rats, fish, amphibians, and reptiles. Governments have introduced rules for animal safety and use in response to ethical questions about this practise, which poses a number of difficulties for drug discovery research. Due to this, businesses are now using alternative methods to reduce the use of animals.
Opportunity:
Advancements in Treatment of Neurological Diseases to Open Profitable Avenues
Numerous prospects for growth may arise from the use of AI to the treatment of neurological conditions. The pharmaceutical sector is working together to investigate new treatments for neurological illnesses. PharmEnable, a drug discovery company located in the UK, and Sosei, a company based in Japan, are working together to find drug leads using Sosei Heprares' CPCR-focused drug design platform and PharmEnable's AI technology. Similar breakthroughs will guarantee significant market growth for AI-based drug discovery.
Threat:
Shortage of Skilled Personnel
The R&D outsourcing market for pharmaceuticals, biotechnology, and medical devices is always changing. Professionals must deliver excellent services, adhere to proper laboratory practises, and stay up with the ongoing developments in pharmaceutical R&D technologies and processes. As they compete for competent and experienced scientists with pharmaceutical and biotechnology corporations, academic institutions, and research organisations, CROs confront difficulties in attracting and keeping highly skilled personnel. Companies must provide higher salaries and other perks in order to compete effectively; this may have an impact on the finances and business performance of competitors, particularly small-scale analytical testing suppliers.
Covid-19 Impact
Drug discovery and development for the treatment of COVID-19 are being performed by screening both novel and existing drugs for their potential to reduce symptoms and stop viral replication. ""During COVID-19 pandemic, the need for the development of a drug or vaccine is projected to have a positive impact on the drug discovery services market."" In order to better identify drug candidates, future drug discovery technologies including high throughput, bioinformatics, and medicinal chemistry are increasingly being applied in the drug discovery services market. Drug development has significantly benefited from emerging technology, which has made it more sophisticated, accurate, and efficient.
The small molecule segment is expected to be the largest during the forecast period
The small molecule sector dominated the market in terms of drug type. This is a result of the population's rising need for small molecule medications. Because of their small size and weight, small molecule medications are able to treat diseases and easily affect cells. Therefore, the manufacturers' investments in the development of small molecule pharmaceuticals have increased as a result of the increased awareness of the usefulness of small molecule drugs. The small molecule segment is expected to be the largest during the forecast period.
The pharmaceutical corporations segment is expected to have the highest CAGR during the forecast period.
The global market for drug discovery was dominated by pharmaceutical corporations. This is a result of leading pharmaceutical and biotechnology businesses investing more money in the creation of new medicines. The growing elderly population and incidence of chronic diseases are driving up demand for a wide range of cutting-edge medications. The global rise in drug demand has stimulated the market for drug discovery. Additionally, the market expansion has been greatly aided by the biopharmaceutical industry's explosive rise. As a result, pharmaceutical corporations segment is expected to have the highest CAGR during the forecast period.
Region with highest share:
The market for drug discovery globally was dominated by North America with largest share. In terms of global spending on research and development, the US holds the top spot. Furthermore, the majority of the recently developed new pharmaceuticals are protected by US patents. Additionally, the rising frequency of chronic diseases has increased the demand for cutting-edge and novel medications, which has supported the expansion of the drug discovery market in North America. In the US, around half of the population has one or more chronic illnesses. As a result, the nation now spends a lot of money on healthcare. Additionally, the region's growing awareness of biologics is boosting the market's expansion.
Region with highest CAGR:
In the approaching years, it is predicted that Asia Pacific would offer the most opportunities. This can be linked to the region's abundance of CROs. Additionally, some areas are making significant investments in the expansion of the pharmaceutical sector, which is driving up demand for biopharmaceutical goods. In addition, given older individuals are more sensitive to chronic diseases, it is anticipated that the region's growing elderly population would boost drug demand in the near future. Asia Pacific is expected to see the highest CAGR during the projection period.
Key players in the market
Some of the key players profiled in the Drug Discovery Market include Abbott Laboratories Inc., Charles River Laboratories International Inc., Astrazeneca plc, Bayer AG, Merck & Co. Inc., Eli Lilly and Company, Shimadzu Corp, F. Hoffmann-La Roche Ltd, GlaxoSmithKline PLC, Agilent Technologies Inc., Thermo Fisher Scientific Inc., Pfizer Inc., Novartis AG, Evotec SE, Icon PLC.
Key Developments:
In February 2022, Agilent Technologies Inc bought Virtual Control, an AI and machine learning Software Company, with the goal of obtaining innovative lab testing analytical solutions built by them. Agilent will use the software in its mass spectrometry (GS/MS) and gas chromatography platforms for improving efficiency, productivity, and accuracy.
In January 2020, Bayer collaborated with Exscientia, an artificial intelligence drug discovery company, for the development of cardiovascular and oncology diseases related drug.
In November 2020, Genesis Therapeutics entered AI-driven, multi-target drug discovery partnership with Genentech. The collaboration leverages Genesis’ graph machine learning and drug discovery expertise to identify innovative drug candidates for therapeutic targets in multiple disease areas.
Drug Type Covered:
• Large Molecule
• Small Molecule
Technology Covered:
• Nanotechnology
• High Throughput Screening
• Combinatorial Chemistry
• Pharmacogenomics
• Bioanalytical Instruments
• Biochips
• Bioinformatics
• Other Technologies
Service Covered:
• Medicinal Chemical Services
• Biological Services
• Drug Metabolism and Pharmacokinetics (DMPK) Services
• Other Pharmaceutical Services
Process Covered:
• Target Selection
• Target Validation
• Hit-To-Lead Identification
• Lead Optimization
• Candidate Validation
Therapeutic Area Covered:
• Respiratory Disease
• Neurology
• Infectious and Immune System Diseases
• Oncology
• Cardiovascular Diseases
• Digestive System Diseases
• Diabetes
• Other Therapeutic Areas
End User Covered:
• Pharmaceutical Companies
• CROs
• Research Institutes
• Other End Users
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
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