Drug Discovery Services Market Size, Share, And Growth Report 2032

Drug Discovery Services Market Size

The global Drug Discovery Services Market size was worth around USD 19.88 billion in 2023 and is predicted to grow to around USD 68.62 billion by 2032 with a compound annual growth rate (CAGR) of roughly 14.76% between 2024 and 2032.

The study provides historical data from 2018 to 2022 along with a forecast from 2024 to 2032 based on revenue (USD billion). The report covers a forecast and an analysis of the Drug Discovery Services Market on a global and regional level.

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Drug Discovery Services Market: Overview

Drug discovery services encompass a range of processes and activities that support the identification and development of new pharmaceutical compounds. These services, often outsourced to specialized contract research organizations (CROs), include target identification, hit-to-lead development, lead optimization, and preclinical testing. The outsourcing model has become increasingly popular as it allows pharmaceutical companies to reduce R&D costs, access cutting-edge technologies, and focus on core competencies. Advances in technologies such as high-throughput screening (HTS), computational drug design, and artificial intelligence (AI) have revolutionized drug discovery, making the process more efficient and effective. The integration of these technologies enables the rapid identification of promising drug candidates, significantly accelerating the drug development timeline.

The growth of the drug discovery services market is driven by several key factors, including the rising demand for novel therapeutics to address unmet medical needs, particularly in the areas of oncology, neurology, and infectious diseases. The increasing complexity of drug discovery, coupled with the growing prevalence of chronic diseases, has led to greater reliance on CROs with specialized expertise. Furthermore, the push towards personalized medicine and the development of biologics and biosimilars are creating new opportunities within the market. Despite challenges such as high costs and stringent regulatory requirements, the market is expected to continue expanding as pharmaceutical companies seek to innovate and bring new drugs to market more efficiently.

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Drug Discovery Services Market: Segmentation

The study provides a decisive view of the drug discovery services market by segmenting the market based on type, process, drug type, therapeutic area, and region.

By type, the drug discovery services market is segmented into pharmacokinetics and drug metabolism, biology services, and medicinal chemistry.

The process segment includes target validation, target selection, hit-to-lead identification, candidate validation, and lead optimization.

The drug type segment includes biologics and small molecules.

The therapeutic area segment includes neurology, diabetes, oncology, respiratory diseases, cardiovascular diseases, and others.

Drug Discovery Services Market: Report Scope

Drug Discovery Services Market: Regional Analysis

The regional segment includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa with its further segmentation into major countries including the U.S., Germany, France, UK, China, Japan, India, and Brazil. 

By region, North America is likely to lead the global drug discovery services market over the forecast time period. This can be attributed to the growing prevalence of chronic and auto-immune disorders, the presence of leading market players, availability of advanced healthcare infrastructure, and quick implementation of the latest technologies. Europe is anticipated be the second largest regional market in the years ahead, due to the increasing number of cancer and diabetes cases, growing geriatric population base, advantageous reimbursement scenario, and the presence of state-of-the-art healthcare infrastructure. The Asia Pacific market is projected to grow considerably over the estimated timeframe, due to the growing cases of cancer owing to high tobacco usage, and increasing demand for small molecules and biologics.

Drug Discovery Services Market: Competitive Players

Some key players of the global drug discovery services market are:

• Albany Molecular Research Inc. (AMRI)
• Thermo Fisher Scientific
• Evotec
• Charles River Laboratories International
• Domainex
• Covance
• GenScript
• Selcia Limited
• WuXiAppTec
• Viva Biotech
• Pharmaceutical Product Development LLC
• SRI International

The Global Drug Discovery Services Market is segmented as follows:

Global Drug Discovery Services Market: By Type

• Pharmacokinetics and Drug Metabolism
• Biology Services
• Medicinal Chemistry

Global Drug Discovery Services Market: By Process

• Target Validation
• Target Selection
• Hit-To-Lead Identification
• Candidate Validation
• Lead Optimization

Global Drug Discovery Services Market: By Drug Type

• Biologics
• Small Molecules

Global Drug Discovery Services Market: By Therapeutic Area

• Neurology
• Diabetes
• Oncology
• Respiratory Diseases
• Cardiovascular Diseases
• Others

Global Drug Discovery Services Market: By Region

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• Middle East and Africa