[190 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.
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.
The market dynamics represent an ever-changing landscape of the Drug Discovery Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
- Market Drivers
- Rising R&D Expenditure in the Pharmaceutical & Biopharmaceutical industry
- Increasing Need to Manage Large Data Generated During Preclinical Studies
- Favorable Government Support For the Development of Drug Discovery Platforms
- Market Restraints
- Requirement of Extensive Capital for Drug Discovery and Development
- Market Opportunities
- Technological Advancements and Innovations in Drug Discovery
- Use of AI Cloud to Create a Streamlined and Automated Approach in Drug Discovery
- Market Challenges
- Stringent Norms for the Animal Usage 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.
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Drug Discovery Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Drug Discovery Market.
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Drug Discovery Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.
The value chain of the Drug Discovery Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.
The pricing analysis comprehensively evaluates how a product or service is priced within the Drug Discovery Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Drug Discovery Market.
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Drug Discovery Market.
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Drug Discovery Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.
The trade analysis of the Drug Discovery Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.
The regulatory framework analysis for the Drug Discovery Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Drug Discovery Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment 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, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Drug Discovery Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. 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 these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Evommune and Accutar Biotechnology Announce AI Drug Discovery Collaboration
Evommune, Inc. collaborated with Accutar Biotechnology, Inc., specializing in AI-driven drug discovery, to co-develop therapies for debilitating dermatological conditions. This strategic collaboration intends to leverage Accutar's AI platform to accelerate Evommune's drug discovery and development process, circumventing traditional bottlenecks and paving the way for innovative treatments. [Published On: 2023-11-28]
IGC Pharma signs agreement to adopt AI solutions into drug discovery
IGC Pharma signed an agreement with the University of Los Andes in Colombia to develop and adopt generative artificial intelligence (AI) solutions to detect, develop, and trial new drugs. Under the agreement, the company leverages generative AI to streamline the efficiency of its clinical trials, improve early Alzheimer’s disease detection approaches, and enhance drug interaction assessments. [Published On: 2023-11-22]
University of Tsukuba and Astellas Confirm a Strategic Partnership
Astellas Pharma Inc. partnered with the University of Tsukuba to integrate "targeted protein degradation" technology into their portfolio, a pivotal step that enhances their research capabilities. The implementation of this innovative approach aims to transcend the limitations of traditional drug development by strategically degrading disease-causing proteins. [Published On: 2023-11-16]
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Drug Discovery Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
The report delves into recent significant developments in the Drug Discovery Market, highlighting leading vendors and their innovative profiles. These include Charles River Laboratories International, Inc., GENFIT SA, Microsoft Corporation, Astex Pharmaceuticals by Otsuka Pharmaceutical Co., Ltd., Dalriada Drug Discovery, Cloud Pharmaceuticals, Inc., Evotec SE, PerkinElmer, Inc., Abbott Laboratories, Chembridge Corporation, Incyte Corporation, Alacrita Holdings Limited, F. Hoffmann-La Roche Ltd., Piramal Group, Merck KGaA, Recursion Pharmaceuticals, Inc., NVIDIA Corporation, Shimadzu Corporation, Agilent Technologies, Inc., Pharmacelera SL, Schrödinger, Inc., Atomwise, Inc., Deciphera Pharmaceuticals, Inc., Astrazeneca PLC, Bio-Rad Laboratories, Inc., BioSymetrics Inc., Thermo Fisher Scientific Inc., Intra-Cellular Therapies Inc., BenevolentAI, and International Business Machines Corporation.
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
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
- Preface
- Research Methodology
- Executive Summary
- Market Overview
- Market Insights
- Drug Discovery Market, by Drug Type
- Drug Discovery Market, by Technology
- Drug Discovery Market, by Therapeutic Area
- Drug Discovery Market, by End User
- Americas Drug Discovery Market
- Asia-Pacific Drug Discovery Market
- Europe, Middle East & Africa Drug Discovery Market
- Competitive Landscape
- Competitive Portfolio
- List of Figures [Total: 24]
- List of Tables [Total: 386]
- List of Companies Mentioned [Total: 30]
Drug development is becoming a protracted, expensive process with a high degree of clinical approval success uncertainty. Unknown pathologies, lack of patient stratification, and inaccurate models create additional challenges in the process. To overcome them, pharmaceutical companies are in a race to adopt the latest technologies while ensuring efficiency and regulatory requirements.
New scaleups and providers are introducing technologically advanced platforms and tools to acquire, scrutinize, and apply large volumes of data towards bottlenecks in drug development. This drives the use of AI, cloud, & ML to automate data processing to solve complex clinical problems.
The application of AI and ML helps decide the correct therapy for patients, including personalized medicines. Overall, data-driven intelligent technologies make drug development procedures cost-effective, faster, and more productive.
Recently, Accenture PLC invested in Accenture Ventures in Ocean Genomics, a technology, and AI company, to assist biopharma companies in discovering and developing more effective diagnostics and therapeutics by utilizing their robust computational platforms.
With the constant spending on research infrastructure by pharmaceutical companies and technological advances in scientific tools, efforts to bring new effective drugs are all contributing to a fruitful drug discovery and drug development pipeline.
Artificial Intelligence:
Artificial intelligence (AI) is one of the most exciting developments in the field of drug discovery. AI has the capacity to analyze extensive amounts of data and make predictions based on intricate patterns. In drug discovery, AI can help researchers identify and study molecules that could potentially become drugs. AI can speed up the process of drug discovery by quickly and accurately analyzing data, filtering out undesirable molecules, and predicting how drugs are likely to interact with the human body. Several big pharmaceutical companies are already using AI to discover new drugs, and the trend is expected to continue.
High-Throughput Screening:
High-throughput screening (HTS) is another essential tool in drug discovery. HTS involves testing thousands of compounds at once to identify the ones that have the desired therapeutic effect. This screening process is automated using robotics and is capable of testing up to one million compounds. HTS has revolutionized drug discovery by significantly reducing the time and cost required to identify potential drug candidates. HTS also allows researchers to test compounds for toxicity, which makes the process safer and more reliable.
CRISPR-Cas9:
The CRISPR-Cas9 gene-editing tool has also been a game-changer in drug discovery. The tool provides a way to precisely modify or edit the genomes of living organisms. This technology allows researchers to modify the DNA of diseased cells or knockout specific genes to understand their functions and effects. With CRISPR-Cas9, researchers can easily create animal models of diseases, which can be utilized to test drugs and therapies. This technology has enabled the identification of new drug targets and has the potential to revolutionize drug discovery.
3D Printing:
3D printing is another technology that is maintaining a significant impact on drug discovery. 3D printing enables the production of personalized, complex, and anatomically accurate models of human organs. These models enable researchers to accurately test drugs on tissues or organs in vitro. This development has led to more accurate drug testing and the reduction of animal testing, which is often expensive and time-consuming.
Organ-on-a-Chip:
Organ-on-a-chip are 3D-printed microchips that mimic the functions of human organs. These devices enable the study of the effects of drugs and toxins on organs without the need for animal testing. Organ-on-a-chip is an innovative tool in drug discovery that allows researchers to study the effect of drugs on different organs and the way they interact with each other.
Technological innovations are transforming drug discovery by making it faster, easier, and more efficient. Artificial intelligence, high-throughput screening, CRISPR-Cas9, 3D printing, and organ-on-a-chip are some of the advances contributing to breakthroughs in drug discovery. These technologies are leading to the discovery of new drugs and therapies and improve our understanding of diseases and their underlying mechanisms. In the future, the world can expect to see even more exciting developments in drug discovery as technology persists to play a critical role in improving human health.
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