Global Drug Discovery Outsourcing Market Size, Share, Growth Analysis, By Drug Type, By Workflow, By Therapeutic area, By Application - Industry Forecast 2022-2028

Global Drug Discovery Outsourcing Market size was valued at USD 3.26 billion in 2021 and is poised to grow from USD 3.5 billion in 2022 to USD 6.2 billion by 2030, growing at a CAGR of 7.3% in the forecast period (2023-2030).

Rising collaborations between public and commercial entities speed up drug discovery procedures, increasing global demand for drug discovery outsourcing services. The ultimate goal of a preclinical drug discovery programme is to deliver one or more clinical candidate molecules that have sufficient evidence of biological activity at a disease-relevant target as well as sufficient safety and drug-like properties to be tested in humans.

Growing R&D expenditure in the pharmaceutical and biopharmaceutical industries, rising demand for analytical testing services, initiatives for rare disease and orphan drug research, and the high cost of in-house drug development are all creating new revenue pockets in the drug discovery services market.

Many pharmaceutical and biotechnology businesses partnered with CROs through long-term agreements, partnerships, and collaborations around the world to accelerate the R&D process. Eurofins Scientific SE (France), for example, launched Adaptive immune response models in May 2021 to study the immunological repercussions of SARS-CoV-2 and other viral diseases for drug discovery.

Top-down and bottom-up approaches were used to estimate and validate the size of global Drug Discovery Outsourcing Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Segments covered in this report

Global Drug Discovery Outsourcing Market is segmented on the basis of drug type, workflow, therapeutic area, application, and region. By drug type, the Drug Discovery Outsourcing Market is segmented into small molecule, large molecule, and biologics. By workflow, the Drug Discovery Outsourcing Market is segmented into Target Identification & screening, target validation & functional informatics, lead identification & candidate optimization, preclinical development, and others. By therapeutic area, the Drug Discovery Outsourcing Market is segmented into Respiratory system, oncology, ophthalmology, haematology, cardiovascular, endocrine, gastrointestinal, immunomodulation, anti-infective, central nervous system, dermatology, and genitourinary system. By application, the Drug Discovery Outsourcing Market is segmented into Hospitals & clinics, medical laboratories, and others. By region, North America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa.

Drivers

Increased investment in healthcare infrastructure development will create lucrative opportunities for the global drug discovery outsourcing market.

Pharmaceutical and biopharmaceutical businesses' increasing R&D expenditures are leading them to seek fully integrated or functional outsourcing services for drug research and development, from the early development stage to the late-stage development phase. Outsourcing has grown as a strategic solution to offset the shortage of in-house resources required for new product development as pharma businesses face great pressure to limit fixed costs. Large pharmaceutical corporations are shifting to a leaner business strategy that mainly relies on outsourcing. Most pharmaceutical and biopharmaceutical businesses outsource their testing services throughout R&D to increase profitability, meet drug development timeframes, and save money. This is evidenced by major pharmaceutical companies' recent deals with CROs that provide drug discovery and development services. As a result, rising pharmaceutical R&D spending fuels the growth of the drug discovery services industry.

Restraint

Stringent policies and high manufacturing costs will stymie the growth of the drug delivery outsourcing market.

The primary focus of regulatory bodies during drug approval is ensuring safety and efficacy, which significantly raises the cost of drug development and the final product. This aspect can have a substantial impact on medicine uptake in price-sensitive emerging markets. Aside from that, different legislations that protect product quality (such as GMP) frequently raise manufacturing prices. Animal testing in drug discovery is governed by strict restrictions. The most regularly employed animals in study are mice, rats, fish, amphibians, and reptiles. Concerns about the ethical use of animals in research have prompted governments to enact animal safety and use legislation, which poses various hurdles to the smooth operation of drug discovery research. Companies have been obliged to find alternative methods to reduce animal use. Novo Nordisk, for example, employs bio simulation, which entails employing computer models to imitate human biology. However, this has not been fully implemented throughout the market.

Market Trends

The escalation of cancer cases will shape the future of the global drug discovery outsourcing market.

As more small and medium-sized businesses outsource drug discovery services, the value chain of the drug discovery outsourcing market will see new growth prospects in the future years.

During the foreseeable period, oncology will lead worldwide demand since the burden of curing cancer remains a global duty.