Published Date : 25 Jan 2023
The global drug discovery services market size was evaluated at USD 14.11 billion in 2022 and is expected to touch USD 33.2 billion by 2030 with a noteworthy CAGR of 11.3% from 2022 to 2030.
Drug discovery belongs to the fields of medicine, biotechnology, and pharmacology. Through this, new drugs for disease treatment are discovered. The compound identified using drug discovery can be used to treat and cure diseases. It has now evolved significantly as a result of emerging technologies.
Drug discovery makes the process more refined, accurate, and time-consuming. Traditionally, drugs were discovered by determining the active ingredient from conventional remedies. Now, it also involves the determination of screening hits and their optimization to increase affinity, efficiency, selectivity, and oral bioavailability. The process of drug discovery starts once the compound that meets all of these requirements is identified.
Drug discovery is a capital-intensive process involving significant investments by pharmaceutical companies and national governments. The federal governments provide funds and loans for drug discovery. It is a lengthy, expensive, complex, and inefficient process. In the 21st century, basic discovery is funded by governments and philanthropic organizations, while pharmaceutical companies fund the final stage.
A drug undergoes several phases of clinical trials before launching into the market. It must pass through a new drug approval procedure called the New Drug Application in the USA. Drug Discovery can be a commercial or a public health success and helps identify new therapeutics.
The heavy investments in the research & development activities by the biopharmaceutical industry majorly drive the global drug discovery services market. In line with this, the rising demand for outsourcing clinical trials and analytical tests significantly contributes to market growth. The surging research activities on orphan medicines and chronic disease prevalence positively influence market growth.
The increasing research on rare diseases and the burgeoning demand for biopharmaceutical drugs catalyze market growth. The significant growth of the biologics industry across the world propels market growth. The development of several innovative and effective drugs fuels market growth. The heavy investments in the research and development of new drugs for various acute diseases favor market growth.
The surging demand for biologics and the patent expiry strengthen the market growth. The rising prevalence of various chronic diseases such as cancer, diabetes, cardiovascular, and respiratory diseases boosts the overall market growth. Unhealthy food habits, rising pollution, and increasing tobacco consumption stimulate market growth. The rapidly growing geriatric population across the world and the surging susceptibility of senior people to various diseases catalyze market growth.
The presence of multiple contract research organizations across the globe creates a positive outlook for the market. The growing burden of various diseases such as cardiovascular diseases, diabetes, cancer, respiratory diseases, and neurological disorders significantly contributes to market growth. The favorable government regulations fuels market growth. The heavy investments by pharmaceutical companies boost the market growth.
Drug Discovery Services Market Report Scope
|Market Size in 2022
|USD 14.11 Billion
|Market Size by 2030
|USD 33.2 Billion
|Growth Rate from 2022 to 2030
|CAGR of 11.3%
|2022 to 2030
|By Drug Type, By Process, By Type and By Therapeutic Area
|North America, Europe, Asia-Pacific, Latin America and Middle East & Africa
Based on the region, North America dominated the market and accounted for the largest revenue share due to the presence of several top biopharmaceutical and pharmaceutical companies and the increasing number of CROs and CMOs in the region. The rising prevalence of various chronic diseases and the growing geriatric population positively influence market growth across the region.
The spreading awareness regarding biologics and the high demand for new and innovative drugs catalyzes the growth of the drug discovery services market in the North American region. The high healthcare expenditure propels market growth. On the other hand, Asia Pacific is expected to witness a promising CAGR due to the presence of several top research organizations and the increasing awareness regarding biologics.
The rising demand for innovative biologic drugs and the favorable government policies propel the market growth across the region. The increasing geriatric population and the rising prevalence of Chronic conditions catalyze the market growth.
Driver: Rising demand for novel therapies for various therapeutic purposes
The increasing demand for novel therapies for various therapeutic purposes significantly contributes to market growth across the globe. In line with this, the rising demand for novel medicine for chronic diseases and significant growth in the healthcare industry positively influences market growth.
The growing outsourcing of research and development activities of pharmaceutical and biopharmaceutical companies to contract research organizations (CROs) and the surging burden of chronic diseases catalyze market growth. The heavy investments in clinical trials create a positive outlook for the market.
The increasing prevalence of Chronic conditions such as diabetes, dementia, and cardiovascular disease propel the market growth. The increase in R&D spending for producing novel drugs favors market growth. The unhealthy urban lifestyle and the rising Geriatric population boost the overall market growth. The escalating demand for advanced and innovative drugs, surging healthcare costs, and the patent expiration of various drugs fuel the market growth.
Opportunity: Increasing research and development expenditure in pharmaceutical and biopharma companies
The increasing research and development expenditure in pharmaceutical and biopharmaceutical companies offers numerous opportunities for market growth. The market players are heavily investing in the research and development of novel drugs. Pharmaceutical companies are heavily investing in drug discovery. The pharmaceutical and biopharma companies are highly research and development intensive. Pharmaceutical and biopharma companies invest in research and development activities to launch new and innovative drugs in the market.
The companies are expanding their research and development efficiencies by heavily investing. Many companies are choosing to outsource their services. The outsourcing of clinical trials and analytical tests and the increasing demand for biopharmaceutical treatments catalyze market growth. The launch of various novels and effective life-saving biologics and patent expirations propel the market growth.
Restraint: High cost of drug molecules
The high cost of drug molecules restricts the drug discovery market growth. The lack of skilled labor and the increasing drug molecule failure rate hampers the market growth. The drug development costs are very high, which further impedes the market growth. The clinical phases and research and development of drug discovery involve enormous costs.
Challenge: Stringent Regulations
The stringent regulations governing drug discovery and animal usage challenge the drug discovery services market growth. The achievement of safety and efficacy is the priority of regulatory authorities. These regulations raise the manufacturing cost of drugs. These regulations further regulate the use of animals in the drug discovery process.
The increasing concerns about animals have made the concerned authorities impose various legislations for animal use and their safety. All these factors challenge the drug discovery services market growth. The shortage of skilled professionals in the CROs further hampers the market growth.
Major Key Players:
By Drug Type
By Therapeutic Area
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