Drug Discovery Services Global Market Report 2024

The global drug discovery services market has grown rapidly in recent years. It will grow from $16.11 billion in 2023 to $18.3 billion in 2024 at a compound annual growth rate (CAGR) of 13.6%. The growth observed in the historical period can be attributed to factors such as increased investment in research and development (R&D), an expanding disease burden, government funding and support for healthcare initiatives, the emergence of contract research organizations (CROs), and a strategic shift towards personalized medicine and drug repurposing strategies in the pharmaceutical and healthcare sectors.

The global drug discovery services market is expected to see rapid growth in the next few years. It will grow to $30.1 billion in 2028 at a compound annual growth rate (CAGR) of 13.2%. The anticipated growth in the forecast period can be attributed to changes in regulatory frameworks, advancements in drug delivery systems, a growing interest in immunotherapy, a shift towards RNA-based therapeutics, and an increased focus on targeting rare diseases in the pharmaceutical and healthcare sectors. Major trends in the forecast period encompass the adoption of advanced technologies, the growth of biologicals and biopharmaceuticals, increased use of high-throughput screening, advancements in virtual screening techniques, and a focus on regenerative medicine.

The growing focus on drug discovery trials is expected to propel the drug discovery services market. The drug development life cycle is critical for ensuring safe and effective drug delivery. Due to this, clinical trials are gaining prominence as an essential component of drug development. With the increasing importance of drug development and innovation in healthcare, the demand for drug discovery trials worldwide has increased. For instance, according to ClinicalTrials.gov, a platform for registering clinical trials, the total number of clinical trials reported until 2020 was 325,771 in March 2021, rising to 362,501 in 2021. Therefore, the growing focus on drug discovery trials will drive the growth of the drug discovery services market.

The drug discovery services market is set to experience significant growth due to the increasing focus on drug discovery trials. Clinical trials have become a crucial aspect of the drug development life cycle, ensuring the safe and effective delivery of drugs. With a heightened emphasis on drug development and healthcare innovation, the global demand for drug discovery trials is on the rise. ClinicalTrials.gov reported a substantial increase from 325,771 clinical trials in March 2021 to 362,501 in 2021, highlighting the growing significance of drug discovery trials. This trend is expected to propel the drug discovery services market forward.

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.

Technological advancements emerge as a key trend shaping the drug discovery services market. Major companies in drug development services are responding to market demand by integrating robotics and automated screening to enhance the overall speed of drug discovery. This technological progression provides key players with a competitive edge. For instance, Arctoris Ltd., a UK-based platform company, introduced Ulysses in February 2021. This fully automated robotic platform enhances drug discovery by generating high-quality, measurable, and auditable datasets swiftly, facilitating informed decision-making in the early stages of drug development.

Major companies in the drug discovery services market are concentrating on product innovations and developing new solutions to strengthen their market positions. The focus is on enhancing efficiency through process visualization and centralized data management. An example is Fujitsu's launch of the bio drug design accelerator platform in May 2023. This platform supports peptide drug discovery scientists in pharmaceutical companies by streamlining the 'design, make, test, analyze' (DMTA) cycles. It aims to contribute to faster and more efficient drug discovery by visualizing amino acid sequences and organizing research results for peptide drug development, showcasing the industry's commitment to innovative solutions.

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 report 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., and Bristol-Myers Squibb Company. North America was the largest region in the drug discovery services market in 2023. 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 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.

This report 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 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.

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.


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