Drug Discovery Services Market Report 2025

The drug discovery services market size has grown rapidly in recent years. It will grow from $18.27 billion in 2024 to $20.59 billion in 2025 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to increased R&D investment, expanding disease burden, government funding and support, emergence of contract research organizations (CROs), shift towards personalized medicine, drug repurposing strategies.

The drug discovery services market size is expected to see rapid growth in the next few years. It will grow to $33.88 billion in 2029 at a compound annual growth rate (CAGR) of 13.3%. The growth in the forecast period can be attributed to regulatory framework changes, advancements in drug delivery systems, increasing interest in immunotherapy, shift towards RNA-based therapeutics, targeting rare diseases. Major trends in the forecast period include advanced technologies adoption, biologicals and biopharmaceuticals growth, adoption of high-throughput screening, advancements in virtual screening, regenerative medicine focus.

The rising emphasis on drug discovery trials is anticipated to boost the drug discovery services market. The drug development life cycle plays a crucial role in ensuring the safe and effective delivery of medications. As a result, clinical trials are becoming increasingly important as a fundamental aspect of drug development. With the growing significance of drug development and innovation in healthcare, the demand for drug discovery trials has surged globally. For example, in May 2023, ClinicalTrials.gov, a platform for registering clinical trials, reported a total of 452,604 clinical trials in 2023, up from 365,000 registered trials in 2021. Therefore, the increasing focus on drug discovery trials is expected to drive the growth of the drug discovery services market.

The drug discovery services market is anticipated to witness growth driven by the rising prevalence of chronic diseases. Chronic diseases, characterized by long-lasting health conditions, necessitate ongoing management. Drug discovery services play a pivotal role in identifying and developing new medications for the treatment of chronic diseases. According to the National Library of Medicine, the US is expected to experience a 99.5% increase in the number of individuals aged 50 and older with at least one chronic condition, reaching 142.66 million by 2050. This increase in chronic diseases is poised to contribute significantly to the growth of the drug discovery services market.

Major companies in the drug discovery services market are developing advanced technologies, such as artificial intelligence (AI) and machine learning (ML), to improve the efficiency and accuracy of the drug discovery process. AI involves creating computer systems that can perform tasks typically requiring human intelligence, while ML, a subset of AI, focuses on using algorithms and statistical models to enable computers to learn from data and make predictions or decisions. For example, in February 2024, Eurofins Discovery, a France-based company providing support services across various sectors, including pharmaceuticals, announced the launch of an innovative platform called DiscoveryAI SAFIRE (Suite of ADMET Predictions for In Silico Refinement and Evaluation). This cutting-edge platform employs proprietary datasets, AI, and ML to enhance the drug discovery process. SAFIRE aims to accelerate the discovery of new pharmaceuticals by predicting the ADMET (Absorption, Distribution, Metabolism, Excretion, and Toxicity) properties of molecules. The platform utilizes data from Eurofins Discovery's extensive BioPrint database, meticulously curated over years of research.

Major companies within the drug discovery services market are concentrating on product innovations and developing new solutions through process visualization and centralized data management to enhance their market position. The biodrug design accelerator platform is intended to assist peptide drug discovery scientists in pharmaceutical companies by increasing the efficiency of peptide drug development, specifically through the cycles of 'design, make, test, analyze' (DMTA). For instance, in May 2023, Fujitsu, a Japan-based multinational corporation specializing in information and communications technology equipment and services, introduced the biodrug design accelerator platform to expedite peptide drug discovery research. This initiative aims to facilitate faster and more efficient drug discovery through process visualization and centralized data management. The platform helps peptide designers visualize amino acid sequences for each peptide while organizing research results systematically. It is designed to manage research processes for peptide drug discovery, which is regarded as a promising area in the field of new drug development.

In January 2023, Sygnature Discovery, a prominent UK-based integrated Drug Discovery firm, successfully concluded the acquisition of SB Drug Discovery for an undisclosed sum. This strategic move is expected to provide mutual strategic advantages, facilitating the expansion of both companies and enhancing their respective capabilities. The acquisition aligns with Sygnature's strategic plan, demonstrating a commitment to ongoing investment in the expansion of its leading integrated drug discovery solutions. SB Drug Discovery, the acquired company, is a UK-based entity specializing in providing crucial data for novel drug development through services such as cell line generation, assay development, and compound screening.

Major companies operating in the drug discovery services market are Thermo Fisher Scientific Inc., Albany Molecular Research Inc., Charles River Laboratories International Inc., Laboratory Corporation of America Holdings, Domainex Ltd., GenScript Biotech Corporation, Pharmaceutical Product Development LLC, Advinus Therapeutics Pvt. Ltd., Jubilant Biosys Ltd., Evotec AG, Syngene International Ltd., Bayer AG, Merck KGaA, Ubiquigent Ltd., Eurofins Scientific SE, AppTec Laboratory Services Inc., GVK Biosciences Private Limited, Aurigene Discovery Technologies Limited, Viva Biotech Holdings, Pharmaron Beijing Co. Ltd., Selcia Limited, Concept Life Sciences Group Limited, BioDuro LLC, ChemPartner Corporation, Aptuit LLC, Sygnature Discovery Limited, Peak Proteins Ltd., SRI International, BioAscent Discovery Limited, Sai Life Sciences Limited, Promega Corporation, MedChemExpress LLC, Aragen Bioscience Inc., WuXi STA, BioNTech SE, Moderna Inc., Gilead Sciences Inc., Vertex Pharmaceuticals Incorporated, Regeneron Pharmaceuticals Inc., Amgen Inc., Bristol-Myers Squibb Company.

North America was the largest region in the drug discovery services market in 2024. The regions covered in the drug discovery services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the drug discovery services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Drug discovery services involve the process of identifying potential new medicines, utilizing a combination of scientific disciplines such as biology, chemistry, and pharmacology. These services are structured across four stage such as early drug discovery, pre-clinical phase, clinical phases, and regulatory approval.

The primary types of drug discovery services include chemistry services and biology services. Chemistry services focus on the design and synthesis of biologically active molecules, aiming to discover and optimize chemical compounds for drug development. This involves the utilization of technologies like high-performance liquid chromatography and high-field NMR for the quick and efficient synthesis, analysis, and purification of compound libraries. Key processes within chemistry services include target selection, target validation, hit-to-lead identification, lead optimization, and candidate validation, incorporating various drug types such as biologics and small molecules. End-users of drug discovery services encompass pharmaceutical and biotechnology companies, academic institutes, and other entities involved in the drug discovery process.

The drug discovery services market research report is one of a series of new reports that provides drug discovery services market statistics, including drug discovery services industry global market size, regional shares, competitors with a drug discovery services market share, detailed drug discovery services market segments, market trends and opportunities, and any further data you may need to thrive in the drug discovery services industry. This drug discovery services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The drug discovery services market includes revenues earned by entities by providing pharmaceutical services, drug metabolism and pharmacokinetics (DMPK) services, biological services, and medicinal chemistry. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.