[198 Pages Report] The Drug Discovery Market size was estimated at USD 62.38 billion in 2023 and expected to reach USD 71.12 billion in 2024, at a CAGR 14.10% to reach USD 157.13 billion by 2030.
Drug discovery is a multifaceted and intricate process that encompasses the identification of novel compounds, the elucidation of their biological targets, and the determination of their therapeutic potential for the treatment of diseases. This process is fundamental to developing new medicines and involves a collaborative effort among scientists from various disciplines, including biology, chemistry, pharmacology, and medicine. Rising research and development (R&D) expenditure in the pharmaceutical and biopharmaceutical industry and favorable government support for developing drug discovery platforms are propelling the market growth. In addition, the increasing need to manage large amounts of data generated during preclinical studies is fueling market growth. The necessity of extensive capital for drug discovery and development and stringent norms for animal usage in drug discovery are hampering market growth. Technological advancements and innovations in drug discovery and the growing use of AI cloud to create a streamlined and automated approach to drug discovery are expected to be poised for significant growth in drug discovery.
Drug Type: Growing need for small molecule drugs with branded and generic products
Small molecule drugs play a vital role in the industry and are known for their low molecular weight and ease of cell membrane penetration. They are synthesized chemically and are prevalent in oral medications, addressing a broad spectrum of therapeutic areas such as cardiovascular and infectious diseases and cancer. Biologics are complex proteins produced from living organisms administered through injection or infusion. They offer targeted treatment, potentially enhancing effectiveness and reducing side effects. This category includes monoclonal antibodies and gene therapies, crucial for chronic and autoimmune diseases and cancer. Biosimilars present a cost-effective alternative to expensive biologics, increasing accessibility to treatments. However, developing biosimilars is challenging due to the complexity of the molecules and strict regulatory requirements. Advanced therapy medicinal products (ATMPs) represent the frontier of drug discovery, encompassing gene and cell therapies and tissue-engineered products. They promise to transform treatment for several intractable diseases through highly personalized and potentially curative approaches. Orphan drugs are medications developed to treat rare diseases or conditions. These drugs serve a small patient population; however, they are expensive due to the scarcity of alternative treatments. The segment is expanding as new rare diseases are identified and addressed through personalized medicine.
Technology: Growing utilization of bioanalytical instruments and high throughput screening for initial drug discovery phases
Bioanalytical instruments are essential for researchers to analyze biological materials and include various equipment such as mass spectrometers, liquid chromatography systems, and capillary electrophoresis systems. The need for these instruments arises from the necessity to comprehensively understand biological processes and potential drug effects. Biochips, or microarrays, are miniature laboratories serving hundreds or thousands of simultaneous biochemical responses. They enable high-throughput analysis of biological samples for gene expression, genotyping, and proteomics. Bioinformatics utilizes computational tools and techniques for the analysis of biological data. Furthermore, the growing volume of biological data generated by bioanalytical instruments and biochips increases the need for bioinformatics solutions to store, manage, and interpret this data. Combinatorial chemistry involves the rapid synthesis of various and structurally related molecules. It is used for synthesizing new drugs and optimizing the structures of existing ones. High throughput screening (HTS) is a method for scientific experimentation that is particularly relevant in the drug discovery process. It involves testing large numbers of compounds for activity against biological targets. Preference for HTS derives from its ability to rapidly identify active compounds, antibodies, or genes that modulate a particular biomolecular pathway. Nanotechnology in drug discovery involves the application of nanoscale materials, and the need for nanotechnology arises from its potential to create highly targeted drug delivery methods that can lower side effects and enhance therapeutic efficacy. Pharmacogenomics coheres to pharmacology and genomics to design adequate, safe medications and doses tailored to the genetic needs of an individual.
Therapeutic Area: Increasing need of drug discovery for the development of oncology drugs
Oncology represents one of the largest and fastest-growing areas in drug discovery. Oncology attracts significant investment from pharmaceutical companies, with a high unmet need for effective treatments and an increasing incidence of cancer worldwide. Neurology encompasses a range of neurological disorders, including Parkinson’s disease,, Alzheimer’s disease, epilepsy, and multiple sclerosis. Cardiovascular conditions remain a leading cause of casualties globally, driving the need for new and improved treatments. Cardiovascular diseases include various conditions, including hypertension, hyperlipidemia, coronary artery disease, and heart failure. Diseases of the digestive system include conditions such as gastroesophageal reflux disease (GERD), inflammatory bowel disease (IBD), and liver disorders. Drug discovery efforts aim to develop medications that modulate gastrointestinal function, reduce inflammation, and manage symptoms associated with digestive system disorders. Infectious & immune system diseases cover infectious diseases caused by bacteria, viruses, fungi, parasites, and immune system disorders such as autoimmune diseases. Antimicrobial agents, antivirals, vaccines, and immunomodulatory drugs are targets for drug discovery in this area.
End User: Growing drug discovery use across pharmaceutical and biotechnology companies for developing new and improved drugs
Pharmaceutical and biotechnology companies primarily focus on developing, producing, and marketing drugs and therapies. They are investing heavily in research and development (R&D) to discover new compounds and to improve existing drugs. Academic and research institutes are vital to drug discovery and are at the forefront of basic research and innovation. Academic and research institutes include universities, non-profit organizations, and government-funded research labs. These institutions are typically concentrated on comprehending disease mechanisms and determining novel targets for therapeutic intervention. Contract research organizations (CROs) provide outsourced research services to pharmaceutical and biotech companies. Government agencies and regulatory bodies are key end-users in the drug discovery market, with a unique role in overseeing the development and approval of new drugs. The drug discovery market comprises diverse end-user segments with distinct needs and drivers. Pharmaceutical and biotechnology companies are the primary market, driven by the need for new and improved drugs. Academic and research institutes contribute foundational research and innovation. CROs offer specialized services that enable scalability and cost management. Lastly, government and regulatory bodies ensure the public safety and efficacy of drugs.
Regional Insights
Americas represents a robust drug discovery infrastructure with significant investments in R&D, a strong presence of pharmaceutical giants, and a conducive regulatory environment. Increasing investment in healthcare infrastructure and growing need for medical innovation to address local health concerns are accelerating the need for drug discovery solutions in the Americas. In Europe, the need for drug discovery is fueled by advanced healthcare systems, substantial government and private funding, and a strong focus on innovation and collaboration across countries. The Middle East and Africa exhibit growing need, with increased healthcare spending and initiatives to foster local pharmaceutical industries. The Asia-Pacific region is rapidly emerging as a significant player in the drug discovery market due to its large population, increasing economic prosperity, improvements in healthcare infrastructure, rising healthcare awareness, and government initiatives to support the biotechnology and pharmaceutical sectors.
FPNV Positioning Matrix
The FPNV Positioning Matrix is pivotal in evaluating the Drug Discovery Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Drug Discovery Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Key Company Profiles
The report delves into recent significant developments in the Drug Discovery Market, highlighting leading vendors and their innovative profiles. These include Abbott Laboratories, Agilent Technologies, Inc., Alacrita Holdings Limited, Astex Pharmaceuticals by Otsuka Pharmaceutical Co., Ltd., Astrazeneca PLC, Atomwise, Inc., BenevolentAI, Bio-Rad Laboratories, Inc., BioSymetrics Inc., Charles River Laboratories International, Inc., Chembridge Corporation, Cloud Pharmaceuticals, Inc., Dalriada Drug Discovery, Deciphera Pharmaceuticals, Inc., Evotec SE, F. Hoffmann-La Roche Ltd., GENFIT SA, Incyte Corporation, International Business Machines Corporation, Intra-Cellular Therapies Inc., Merck KGaA, Microsoft Corporation, NVIDIA Corporation, PerkinElmer, Inc., Pharmacelera SL, Piramal Group, Recursion Pharmaceuticals, Inc., Schr?dinger, Inc., Shimadzu Corporation, and Thermo Fisher Scientific Inc..
Market Segmentation & Coverage
This research report categorizes the Drug Discovery Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Drug Type
- Biologic Drugs
- Small Molecule Drugs
- Technology
- Bioanalytical Instruments
- Biochips
- Bioinformatics
- Combinatorial Chemistry
- High Throughput Screening
- Nanotechnology
- Pharmacogenomics
- Therapeutic Area
- Cardiovascular Disease
- Digestive System Diseases
- Infectious & Immune system Diseases
- Neurology
- Oncology
- End User
- Academics & Research Institutes
- Contract Research Organizations
- Pharmaceutical Companies
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Georgia
- Illinois
- Indiana
- Michigan
- New York
- North Carolina
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
The report offers valuable insights on the following aspects:
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
The report addresses key questions such as:
- What is the market size and forecast of the Drug Discovery Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Drug Discovery Market?
- What are the technology trends and regulatory frameworks in the Drug Discovery Market?
- What is the market share of the leading vendors in the Drug Discovery Market?
- Which modes and strategic moves are suitable for entering the Drug Discovery Market?
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