PUBLISHER: The Business Research Company | PRODUCT CODE: 1552469
PUBLISHER: The Business Research Company | PRODUCT CODE: 1552469
Drug discovery services refer to the range of activities and expertise provided by specialized companies to assist pharmaceutical and biotechnology firms in discovering new drugs. Drug discovery services are essential in the pharmaceutical industry, focusing on the early stages of drug development to identify and validate potential drug candidates.
The drug discovery services market consists of sales, by entities (organizations, sole traders and partnerships), of drug discovery services that encompass various scientific and technical services aimed at accelerating the discovery process, enhancing efficiency and reducing costs for drug developers.
The global drug discovery services market was valued at $9,923.30 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 10.0%.
Increased Investments In Pharmaceutical Research And Development (R&D)
The increased investments in pharmaceutical spending on research and development drove the growth of the drug discovery services market during the historic period. Pharmaceutical firms invested significantly in research and development (R&D) to innovate and address medical gaps. Increased pharmaceutical spending boosted research capabilities, advanced technologies and extensive clinical trials. This investment drove a focus on novel therapies and innovative treatments, raising demand for specialized drug discovery services. Preclinical testing and clinical trial support played a vital role in converting investment into tangible medical advancements. For example, according to the 2022-member annual survey conducted by Pharmaceutical Research and Manufacturers of America (PhRMA), a US-based trade group representing companies in the pharmaceutical industry, PhRMA member companies set a record by investing $102.3 billion in R&D in 2021, marking the highest level of investment ever. The 2022 survey revealed that approximately 20% of their revenue was dedicated to R&D. PhRMA members' spending constitutes the majority of the $122.2 billion spent by the entire US biopharmaceutical industry on R&D in 2020. Additionally, the global pharmaceutical companies collectively spent $139 billion on research and development in 2022. Therefore, the increased investments in pharmaceutical research and development supported the growth of the drug discovery services market.
Advanced Robotic And Automation Technologies For Revolutionizing Drug Discovery
Players in the drug discovery services market are leveraging advanced robotics and automation technologies to enhance efficiency and precision. These innovations streamline target identification, compound screening and lead optimization. High-throughput screening accelerates compound testing, while automated systems ensure accurate synthesis and purification. This integration reduces development time and costs, fostering the discovery of innovative therapeutics. For example, in January 2023, Insilico Medicine, a Hong Kong-based biotechnology company that provides drug discovery services, launched its 6th generation Intelligent Robotics Lab in Suzhou, China, to expedite its AI-driven drug discovery process. The lab employs advanced robotics and automation to streamline drug discovery stages, spanning from target identification to lead optimization. It features automated, high-throughput screening for rapid compound testing against drug targets and robotic systems for compound synthesis and purification, facilitating the creation of novel drug candidates.
The global drug discovery services market is concentrated, with large players operating in the market. The top ten competitors in the market made up 32.9% of the total market in 2023.
Drug Discovery Services Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global drug discovery services market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for drug discovery services? 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 services 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 history and forecasts market growth by geography. It places the market within the context of the wider drug discovery services market; and compares it with other markets.