Drug Discovery Outsourcing Market (By Workflow: Target Identification & Screening, Lead Identification & Candidate Optimization, Target Validation & Functional Informatics, Preclinical Development, Others; By Drug Type: Biologics and Small Molecules; By Therapeutic Area: Oncology, Cardiovascular, Gastrointestinal, Neurology, Respiratory, Others; By Drug Type: Small Molecules and Large Molecules) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030
The global drug discovery outsourcing market size was estimated at US$ 3.62 billion in 2021 and is expected to hit over US$ 6.55 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 6.8% from 2021 to 2030.
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The global drug discovery outsourcing market is primarily driven by the growing investments in the research and development of various new and innovative drugs. The surging growth and popularity of the global biopharmaceutical industry is a major factor which is estimated to boost the growth of the global drug discovery outsourcing market. The biopharmaceuticals alone accounts for 20% of the total pharmaceutical industry. The recent developments of various new drugs in the biopharmaceutical industry that can effectively cure various diseases such as cancer, diabetes, cardiovascular diseases, and respiratory diseases is significantly driving the growth of the global drug discovery outsourcing market. The presence of numerous contract manufacturing organizations and contract research organizations in the market are exponentially contributing towards the growth of the market. Moreover, the development of various life-saving drugs in the biosimilar and the biologic industry is expected to increase the investments in the drug discovery activities across the globe.
The rising prevalence of various chronic diseases and rapidly growing geriatric population is expected to augment the growth of the drug discovery outsourcing market. The world is witnessing an alarming surge in the prevalence of diseases such as cancer, diabetes, cardiovascular diseases, neurological disorders, and respiratory diseases. This rising burden of various diseases is encouraging the pharmaceutical industry to invest heavily on the research and development of various life-saving drugs. This further fuels the growth of the drug discovery outsourcing market across the globe. The geriatric people are the major consumers of drugs and various therapies as they are susceptible to diseases and spend more on the healthcare. Therefore, the growing global geriatric population will positively impact the market growth. As per the United Nations, the geriatric population is estimated to reach at 2 billion by 2050. Furthermore, the active participation of the government authorities such as FDA and EMA on the research results and clinical trials of various new drugs and diagnostic tests is encouraging the drug discovery activities in the market.
| Report Coverage | Details |
| Market Size | US$ 6.55 Billion by 2030 |
| Growth Rate | CAGR of 6.8% from 2022 to 2030 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segments Covered | Workflow, Therapeutic Area, Drug Type, Region |
| Companies Mentioned | Albany Molecular Research Inc., EVOTEC, Laboratory Corporation of America Holdings, GenScript, Pharmaceutical Product Development, LLC., Charles River, WuXiAppTec, Merck & Co., Inc., Thermo Fisher Scientific Inc., Dalton Pharma Services, Oncodesign, Jubilant Biosys, DiscoverX Corporation, and QIAGEN |
The lead identification & candidate optimization segment accounted for a market share of around 32% and dominated the global drug discovery outsourcing market in 2020. The increased efficiencies and the economies of scale associated with this segment has resulted in its significance. It is considered to be the most important workflow during the initial stage of the drug discovery process. The rising adoption of the advanced silico technology and computer aided drug discovery systems has supported the market growth significantly. Furthermore, the growing demand for the skilled resources having a knowledge of computer software, analytical chemistry, and metabolism is supplementing the growth of this segment.
The respiratory segment hit the market and garnered revenue share 13.80% in 2020. The rising investments towards the development of the drugs that can cure respiratory diseases owing to the rising pollution levels and growing burden of respiratory diseases across the globe is expected to boost the market growth. According to the World Health Organization, around 65 million people across the globe suffer from COPD and around 3 million dies due to it every year. Around 334 million people are suffering from asthma and around 14% of the global children are affected from it.
Based on the therapeutic area, the oncology segment is estimated to be the most opportunistic segment during the forecast period. The huge demand for the cancer curing drugs is boosting the growth of the oncology drug discovery outsourcing market. The increased prevalence of various types of cancer among the population has encouraged the investments towards the drug discovery activities pertaining to the cancer treatment. 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 includes breast, lungs, colorectal, and prostate cancer.
The small molecules segmented garner revenue share of over 76% in 2020. The small molecules drugs are characterized with certain features such as easy to characterize, simple, and well-defined. The small molecules drugs are considered more effective in treating diseases. The small molecules can easily treat the infected cells, provide effective treatment, and results in low or no side-effects. Therefore, these features of the small molecules has attracted huge investments and resulted in the growth of this segment.
On the other hand, the biologics is estimated to be the most opportunistic segment during the forecast period. The recent developments of the various life-saving drugs in the biopharmaceuticals has surged the demand for the biologic drugs across the globe. Furthermore, the rising awareness regarding the availability of biologics to cure diseases like cancer, diabetes, and CVDs is expected to drive the growth of this segment.
North America dominated the global drug discovery outsourcing market with 35% revenue share in 2020. The presence of numerous top contract research organizations and contract manufacturing organizations in the region along with the presence of various top pharmaceutical industry players collectively contributes towards the growth of the drug discovery outsourcing market. Moreover, the huge demand for the new and innovative drugs in this region owing to the increased prevalence of various chronic diseases has favored the market growth in the past years. US holds the patent and intellectual property rights for most of the newly developed drugs.
Asia Pacific is expected to be the fastest-growing market during the forecast period. The rapidly growing geriatric population and rising prevalence of various diseases is supplementing the demand for the new drugs. As per the United Nations, around 80% of the global geriatric population is expected to live in the low and middle income countries. Furthermore, the presence of several top research organizations is supplementing the growth of the drug discovery outsourcing market in the region. The availability of cheap factors of production in this region is attracting foreign investments towards setting up drug manufacturing facilities in Asia Pacific.
The drug discovery outsourcing market is moderately fragmented with the presence of several local 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.
Segments Covered in the Report
By Workflow
By Therapeutic Area
By Drug Type
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Drug Discovery Outsourcing Market
5.1. COVID-19 Landscape: Drug Discovery Outsourcing Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Drug Discovery Outsourcing Market, By Workflow
8.1. Drug Discovery Outsourcing Market, by Workflow Type, 2022-2030
8.1.1. Target Identification & Screening
8.1.1.1. Market Revenue and Forecast (2019-2030)
8.1.2. Lead Identification & Candidate Optimization
8.1.2.1. Market Revenue and Forecast (2019-2030)
8.1.3. Target Validation & Functional Informatics
8.1.3.1. Market Revenue and Forecast (2019-2030)
8.1.4. Preclinical Development
8.1.4.1. Market Revenue and Forecast (2019-2030)
8.1.5. Others
8.1.5.1. Market Revenue and Forecast (2019-2030)
Chapter 9. Global Drug Discovery Outsourcing Market, By Therapeutic Area
9.1. Drug Discovery Outsourcing Market, by Therapeutic Area, 2022-2030
9.1.1. Oncology
9.1.1.1. Market Revenue and Forecast (2019-2030)
9.1.2. Cardiovascular
9.1.2.1. Market Revenue and Forecast (2019-2030)
9.1.3. Gastrointestinal
9.1.3.1. Market Revenue and Forecast (2019-2030)
9.1.4. Neurology
9.1.4.1. Market Revenue and Forecast (2019-2030)
9.1.5. Respiratory
9.1.5.1. Market Revenue and Forecast (2019-2030)
9.1.6. Others
9.1.6.1. Market Revenue and Forecast (2019-2030)
Chapter 10. Global Drug Discovery Outsourcing Market, By Drug Type
10.1. Drug Discovery Outsourcing Market, by Drug Type, 2022-2030
10.1.1. Biologics
10.1.1.1. Market Revenue and Forecast (2019-2030)
10.1.2. Small Molecules
10.1.2.1. Market Revenue and Forecast (2019-2030)
Chapter 11. Global Drug Discovery Outsourcing Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.1.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.1.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.1.4.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.1.4.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.1.5.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.1.5.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.2.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.2.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.2.4.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.2.4.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.2.5.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.2.5.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.2.6.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.2.6.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.2.7.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.2.7.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.3.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.3.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.3.4.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.3.4.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.3.5.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.3.5.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.3.6.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.3.6.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.3.7.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.3.7.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.4.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.4.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.4.4.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.4.4.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.4.5.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.4.5.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.4.6.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.4.6.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.4.7.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.4.7.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.5.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.5.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.5.4.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.5.4.3. Market Revenue and Forecast, by Drug Type (2019-2030)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Workflow (2019-2030)
11.5.5.2. Market Revenue and Forecast, by Therapeutic Area (2019-2030)
11.5.5.3. Market Revenue and Forecast, by Drug Type (2019-2030)
Chapter 12. Company Profiles
12.1. Albany Molecular Research Inc.
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. EVOTEC
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Laboratory Corporation of America Holdings
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. GenScript
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Pharmaceutical Product Development, LLC.
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Charles River
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. WuXiAppTec
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Merck & Co., Inc.
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Thermo Fisher Scientific Inc.
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Dalton Pharma Services
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
12.11. Oncodesign
12.11.1. Company Overview
12.11.2. Product Offerings
12.11.3. Financial Performance
12.11.4. Recent Initiatives
12.12. Jubilant Biosys
12.12.1. Company Overview
12.12.2. Product Offerings
12.12.3. Financial Performance
12.12.4. Recent Initiatives
12.13. DiscoverX Corporation
12.13.1. Company Overview
12.13.2. Product Offerings
12.13.3. Financial Performance
12.13.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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