Drug Discovery Services Market Research Report – Forecast to 2030

Drug Discovery Services Market research report: information By Drug Type (Small Molecule Drug and Biologics Drug), By Types Of Services (Drug Metabolism and Pharmacokinetics (DMPK) Services, Pharmaceutical Services, Medicinal Chemistry, Biological Services, Medication), By Therapeutic area (Oncology, Cardiovascular Diseases, Respiratory Diseases, Diabetes, Others), By Technology (High Throughput Screening, Biochips, Pharmacogenomics and Pharmacogenetics, Metabolomics), By End User (Pharmaceutical & Biotechnology companies, Research & Academ

ID: MRFR/Pharma/4414-CR | December 2022 | Region: Global | 110 Pages         

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Drug Discovery Services Market

Drug Discovery Services Market has expected to grow upto USD 47,868.59 million at a 13.92% CAGR for the forecast period

Segmentation
By Drug Type Small Molecule Drug Biologics
By Type DMPK Pharmaceutical Services Others
By Therapeutic Area Oncology Others
Key Players
Companies Profiled   Advinus Therapeutics    Abbott Laboratories Inc.    Albany Molecular Research Inc. (AMRI)    Agilent Technologies Ubiquigent    Aurigene    AstraZeneca PLC    Charles River Laboratories International
Drivers
Market Driving Forces   increasing awareness about chronic diseases    increasing funding    increasing government assistance    unmet medical needs    increasing patient pool
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Drug Discovery Services Market Overview:


Global Drug Discovery Services Market size is projected to be worth USD 47,868.59 million by 2030, registering a CAGR of 13.92% during the forecast period (2022 - 2030), The market was valued at USD 15,058.33 million in 2021


Drug discovery is the process of identifying and producing a chemical with pharmacological activity. Drug discovery has been a lengthy, challenging process with several discovery stages. Additionally, the procedure needs to be lawful, efficient, and safe. Different methods have been used for drug discovery. The most often utilized drug discovery strategies are random screening, molecular designing, molecular manipulation, drug metabolites, and uncertainty. Medication discovery services were developed to reduce delivery costs and speed up the drug discovery process. The key factors that drive the global drug discovery services market are the increasing Research & Development expenditure and rising drug development outsourcing. Technological advancements in drug discovery accelerate market growth. However, stringent regulatory policies and costs associated with drug discovery is anticipated to hamper the market growth.


COVID-19 Analysis


The sudden spread of COVID-19 motivated international multilateral organizations and private funders to pool their funds to support the development of an effective vaccine to combat the coronavirus and its variants. A large number of scientists, technologists, and data managers are involved in everything right from laboratory investigations to clinical trials. Moreover, the COVID-19 intervention has helped the government and healthcare sectors to understand the value and necessity of drug discovery for the development of effective medications. As a result, many players have increased their R&D spending, and the government has placed a strong emphasis on drug discovery and development, which has a favorable impact on the market for drug discovery services.


Furthermore, most pharmaceutical, biopharmaceutical, and medical device companies invest heavily in developing novel drugs, devices, and services. Therefore, many pharmaceutical companies invest in research and development to deliver innovative and high-quality products to the market. Thus, the COVID-19 outbreak has been boosting outsourcing drug development processes and has positively impacted every aspect of the drug discovery services industry.


Market Dynamics


Market Drivers



  • Increasing research & development expenditure


Increasing investments and expenditure in healthcare research and development (R&D) is essential for the continued innovation and discovery of more efficacious healthcare products. The rising R&D expenditure has been a major driving factor for the growth of the global drug discovery services market. For instance, according to the WHO, grants on biomedical research amounted to over USD 35 billion in 2019 globally. Of this, over USD 22 billion was put solely for research purposes. Around 70% of this went into non-communicable disease research, and 24% went into infectious/communicable disease research.  Thus, the increasing R&D expenditure has been a major growth driving factor in the global drug discovery services market.



  • Rising drug development outsourcing


Market Restraints



  • Stringent regulatory policies and costs associated to drug discovery


Stringent regulatory guidelines on drug approval are among the major challenges in the market's growth. The food and Drug Administration (FDA) is major regulatory bodies reviewing and approving vaccines in the US. While in the European Union (EU), the European Medicines Agency (EMA) is the leading body involved in the approval of drugs. All authorized drugs are required to undergo a stringent regulatory approval process before they are marketed. These approvals are done to ensure that drugs meet the required safety, quality, and efficacy. Due to the stringent regulatory policies, it is estimated that out of 5,000 drugs tested only one makes it past the product approval stage. In addition, it is estimated that around 40% of the total drug expenses from R&D to launch occurs prior to the preclinical stage itself, i.e., the drug discovery stage. Therefore, stringent regulatory guidelines and cost associated with drug discovery are the factors that are restraining market growth.


Market Opportunities



  • Technological advancements in drug discovery


The rapid technological advancements in the field of drug discovery are expected to create lucrative growth opportunities for the global drug discovery services market in the coming years. A few such advancements are the utilization of artificial intelligence (AI), machine learning, and big data analysis along with the adoption of super-computers in drug discovery. For instance, in July 2021, NVIDIA (US) launched its Cambridge-1 super-computer which is the fastest super-computer in the UK to aid researchers in performing accurate drug discovery with the help of Artificial Intelligence (AI) and machine learning. The company has also collaborated with pharma giants like AstraZeneca (UK) and GlaxoSmithKline (UK) for the same. Similarly, technological developments in the fields of genetics, culture systems, and nanotechnology in drug discovery are further expected to create growth opportunities for the market in the coming years.


Value Chain Analysis


The drug discovery services market is growing at a significant rate owing to the increasing number of players who are coming forward with new and advanced products, rising demand for novel therapies for various therapeutic areas, growing pharmaceutical and biopharmaceutical R&D spending, and rising demand for outsourced analytical testing services. The value chain analysis of the drug discovery services market comprises four major components starting from customer acquisition, service customization, customer purchase support, and customer fulfillment & post-purchase support.


Segment Overview


By Drug Type



  • Small Molecule Drug


Small molecule drugs are effective and have higher demand among the population. The small molecules can easily affect the cells and can provide effective treatment owing to their small molecules. Moreover, the increased awareness regarding the benefits of small-molecule drugs has favored the growth of this market.



  • Biologics Drug


Biologics drugs are estimated to be the most opportunistic during the forecast period. The biologics industry has produced several life-saving medicines that can effectively treat various non-communicable diseases such as cardiovascular diseases, cancer, and diabetes. The rising prevalence of various chronic diseases and rising awareness regarding the availability of various biologic drugs is estimated to propel the growth of this segment in the upcoming future.


By Types  Of Services



  • Drug Metabolism and Pharmacokinetics (DMPK) Services


Drug Metabolism and Pharmacokinetics (DMPK) Services play an important role in the efficacy and safety elements of the drug discovery and development process. It helps to identify metabolic pathways, potential interactions, and routes of elimination of their compounds at an early stage. The market growth in the Drug Metabolism and Pharmacokinetics (DMPK) services segment is attributed to the new technological developments by various companies to provide better services to pharmaceutical companies.



  • Pharmaceutical Services


The increasing frequency of outsourcing R&D activities by major pharmaceutical company’s services to focus on their core competencies is a major factor that drives the market growth. Moreover, the economic efficiency offered by outsourcing rather than conducting an in-house study is expected to boost the market in the upcoming years. Hence, this lucrative growth for this segment is attributed to a rise in demand for pharmacokinetic services to support toxicology tests for IND-enabling studies.



  • Medicinal Chemistry

  • Biological Services

  • Medication


By Therapeutic area



  • Oncology


The increasing prevalence of cancer cases worldwide has indicated drug manufacturers to develop advanced medications to treat tumors. According to the World Health Organization (WHO), Lungs and breast cancer are the most predominant types of cancer with more than 2.21 million and 2.26 million cases in February 2022. Moreover, growing cases of tumors such as colorectal cancer, prostate cancer, and liver cancer have accelerated the R&D activities for developing efficient medications.



  • Cardiovascular Diseases


cardiovascular diseases are medical conditions that affect the functioning of the heart or affect its structure. The major CVS disorders include arrhythmias, Marfan syndrome, congenital heart disease, coronary artery disease, cardiomyopathy, rheumatic heart disease, stroke, and vascular disease. The industry providers provide efficient trial services that meet regulatory demand, further minimizing compliance risk. In recent years companies performed more than 60 cardiovascular trials, recorded 17 outcomes and MACE studies, and established more than 160 dedicated research sites. For instance, Labcorp (US) offers end-to-end cardiology solutions to align with the customer's requirements. Its offers services from clinical trials, and drug development, to commercialization of the produced drug or therapeutics. Such instances fuel the demand for drug discovery services globally and are estimated to grow at a rapid pace in the forecast period.



  • Respiratory Diseases

  • Diabetes


Diabetes mellitus, commonly known as diabetes, is a metabolic disease that causes high blood sugar due to problems with the hormone insulin. diabetes can affect various parts of the body and result in serious complications such as strokes, heart disease, and kidney failure. For instance, according to the WHO, in 2021, diabetes was the seventh leading cause of death, with an estimated 2 million deaths directly caused by diabetes.



  • Others


Other therapeutic areas include applying pharmaceutical and biopharma companies in areas such as gastrointestinal disorders, metabolic disorders, respiratory disorders, musculoskeletal disorders, and hematological disorders. Furthermore, neurological disorders such as Parkinson's Disease, Alzheimer's Disease, Amyotrophic Lateral Sclerosis, stroke Epilepsy & Seizures have accelerated in recent years. The number is expected to reach 13 million by the end of 2050.


By Technology



  • High Throughput Screening


High-throughput Screening (HTS) is a drug discovery process that allows automated testing for large numbers of chemical or biological compounds for a specific biological target, for example through binding assays. It also ensures that the time taken to screen large compound libraries is reduced and the whole drug discovery process is speeded up. Furthermore, it is capable of screening more than a thousand compounds per day. In addition, the high-throughput screening process mainly focuses on a single mechanism contributing to the identification of target-specific compounds.



  • Biochips

  • Pharmacogenomics and Pharmacogenetics

  • Metabolomics


By End-User



  • Pharmaceutical & Biotechnology companies


Pharmaceutical & biopharmaceutical companies outsource their clinical research capabilities to CROs for various reasons, including cost benefits, therapeutic expertise, and regional reach. In addition, it also supports new drugs and treatments for patients at a faster rate. Furthermore, Biopharmaceutical companies are increasingly recognizing the significance of scale and therapeutic expertise required to accelerate the time-to-market for new drugs and minimize continuously rising costs, particularly for moderating revenue from reimbursement, generic pressures, and accompanying decreasing margins.



  • Research & Academic Institutes

  • Others


Regional Analysis


Global: Drug Discovery Services Market SHARE (%), BY Region, 2021Drug Discovery Services Market SHARE (%), BY Region, 2021Sources: MRFR Analysis


North America


North America dominated the global drug discovery services market in 2021 owing to the presence of CROs in the US and a large number of pharma and biotech firms in the region. Moreover, North America is the leading region in pharmaceutical research and development spending. In addition, the region is the largest market for bulk medications and ready-to-use dosage forms. The region's drug discovery services market operates as a free market, with transparent trade policies and anti-competitive actions strictly prohibited. Since biologics are more expensive, the US has plenty of room for biosimilars. As a result, the drug discovery services market in the US is expected to be one of the primary competitors for biosimilars by 2030.


Europe

The drug discovery services market in Europe is being driven by rapid technological advancements and increasing urbanization.


Furthermore, the European Medicines Agency (EMA) recommended the approval of 97 new medicines and 39 new active medicines in 2020. This increase in the number of approved products in Europe can be attributed to increased investment by biopharmaceutical companies in the development of biologics and biosimilars. In addition, rising investments by many key players in various clinical and non-clinical research activities outsourced by many CRO service providers, aiding in cost-effective product development, are expected to drive the European drug discovery services market during the forecast period.


Asia-Pacific


The drug discovery services market in Asia-Pacific is being driven by a rising number of clinical trials and rising drug discoveries in the region. For instance, according to a World Health Organization (WHO) database study, over 125,000 clinical trials were reported to have been filed in the Asia-Pacific region between 2009 and 2018. This suggests that the overall number of clinical trials in the Asian region has increased exponentially. Additionally, many CROs in South Korea are actively engaged in ongoing drug discovery programs. This includes cancer treatment programs, metabolic and neurological diseases, and bacterial infections.


Rest of the World   


Competitive Landscape


The global drug discovery services market has been continuously growing owing to factors such as increasing R&D expenditure in the pharma and biopharma industries, rising demand for outsourcing analytical testing, and initiatives for research on rare diseases and orphan drugs. The market has been distinguished by the presence of numerous global, regional, and local players to meet their customers' demands


Furthermore, market participants are adopting a variety of organic and inorganic strategies to expand their global presence, such as contractual agreements, mergers, and acquisitions, raising investments, and partnering with other companies. For instance, in September 2022, Aragen Life Sciences Pvt. Ltd. (India) collaborated with Merck & Co., Inc. (US) to provide drug discovery services to Merck. In addition, this acquisition will assist Merck’s researchers to advance its pipeline of therapeutic candidates, thus fueling the market's growth.


List of companies with HQ



  • Thermo Fisher Scientific INC. (US)

  • Aragen Life Sciences Pvt. Ltd (India)

  • Piramal Pharma Solutions (India)

  • Curia Global, Inc. (US)

  • Charles River Laboratories (US)

  • Eurofins Scientific (Europe)

  • IQVIA (US)

  • Evotec (Germany)

  • WuXi AppTec Co., Ltd. (China)

  • Laboratory Corporation of America Holdings (US)

  • Selvita (Poland)

  • Sygnature Discovery (UK)

  • Symeres (Netherlands)

  • NuChem Sciences Inc (Canada)

  • Paraza Pharma, Inc. (Canada)


Recent Developments



  • In October 2022, Symeres (Netherlands)acquired Exemplify BioPharma (US), which specialized in integrated drug development services in process and analytical chemistry and formulation developments. Exemplify BioPharma serves US-based biotechnology and pharmaceutical companies.

  • In August 2022, Evotec (Germany) acquired Cell Culture Service GmbH (Germany) to strengthen cell-based screening and reagent platform at Evotec's Hamburg site.

  • In December 2021, Aragen Life Sciences Pvt. Ltd.(India) acquired Intox (India) to expand Aragen's end-to-end integrated discovery and development platform for pharmaceuticals. This acquisition helps in expanding Aragen's geographical presence across India.

  • In March 2021, Charles River Laboratories acquired Retrogenix (UK), specializing in bioanalytical services. This acquisition strengthens Charles River's Scientific expertise with cell microarray technology and off-target profiling for drug discovery.

  • In November 2020, Selvita (Poland) acquired Fidelta d.o.o. (Croatia), which specialized in integrated drug discovery services. This acquisition complements Selvita’s offering, which includes drug discovery such as DMPK, in vivo pharmacology, and toxicology.


Report Overview


The study covers the existing short-term and long-term market effects. It helps decision-makers to draught short-term and long-term business plans by region. The report covers major regions in North America, Europe, Asia Pacific, and the Rest of the World. The report analyzes market drivers, restraints, opportunities, challenges, Porter's five forces, the value chain, and the impact of COVID-19 on the market.


Study Objectives



  • To provide a comprehensive analysis of the global drug discovery services market and its sub-segments, thereby providing a detailed structure of the industry

  • To provide detailed insights into factors driving and restraining the growth of the global Drug discovery services market

  • To estimate the market size of the global drug discovery services market where 2018 to 2020 would be the historical period, 2021 shall be the base year, and 2022 to 2030 will be the forecast period for the study

  • To provide strategic profiling of key companies (manufacturers and distributors) present across the countries, and comprehensively analyze their competitiveness/competitive landscape in this market

  • To provide a value chain analysis for the global drug discovery services market.


Market Segmentation:


Global Drug Discovery Services Market, By Drug Type



  • Small Molecule Drug

  • Biologics Drug


Global Drug Discovery Services Market, By Types of Services



  • Drug Metabolism and Pharmacokinetics (DMPK) Services

  • Pharmaceutical Services

  • Medicinal Chemistry

  • Biological Services

  • Medication


Global Drug Discovery Services Market, By Therapeutic Area



  • Oncology

  • Cardiovascular Diseases

  • Respiratory Diseases

  • Diabetes

  • Others


Global Drug Discovery Services Market, By Technology



  • High Throughput Screening

  • Biochips

  • Pharmacogenomics and Pharmacogenetics

  • Metabolomics


Global Drug Discovery Services Market, By End-user



  • Pharmaceutical & Biotechnology companies

  • Research & Academic Institutes

  • Others


Global Drug Discovery Services Market, By Region



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America




Intended audience:



  • Pharmaceutical Companies

  • Research and Development (R&D) Companies

  • Diagnostic Laboratories

  • Government Research Institutes

  • Academic Institutes and Universities



Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 47,868.59 Million
  CAGR   13.92%
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2018 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Drug Type, Types of Services, Therapeutic Area, Technology, End User, And Region
  Geographies Covered   North America, Europe, Asia Pacific, and Rest of the World
  Key Vendors   Thermo Fisher Scientific INC. (US), Aragen Life Sciences Pvt. Ltd (India), Piramal Pharma Solutions (India), Curia Global, Inc. (US), Charles River Laboratories (US), Eurofins Scientific (Europe), IQVIA (US), Evotec (Germany), WuXi AppTec Co., Ltd. (China), Laboratory Corporation of America Holdings (US), Selvita (Poland), Sygnature Discovery (UK), Symeres (Netherlands), NuChem Sciences Inc (Canada), Paraza Pharma, Inc. (Canada)
  Key Market Opportunities   • Technological Advancements in Drug Discovery
  Key Market Drivers   • Increasing Research & Development Expenditure • Rising Drug Development Outsourcing


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Frequently Asked Questions (FAQ) :

Strict FDA Regulations are The Major Restraint On The Drug Discovery Services Market.

Drug Discovery Services Market is expected to exhibit a strong 13.92% CAGR over the forecast period from 2022 to 2030.

Growing pharmaceutical industry is the major driver for the drug discovery services market.

Americas dominate the global Drug Discovery Services Market.

Leading players in the Drug Discovery Services Market include GenScript, GSK, and AstraZeneca, among others