Global Drug Discovery Services Market (2021 to 2026) - Rising Demand for Specialized Testing Services Among End-users Presents Opportunities

DUBLIN, Feb. 16, 2022 /PRNewswire/ -- The "Drug Discovery Services Market by Process (Target Selection, Validation, Hit-to-lead), Type (Chemistry, Biology), Drug Type (Small molecules, biologics), Therapeutic Area (Oncology, Neurology) End User (Pharma, Biotech) - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.

The global Drug discovery services market is projected to reach USD 31.4 billion by 2026 from USD 16.1 billion in 2021, at a CAGR of 14.3% during the forecast period of 2021 to 2026.

Growing R&D expenditure in the pharmaceutical & biopharmaceutical industry, increasing demand for outsourcing analytical testing services, initiatives for research on rare diseases and orphan drugs, and the high cost of in-house drug development are creating new revenue pockets in the drug discovery services market.

The chemistry services segment accounted for the largest share of the type segment in the drug discovery services market in 2020

Based on type, the drug discovery services market is segmented into chemistry and biology services. The chemistry services segment commanded the largest share of this market in 2020. Growth in this market segment is largely due to the widespread application of chemistry in various early drug development phases to deliver robust candidates. The extensive usage of chemistry in academics, biotechnology companies, and large pharmaceutical companies also supports market growth.

The Hit-to-lead identification segment accounted for the largest share of the process segment in the drug discovery services market in 2020

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 2020. Due to its vital role in drug discovery, hit-to-lead identification is the most revenue-generating process, and currently, many CROs are offering these services to pharmaceutical companies.

The Oncology segment accounted for the largest share of the therapeutic area segment in the drug discovery services market in 2020

Based on therapeutic area, the drug discovery services market is segmented into oncology, infectious and immune system diseases, neurology, digestive system diseases, cardiovascular diseases, and other therapeutic areas. Oncology is the largest segment in this market owing to the high incidence of cancer, a growing number of research studies on cancer therapeutics, and a company focus on bringing innovative cancer drugs into the market.

Asia Pacific: The fastest-growing 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). The APAC is estimated to record the highest CAGR during the forecast period. The vast patient population, emerging middle-class, rising government spending, and therapeutic area expertise are the major growth drivers for the pharmaceutical industry in the region. Global pharmaceutical firms are increasingly moving to Asia to tap into its thriving market and lower their production costs by shifting manufacturing to the region.

Key Topics Covered:

1 Introduction

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 and Country (2020)
4.3 Drug Discovery Services Market Share, by Type (2020)
4.4 Drug Discovery Services Market, by End-user, 2021 Vs. 2026 (USD Million)
4.5 Drug Discovery Services Market: Geographic Growth Opportunities

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Growing R&D Expenditure in the Pharma & Biopharma Industry
5.2.1.2 Increasing Demand for Outsourcing Analytical Testing
5.2.1.3 Initiatives for Research on Rare Diseases and Orphan Drugs
5.2.1.4 High Cost of In-House Drug Development
5.2.2 Restraints
5.2.2.1 Stringent Regulations Governing Drug Discovery and Animal Usage
5.2.3 Opportunities
5.2.3.1 Growth in Drugs and Biologics Market Despite COVID-19 Pandemic
5.2.3.2 Rising Demand for Specialized Testing Services Among End-users
5.2.3.3 Patent Expiry
5.2.3.4 High Growth Prospects in Emerging Markets
5.2.4 Challenges
5.2.4.1 Shortage of Skilled Personnel
5.2.5 Market Trends
5.2.5.1 Shift in Drug Discovery Services due to Growing Adoption of Ai-Based Tools
5.2.5.2 Increased Outsourcing to Emerging Asian Economies
5.2.5.3 Cro Industry Consolidation
5.2.5.4 Integrated End-To-End R&D Service Solution
5.3 Impact of COVID-19 on the Drug Discovery Services Market
5.3.1 Assumptions - Drug Discovery Services Market Estimation and Forecast
5.3.2 Assumptions - Company Revenue Growth
5.4 Ranges/Scenario
5.5 Trends/Disruptions Impacting Customer's Business
5.6 Value Chain Analysis
5.7 Ecosystem Analysis
5.8 Technology Analysis
5.9 Regulatory Analysis
5.10 Porter's Five Forces Analysis
5.10.1 Threat of New Entrants
5.10.2 Threat of Substitutes
5.10.3 Bargaining Power of Buyers
5.10.4 Bargaining Power of Suppliers
5.10.5 Degree of Competition

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 Future Manufacturing Suitability, Scale-Up, Commercial Viability, and Cost-Effectiveness of Candidates Heavily Impact the Long-Term Success of Drugs

7 Drug Discovery Services Market, by Type
7.1 Introduction
7.2 Chemistry Services
7.2.1 Growing Chemical & Biochemical Tests and Wide Applications of Chemistry in Drug Discovery are Major Factors Driving Market Growth
7.3 Biology Services
7.3.1 The Introduction of Genomics and Proteomics Will Enhance Market Growth

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
8.3 Biologic Drugs
8.3.1 Safety and Manufacturing Challenges Associated with Biologics Development to Drive Adoption of Outsourcing Services

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 Infectious & Immune System Diseases
9.3.1 Epidemic Outbreaks Necessitate Increasing Drug Discovery Activities
9.4 Neurology
9.4.1 The Increasing Number of Patients Suffering from Neurological Disorders is Driving Market Growth
9.5 Digestive System Diseases
9.5.1 Large Population Seeking Effective Remedies for Digestive Diseases is Expected to Drive the Market
9.6 Cardiovascular Diseases
9.6.1 The 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 End-user
10.1 Introduction
10.2 Pharmaceutical & Biotechnology Companies
10.2.1 Drug Discovery Services Market for Pharmaceutical & Biotechnology Companies, by Type
10.2.2 Tier 1 Companies
10.2.2.1 High Investing Capacity is the Major Factor Driving the Growth of this Segment
10.2.3 Tier 2 Companies
10.2.3.1 Limited Investment Capacity is Expected to Restrain the Growth of this Segment
10.2.4 Tier 3 Companies
10.2.4.1 Tier 3 Companies are Smaller and Have Fewer Technical Advantages
10.3 Academic Institutes
10.3.1 Collaboration with Market Players to Provide More Flexible and Efficient Pathways for Clinical Development
10.4 Other End-users

11 Drug Discovery Services Market, by Region

12 Competitive Landscape
12.1 Overview
12.2 Key Players Strategies/Right to Win
12.3 Market Share Analysis
12.4 Revenue Share Analysis of the Top Market Players
12.5 Company Evaluation Quadrant
12.5.1 Stars
12.5.2 Emerging Leaders
12.5.3 Pervasive Players
12.5.4 Participants
12.6 Company Evaluation Quadrant: Start-Ups/Smes
12.6.1 Progressive Companies
12.6.2 Starting Blocks
12.6.3 Responsive Companies
12.6.4 Dynamic Companies
12.7 Company Service Footprint
12.8 Company Geographic Footprint
12.9 Competitive Scenario
12.9.1 Service Launches
12.9.2 Deals
12.9.3 Expansion

13 Company Profiles
13.1 Key Players
13.1.1 Laboratory Corporation of America Holdings
13.1.1.1 Business Overview
13.1.1.2 Services Offered
13.1.1.3 Recent Developments
13.1.1.4 Analyst's View
13.1.1.4.1 Key Strengths/Right to Win
13.1.1.4.2 Strategic Choices Made
13.1.1.4.3 Weaknesses and Competitive Threats
13.1.2 Charles River Laboratories International, Inc.
13.1.2.1 Business Overview
13.1.2.2 Services Offered
13.1.2.3 Recent Developments
13.1.2.4 Analyst's View
13.1.2.4.1 Key Strengths/Right to Win
13.1.2.4.2 Strategic Choices Made
13.1.2.4.3 Weaknesses and Competitive Threats
13.1.3 Wuxi Apptec
13.1.3.1 Business Overview
13.1.3.2 Services Offered
13.1.3.3 Recent Developments
13.1.3.4 Analyst's View
13.1.3.4.1 Key Strengths/Right to Win
13.1.3.4.2 Strategic Choices Made
13.1.3.4.3 Weaknesses and Competitive Threats
13.1.4 Thermo Fisher Scientific
13.1.4.1 Business Overview
13.1.4.2 Services Offered
13.1.4.3 Recent Developments
13.1.5 Pharmaron Beijing Co., Ltd.
13.1.5.1 Business Overview
13.1.5.2 Services Offered
13.1.5.3 Recent Developments
13.1.6 Evotec Se
13.1.6.1 Business Overview
13.1.6.2 Services Offered
13.1.6.3 Recent Developments
13.1.7 Eurofins Scientific Se
13.1.7.1 Business Overview
13.1.7.2 Services Offered
13.1.7.3 Recent Developments
13.1.8 Pharmaceutical Product Development, Inc.
13.1.8.1 Business Overview
13.1.8.2 Services Offered
13.1.9 Piramal Enterprises Limited
13.1.9.1 Business Overview
13.1.9.2 Services Offered
13.1.9.3 Recent Developments
13.1.10 Syngene International Limited
13.1.10.1 Business Overview
13.1.10.2 Services Offered
13.1.10.3 Recent Developments
13.1.11 Curia Global Inc.
13.1.11.1 Business Overview
13.1.11.2 Services Offered
13.1.11.3 Recent Developments
13.1.12 Genscript Biotech Corporation
13.1.12.1 Business Overview
13.1.12.2 Services Offered
13.1.12.3 Recent Developments
13.1.13 Jubilant Pharmova Limited
13.1.13.1 Business Overview
13.1.13.2 Services Offered
13.1.13.3 Recent Developments
13.1.14 Frontage Holdings Corporation
13.1.14.1 Business Overview
13.1.14.2 Services Offered
13.1.14.3 Recent Developments
13.1.15 Shanghai Medicilon Inc.
13.1.15.1 Business Overview
13.1.15.2 Services Offered
13.1.15.3 Recent Developments
13.1.16 Dr. Reddy's Laboratories Ltd. (Aurigene Discovery Technologies)
13.1.16.1 Business Overview
13.1.16.2 Services Offered
13.1.16.3 Recent Developments
13.2 Other Companies
13.2.1 Selvita S.A. (Formerly Selvita Cro S.A.)
13.2.2 Viva Biotech (Shanghai) Ltd.
13.2.3 Tcg Lifesciences Pvt Ltd.
13.2.4 Shanghai Chempartner Co., Ltd.
13.2.5 Domainex Ltd.
13.2.6 Nuvisan Pharma Holding GmbH
13.2.7 Dalton Pharma Services
13.2.8 Aragen Life Sciences Pvt. Ltd. (Formerly Gvk Biosciences Pvt. Ltd.)
13.2.9 Promega Corporation

14 Appendix

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