The drug discovery informatics market is estimated to register a CAGR of 15.3%, over the forecast period.
- The cost of research and development in drug discovery is rising significantly. Most clinical trials for drugs are sponsored by pharmaceutical companies that spend millions of money for drug development.
- Drug discovery is the area of research and development that accounts for the most amount of time and money. The time frame can range from 4-25 years and costs can be thousands of millions of dollars.
- The healthcare industry is facing major challenges, such as increasing costs, unacceptable error rates, and dissatisfied patients and providers.
- Drug discovery informatics uses sophisticated bioinformatics algorithms to process data related to drug, disease, protein, pathway, gene expression, and to sequence data and extend the flexible architecture to build new customized approaches and algorithms for diverse aspects of drug discovery which would help to minimize the cost for drug development.
- The other factors, such as pharmaceutical companies gaining more interest in drug discovery and the urgent need to limit the drug discovery and development cost, are driving the drug discovery informatics market.
Key Market Trends
Pharmaceutical and Biotechnology Companies are Expected to Grow with High CAGR in the Forecasted Period
- Informatics analysis in drug discovery not only accelerates drug target identification and drug candidate screening and refinement but also facilitates the characterization of side effects and predict drug resistance.
- High-throughput data, such as genomic, epigenetic, genome architecture, cistromic, transcriptomic, proteomic, and ribosome profiling data have all made a significant contribution to mechanism-based drug discovery.
- Informaticians in drug discovery use high-throughput molecular data in comparisons between symptom-carriers (patients, animal disease models, cancer cell lines, etc.) and normal controls.
- Additionally, only 10 percent of drug molecules that are identified in research make it through development which means that many potential drugs do not make it to market, and expensive time and resources are invested in molecules that will generate no revenue.
- So, simulation and informatics can significantly increase the odds by improving the efficiency of drug development, cutting costs, and improving margins for pharmaceutical and biotechnology companies.
- Thus, increasing the application of Informatics in drug discovery is augmenting the growth of the market.
- Additionally, major pharmaceutical companies have established high throughput screening facilities and have invested in automation to screen large compound libraries.
- There is pharmaceutical bioinformatics which is a new discipline in the area of the genomics revolution.
- It is central to biomedicine with application in areas, like pharmacy, medicine, biology, and medicinal chemistry, which will help in the growth of the market in future forecast.
North America Dominates the Market and is Expected to do Same in the Forecast Period
North America is expected to dominate the overall market, throughout the forecast period. In the North America region, the United States holds the largest market share and this is due to the increasing R&D on drug discovery and technological advancements in data mining and analytics. This has helped the growth of the drug discovery informatics market in the country. The advancement terms of informatics research are well supported by the healthcare IT sectors, the demand for new drugs in a lesser timeline, and the cost for infrastructure. These factors drive the importance and market growth in the North America region better than other parts of the world.
The drug discovery informatics market is competitive and consists of a few major players. In terms of market share, these major players currently dominate the market. Some of the major players in the market are GVK Biosciences, Infosys, IBM, and PerkinElmer, among others.
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