The drug discovery services market is projected to reach USD 21.4 billion by 2025 from USD 11.1 billion in 2020, at a CAGR of 14.0% during the forecast period.
Increasing R&D spending and initiatives for rare disease and orphan drugs research are set to drive the drug discovery services market.
The major factors driving the growth of this market are the growing R&D expenditure in the pharmaceutical & biopharmaceutical industry, increasing demand for outsourcing analytical testing and clinical trial services, initiatives for research on rare diseases and orphan drugs, and focus on drug discovery. However, the high cost of drug discovery and development and stringent regulations governing drug discovery and animal usage in testing may restrict the growth of this market to a certain extent.
By process, the Hit-to-Lead process accounted for the fastest-growing segment of the drug discovery service market.
The Hit-to-Lead identification process is anticipated to be the fastest-growing segment due to the high outsourcing of these services to CROs by the pharmaceutical companies and the emerging advanced technologies for high-throughput screening (HTS) and H2L as well as reductions in development time.
By type, the Medicinal Chemistry segment accounted for the largest share of the drug discovery service market.
Based on type, the drug discovery services market is segmented into medicinal chemistry services, biology services, and drug metabolism and pharmacokinetics (DMPK). The medicinal chemistry services segment is estimated to account for the largest share of the drug discovery services market due to the widespread application of medicinal chemistry in various phases of preclinical drug discovery to deliver robust candidates.
Oncology segment expected to grow at the fastest growth rate during the forecast period.
Based on the therapeutic area, the drug discovery services market is segmented into oncology, cardiovascular diseases, neurology, infectious and immune system diseases, digestive system diseases, and other therapeutic areas. Of all these therapeutic segments, oncology will grow at the fastest CAGR in the drug discovery services market during the forecast period. The high growth of the oncology segment can be attributed to factors such as the increasing number of patients who have cancer, the subsequent increase in the demand for cancer therapies and the growing R&D expenditure by pharmaceutical companies in this therapeutic area.
Asia Pacific: The fastest-growing region in the drug discovery services market.
The Asia Pacific market is projected to grow at the highest CAGR during the forecast period, Several global pharmaceutical firms have entered the APAC market to tap the significant growth opportunities in emerging Asian countries and lower their production costs by shifting their manufacturing and drug discovery R&D operations to the region. As a result, the Asia Pacific region has become a major destination for drug discovery and development. A large number of qualified researchers and low-cost operations in APAC countries, such as India and China, are some of the major factors supporting this trend.
North America: The largest share of the drug discovery services market.
North America, which includes the US and Canada, accounted for the largest share of the drug discovery services market. The large share of this region can primarily be attributed to the presence of well-established CROs; rising R&D expenditure by pharmaceutical & biopharmaceutical companies and the availability of latest techniques, instruments, and facilities for drug discovery research are driving the growth of this region.
Key Topics Covered:
2 Research Methodology
3 Executive Summary 4 Premium Insights 4.1 Drug Discovery Services Market Overview 4.2 North America: Drug Discovery Services Market, by Drug Type & Country (2020) 4.3 Drug Discovery Services Market: Geographic Growth Opportunities 5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 22.214.171.124 Growing R&D Expenditure in the Pharmaceutical & Biopharmaceutical Industry 126.96.36.199 Increasing Demand for Outsourcing Analytical Testing and Clinical Trial Services 188.8.131.52 Initiatives for Research on Rare Diseases and Orphan Drugs 184.108.40.206 Focus on Drug Discovery 5.2.2 Restraints 220.127.116.11 High Cost of Drug Discovery and Development 18.104.22.168 Stringent Regulations Governing Drug Discovery and Animal Usage 5.2.3 Opportunities 22.214.171.124 Growth in the Biologics Market 126.96.36.199 Patent Expiries 188.8.131.52 Emerging Markets 5.2.4 Trends 184.108.40.206 Growing Adoption of Artificial Intelligence-Based Tools for Drug Discovery 5.3 Impact of Covid-19 on the Drug Discovery Services Market
6 Drug Discovery Services Market, by Process 6.1 Introduction 6.2 Target Selection 6.2.1 Increasing Demand for Personalized Medicine to Support the Growth of This Market 6.3 Target Validation 6.3.1 Rising Number of Drug Discovery Research Activities to Support Market Growth 6.4 Hit-To-Lead Identification 6.4.1 Hit-To-Lead Identification is the Largest Process Segment in the Market 6.5 Lead Optimization 6.5.1 Lead Optimization Requires State-Of-The-Art Informatics Systems to Facilitate Transparent Presentation and Analysis 6.6 Candidate Validation 6.6.1 Candidate Validation Segment to Grow at a High CAGR during the Forecast Period 7 Drug Discovery Services Market, by Type 7.1 Introduction 7.2 Medicinal Chemistry Services 7.2.1 Wide Applications of Medicinal Chemistry in Drug Discovery are a Major Factor Driving Market Growth 7.3 Biology Services 7.3.1 Restrictions on the USage of Animals in Research Activities may Limit Market Growth 7.4 Drug Metabolism & Pharmacokinetics 7.4.1 DMPK Studies are Employed at the Discovery, Candidate Selection, Investigational New Drug, and New Drug Application Stages 8 Drug Discovery Services Market, by Drug Type 8.1 Introduction 8.2 Small-Molecule Drugs 8.2.1 Increasing Number of Start-Ups and New Entrants in the Small-Molecule Drugs Segment will Drive the Growth of This Market during the Forecast Period 8.3 Biologic Drugs 8.3.1 High Set-Up Costs of the Instruments Required for Biologic Drug Manufacturing may Limit Market Growth to a Certain Extent 9 Drug Discovery Services Market, by Therapeutic Area 9.1 Introduction 9.2 Oncology 9.2.1 High and Growing Number of Research Studies on Cancer Therapeutics to Support Market Growth 9.3 Neurology 9.3.1 Increasing Number of Patients Suffering from Neurological Disorders is Driving Market Growth 9.4 Infectious and Immune System Diseases 9.4.1 Emergence of New Infectious Diseases to Drive Market Growth 9.5 Digestive System Diseases 9.5.1 As There is a Huge Population Seeking Effective Remedies for Digestive Diseases, Pharmaceutical Companies are Investing Significantly in R&D for the Development of Innovative Drugs 9.6 Cardiovascular Diseases 9.6.1 High Global Burden of Cardiovascular Diseases Has Increased the Focus on Developing Effective Drugs 9.7 Other Therapeutic Areas 10 Drug Discovery Services Market, by Company Type 10.1 Introduction 10.2 Tier 1 Pharmaceutical Companies 10.3 Tier 2 Pharmaceutical Companies 10.4 Tier 3 Pharmaceutical Companies 11 Drug Discovery Services Market, by Region 11.1 Introduction 11.2 North America 11.3 Europe 11.4 Asia Pacific 11.5 Rest of the World
13 Company Profiles 13.1 Laboratory Corporation of America Holdings 13.2 Eurofins Scientific SE 13.3 Charles River Laboratories International 13.4 Evotec SE 13.5 Thermo Fisher Scientific 13.6 Syngene International Limited 13.7 Jubilant Lifesciences 13.8 Genscript Biotech Corporation 13.9 Piramal Enterprises Limited 13.10 Wuxi Apptec 13.11 Selvita (Formerly Selvita CRO S.A.) 13.12 Frontage Holdings 13.13 Pharmaceutical Product Development, Llc 13.14 Shanghai Medicilon, Inc. 13.15 Albany Molecular Research, Inc. 13.16 Aurigene Discovery Technologies (A Subsidiary of Dr. Reddy's Laboratories) 13.17 Domainex Ltd. 13.18 Chempartner Co., Ltd. 13.19 TCG Lifesciences Pvt. Limited 13.20 Viva Biotech (Shanghai) Ltd.
14 Adjacent Related Markets 14.1 Introduction 14.2 Limitations 14.3 Contract Research Organization (CRO) Service Market 14.3.1 Market Definition 14.3.2 Market Overview 14.3.3 Contract Research Organization Services Market, by Region 220.127.116.11 North America 18.104.22.168 Europe 22.214.171.124 Asia Pacific 14.4 Clinical Trial Management System (CTMS) Market 14.4.1 Market Definition 14.4.2 Market Overview 14.4.3 CTMS Market, by Region 126.96.36.199 North America 188.8.131.52 Europe 184.108.40.206 Asia Pacific 14.5 Drug Discovery Informatics Market 14.5.1 Market Definition 14.5.2 Market Overview 14.5.3 Drug Discovery Informatics Market, by Region 220.127.116.11 North America 18.104.22.168 Europe 22.214.171.124 Asia Pacific 15 Appendix 15.1 Discussion Guide 15.2 Knowledge Store: Subscription Portal 15.3 Available Customizations 15.4 Related Reports 15.5 Author Details