Global Drug Discovery Services Market: Significant growth is expected in Drug Discovery Market owing to rising prevalence of chronic diseases.

Published Date: 03/05/2021

The global drug discovery services market is projected to reach USD 22.6 billion by 2027 from USD 10.8 billion in 2020, at a CAGR of 11.1 % from 2020 to 2027. The emerging economies, such as India, China, and Brazil, are expected to provide a wide range of opportunities for players in the industry. Furthermore, growth in the biologics market and patent expiries will also boost the growth of this market. Drug discovery is the process of designing a new drug. The most common methods employed for drug discovery are molecular manipulation, random screening, drug metabolites, molecular designing, and serendipity. Drug discovery services are specifically designed to minimize the costs and timelines of drug discovery. In pharmacology, biotechnology, and medicine, the method of drug discovery is used to design and discover new medications. This process comprises the identification of aspirants, production, depiction, selection, and assays for therapeutic usefulness. Once a compound has presented its value in these assessments, it will initiate the course of drug development leading to clinical trials. The drug target recognition, drug discovery selection, and drug design based on the fragment, lead compound recognition, and lead optimization form the core of drug discovery services.

Drug discovery services are widely used in forensics, paternity testing, disaster victim identification, and anthropology with DNA analysis being an extremely important tool in this sector. The major factors driving the growth of this market are increase in R&D expenditure, inclination of major pharmaceutical companies toward outsourcing to avoid hurdles, and surge in demand for outsourcing of analytical testing & clinical trial services.

The drug discovery services market is growing pervasively majorly due to the augmented demand and supply for the medicines. Moreover, factors such as technological advancements and upsurge in adoption of new techniques for discoveries along with rise in demand for generic drugs and increase in number of patents expiries escalate the market growth on the global platform. Additional factors that are boosting the growth of the market include the increase the R&D activities, development of the healthcare sector, rise in demand for generic drugs, increase in geriatric population, and technological advancements in drug discovery services. Furthermore, increase in number of contract development and manufacturing organizations that are fostering the activities of drug discovery and the rapidly proliferating pharmaceutical industry encourage the growth of the market. Various other factors such as surge in awareness about chronic diseases, increase in patient pool, rise in unmet medical needs, patent expiration of blockbuster drugs, enhanced regulatory framework toward drug discovery, and rise in funding & reimbursement contribute for the growth of the global drug discovery services market.

However, the requirement of huge capital investment with low-profit margins, stringent regulations of FDA, and comparatively poor healthcare system in middle-income and low-income countries hinder the growth of the drug discovery services market.

The major players operating in the market are Laboratory Corporation of America Holdings (US), Albany Molecular Research, Inc. (US), Charles River Laboratories International, Inc. (US), Evotec SE (Germany), Eurofins Scientific (Luxembourg), WuXi AppTec (China), GenScript Biotech Corporation (China), Thermo Fisher Scientific, Inc. (US), Pharmaceutical Product Development, LLC (US), Syngene International Ltd. (India), and Selvita S.A. (Poland) among others.

The drug discovery services market in Asia Pacific is expected to grow at a high pace in the coming years. The factors are attributing to the high growth of the Asia Pacific region, the rapid growth in the pharmaceutical and biopharmaceutical industry, growing number of CROs, and the presence of less-stringent regulations for drug discovery processes and smooth export protocols. However, the North American and European markets will account for a large share due to mature economies and the presence of significant players in the region.