Drug Discovery Services Market

The market for drug discovery services is growing as a result of rising R&D expenditure in the pharmaceutical and biopharmaceutical sectors, rising outsourcing demand for analytical testing services, initiatives to fund orphan drug and rare disease research, and the high cost of in-house drug development.

Future market growth is anticipated to be impacted by a rising emphasis on drug discovery, a developing pharmaceutical industry, greater initiatives for research on rare illnesses and orphan drugs, rising R&D investment in the pharmaceutical and biopharmaceutical sectors, and more.

According to Fact.MR, the global market for drug discovery services is expected to expand fast. The global market for drug discovery services is expected to generate US$ 50 billion in sales by the end of 2032. The advancement of drug discovery technology is resulting in better drug discovery services.

The market's prospective trends in drug discovery technology include regulatory initiatives toward Pharmacogenomic technology, combinatorial chemistry technology, and other advancements, to name a few. Label-free approaches are now being used more often. Increased R&D spending and efforts, as well as a change in outsourcing practises by pharmaceutical corporations, are some reasons impacting the expansion of drug discovery services.

The development of drugs using more advanced technologies is another important factor in the market's expansion. However, stringent regulations on drug discovery services in some countries, high expenses for drug research and development, and the use of animals in testing are impeding industry expansion.

The majority of pharmaceutical, biopharmaceutical, and medical device companies invest heavily in the creation of novel drugs and technology. R&D expenditures in the pharmaceutical industry are substantial. Pharmaceutical companies invest in R&D to bring superior, cutting-edge medicines to market.

The major pharmaceutical firms are boosting their R&D output through considerable R&D investments, according to trends, in order to get long-term benefits and work together on R&D initiatives. According to the EvaluatePharma research, global pharmaceutical R&D investment was expected to be US$ 137 billion in 2012 and is projected to rise to US$ 198 billion by 2020. According to Fact.MR forecasts, the COVID-19 pandemic will lower the rate of global pharmaceutical R&D growth to 0.1 percent in 2020. A slower rate than the historical CAGR of 4.7 percent between 2012 and 2020, the research projects that R&D investment would rise gradually between 2020 and 2026, increasing at a CAGR of 4.2 percent to reach USD 254.0 billion.

The most common service category in the drug discovery services market is anticipated to be medicinal chemistry. An estimated $6 billion in income is anticipated from the pharmaceutical chemistry industry.

Pharmaceutical businesses are increasingly outsourcing, and this is becoming a motivating factor. The number of Asian drug discovery service providers in North America and Europe is growing.

When compared to biologics, small molecules are predicted to provide the largest percentage of income. By the end of 2032, small molecules are anticipated to earn more than US$ 10.8 billion in revenue.

Because they are straightforward, simple to describe, and well-defined, small molecules are becoming more and more popular. Small compounds have the ability to easily enter cells and eradicate cancer cells.

During the projection period, oncology is anticipated to be the most important therapeutic field. By the end of 2032, oncology is anticipated to earn more than US$ 6.9 billion in revenue.

There is a critical demand for cancer medications as a result of the rising number of cancer patients. Oncology is therefore anticipated to advance greatly during the coming years.

The market for drug discovery services is anticipated to grow from US$ 19 billion in 2022 to US$ 50 billion by 2032, at a CAGR of 10.1% as per Fact.MR’s analysis.

The market is anticipated to rise by around 12 percent year over year in 2022. The market was worth US$17 billion as of 2021.