Global Drug Discovery Services Market Report 2023: Increasing Drug R&D Pipeline and Rising Reliance on Outsourcing Fuels Growth

DUBLIN, March 31, 2023 /PRNewswire/ -- The "Global Drug Discovery Services Market by Process (Target Selection, Hit-to-lead), Type (Chemistry, Biology), Drug Type (Small Molecule, Biologics), Therapeutic Area (Oncology, Neurology, Infectious), End User (Pharma, Biotech, Academic) & Region - Forecasts to 2028" report has been added to  ResearchAndMarkets.com's offering.

The global Drug discovery services market is projected to reach USD 41.3 billion by 2028 from USD 20.6 billion in 2023, at a CAGR of 14.9% during the forecast period of 2023 to 2028. Growing R&D expenditure in pharma-biotech sector, increasing drug R&D pipeline and rising reliance on outsourcing, initiatives for research on rare diseases and orphan drugs, and high cost of in-house drug development are expected to provide growth to the market.

Oncology is expected to account for the largest share for the therapeutic area segment

Based on therapeutic the oncology segment has the largest market share. The list of drugs in development for oncology has increased over the years due to the rising number of clinical trials and the growing R&D expenditure by pharmaceutical companies on oncology-based drugs. The incidence of cancer has increased rapidly across the globe. According to GLOBOCAN, the number of new cases is projected to reach 28.9 million by 2040 from 19.3 million in 2020, at a CAGR of ~2% from 2020 to 2040. Owing to this, companies are increasingly focusing on developing novel medicines for cancer; this is expected to drive the growth of this therapeutic segment.

The Hit-to-lead identification segment accounted for the largest share of the process segment in the drug discovery services market

Based on process, the drug discovery services market is broadly classified into target selection, target validation, hit-to-lead identification, lead optimization, and candidate validation. Hit-to-lead identification segment accounted for the largest share of the drug discovery services market in 2022. Due to its crucial role in the drug discovery process, hit-to-lead identification is the maximum revenue generating process, and currently, many drug discovery companies are specifically offering these services to pharmaceutical companies.

Europe is the second largest region in the drug discovery services market

The drug discovery services market is segmented into North America, Europe, Asia Pacific, Latin America (LATAM) and Middle East and Africa (MEA). After North America, Europe is the second-largest regional pharmaceutical market globally. The research-based pharmaceutical industry can play a critical role in ensuring future competitiveness in an advancing global economy (Source: EFPIA). The development of new chemical and biological molecules, alongside increased R&D activities, will help drive the growth of the drug discovery services market in Europe.

Market Dynamics

Drivers

• Growing R&D Expenditure in Pharma-Biotech Sector
• Increasing Drug R&D Pipeline and Rising Reliance on Outsourcing
• Initiatives for Research on Rare Diseases and Orphan Drugs
• High Cost of In-House Drug Development

Restraints

• Stringent Regulations Governing Drug Discovery and Animal Usage

Opportunities

• Technological Advancements and New Drug Discovery Techniques
• Rising Demand for Specialized Testing Services Among End-users
• Patent Expiries of Key Biologics
• High Growth Prospects in Emerging Markets

Challenges

• Shortage of Skilled Personnel

Market Trends

• Adoption of AI in Drug Discovery
• Increased Outsourcing to Emerging Asian Economies
• CRO Industry Consolidation

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview

6 Drug Discovery Services Market, by Process
6.1 Introduction
6.2 Target Selection
6.3 Target Validation
6.4 Hit-To-Lead Identification
6.5 Lead Optimization
6.6 Candidate Validation

7 Drug Discovery Services Market, by Type
7.1 Introduction
7.2 Chemistry Services
7.3 Biology Services

8 Drug Discovery Services Market, by Drug Type
8.1 Introduction
8.2 Small-Molecule Drugs
8.3 Biologics

9 Drug Discovery Services Market, by Therapeutic Area
9.1 Introduction
9.2 Oncology
9.3 Infectious Diseases
9.4 Cardiovascular Diseases
9.5 Neurological Diseases
9.6 Immunological Disorders
9.7 Endocrine & Metabolic Disorders
9.8 Respiratory Disorders
9.9 Digestive System Diseases
9.10 Genitourinary Diseases & Women's Health
9.11 Other Therapeutic Areas

10 Drug Discovery Services Market, by End-user
10.1 Introduction
10.2 Pharmaceutical & Biotechnology Companies
10.3 Academic Institutes
10.4 Other End-users

11 Drug Discovery Services Market, by Region

12 Competitive Landscape

13 Company Profiles

14 Appendix

Companies Mentioned

• Aragen Life Sciences Pvt. Ltd.
• Aurigene Discovery Technologies (Dr. Reddy's Laboratories)
• Charles River Laboratories International, Inc.
• Curia Global Inc.
• Dalton Pharma Services
• Domainex Ltd.
• Eurofins Scientific SE
• Evotec SE
• Frontage Holdings Corporation
• Genscript Biotech Corporation
• Jubilant Pharmova Limited
• Laboratory Corporation of America Holdings
• Nuvisan Pharma Holding GmbH
• Oncodesign Services
• Pharmaron Beijing Co. Ltd.
• Piramal Enterprises Limited
• Promega Corporation
• Selvita SA
• Shanghai Chempartner Co. Ltd.
• Shanghai Medicilon Inc.
• Sygnature Discovery Ltd.
• Syngene International Limited
• Tcg Lifesciences Pvt Ltd.
• Thermo Fisher Scientific
• Viva Biotech Holdings
• Wuxi Apptec

For more information about this report visit https://www.researchandmarkets.com/r/z7git6

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]   

For E.S.T Office Hours Call +1-917-300-0470 
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1904
Fax (outside U.S.): +353-1-481-1716 

Logo:  https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg 

SOURCE Research and Markets