Global Drug Discovery Services Market
Global Drug Discovery Services Market Zooming 2.8X to Reach USD 53 Billion by 2029
Published | 21 June 2023
Global drug discovery services market is booming due to the increasing R&D investments by pharmaceutical companies and biotechnology firms, complexity of drug discovery, increasing prevalence of chronic diseases, and government initiatives to streamline and expedite the drug development and approval process.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global drug discovery services market size at USD 18.5 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the global drug discovery services market size to grow at a CAGR of 15.2% reaching a value of USD 52.8 billion by 2029. The discovery of new drugs has become more challenging due to the complexity of diseases and the need for personalized medicine. This complexity requires a multidisciplinary approach and specialized expertise, which can be obtained through outsourcing. Pharmaceutical companies and biotechnology firms are investing heavily in research and development activities to discover new drugs and therapies. Outsourcing certain stages of the drug discovery process allows them to access specialized expertise and resources more efficiently. Furthermore, collaborative partnerships between pharmaceutical companies, academic institutions, and CROs have become increasingly common in drug discovery. These partnerships facilitate knowledge sharing, access to specialized expertise, and resource pooling, fostering innovation and driving market growth.
Opportunity: Increasing Focus on Drug Research and Development
The pursuit of innovative and effective therapeutics is driving the pharmaceutical industry to allocate larger budgets towards R&D. As the global burden of diseases continues to rise, there is a growing demand for novel drugs that can address unmet medical needs. Pharmaceutical companies are motivated to invest more in R&D to discover breakthrough treatments, resulting in increased demand for drug discovery services. The advances in scientific knowledge and technologies have expanded the scope and complexity of drug discovery research. With the advent of genomics, proteomics, high-throughput screening, computational modelling, and other cutting-edge tools, the process of identifying and developing new drug candidates has become more intricate. These advancements require substantial investments in specialized equipment, expertise, and infrastructure, which in turn drive up R&D expenditures.
Impact of COVID-19 on the Drug Discovery Services Market
The COVID-19 pandemic had a profound impact on the drug discovery services market, affecting various aspects of the industry. The pandemic led to a heightened focus on infectious diseases. The urgent need for treatments and vaccines for COVID-19 drove significant investments and collaborations in research and development related to infectious diseases. Many drug discovery service providers redirected their efforts towards developing drugs and therapies specifically targeting the virus. This shift resulted in an increased demand for services related to target identification, lead optimization, and preclinical testing for infectious diseases. The limitations imposed by the pandemic accelerated the adoption of virtual screening and computational approaches in drug discovery. With physical laboratory work being restricted, drug discovery service providers increasingly relied on computer simulations, artificial intelligence, and machine learning algorithms to identify potential drug candidates. These technologies have played a crucial role in continuing research activities despite the limitations imposed by the pandemic. They enabled virtual collaborations, data analysis, and the identification of drug targets.
Global Drug Discovery Services Market - By Type
Based on type, the global drug discovery services market is bifurcated into chemistry services and biology services segments. During the period in analysis, the chemistry services segment is expected to hold a significant market share due to the broad use of chemical services at various early stages of drug development to produce reliable drug candidates. The widespread use of chemistry in academia, biotechnology firms, and sizable pharmaceutical businesses also contributes to industry expansion.
Global Drug Discovery Services Market - By Process
Based on process, the global drug discovery services market is segmented into target validation, target selection, hit-to-lead identification, candidate validation, and lead optimization. During the forecast period, Hit-To-Lead Identification is expected to hold a significant market share. Hit-To-Lead Identification is an early stage in the drug discovery process, where potential drug candidates, known as hits, are identified and further optimized into leads. As drug discovery efforts increase, there is a growing demand for services that focus on this crucial stage. The combination of specialized expertise, advanced screening technologies, computational approaches, and the ability to optimize hits into leads positions the Hit-To-Lead Identification segment as a significant player in the global drug discovery services market.
The drug discovery services market is fragmented, with numerous players serving the market. The key players dominating the global drug discovery services market include General Electric, Eurofins Scientific, Syngene International Limited, Wuxi AppTec, Frontage Labs, Domainex, WIL Research Laboratories LLC, Shanghai Medicilon, Inc., Labcorp Drug Development, Jubilant Biosys Ltd, Evotec, Shanghai ChemPartner, Charles River Laboratories, Merck & Co. Inc., Thermo Fisher Scientific Inc. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisition to expand their customer reach and gain a competitive edge in the overall market.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the Global Drug Discovery Services Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Drug Discovery Services Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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- Drug Discovery Services Market - Global Size, Share, Trend Analysis, Opportunity and Forecast Report, 2019–2029, Segmented By Type (Chemistry Services, Biology Services); By Process (Target Validation, Target Selection, Hit-To-Lead Identification, Candidate Validation, Lead Optimization); By Drug Type (Biologics, Small Molecule Drugs); By Therapeutic Area (Neurology, Infectious & Immune System Diseases, Digestive System Diseases, Oncology, Others); By End User (Pharmaceutical & Biotechnology Companies, Academic Institutes, Others); By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)
Publish Date: June 2023
Increasing investments in drug R&D by pharmaceutical and biotechnology companies, advancements in technology, rising prevalence of chronic and infectious diseases, and growing outsourcing of drug discovery services are projected to propel the expansion of global drug discovery services market during the forecast period between 2023 and 2029.
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