Drug Discovery Services Market Size, Share, Industry Trends and Forecast to 2030

Drug Discovery Services Market Size & CAGR in 2021

The global drug discovery services market is estimated to have a compound annual growth rate (CAGR) of 7.4% from 2021 to 2028. The market size in 2021 was valued at USD 12.5 billion and is projected to reach USD 22.7 billion by 2028.

COVID-19 Impact on the Drug Discovery Services Market

The COVID-19 pandemic had a mixed impact on the drug discovery services market. While the initial disruption in research activities and clinical trials was observed, there was a subsequent surge in demand for drug development services to address the pandemic. The market saw an increased focus on antiviral and vaccine research, leading to advancements in drug discovery technologies.

Drug Discovery Services Dynamics

The drug discovery services market is driven by factors such as increasing prevalence of chronic diseases, growing R&D investments by pharmaceutical companies, and technological advancements in drug discovery processes. Outsourcing of drug discovery services to contract research organizations (CROs) is also contributing to market growth.

Segments and Related Analysis

The drug discovery services market is segmented based on service type, therapeutic area, end user, and region. Service types include target identification, target validation, lead identification, lead optimization, and candidate optimization. Therapeutic areas encompass oncology, cardiovascular diseases, neurology, and others.

By Region Analysis

The drug discovery services market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America holds the largest market share due to the presence of major pharmaceutical companies and research institutions.

Key Market Players and Competitive Landscape

Some of the key players in the drug discovery services market include Charles River Laboratories, Covance Inc., Evotec AG, Pharmaceutical Product Development (PPD) LLC, and Thermo Fisher Scientific. The market is highly competitive, with companies focusing on collaborations, acquisitions, and product development to gain a competitive edge.

Recent Happenings in the Drug Discovery Services Market

In recent developments, drug discovery services providers have been expanding their capabilities through strategic partnerships and acquisitions. For example, Evotec AG acquired Just Biotherapeutics to enhance its biologics drug discovery services. Additionally, Charles River Laboratories announced new investments in AI-driven drug discovery platforms to streamline research processes.