The global drug discovery services market is poised for significant expansion, with a projected valuation of USD 19.7 billion in 2023. According to the latest report from Future Market Insights (FMI), the market is set to surge to USD 76.5 billion by 2033, reflecting an impressive CAGR of 14.5% over the forecast period from 2023 to 2033.
The growth of the drug discovery services market is largely driven by the increasing demand for innovative and cost-effective drug development solutions, especially as pharmaceutical and biotechnology companies seek to enhance their research and development (R&D) capabilities. The rising prevalence of chronic diseases, genetic disorders, and oncological conditions has significantly accelerated the need for new therapeutic agents, thus boosting the demand for comprehensive drug discovery services.
The market growth is also supported by ongoing advancements in biotechnology, genomics, and artificial intelligence (AI), which are revolutionizing the drug discovery process. By improving the accuracy of target identification, preclinical testing, and clinical trial processes, these technologies are enhancing the efficiency and speed of drug development, reducing the time and costs associated with bringing new drugs to market.
As pharmaceutical and biotech companies increasingly focus on outsourcing their drug discovery activities to specialized service providers, the demand for contract research organizations (CROs) and drug discovery platforms is expected to rise. The trend of collaborations and partnerships between drug discovery service providers and biopharmaceutical companies is expected to further propel the market’s growth over the coming decade.
Key Takeaways:
- Market Growth: The drug discovery services market is forecasted to grow from USD 19.7 billion in 2023 to USD 76.5 billion by 2033, with a CAGR of 14.5%.
- R&D Demand: The rising demand for innovative drug development solutions in the wake of increasing chronic diseases and genetic disorders is fueling market growth.
- Technological Advancements: Cutting-edge technologies such as artificial intelligence and biotechnology innovations are enhancing the drug discovery process.
- Outsourcing Trend: Pharmaceutical companies are increasingly outsourcing drug discovery services to CROs and specialized providers, driving the growth of the market.
The drug discovery services market is on a robust growth trajectory, with technological advancements and the expanding demand for new therapeutics contributing to its future success. The market’s dynamic expansion underscores the increasing importance of outsourced R&D solutions in the evolving healthcare landscape.
Key Growth Drivers
- Rising Demand for New Drugs: The continuous need for new medications to address unmet medical needs, particularly for chronic diseases and conditions like neurodegenerative disorders and cancer, is driving the market.
- Technological Advancements: Innovations in drug discovery methodologies, including high-throughput screening and AI-driven approaches, are enhancing the efficiency and effectiveness of drug development processes.
- Increased R&D Investment: Growing investments in research and development within the pharmaceutical industry are bolstering the demand for drug discovery services.
- Expansion of Contract Research Organizations (CROs): The rise of CROs that provide specialized drug discovery services is facilitating market growth by allowing pharmaceutical companies to outsource their research activities.
Market Dynamics
- The market is characterized by a diverse range of services, including chemistry services, biology services, and various stages of drug development from target identification to candidate optimization.
- The increasing prevalence of chronic diseases and the aging population are also contributing to the demand for effective drug discovery solutions.
Which Growth Strategies are Likely to be Adopted by Market Players?
The global drug discovery services market is competitive, with Laboratory Corporation of America Holdings (United States), Charles River Laboratories International Inc. (United States), WuXi AppTec (China), and Thermo Fisher Scientific Inc. (United States) collectively accounting for a large portion of the market. The United States-based company, Laboratory Corporation of America Holdings, is a prominent player in the global market.
These key players in the global drug discovery market focus on a broad spectrum of clients. They emphasize incorporating modern and advanced technology-enabled solutions. Increasing investments in joint ventures & partnerships are likely to be prevalent as key strategies. Extensive quality systems and processes contribute to the growth of businesses operating in the market. These companies may use organic and inorganic growth techniques, such as acquisitions and expansions, to tap into new demographics.
Several drugs are pending approval from the United States Food and Drug Administration (FDA).
Anticipated Drug Approvals in 2023:
- In January 2023, Genentech declared that it received a Priority Review and Fast Track designation grant for Glofitamab. The drug is a novel bispecific antibody that engages T-cells of the immune system to treat adult patients with refractory or relapsed LBCL.
- In January 2023, Brexpiprazole, an atypical antipsychotic supplement NDA approved for schizophrenia was put under Priority Review by FDA. Brexpiprazole is a drug developed by H. Lundbeck A/S and Otsuka Pharmaceuticals.
- In January 2023, UCB’s Rozanolixizumab was accepted by the FDA for further Phase III study.
- In December 2022, Harm Reduction Therapeutics announced that FDA accepted and granted Priority for Review to their NDA for RiVive. The product is an over-the-counter naloxone nasal spray.
Key Players in the Market
- Laboratory Corporation of America Holdings
- Charles River Laboratories International Inc.
- Genscript Biotech Corporation
- Thermo Fisher Scientific Inc.
- Pharmaron Beijing Co. Ltd.
- Evotec SE
- Eurofins Scientific SE
- Pharmaceutical Product Development Inc.
- Piramal Enterprise Limited
- Syngene International Limited
A Comprehensive Full Report
Market Segmentation
By Process:
- Target Selection
- Target Validation
- Hit-to-lead identification
- Lead Optimization
- Candidate Validation
By Type:
- Chemistry Services
- Biology Services
By Drug Type:
- Small Molecule Drugs
- Biologics Drugs
By Therapeutic Area:
- Neurology
- Infectious and Immune Systems Diseases
- Digestive System Diseases
- Oncology
- Other Therapeutic Areas
By End User:
- Pharmaceutical & Biotechnology Companies
- Academic Institutes
- Manufacturing
- Other End Users
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- The Middle East & Africa
Author By:
Sabyasachi Ghosh (Associate Vice President at Future Market Insights, Inc.) holds over 12 years of experience in the Healthcare, Medical Devices, and Pharmaceutical industries. His curious and analytical nature helped him shape his career as a researcher.
Identifying key challenges faced by clients and devising robust, hypothesis-based solutions to empower them with strategic decision-making capabilities come naturally to him. His primary expertise lies in areas such as Market Entry and Expansion Strategy, Feasibility Studies, Competitive Intelligence, and Strategic Transformation.
Holding a degree in Microbiology, Sabyasachi has authored numerous publications and has been cited in journals, including The Journal of mHealth, ITN Online, and Spinal Surgery News.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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