The drug discovery services market is expected to grow from US$ 16.00 billion in 2021 to US$ 32.56 billion by 2028; it is expected to grow at a CAGR of 14.5% from 2022 to 2028.
The overall drug discovery process entails discovering and formulating or designing medicinal drugs for the pharmaceutical, biotechnology, and biopharmaceutical industries. The process involves the screening, identification, characterization, and synthesis of active pharmaceutical ingredients (API) and their assays for therapeutic efficacy. After identifying the molecule for development, further experiments are conducted to gather additional information about the drugs.
MARKET DYNAMICS
The drug discovery services market growth is majorly attributed to the rising prevalence of chronic and acute diseases and the proliferation of the pharmaceutical and biotechnology industries. The market is also expected to grab significant opportunities from developing regions during the forecast period. However, the high cost of a drug development process and the dearth of skilled professionals hamper the market’s growth.
MARKET SCOPE
The “Global Drug Discovery Services Market Analysis to 2028” report aims to provide an overview of the market with detailed segmentation based on type, drug type, and therapeutic area. It also provides key market statistics based on the performances of the leading players. Moreover, the report explains key trends and opportunities prevailing in the market.
Strategic Insights
MARKET SEGMENTATION
The drug discovery services market is segmented on the basis of type, drug type, and therapeutic area. Based on type, the market is segmented into biology services, medicinal chemistry, drug metabolism, and pharmacokinetics. Based on drug type, the market is bifurcated into biologics and small molecules. Based on therapeutic area, the drug discovery services market Is segmented into cardiovascular diseases, oncology, neurology, diabetes, respiratory diseases, and others.
REGIONAL FRAMEWORK
The drug discovery services market is segmented into five major regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The report encompasses the market analysis and forecast of 18 countries, along with trends and opportunities prevailing in all major regions.
Among the key regions, North America dominated the drug discovery services market with ~42% share in 2021. The market growth in this region is majorly attributed to the strategic initiatives by prominent players functional in the region, coupled with increasing R&D expenditure and government funding, continuously proliferating pharmaceutical and life sciences industries. In January 2020, Bayer entered into a partnership arrangement with Exscientia, an artificial intelligence-based drug discovery service provider, to develop and optimize innovative lead structures for prospective therapeutic candidates discovered for the treatment of cardiovascular and oncological disorders. Further, the high incidence of chronic diseases such as cancers is also driving the market growth in the region. The following figure shows the revenue growth trend in the global drug discovery services market:
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Source: The Insight Partners Analysis
The report analyzes factors affecting the drug discovery services market, including drivers, restraints, opportunities, and future trends. It also provides an exhaustive Porter's five forces analysis of the market.
IMPACT OF COVID-19 PANDEMIC
The COVID-19 pandemic greatly boosted the pharmaceutical industry, evident from the number of medications authorized by the US FDA in 2020 and 2021. In 2020, the regulatory body provided 53 approvals, including 40 novel chemical entities and 13 biologics. During 2018–2020, the FDA approved 160 medications, compared to only 21 in 2010. Such a rise in the number of authorized drugs globally can be linked to the elevated biopharmaceutical spending on the development of biologics and biosimilars. Biologics, such as proteins, peptides, and monoclonal antibodies, account for more than half of the therapeutic candidates in the discovery stage. Further, in 2022, biologics are predicted to contribute to ~50% of the revenue earned by the top 100 pharmaceutical product sales. Thus, the COVID-19 pandemic has positively impacted the drug discovery services market.
MARKET PLAYERS
Various drug discovery services market companies focus on organic growth strategies, such as product launches, product approvals, patents, and events. On the other hand, inorganic growth strategies such as acquisitions, partnerships, and collaborations have also helped the market players through business and customer base expansion. The market players operating in the drug discovery services market are anticipated to experience lucrative growth opportunities in the coming years with the rising demand for drug discovery services.
The report includes key drug discovery services market players’ profiles, SWOT analysis, and market strategies. It also specifies these players' components and services, financial information for the last three years, and key development in the past five years. The list of major companies engaged in the drug discovery services market is mentioned below:
-Covance Inc.
-Evotec
-Merck KGaA
-Thermo Fisher Scientific Inc
-GenScript
-Domainex
-WuXi AppTec
-Selcia Limited
-Charles River
-SRI International
The Insight Partners’ dedicated research and analysis team consists of experienced professionals having advanced statistical expertise. The team offers various customization options in the current study.
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