Drug Discovery Global Market Report 2024

Drug discovery is the systematic process of identifying biologically active compounds with therapeutic potential. The journey from ideation to development and approval aims to discover new clinical drugs for treating various diseases, whether they are new, existing, or previously incurable.

The drug discovery market involves two main types of drugs include small molecule and large molecule. Small molecules are utilized to identify compounds with suitable properties for development, referring to low molecular weight drugs that can efficiently penetrate cells. The drug discovery process includes target selection, target validation, hit-to-lead identification, lead optimization, and candidate validation. Various technologies contribute to drug discovery, such as high throughput screening, spectroscopy, combinatorial chemistry, biochips, pharmacogenomics, pharmacogenetics, bioinformatics, metabolomics, nanotechnology, and others. Drug discovery finds applications in therapeutic areas such as oncology, neurology, infectious and immune system diseases, digestive system diseases, cardiovascular diseases, diabetes, respiratory diseases, and more. Pharmaceutical companies, Contract Research Organizations (CROs), and other end-users engage in drug discovery.

The drug discovery market research report is one of a series of new reports from The Business Research Company that provides drug discovery market statistics, including drug discovery industry global market size, regional shares, competitors with a drug discovery market share, detailed drug discovery market segments, market trends and opportunities, and any further data you may need to thrive in the drug discovery industry. This drug discovery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The drug discovery market size has grown rapidly in recent years. It will grow from $98.01 billion in 2023 to $111.48 billion in 2024 at a compound annual growth rate (CAGR) of 13.7%. The growth observed in the historic period can be attributed to advancements in genomics and proteomics, the increasing prevalence of chronic diseases, and the emergence of biopharmaceuticals.

The drug discovery market size is expected to see rapid growth in the next few years. It will grow to $192.2 billion in 2028 at a compound annual growth rate (CAGR) of 14.6%. The anticipated growth in the forecast period can be attributed to the adoption of precision medicine, a heightened focus on rare diseases, and the expansion of personalized therapies. Major trends expected in this period include collaborative drug discovery models, an increased focus on rare diseases and orphan drugs, the integration of multi-omics data, rapid adoption of organoids and 3D cell culture models, and advancements in virtual screening techniques.

The drug discovery market is anticipated to experience growth, propelled by the rising healthcare expenditure worldwide. Countries across the globe allocate a significant portion of their Gross Domestic Product (GDP) to healthcare expenses, encompassing various components such as hospital care, physician and clinical services, professional services, dental services, residential and personal care, home health care, nursing care facilities, continuing care retirement communities, prescription drugs, and others. Drug discovery constitutes a substantial share of healthcare expenditure, as it plays a crucial role in the development of treatments for diseases, contributing to improved health outcomes and extended lifespans. For example, in December 2023, the Centers for Medicare & Medicaid Services, a US federal agency, reported that US healthcare spending in 2022 witnessed a 4.1% increase, reaching $4.5 trillion, equivalent to $13,493 per person. Health spending accounted for 17.3% of the country's GDP. This substantial healthcare expenditure underscores the ongoing demand for new drugs to address emerging diseases, ultimately driving the growth of the drug discovery market.

The drug discovery market is poised for growth, driven by the increasing research and development (R&D) expenditure in the pharma-biotech sector. R&D expenditure in the pharma-biotech sector involves allocating funds for research and development activities, focusing on the discovery and development of new pharmaceutical products and technologies. This financial commitment to R&D activities is essential for advancing the understanding of disease mechanisms, conducting pre-clinical testing, and progressing through clinical trials, ultimately contributing to the development of new medicines and treatments. As an illustration, in 2022, the UK government announced a significant increase in spending on R&D, allocating an additional £5 (6.36) billion to reach £20 (25.43) billion per year by 2024/25. This funding injection is part of the government's strategy to achieve a target of total R&D spending, encompassing all sectors, reaching 2.4% of GDP by 2027. The substantial growth in R&D expenditure in the pharma-biotech sector underscores the industry's commitment to advancing drug discovery, thus propelling the overall growth of the drug discovery market.

Technological advancements play a crucial role in shaping the landscape of the drug discovery market. Companies within this domain are actively incorporating various cutting-edge technologies, including Artificial Intelligence (AI), imaging technology, and others, to streamline and expedite the drug discovery process. This proactive integration of technology aims to reduce the time required for drug discovery, fostering innovation and efficiency in the industry. Imaging technology is a notable aspect of these advancements, enabling the visualization, characterization, and quantification of non-invasive biological activities occurring within organisms in response to medications. These methods, utilizing either probes or the tissue itself, are instrumental in comprehending diseases and identifying novel treatments. As an illustrative example, in May 2023, Google Cloud introduced two AI-powered tools in the drug discovery realm: the Target and Lead Identification Suite and the Multiomics Suite. These tools are designed to empower biotech and pharmaceutical companies by expediting drug discovery and precision medicine efforts. The Target and Lead Identification Suite aids in deciphering the function of amino acids and proteins, while the Multiomics Suite accelerates the discovery and interpretation of genomic data, facilitating the design of precision treatments. This commitment to leveraging advanced technologies exemplifies the industry's dedication to enhancing the drug discovery process through innovative tools and approaches.

Major players in the drug discovery market are actively engaged in creating innovative solutions, such as drug discovery accelerators, to advance the development of sophisticated drug models. Drug discovery accelerators represent various entities, initiatives, or programs meticulously crafted to expedite the intricate process of discovering and developing novel pharmaceutical compounds. An exemplary instance of this commitment to innovation is evident in the collaboration between Novo Nordisk and Evotec. In September 2023, they jointly introduced LAB eN2, a translational drug discovery accelerator. LAB eN2 is specifically crafted to support preclinical research originating from academic institutions, with the ultimate goal of propelling the development of groundbreaking therapeutics. The collaboration's primary focus is to hasten the translation of academic concepts into tangible therapeutic product candidates, particularly within the realms of cardiometabolic disorders, rare blood disorders, and endocrine disorders.

In October 2021, Inotiv, a US-based contract research organization specializing in nonclinical and analytical drug discovery and development services, completed the acquisition of Plato BioPharma for $15 million. This strategic move by Inotiv aligns with its overarching strategy to expand its portfolio of contract research services, covering the entire spectrum of drug discovery and preclinical development processes. Plato BioPharma, a US-based company with expertise in in vivo pharmacology research, focuses on drug discovery within therapeutic areas such as cardiovascular, renal, pulmonary, and hepatic domains.

Major companies operating in the drug discovery market report are Pfizer Inc., Merck & Co. Inc., Novartis International AG, Thermo Fisher Scientific Inc., WuXi AppTec Group, GlaxoSmithKline plc, Eli Lilly and Company, Laboratory Corporation of America Holdings, Evotec SE, Eurofins Scientific SE, Agilent Technologies Inc., Sanofi S.A., Charles River Laboratories International Inc., Pharmaron Ltd., Viva Biotech Ltd., Albany Molecular Research Inc., Schrodinger Inc., BioDuro Ltd., Aptuit LLC, Selvita S.A., Sygnature Discovery Limited, Jubilant Biosys Limited, Gero Limited, Domainex Ltd., Verge Genomics lnc., Aqemia SAS, BenevolentAI Limited, EPIVAX INC., ProteinQure lnc., Synlogic Inc., ChemPartner Co. Ltd., WuXi Biologics lnc., Abzena plc, Lonza Group Ltd., Catalent lnc., Recursion Pharmaceuticals Inc.

North America was the largest region in the drug discovery market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the drug discovery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the drug discovery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The drug discovery market includes revenues earned by entities by high throughput screening, spectroscopy, combinatorial chemistry, biochips, pharmacogenomics and pharmacogenetics, bioinformatics, metabolomics, and nanotechnology. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Drug Discovery Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on drug discovery market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 50+ geographies.
• Understand how the market has been affected by the coronavirus and how it is responding as the impact of the virus abates.
• Assess the Russia - Ukraine war's impact on agriculture, energy and mineral commodity supply and its direct and indirect impact on the market.
• Measure the impact of high global inflation on market growth.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on the latest market shares.
• Benchmark performance against key competitors.
• Suitable for supporting your internal and external presentations with reliable high quality data and analysis
• Report will be updated with the latest data and delivered to you within 3-5 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for drug discovery ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The drug discovery market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Drug Type: Small Molecule; Large Molecule
• 2) By Process: Target Selection; Target Validation; Hit-To-Lead Identification; Lead Optimization; Candidate Validation
• 3) By Technology: High Throughput Screening; Spectroscopy; Combinatorial Chemistry; Biochips; Pharmacogenomics and Pharmacogenetics; Bioinformatics; Metabolomics; Nanotechnology; Other Technologies
• 4) By Therapeutic Area: Oncology; Neurology; Infectious and Immune System Diseases; Digestive System Diseases; Cardiovascular Diseases; Diabetes; Respiratory Disease; Other Therapeutic Areas
• 5) By End User: Pharmaceutical Companies; CROs; Other End-Users
• Companies Mentioned: Pfizer Inc.; Merck & Co. Inc.; Novartis International AG; Thermo Fisher Scientific Inc.; WuXi AppTec Group
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.