Abstract
Summary
The global Drug discovery services market is projected to reach USD 41.3 billion by 2028 from USD 20.6 billion in 2023, at a CAGR of 14.9% during the forecast period of 2023 to 2028. Growing R&D expenditure in pharma-biotech sector, increasing drug R&D pipeline and rising reliance on outsourcing, initiatives for research on rare diseases and orphan drugs, and high cost of in-house drug development are expected to provide growth to the market.
Oncology is expected to account for the largest share for therapeutic area segment
Based on therapeutic are the oncology segment has the largest market share. The list of drugs in development for oncology has increased over the years due to the rising number of clinical trials and the growing R&D expenditure by pharmaceutical companies on oncology-based drugs. The incidence of cancer has increased rapidly across the globe. According to GLOBOCAN, the number of new cases is projected to reach 28.9 million by 2040 from 19.3 million in 2020, at a CAGR of ~2% from 2020 to 2040. Owing to this, companies are increasingly focusing on developing novel medicines for cancer; this is expected to drive the growth of this therapeutic segment.
The Hit-to-lead identification segment accounted for the largest share of the process segment in the drug discovery services market
Based on process, the drug discovery services market is broadly classified into target selection, target validation, hit-to-lead identification, lead optimization, and candidate validation. Hit-to-lead identification segment accounted for the largest share of the drug discovery services market in 2022. Due to its crucial role in the drug discovery process, the hit-to-lead identification is the maximum revenue generating process, and currently many drug discovery companies are specifically offering these services to pharmaceutical companies.
Europe is the second largest region in the drug discovery services market
The drug discovery services market is segmented into North America, Europe, Asia Pacific, Latin America (LATAM) and Middle East and Africa (MEA). After North America, Europe is the second-largest regional pharmaceutical market globally. The research-based pharmaceutical industry can play a critical role in ensuring future competitiveness in an advancing global economy (Source: EFPIA). The development of new chemical and biological molecules, alongside increased R&D activities, will help drive the growth of the drug discovery services market in Europe.
The primary interviews conducted for this report can be categorized as follows:
• By Respondent: Supply Side- 70% and Demand Side 30%
• By Designation: Managers- 45%, CXOs and Director level - 30%, and Executives - 25%
• By Region: North America -20%, Europe -10%, Asia-Pacific -55%, Latin America -10%, and Middle East and Africa – 5%
Prominent Players of the drug discovery services market are Laboratory Corporation of America Holdings (US), Thermo Fisher Scientific Inc. (US), Charles River Laboratories International, Inc. (US), WuXi AppTec (China), Eurofins Scientific SE (Germany), Evotec SE (Germany), Syngene International Limited (India), Curia Global Inc. (US), Dr. Reddy Laboratories Ltd. (Aurigene Discovery Technologies) (India), Pharmaron Beijing Co., Ltd. (China), Piramal Enterprises Limited (India)
Research Coverage:
This report provides a detailed picture of the drug discovery market. It aims at estimating the size and future growth potential of the market across different segments such as the product, application, end user and region. The report also includes an in-depth competitive analysis of the key market players along with their company profiles recent developments and key market strategies.
Key Benefits of Buying the Report:
The report will help market leaders/new entrants by providing them with the closest approximations of the revenue numbers for the overall drug discovery market and its subsegments. It will also help stakeholders better understand the competitive landscape and gain more insights to better position their business and make suitable go-to-market strategies. This report will enable stakeholders to understand the market's pulse and provide them with information on the key market drivers, restraints, challenges, trends, and opportunities.
The report provides insights on the following pointers:
• Analysis of key drivers (Growing R&D expenditure in pharma-biotech sector, Increasing drug R&D pipeline and rising reliance on outsourcing, Initiatives for research on rare diseases and orphan drugs, and High cost of in-house drug development), restraints (Stringent regulations governing drug discovery and animal usage), opportunities (Technological advancements and new drug discovery techniques, Rising demand for specialized testing services among end users, Patent expiries of key biologics, and High growth prospects in emerging markets), and challenges (Shortage of skilled personnel) influencing the growth of drug discovery services market.
• Service Development/Innovation: Detailed insights on newly launched services, and technological assessment of the drug discovery market.
• Market Development: Comprehensive information about lucrative markets – the report analyses the drug discovery services market across varied regions.
• Market Diversification: Exhaustive information about new services, untapped geographies, recent developments, and investments in the drug discovery services market.
• Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Laboratory Corporation of America Holdings (US), Thermo Fisher Scientific Inc. (US), Charles River Laboratories International, Inc. (US), WuXi AppTec (China) among others in the drug discovery services market. The report also helps stakeholders understand the pulse of drug discovery services market and provides them information on key market drivers, restraints, challenges, and opportunities.
Table of Contents
1 INTRODUCTION 43
1.1 STUDY OBJECTIVES 43
1.2 MARKET DEFINITION 43
1.2.1 INCLUSIONS AND EXCLUSIONS 43
1.3 MARKET SCOPE 44
1.3.1 MARKETS COVERED 44
1.4 YEARS CONSIDERED 44
1.5 CURRENCY CONSIDERED 45
1.6 LIMITATIONS 45
1.7 STAKEHOLDERS 45
1.8 SUMMARY OF CHANGES 46
1.8.1 RECESSION IMPACT 46
2 RESEARCH METHODOLOGY 47
2.1 RESEARCH DATA 47
2.1.1 SECONDARY DATA 48
2.1.2 PRIMARY DATA 49
2.2 MARKET ESTIMATION METHODOLOGY 50
2.2.1 INSIGHTS FROM PRIMARY EXPERTS 53
2.3 MARKET GROWTH RATE PROJECTIONS 54
2.4 MARKET BREAKDOWN AND DATA TRIANGULATION 56
2.5 RESEARCH ASSUMPTIONS 57
2.6 RISK ANALYSIS 57
2.7 RECESSION IMPACT ANALYSIS 57
3 EXECUTIVE SUMMARY 59
4 PREMIUM INSIGHTS 63
4.1 DRUG DISCOVERY SERVICES MARKET OVERVIEW 63
4.2 NORTH AMERICA: DRUG DISCOVERY SERVICES MARKET, BY DRUG TYPE AND COUNTRY (2022) 64
4.3 DRUG DISCOVERY SERVICES MARKET SHARE, BY TYPE (2022) 64
4.4 DRUG DISCOVERY SERVICES MARKET: GEOGRAPHIC GROWTH OPPORTUNITIES 65
5 MARKET OVERVIEW 66
5.1 INTRODUCTION 66
5.2 MARKET DYNAMICS 66
5.2.1 DRIVERS 67
- 5.2.1.1 Growing R&D expenditure in pharma-biotech sector 67
- 5.2.1.2 Increasing drug R&D pipeline and rising reliance on outsourcing 68
- 5.2.1.3 Initiatives for research on rare diseases and orphan drugs 69
- 5.2.1.4 High cost of in-house drug development 70
5.2.2 RESTRAINTS 71
- 5.2.2.1 Stringent regulations governing drug discovery and animal usage 71
5.2.3 OPPORTUNITIES 72
- 5.2.3.1 Technological advancements and new drug discovery techniques 72
- 5.2.3.2 Rising demand for specialized testing services among end users 72
- 5.2.3.3 Patent expiries of key biologics 73
- 5.2.3.4 High growth prospects in emerging markets 74
5.2.4 CHALLENGES 74
- 5.2.4.1 Shortage of skilled personnel 74
5.2.5 MARKET TRENDS 75
- 5.2.5.1 Adoption of AI in drug discovery 75
- 5.2.5.2 Increased outsourcing to emerging Asian economies 76
- 5.2.5.3 CRO industry consolidation 77
- 5.2.5.4 Integrated end-to-end R&D service offerings 78
5.3 RANGES/SCENARIOS 79
5.4 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESSES 80
5.5 VALUE CHAIN ANALYSIS 81
5.6 ECOSYSTEM ANALYSIS 82
5.7 TECHNOLOGY ANALYSIS 84
5.8 PRICING ANALYSIS 86
5.8.1 AVERAGE SELLING PRICE TREND ANALYSIS 86
5.9 REGULATORY ANALYSIS 87
5.9.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS 87
5.10 PORTER’S FIVE FORCES ANALYSIS 89
5.10.1 THREAT OF NEW ENTRANTS 89
5.10.2 THREAT OF SUBSTITUTES 90
5.10.3 BARGAINING POWER OF BUYERS 90
5.10.4 BARGAINING POWER OF SUPPLIERS 90
5.10.5 INTENSITY OF COMPETITIVE RIVALRY 90
5.11 KEY CONFERENCES & EVENTS, 2022-2023 91
5.12 KEY STAKEHOLDERS & BUYING CRITERIA 92
5.12.1 KEY STAKEHOLDERS IN BUYING PROCESS 92
5.12.2 BUYING CRITERIA FOR DRUG DISCOVERY SERVICES 92
6 DRUG DISCOVERY SERVICES MARKET, BY PROCESS 93
6.1 INTRODUCTION 94
6.2 TARGET SELECTION 95
6.2.1 DEVELOPMENT OF NEW TECHNOLOGIES TO SUPPORT MARKET GROWTH 95
6.3 TARGET VALIDATION 97
6.3.1 EMPHASIS ON TARGET VALIDATION TO AVOID LATE-STAGE FAILURE TO PROMOTE MARKET GROWTH 97
6.4 HIT-TO-LEAD IDENTIFICATION 100
6.4.1 HIT-TO-LEAD IDENTIFICATION TO HOLD LARGEST MARKET SHARE 100
6.5 LEAD OPTIMIZATION 103
6.5.1 NEED FOR TRANSPARENT PRESENTATION AND ANALYSIS TO BOOST FOCUS ON LEAD OPTIMIZATION 103
6.6 CANDIDATE VALIDATION 105
6.6.1 POSSIBILITY OF DRUG FAILURE DURING DEVELOPMENT TO DRIVE ADOPTION OF CANDIDATE VALIDATION SERVICES 105
7 DRUG DISCOVERY SERVICES MARKET, BY TYPE 109
7.1 INTRODUCTION 110
7.2 CHEMISTRY SERVICES 110
7.2.1 CHEMISTRY SERVICES TO DOMINATE SERVICE TYPE MARKET 110
7.3 BIOLOGY SERVICES 112
7.3.1 RESTRICTIONS ON ANIMAL USAGE TO SLOW MARKET GROWTH 112
8 DRUG DISCOVERY SERVICES MARKET, BY DRUG TYPE 116
8.1 INTRODUCTION 117
8.2 SMALL-MOLECULE DRUGS 117
8.2.1 SMALL-MOLECULE DRUGS TO HOLD LARGEST MARKET SHARE 117
8.3 BIOLOGICS 120
8.3.1 MARKET GROWTH OF BIOLOGICS & CHALLENGES ASSOCIATED WITH DISCOVERY TO DRIVE ADOPTION OF OUTSOURCING SERVICES 120
9 DRUG DISCOVERY SERVICES MARKET, BY THERAPEUTIC AREA 124
9.1 INTRODUCTION 125
9.2 ONCOLOGY 126
9.2.1 HIGH AND GROWING NUMBER OF RESEARCH STUDIES ON CANCER THERAPEUTICS TO SUPPORT MARKET GROWTH 126
9.3 INFECTIOUS DISEASES 129
9.3.1 RISING EPIDEMIC OUTBREAKS TO BOOST DRUG DISCOVERY ACTIVITY 129
9.4 CARDIOVASCULAR DISEASES 132
9.4.1 HIGH MORTALITY RATES PROMPTING PHARMACEUTICAL COMPANIES TO DEVELOP NEW TREATMENT OPTIONS 132
9.5 NEUROLOGICAL DISEASES 135
9.5.1 INCREASING INVESTMENTS IN R&D FOR NEUROLOGICAL DISORDERS TO DRIVE MARKET 135
9.6 IMMUNOLOGICAL DISORDERS 138
9.6.1 GROWING DRUG PIPELINE FOR IMMUNOLOGICAL DISORDERS TO FAVOR MARKET GROWTH 138
9.7 ENDOCRINE & METABOLIC DISORDERS 140
9.7.1 INCREASING DIABETIC POPULATION TO BOOST MARKET 140
9.8 RESPIRATORY DISORDERS 143
9.8.1 RISING BURDEN OF RESPIRATORY DISORDERS TO SUPPORT GROWTH 143
9.9 DIGESTIVE SYSTEM DISEASES 146
9.9.1 RISING DISEASE INCIDENCE DUE TO LIFESTYLE AND DIETARY CHANGES TO PROPEL MARKET 146
9.10 GENITOURINARY DISEASES & WOMEN’S HEALTH 148
9.10.1 RISING PREVALENCE OF CHRONIC DISORDERS IN WOMEN TO BOOST MARKET 148
9.11 OTHER THERAPEUTIC AREAS 151
10 DRUG DISCOVERY SERVICES MARKET, BY END USER 155
10.1 INTRODUCTION 156
10.2 PHARMACEUTICAL & BIOTECHNOLOGY COMPANIES 156
10.2.1 DRUG DISCOVERY SERVICES MARKET FOR PHARMACEUTICAL & BIOTECHNOLOGY COMPANIES, BY TYPE 159
10.2.2 TIER 1 COMPANIES 159
- 10.2.2.1 High investing capacity to drive growth 159
10.2.3 TIER 2 COMPANIES 162
- 10.2.3.1 Limited investment capacity to slow market growth 162
10.2.4 TIER 3 COMPANIES 164
- 10.2.4.1 Insufficient technical advantages to restrain growth 164
10.3 ACADEMIC INSTITUTES 166
10.3.1 COLLABORATION WITH MARKET PLAYERS TO PROVIDE MORE FLEXIBLE AND EFFICIENT PATHWAYS FOR CLINICAL DEVELOPMENT 166
10.4 OTHER END USERS 168
11 DRUG DISCOVERY SERVICES MARKET, BY REGION 172
11.1 INTRODUCTION 173
11.2 NORTH AMERICA 174
11.2.1 US 178
- 11.2.1.1 US to dominate North American market 178
11.2.2 CANADA 182
- 11.2.2.1 Growing preference to conduct clinical trials in Canada to support market growth 182
11.2.3 NORTH AMERICA: RECESSION IMPACT 185
11.3 EUROPE 186
11.3.1 GERMANY 189
- 11.3.1.1 Germany to hold largest share of European market 189
11.3.2 UK 192
- 11.3.2.1 Government-private sector collaborations to boost market 192
11.3.3 FRANCE 195
- 11.3.3.1 Growing number of oncology research projects to propel market 195
11.3.4 ITALY 198
- 11.3.4.1 High number of clinical trials and low drug approval time to augment market 198
11.3.5 SPAIN 201
- 11.3.5.1 Short study start-up times and rising R&D expenditure to augment market 201
11.3.6 REST OF EUROPE 204
11.3.7 EUROPE: RECESSION IMPACT 208
11.4 ASIA PACIFIC 209
11.4.1 CHINA 214
- 11.4.1.1 Robust pharma industry and presence of key CROs to account for China’s large market share 214
11.4.2 JAPAN 217
- 11.4.2.1 Government initiatives for drug innovation to support market growth 217
11.4.3 INDIA 220
- 11.4.3.1 Low-cost services, availability of skilled workforce, and strong government support to propel market 220
11.4.4 AUSTRALIA 223
- 11.4.4.1 Large number of clinical trials to make Australia a favorable location for drug discovery 223
11.4.5 SOUTH KOREA 226
- 11.4.5.1 Government initiatives and growing R&D activities for drug development to drive growth 226
11.4.6 REST OF ASIA PACIFIC 229
11.4.7 ASIA PACIFIC: RECESSION IMPACT 232
11.5 LATIN AMERICA 233
11.5.1 BRAZIL 236
- 11.5.1.1 Brazil to dominate Latin American market 236
11.5.2 REST OF LATIN AMERICA 239
11.5.3 LATIN AMERICA: RECESSION IMPACT 242
11.6 MIDDLE EAST & AFRICA 242
11.6.1 GROWING PHARMACEUTICAL INDUSTRY TO BOOST MARKET 242
11.6.2 MIDDLE EAST & AFRICA: RECESSION IMPACT 245
12 COMPETITIVE LANDSCAPE 246
12.1 OVERVIEW 246
12.2 KEY STRATEGIES ADOPTED BY MAJOR PLAYERS 247
12.3 MARKET SHARE ANALYSIS 248
12.4 REVENUE SHARE ANALYSIS OF THE TOP MARKET PLAYERS 249
12.5 COMPANY EVALUATION QUADRANT 250
12.5.1 STARS 250
12.5.2 EMERGING LEADERS 250
12.5.3 PERVASIVE PLAYERS 250
12.5.4 PARTICIPANTS 250
12.6 COMPANY EVALUATION QUADRANT: START-UPS/SMES 252
12.6.1 PROGRESSIVE COMPANIES 252
12.6.2 STARTING BLOCKS 252
12.6.3 RESPONSIVE COMPANIES 252
12.6.4 DYNAMIC COMPANIES 252
12.7 COMPANY FOOTPRINT ANALYSIS 254
12.7.1 COMPANY SERVICE FOOTPRINT 254
12.7.2 COMPANY GEOGRAPHIC FOOTPRINT 255
12.8 COMPETITIVE SCENARIO 256
13 COMPANY PROFILES 259
13.1 KEY PLAYERS 259
13.1.1 LABORATORY CORPORATION OF AMERICA HOLDINGS 259
13.1.2 CHARLES RIVER LABORATORIES INTERNATIONAL, INC. 263
13.1.3 WUXI APPTEC 270
13.1.4 THERMO FISHER SCIENTIFIC 275
13.1.5 PHARMARON BEIJING CO., LTD. 279
13.1.6 EVOTEC SE 285
13.1.7 EUROFINS SCIENTIFIC SE 293
13.1.8 PIRAMAL ENTERPRISES LIMITED 300
13.1.9 SYNGENE INTERNATIONAL LIMITED 303
13.1.10 CURIA GLOBAL INC. 307
13.1.11 GENSCRIPT BIOTECH CORPORATION 310
13.1.12 JUBILANT PHARMOVA LIMITED 313
13.1.13 FRONTAGE HOLDINGS CORPORATION 317
13.1.14 SHANGHAI MEDICILON INC. 321
13.1.15 AURIGENE DISCOVERY TECHNOLOGIES (DR. REDDY’S LABORATORIES) 323
13.1.16 SYGNATURE DISCOVERY LTD. 326
13.1.17 ONCODESIGN SERVICES 330
13.2 OTHER COMPANIES 333
13.2.1 SELVITA S.A. 333
13.2.2 VIVA BIOTECH HOLDINGS 334
13.2.3 TCG LIFESCIENCES PVT LTD. 335
13.2.4 SHANGHAI CHEMPARTNER CO., LTD. 335
13.2.5 DOMAINEX LTD. 336
13.2.6 NUVISAN PHARMA HOLDING GMBH 337
13.2.7 DALTON PHARMA SERVICES 338
13.2.8 ARAGEN LIFE SCIENCES PVT. LTD. 339
13.2.9 PROMEGA CORPORATION 339
14 APPENDIX 340
14.1 DISCUSSION GUIDE 340
14.2 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL 344
14.3 CUSTOMIZATION OPTIONS 346
14.4 RELATED REPORTS 346
14.5 AUTHOR DETAILS 347