The global drug discovery services market size was valued at USD 21 billion in 2022 and is expected to hit USD 69.72 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 12.80% from 2023 to 2032.
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The U.S. drug discovery services market size reached USD 8.82 billion in 2022 and is predicted to be worth USD 29.54 billion by 2032 with a CAGR of 12.90% between 2023 to 2032.
North America was the leading drug discovery services market in 2022. The presence of several top biopharmaceutical and pharmaceutical companies are supported by the numerous CROs and CMOs in the region, which favors the growth of the drug discovery services market. US is the patent holder of the most of the newly developed drugs. Furthermore, the increased prevalence of various chronic diseases and rising geriatric population in US is fueling the growth of the market. According to the Population Reference Bureau, the number of people aged 65 years and above is expected to reach at 95 million in US by 2060. It is estimated that around 60% of the US population is suffering from one or more chronic diseases. The increasing awareness regarding the biologics is boosting the demand for the new and innovative drugs in the region, which in turn is supporting the growth of the drug discovery services market in North America.
Asia Pacific is estimated to be the fastest-growing market during the forecast period. This is attributed to the presence of several top research organizations in the countries like China, India, and South Korea. The rising awareness regarding the biologics among the population in the emerging nations is fueling the demand for the innovative biologic drugs. Moreover, the favorable government policies is attracting FDIs, which is expected to drive the growth of the drug discovery services in Asia Pacific market.
The surging investments in the research & development activities by the biopharmaceutical industry are boosting the demand for outsourcing the services related to clinical trials and analytical tests. The growing research activities on the orphan medicines and research on rare diseases is fostering the growth of the global drug discovery services market. The burgeoning demand for the biopharmaceutical drugs is resulting in the rapid growth of the biologics industry across the globe. The biopharmaceuticals alone accounts for around 20% of the pharmaceutical industry. The development of several innovative and effective life-saving drugs in the biologics has fueled its demand and the biologics companies are encouraged for investing in the research and development of new drugs for various common and rare diseases. Moreover, the expiry of patents and surging demand for the biologics in the developing nations is propelling the growth of the global drug discovery services market.
The rising prevalence of carious chronic diseases such as cancer, diabetes, cardiovascular diseases, and respiratory diseases owing to unhealthy food habits, rising pollution levels, and rising consumption of tobacco has significantly contributed towards the growth of the drug discovery services market. Moreover, the rapidly growing geriatric population across the globe and the increased susceptibility of the old age people to various diseases is expected to positively impact the growth of the drug discovery services market in the forthcoming future. As per the United Nations, the geriatric population across the globe is estimated to reach 2 billion by 2050. Furthermore, the active participation of the various authorities like FDA and EMA in the approvals of various newly developed drugs is supporting the growth of the drug discovery services market. Moreover, the presence of numerous contract research organizations across the developed and developing nations is attracting the investments in the research and developmental activities.
| Report Coverage | Details |
| Market Size | US$ 69.72 Billion by 2032 |
| Growth Rate | CAGR of 12.80% from 2023 to 2032 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Drug Type, Process, Type,Therapeutic Area, Region |
| Companies Mentioned | Abbott Laboratories Inc., Advinus Therapeutics, Agilent Technologies Ubiquigent, Albany Molecular Research Inc., AstraZeneca PLC, Aurigene, Bayer AG, Charles River Laboratories International, ChemBridge Corporation, Covance |
The small molecules segmented accounted for the largest revenue share of the global drug discovery services market in 2022. The small molecules drugs are easy to characterize, simple, and well-defined that fostered its growth. The small molecules drugs are much more effective and have higher demand among the population. The small molecules can easily affect the cells and can provide effective treatment owing to its small molecules. The increased awareness regarding the benefits of the small molecule drugs has favored the growth of this segment.
On the other hand, the biologics is estimated to be the most opportunistic segment during the forecast period. The biologics industry has produced several life-saving drugs that can effectively treat various non-communicable diseases such as cancer, cardiovascular diseases, and diabetes. The rising prevalence of various chronic diseases and rising awareness regarding the availability of various biologic drugs is estimated to foster the growth of this segment in the foreseeable future.
Based on the type, the medicinal chemistry segment dominated the global drug discovery services market in 2020. The medicinal chemistry has widespread application in the drug discovery services, starting from pre-clinical trials to the delivery of candidates. Therefore, the importance of this segment has led to its dominance. Moreover, the increased outsourcing by the biopharmaceutical companies is expected to drive the growth of this segment.
Depending on the therapeutic area, the oncology segment dominated the global drug discovery services market in 2020. This is primarily attributed to the increased drug discovery activities related to the cancer. The increased prevalence of different types of cancer among the population has fostered the growth of the oncology segment. According to the International Agency for Research on Cancer, around 19.3 million new cancer cases and around 10 million cancer deaths were reported in 2020. The new cancer cases are expected to rise by 47% from 2020 to 2040, globally. Therefore, it is estimated that around 28.4 million new cancer cases will be recorded in 2040 across the globe. The most prevailing types of cancer include lungs cancer, breast cancer, prostate cancer, and colorectal cancer. Hence, the increased prevalence of various cancers is expected to sustain the dominance of this segment in the forthcoming years.
On the other hand, the diabetes is expected to be the fastest-growing segment. The rising prevalence of cancer among the population owing changing lifestyles and unhealthy food habits of the consumers is fostering the growth of this segment. As per the International Diabetes Federation, around 783 million people across the globe are estimated to live with diabetes by 2045. Further, over 1.2 million children and teenagers are suffering from type 1 diabetes. Diabetes is the major cause of stroke, kidney failure, and blindness.
Key Market Developments
The drug discovery services market is highly fragmented with the presence of numerous local and global level companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
Market Segmentation
By Process
By Drug Type
By Type
By Therapeutic Area
By Geography
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