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Drug Discovery Services: Advantages For Drug Developments
The drug discovery services global industry is primarily driven by the increased investments in the research & development activities by the pharmaceutical and biologics companies across the globe. The rising prevalence of various disease and growing geriatric population across the globe are the major contributors to the demand for the pharmaceutical drugs. As per the United Nations, the geriatric population across the globe is estimated to reach 2 billion by 2050.
The elderly people are more susceptible to chronic diseases and hence spend more on the life-saving drugs. The increased need for the development of new and innovative drugs for the treatment of various common and rare diseases is fueling the demand for the drug discovery services. The patents expiry and growing demand for the biopharmaceutical drugs in the emerging economies is expected to drive the growth of the global drug discovery services market during the forecast period.
The drug discovery services global market size accounted for USD 14.11 billion in 2022 and is expected to hit USD 33.2 billion by 2030; It is projected to grow at a compound annual growth rate (CAGR) of 11.3% from 2022 to 2030.
In 2020, North America dominated the glob al drug discover services market. The increased prevalence of various chronic diseases in US is a major factor that attracts the investments from the pharmaceutical companies towards the research and drug discovery activities. As peer the CDC, around 92.1 million adults in US are suffering from at least one type of cardiovascular disease. It is estimated that over half of the US population is suffering from at least one chronic disease such as cancer, CVDs, respiratory diseases, and neurological disorders. This results in the increased demand for the new and innovative drugs. Moreover, as per the Population Reference Bureau, the number of people aged 65 years and above is expected to reach at 95 million in US by 2060. The geriatric people has higher demand for the various life-saving drugs as they are more prone to various diseases. The presence of several top pharmaceutical companies in the region results in the increased investments towards the drug discovery activities.
Major Manufacturers:
- Abbott Laboratories Inc.
- Advinus Therapeutics
- Agilent Technologies Ubiquigent
- Albany Molecular Research Inc.
- AstraZeneca PLC
- Aurigene
- Bayer AG
- Charles River Laboratories International
- ChemBridge Corporation
- Covance
Drug Discovery Services Report Scope
| Report Coverage | Details |
| Market Size | US$ 33.2 Billion by 2030 |
| Growth Rate | CAGR of 11.3% from 2021 to 2030 |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2021 |
| Forecast Period | 2021 to 2030 |
| Segments Covered | Drug Type, Process, Type, Therapeutic Area, Region |
Market Dynamics
Driver: Increasing R & D expenditure by the pharmaceutical companies
According to the International Federation of Pharmaceutical Manufacturers & Associations, the pharmaceutical industry spent around US$150 billion in the research & development activities. It is estimated that on an average, a pharmaceutical company spends around 17% of its revenues on the research & development. Therefore, the rapidly growing pharmaceutical industry and surging investments by them in the R&D is expected to drive the growth of the global drug discovery services market during the forecast period.
Restraint: High costs associated with the drug discovery
A huge cost is involved in the services of drug discovery, owing to the higher attrition rate of the candidates during the development phase. Moreover, the research related to rare diseases requires a specific candidates’ group for the clinical trials. Moreover, the success rate is very low and the number of drugs that receives approval is very low. This involves a huge cost.
Opportunity: Rapidly growing biologics industry
The biologics industry has produced several life-saving innovative drugs that can cure chronic diseases such as cancer, diabetes, and CVDs. The rising awareness regarding the biologics is boosting the demand for the biologics. The biopharmaceuticals alone accounts for 20% of the pharmaceutical industry and is rapidly growing, which offers immense growth opportunities to the market players.
Challenge: Higher attrition rate of the candidates
The most difficult task in the drug discovery services is the identification and retention of the candidates in the clinical trials phase. The higher attrition rate of the candidates is a major challenge for the market players.
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