The cloud-based solutions for drug discovery, development, and manufacturing market is expected to register a CAGR of 12.5% during the forecast period of the study.
As the effect of the COVID-19 pandemic grows around the world, the biotechnology and pharmaceutical companies along with other healthcare organizations started intensive research to learn more about the novel coronavirus, and cloud technologies were one of the most important tools in understanding the virus and in the discovery and development of vaccines and drugs against it and are expected to have a significant impact on the market. For example, as per the June 2020 article published by Ashima Gupta and Joe Corkery, Schrödinger, a Google Cloud user, has partnered up with Takeda, Novartis, Gilead Sciences, and WuXi AppTec in a charitable effort to share ideas, resources, and data with the goal of finding antiviral treatments for coronavirus. Schrödinger, whose physics-based software platform facilitates the development of high-quality, unique compounds for therapies and materials, will use Google Cloud credits to enable quick investigation and testing of prospective new pharmaceuticals as part of this agreement. Moreover, the high investment by the pharmaceutical companies in the drug discovery and development initiative against coronavirus is further expected to impact the cloud-based solutions for drug discovery, development, and manufacturing market.
The increasing investment in drug discovery, development, and manufacturing by pharmaceutical, biopharmaceutical and other entities along with the growing adoption of cloud services for these activities are the major growth driving factors for the market. The adoption of cloud services for drug discovery, development, and manufacturing is increasing owing to various benefits offered by cloud technology, for example, cloud services could aid in the streamlining of operations and the development of business cases to determine whether a medicine is likely to be useful and financially viable, or not. Also, according to the research study published by Olivier J. Wouters et. al., in March 2020, in the base case analysis, the median capitalized research and development investment to bring a new medicine to market was estimated at USD 985.3 million, with the mean investment at USD 1335.9 million, and estimates varied across therapeutic areas, with cancer drug development costs being the highest. This high cost associated with the research and development of new drug can be significantly reduced by deploying cloud services as it accelerates the drug discovery and development procedures, and minimizes the chances of errors during the process, and due to this factor, the adoption of cloud services in drug discovery, development, and marketing is increasing which is expected to drive growth in the studied market over the forecast period. For instance, in December 2021, Pfizer Inc. and Amazon Web Services (AWS) have agreed to collaborate on developing novel cloud-based technologies that could revolutionize how new medications are researched, manufactured, and disseminated for clinical trials.
Furthermore, the growing investment for the drug discovery and development with the growing prevalence of various diseases is further expected to have a positive impact on the growth of the studied market. For instance, according to a report published by the Pharmaceutical Research and Manufacturers of America (PhRMA) in September 2021, biopharmaceutical companies have invested more than a trillion dollars in research and development in the last decade alone, including a record-breaking year in 2020, when PhRMA member companies alone invested about USD 91 billion in research and development. Further, as per the same source, there were more than 8,000 medicines in development around the world in 2021, with 74 percent of them having the potential to be first-in-class treatments, or completely novel ways to treating a disease. Thus, due to heavy investment in the drug discovery and development initiative coupled with the benefits offered by cloud solutions, the adoption of cloud services in the drug discovery, development and manufacturing is expected to increase over the forecast period which will boost growth in the studied market.
However, high initial cost of implementation and deployment of cloud solutions and cybersecurity concerns are expected to restrain growth in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period.
A single organization or entity owns and operates private clouds, and in a private cloud environment, the hardware, software, and any related infrastructure are either housed in the organization's data center or in a service provider's regulated environment. Private clouds are preferred by government agencies, financial organizations such as banks, mid-to-large-sized companies, and any other entity dealing with sensitive data such as drug discovery and development due to which this segment is expected to hold a significant share in the studied market.
Private clouds differ from public clouds in terms of data control and flexibility, and by definition, private clouds cannot be offered as a service. Microsoft, HP Data Centers, Ubuntu, Elastra-private cloud, and others are well-known examples of private cloud types. The other factors that are expected to boost growth in the private cloud segment include low cost of deployment, higher efficiency, and control over the cloud, easy customization according to the need, and greater security and privacy, and collectively due to these factors, the use of private cloud is expected to increase over the forecast period of the study and segment will grow in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study
By geography, the North American region (including the United States, Canada, and Mexico) is expected to hold a significant share in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study owing to the presence of large pharmaceutical market and high investment in the drug development and discovery initiative by some of the largest pharmaceutical companies that are located in the region. For instance, according to the European Federation of Pharmaceutical Industries and Associations report of 2021, the North American market which includes the United States and Canada held the largest share in the global pharmaceutical market with 49%, ahead of Europe, China, and Japan. Thus, due to the high demand for the pharmaceuticals in the region, the investment in drug discovery, development, and manufacturing is significantly higher than in other regions and this is expected to increase the cloud-based services in the area which will drive growth in the studied market in North America over the forecast period of the study.
In the North American region, the United States is expected to occupy a major share in the cloud-based solutions for drug discovery, development, and manufacturing market during due to the factors such as growing investment in research and development by pharmaceutical and other companies, and increasing adoption of cloud solutions for drug discovery, development, and manufacturing which is anticipated to boost growth in the studied market in the United States. For instance, according to 2021 report of the European Federation of Pharmaceutical Industries and Associations, the pharmaceutical research and development expenditure of the United States have grown significantly from USD 40,688 million in 2010 to USD 64,357 million in 2019 and with the increasing pharmaceutical research and development expenditure and benefits offered by cloud services in reducing research and development cost along with streamlining the drug discovery, development, and manufacturing processes, the demand and adoption of cloud solutions is expected to increase in the country which will boost growth in the studied market. In addition, the launch of new products, collaborations between users and providers, and mergers and acquisitions are further expected to have a significant positive impact on the growth of the studied market in the United States. For instance, in March 2021, Cleveland Clinic and IBM have struck a groundbreaking 10-year partnership agreement to boost healthcare and life science research, and as part of this agreement the Cleveland Clinic Global Center for Pathogen Research & Human Health will be built using IBM Hybrid Cloud, High Performance Computing, Artificial Intelligence, and Quantum Computing technologies. Therefore, due to above-mentioned factors, the United States is expected to have a significant share in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study in the North America region.
The cloud-based solutions for drug discovery, development, and manufacturing market is fairly competitive with the presence of several global market players, and with the technological advancements and funding, the new entrants in the market are expected to increase the competitive landscape in the studied market over the forecast period of the study. Some of the key players in the cloud-based solutions for drug discovery, development, and manufacturing market are International Business Machines (IBM) Corporation, Oracle, Amazon Web Services, Google, and Tata Consultancy Services, among others.
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As the effect of the COVID-19 pandemic grows around the world, the biotechnology and pharmaceutical companies along with other healthcare organizations started intensive research to learn more about the novel coronavirus, and cloud technologies were one of the most important tools in understanding the virus and in the discovery and development of vaccines and drugs against it and are expected to have a significant impact on the market. For example, as per the June 2020 article published by Ashima Gupta and Joe Corkery, Schrödinger, a Google Cloud user, has partnered up with Takeda, Novartis, Gilead Sciences, and WuXi AppTec in a charitable effort to share ideas, resources, and data with the goal of finding antiviral treatments for coronavirus. Schrödinger, whose physics-based software platform facilitates the development of high-quality, unique compounds for therapies and materials, will use Google Cloud credits to enable quick investigation and testing of prospective new pharmaceuticals as part of this agreement. Moreover, the high investment by the pharmaceutical companies in the drug discovery and development initiative against coronavirus is further expected to impact the cloud-based solutions for drug discovery, development, and manufacturing market.
The increasing investment in drug discovery, development, and manufacturing by pharmaceutical, biopharmaceutical and other entities along with the growing adoption of cloud services for these activities are the major growth driving factors for the market. The adoption of cloud services for drug discovery, development, and manufacturing is increasing owing to various benefits offered by cloud technology, for example, cloud services could aid in the streamlining of operations and the development of business cases to determine whether a medicine is likely to be useful and financially viable, or not. Also, according to the research study published by Olivier J. Wouters et. al., in March 2020, in the base case analysis, the median capitalized research and development investment to bring a new medicine to market was estimated at USD 985.3 million, with the mean investment at USD 1335.9 million, and estimates varied across therapeutic areas, with cancer drug development costs being the highest. This high cost associated with the research and development of new drug can be significantly reduced by deploying cloud services as it accelerates the drug discovery and development procedures, and minimizes the chances of errors during the process, and due to this factor, the adoption of cloud services in drug discovery, development, and marketing is increasing which is expected to drive growth in the studied market over the forecast period. For instance, in December 2021, Pfizer Inc. and Amazon Web Services (AWS) have agreed to collaborate on developing novel cloud-based technologies that could revolutionize how new medications are researched, manufactured, and disseminated for clinical trials.
Furthermore, the growing investment for the drug discovery and development with the growing prevalence of various diseases is further expected to have a positive impact on the growth of the studied market. For instance, according to a report published by the Pharmaceutical Research and Manufacturers of America (PhRMA) in September 2021, biopharmaceutical companies have invested more than a trillion dollars in research and development in the last decade alone, including a record-breaking year in 2020, when PhRMA member companies alone invested about USD 91 billion in research and development. Further, as per the same source, there were more than 8,000 medicines in development around the world in 2021, with 74 percent of them having the potential to be first-in-class treatments, or completely novel ways to treating a disease. Thus, due to heavy investment in the drug discovery and development initiative coupled with the benefits offered by cloud solutions, the adoption of cloud services in the drug discovery, development and manufacturing is expected to increase over the forecast period which will boost growth in the studied market.
However, high initial cost of implementation and deployment of cloud solutions and cybersecurity concerns are expected to restrain growth in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period.
Key Market Trends
Private Cloud is Expected to Hold a Significant Share in the Cloud Type Segment in the Studied Market during the Forecast Period
A single organization or entity owns and operates private clouds, and in a private cloud environment, the hardware, software, and any related infrastructure are either housed in the organization's data center or in a service provider's regulated environment. Private clouds are preferred by government agencies, financial organizations such as banks, mid-to-large-sized companies, and any other entity dealing with sensitive data such as drug discovery and development due to which this segment is expected to hold a significant share in the studied market.
Private clouds differ from public clouds in terms of data control and flexibility, and by definition, private clouds cannot be offered as a service. Microsoft, HP Data Centers, Ubuntu, Elastra-private cloud, and others are well-known examples of private cloud types. The other factors that are expected to boost growth in the private cloud segment include low cost of deployment, higher efficiency, and control over the cloud, easy customization according to the need, and greater security and privacy, and collectively due to these factors, the use of private cloud is expected to increase over the forecast period of the study and segment will grow in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study
North America is Expected to Hold a Significant Share in the Studied Market Over the Forecast Period
By geography, the North American region (including the United States, Canada, and Mexico) is expected to hold a significant share in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study owing to the presence of large pharmaceutical market and high investment in the drug development and discovery initiative by some of the largest pharmaceutical companies that are located in the region. For instance, according to the European Federation of Pharmaceutical Industries and Associations report of 2021, the North American market which includes the United States and Canada held the largest share in the global pharmaceutical market with 49%, ahead of Europe, China, and Japan. Thus, due to the high demand for the pharmaceuticals in the region, the investment in drug discovery, development, and manufacturing is significantly higher than in other regions and this is expected to increase the cloud-based services in the area which will drive growth in the studied market in North America over the forecast period of the study.
In the North American region, the United States is expected to occupy a major share in the cloud-based solutions for drug discovery, development, and manufacturing market during due to the factors such as growing investment in research and development by pharmaceutical and other companies, and increasing adoption of cloud solutions for drug discovery, development, and manufacturing which is anticipated to boost growth in the studied market in the United States. For instance, according to 2021 report of the European Federation of Pharmaceutical Industries and Associations, the pharmaceutical research and development expenditure of the United States have grown significantly from USD 40,688 million in 2010 to USD 64,357 million in 2019 and with the increasing pharmaceutical research and development expenditure and benefits offered by cloud services in reducing research and development cost along with streamlining the drug discovery, development, and manufacturing processes, the demand and adoption of cloud solutions is expected to increase in the country which will boost growth in the studied market. In addition, the launch of new products, collaborations between users and providers, and mergers and acquisitions are further expected to have a significant positive impact on the growth of the studied market in the United States. For instance, in March 2021, Cleveland Clinic and IBM have struck a groundbreaking 10-year partnership agreement to boost healthcare and life science research, and as part of this agreement the Cleveland Clinic Global Center for Pathogen Research & Human Health will be built using IBM Hybrid Cloud, High Performance Computing, Artificial Intelligence, and Quantum Computing technologies. Therefore, due to above-mentioned factors, the United States is expected to have a significant share in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study in the North America region.
Competitive Landscape
The cloud-based solutions for drug discovery, development, and manufacturing market is fairly competitive with the presence of several global market players, and with the technological advancements and funding, the new entrants in the market are expected to increase the competitive landscape in the studied market over the forecast period of the study. Some of the key players in the cloud-based solutions for drug discovery, development, and manufacturing market are International Business Machines (IBM) Corporation, Oracle, Amazon Web Services, Google, and Tata Consultancy Services, among others.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- IBM
- Amazon Web Services
- Accenture
- Oracle
- Veeva Systems
- Tata Consultancy Services
- ArisGlobal
- XtalPi
- Nutanix
- Alibaba Group
- Cloud Pharmaceuticals Inc.
Methodology
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