DUBLIN–(BUSINESS WIRE)–The “Drug Discovery Services Market by Process (Target Selection, Validation, Lead Optimization), Type (Medicinal Chemistry, DMPK), Drug Type (Biologics, Small Molecules), Therapeutic (Oncology, Neurology), Company (Tier 1, 2, 3) – Global Forecast to 2025” report has been added to ResearchAndMarkets.com’s offering.
The drug discovery services market is projected to reach USD 21.4 billion by 2025 from USD 11.1 billion in 2020, at a CAGR of 14.0% during the forecast period.
Increasing R&D spending and initiatives for rare disease and orphan drugs research are set to drive the drug discovery services market.
The major factors driving the growth of this market are the growing R&D expenditure in the pharmaceutical & biopharmaceutical industry, increasing demand for outsourcing analytical testing and clinical trial services, initiatives for research on rare diseases and orphan drugs, and focus on drug discovery. However, the high cost of drug discovery and development and stringent regulations governing drug discovery and animal usage in testing may restrict the growth of this market to a certain extent.
By process, the Hit-to-Lead process accounted for the fastest-growing segment of the drug discovery service market.
The Hit-to-Lead identification process is anticipated to be the fastest-growing segment due to the high outsourcing of these services to CROs by the pharmaceutical companies and the emerging advanced technologies for high-throughput screening (HTS) and H2L as well as reductions in development time.
By type, the Medicinal Chemistry segment accounted for the largest share of the drug discovery service market.
Based on type, the drug discovery services market is segmented into medicinal chemistry services, biology services, and drug metabolism and pharmacokinetics (DMPK). (Read more…) The medicinal chemistry services segment is estimated to account for the largest share of the drug discovery services market due to the widespread application of medicinal chemistry in various phases of preclinical drug discovery to deliver robust candidates.
Oncology segment expected to grow at the fastest growth rate during the forecast period.
Based on the therapeutic area, the drug discovery services market is segmented into oncology, cardiovascular diseases, neurology, infectious and immune system diseases, digestive system diseases, and other therapeutic areas. Of all these therapeutic segments, oncology will grow at the fastest CAGR in the drug discovery services market during the forecast period. The high growth of the oncology segment can be attributed to factors such as the increasing number of patients who have cancer, the subsequent increase in the demand for cancer therapies and the growing R&D expenditure by pharmaceutical companies in this therapeutic area.
Asia Pacific: The fastest-growing region in the drug discovery services market.
The Asia Pacific market is projected to grow at the highest CAGR during the forecast period, Several global pharmaceutical firms have entered the APAC market to tap the significant growth opportunities in emerging Asian countries and lower their production costs by shifting their manufacturing and drug discovery R&D operations to the region. As a result, the Asia Pacific region has become a major destination for drug discovery and development. A large number of qualified researchers and low-cost operations in APAC countries, such as India and China, are some of the major factors supporting this trend.
North America: The largest share of the drug discovery services market.
North America, which includes the US and Canada, accounted for the largest share of the drug discovery services market. The large share of this region can primarily be attributed to the presence of well-established CROs; rising R&D expenditure by pharmaceutical & biopharmaceutical companies and the availability of latest techniques, instruments, and facilities for drug discovery research are driving the growth of this region.
Market Dynamics
Drivers
- Growing R&D Expenditure in the Pharmaceutical & Biopharmaceutical Industry
- Increasing Demand for Outsourcing Analytical Testing and Clinical Trial Services
- Initiatives for Research on Rare Diseases and Orphan Drugs
- Focus on Drug Discovery
Restraints
- High Cost of Drug Discovery and Development
- Stringent Regulations Governing Drug Discovery and Animal Usage
Opportunities
- Growth in the Biologics Market
- Patent Expiries
- Emerging Markets
Trends
- Growing Adoption of Artificial Intelligence-Based Tools for Drug Discovery
Company Profiles
- Laboratory Corporation of America Holdings
- Eurofins Scientific SE
- Charles River Laboratories International
- Evotec SE
- Thermo Fisher Scientific
- Syngene International Limited
- Jubilant Lifesciences
- Genscript Biotech Corporation
- Piramal Enterprises Limited
- Wuxi Apptec
- Selvita (Formerly Selvita CRO S.A.)
- Frontage Holdings
- Pharmaceutical Product Development, Llc
- Shanghai Medicilon, Inc.
- Albany Molecular Research, Inc.
- Aurigene Discovery Technologies (A Subsidiary of Dr. Reddy’s Laboratories)
- Domainex Ltd.
- Chempartner Co., Ltd.
- TCG Lifesciences Pvt. Limited
- Viva Biotech (Shanghai) Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/dk1jim
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