ALBANY, New York, June 16, 2020 /PRNewswire/ -- The worldwide demand for low-cost and effective medications in healthcare sector is a key trend underpinning the adoption of outsourcing in drug development phase. Pharmaceutical and biotechnology companies pin high hopes on drug discovery outsourcing to optimize their overall in-house cost.
The global drug discovery outsourcing market stood at ~US$ 4.5 bn in 2019 and is expected to garner CAGR of 10% from 2020 to 2030. By 2030-end, the global market is expected to reach ~US$ 12.7 bn.
Small to medium-sized pharmaceutical companies are increasingly adopting contract research organizations (CROs) for cost reduction in drug discovery, note analysts from Transparency Market Research (TMR). Increasing competition in the pharmaceutical sector has led to high research and development costs, stimulating even large companies to follow the path of outsourcing to meet unmet clinical needs in patient populations.
Key Findings of Drug Discovery Outsourcing Market Report
Among the various service types, the chemical services dominated the global drug discovery outsourcing market in 2019, vis-à-vis value; chemical services forms the backbone of drug discovery services
Biological services expected to rise at promising CAGR from 2020 to 2030
Of all drug types, small molecules are expected to account for the leading share in drug discovery outsourcing market; use of AI fuels revenue prospect from the segment
Among the various therapeutic areas, oncology led the market in 2019; prevalence of cancer drives demand
Among the various regional markets, North America held the dominant share in 2019; it is expected to retain its lead through 2030; shift to outsourcing by large biotech and pharmaceutical players propels growth
Asia Pacific is expected to rise at promising CAGR from 2020 to 2030
Explore 218 pages of top-notch research, incisive insights, and detailed country-level projections. Gain business intelligence on Drug Discovery Outsourcing Market (Service Type: Biological Services, Chemical Services, Lead Identification & Screening, Lead Optimization, and Others; Drug Type: Small Molecules and Large Molecules; Therapeutic Area: Respiratory System, Anti-infective, Oncology, Cardiovascular, Gastrointestinal, Central Nervous System, and Immunomodulation, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 – 2030 at https://www.transparencymarketresearch.com/report-toc/1841
Drug Discovery Outsourcing Market: Key Driving Factors and Promising Avenues
An array of trends in drug making has helped drive and fuel drug discovery outsourcing market.
The steeply rising cost of drug development over recent years has made outsourcing a preferred model for research and development and clinical trials by several pharmaceutical and biotech companies.
Outsourcing endows end users with massive benefits of reduced cost and high clinical expertise, thereby bolstering the adoption of such services by small and medium-scale enterprises.
Incorporation of cutting-edge automated technologies, notably artificial intelligence (AI) is a key trend bolstering the attractiveness of drug discovery outsourcing market.
Over the years, numerous large drug makers have forged agreements with third party providers to help them reduce cost in the development of novel molecules, thus boosting the revenue potential in drug discovery outsourcing market.
The dwindling accessibility of inexpensive medicines for chronic diseases and cancer has spurred biotech companies to consider outsourcing as an attractive model of drug discovery.
In recent times, the outsourcing model is expected to offer incredible opportunities for contract research organizations engaged in the development of drugs for COVID-19. The fast emerging pandemic has spurred development in this direction, thus unlocking new potential in drug discovery outsourcing market.
Key Impediments for Drug Discovery Outsourcing Market Players
Undoubtedly, drug discovery outsourcing has emerged as a market of high revenue potential. However, a few constraints make the adoption less lucrative for many a biotech and pharmaceutical companies, which has restrained the drug discovery outsourcing market to attain its true potential. Organizational complexity and the absence of compatibility among shareholders have dampened the popularity of outsourcing in drug discovery.
Global Drug Discovery Outsourcing Market: Regional Landscape
On the regional front, Asia Pacific has emerged out as increasingly profitable region for contract research organizations in the global market. Numerous prominent pharmaceutical and biotech companies have reiterated on the tall business potential of outsourcing drug discovery to the countries of Asia Pacific. The trend has been driven by the presence of high clinical expertise in the region and the overall low cost of manufacturing. The demand has been boosting revenue potential of the Asia Pacific drug discovery outsourcing market.
The drug discovery outsourcing market can be segmented as follows:
Lead Identification & Screening
Central Nervous System
Rest of Europe
Rest of Asia Pacific
Rest of Latin America
Middle East & Africa
Rest of Middle East & Africa
Explore Transparency Market Research's award-winning coverage of the global Healthcare industry:
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