Global Drug Discovery Outsourcing Services Market Size To Exceed USD 7.9 Billion By 2033 | CAGR OF 7.59%

Global Drug Discovery Outsourcing Services Market Size To Exceed USD 7.9 Billion By 2033 

According to a research report published by Spherical Insights & Consulting, the Global Drug Discovery Outsourcing Services Market Size is to grow from USD 3.8 Billion in 2023 to USD 7.9 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 7.59% during the projected period.

Browse key industry insights spread across 208 pages with 110 Market data tables and figures & charts from the report on the "Global Drug Discovery Outsourcing Services Market Size, Share, and COVID-19 Impact Analysis, By Drug Type (Small Molecules and Large Molecules), By Workflow (Target Identification & Screening, Target Validation & Functional Informatics, Lead Identification & Candidate Optimization, Preclinical Development, and Others), By Therapeutics Area (Respiratory System, Pain & Anesthesia, Oncology, Ophthalmology, Hematology, Cardiovascular, Endocrine, Gastrointestinal, Immunomodulation, Anti-Infective, Central Nervous System, Dermatology, and Genitourinary System), By Service Type (Chemistry Service and Biology Service), By End-User (Pharmaceutical & Biotechnology Companies, Academic Institutes, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033."Get Detailed Report Description Here:https://www.sphericalinsights.com/reports/drug-discovery-outsourcing-services-market

Drug discovery outsourcing services refer to the strategic practice of pharmaceutical companies enlisting external partners to handle various stages of the drug discovery development process, which involves advancing drugs from the laboratory to the clinic for biotechnology and pharmaceutical companies. The pharmaceutical and biotech companies opt for outsourcing drug discovery activities to reduce the cost of development. Further, academic and private Contract Research Organizations (CROs) adopt strategic initiatives with pharmaceutical companies to assist them in developing the desired drug. Advancements in high-potency active pharmaceutical ingredients (HPAPIs), antibody-drug conjugates (ADCs), and cell and gene therapies are opening new avenues for drug development. The intense competitive landscape and growing complexity of drug development have created a market opportunity for drug discovery outsourcing services. The growing demands for more specialized support and expertise for drug discovery from life science tools suppliers have accelerated the market. Further, the growing investments in drug development by pharmaceutical and biopharmaceutical companies and increasing initiatives for research on rare diseases and orphan drugs influence the market growth. The surging demand for outsourcing services for precision medicine drug development drives the market demand for drug discovery outsourcing services. On the contrary, the stringent rules and regulations concerning animal use in the drug discovery process and a lack of skilled professionals are restraining the market growth.

The small molecules segment dominates the market with the largest revenue share in 2023.

Based on drug type, the global drug discovery outsourcing services market is segmented into small molecules and large molecules. Among these, the small molecules segment dominates the market with the largest revenue share in 2023. As small-molecule medications are efficient in targeting intracellular proteins and enzymes, they are the preferred choice for treating various therapeutic conditions, including cancer, infectious diseases, and neurological disorders. The development of novel therapies is greatly aided by the increasing approvals by the FDA and other regulatory bodies that are driving the market growth.

The lead identification & candidate optimization segment accounted for the largest market share through the forecast period.

Based on the workflow, the global drug discovery outsourcing services market is segmented into target identification & screening, target validation & functional informatics, lead identification & candidate optimization, preclinical development, and others. Among these, the lead identification & candidate optimization segment accounted for the largest market share through the forecast period. One of the most crucial phases in the drug development process is the identification and optimization of lead compounds that aim to maximize the compounds' potency, toxicity potential, biological activity, target selectivity, and other attributes. The sophisticated in silico tools are used to enhance the lead identification process, such as structure-based drug designs and computer-aided drug discovery (CADD).

The respiratory segment dominated the global drug discovery outsourcing services market with the largest revenue share in 2023.

Based on the therapeutics area, the global drug discovery outsourcing services market is segmented into respiratory system, pain & anesthesia, oncology, ophthalmology, hematology, cardiovascular, endocrine, gastrointestinal, immunomodulation, anti-infective, central nervous system, dermatology, and genitourinary system. Among these, the respiratory segment dominated the global drug discovery outsourcing services market with the largest revenue share in 2023. Common respiratory infections, increased exposure to indoor and outdoor air pollution and toxins from occupational dust, and an increase in smoking rates globally, are the diverse factors contributing to the rising prevalence of respiratory disorders. The rise of treatment-resistant illnesses surges the need for drug development for respiratory therapeutic areas.

The chemistry service segment accounted for the largest market share during the forecast period.

Based on the service type, the global drug discovery outsourcing services market is segmented into chemistry service and biology service. Among these, the chemistry service segment accounted for the largest market share during the forecast period. Structure-based drug design is made possible by combinational chemistry, high-throughput screening, and molecularly specified targets. The advancement of sophisticated laboratory techniques, computational tools, and artificial intelligence for drug discovery are driving the market growth.

The pharmaceutical and biotechnology segment is projected to grow at the highest CAGR during the forecast period.

Based on the end-user, the global drug discovery outsourcing services market is segmented into pharmaceutical & biotechnology companies, academic institutes, and others. Among these, the pharmaceutical and biotechnology segment is projected to grow at the highest CAGR during the forecast period. Outsourcing drug discovery in pharmaceutical and biotechnology businesses expedites the process and increases success rates because of availability of variety of resources and experience. Pharmaceutical and biotechnology businesses are encouraged to produce new pharmaceuticals as a result of the rising need for medication due to the growing burden of diseases.

North America dominates the market with the largest market share over the forecast period.

North America dominates the market with the largest market share over the forecast period. The availability of advanced technologies and platforms in the process of drug discovery and establishing multiple strategic initiatives are significantly driving the market growth. The growth in biosimilars and generic markets and increasing outsourcing of R&D services by pharmaceutical and biopharmaceutical companies are driving the market in the region. The growing prevalence of cardiovascular and neurovascular diseases in the region as well as presence of a well-established research infrastructure & key players, with higher investments in drug discovery R&D are responsible for driving the market.

Asia-Pacific region is expected to grow the fastest during the forecast period. The high burden of chronic diseases like cardiovascular diseases, cancer, and respiratory diseases in the region is expected to propel the market growth. Furthermore, collaborations with Contract Research Organizations (CROs) are accelerating the market growth in the region. The region is emerging as a hub for outsourcing drug discovery activities owing to the availability of skilled manpower, lower costs, favorable regulatory environment, and quality data. The Japan Agency for Medical Research and Development (AMED), established in 2015, is an example of the initiatives taken to boost market growth.

Major vendors in the global drug discovery outsourcing services market GenScript, Dalton Pharma Services, EVOTEC, Charles River, Thermo Fisher Scientific Inc., Eurofins SE, Syngene International Limited, QIAGEN, Jubilant Biosys, Albany Molecular Research Inc., Pharmaron Beijing Co., Ltd., Laboratory Corporation of America Holdings, WuXi AppTec, Curia Inc., and Other Key Players.

List of Key Companies

• GenScript
• Dalton Pharma Services
• EVOTEC
• Charles River
• Thermo Fisher Scientific Inc.
• Eurofins SE
• Syngene International Limited
• QIAGEN
• Jubilant Biosys
• Albany Molecular Research Inc.
• Pharmaron Beijing Co., Ltd.
• Laboratory Corporation of America Holdings
• WuXi AppTec
• Curia Inc.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In February 2023, Charles River Laboratories International, Inc. announced a multi-program agreement with Pioneering Medicines, a strategic initiative of Flagship Pioneering, that gives Pioneering Medicines access to Logica. Through the agreement, Pioneering Medicines would deploy Logica across a portfolio of targets to create optimized small molecules that lead to novel therapies for unmet medical needs.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global drug discovery outsourcing services market based on the below-mentioned segments:

 Global Drug Discovery Outsourcing Services Market, Drug Type Analysis

• Small Molecules
• Large Molecules

Global Drug Discovery Outsourcing Services Market, Workflow Analysis

• Target Identification & Screening
• Target Validation & Functional Informatics
• Lead Identification & Candidate Optimization
• Preclinical Development
• Others

Global Drug Discovery Outsourcing Services Market, Therapeutics Area Analysis

• Respiratory System
• Pain & Anesthesia
• Oncology, Ophthalmology
• Hematology
• Cardiovascular
• Endocrine
• Gastrointestinal
• Immunomodulation
• Anti-Infective
• Central Nervous System
• Dermatology
• Genitourinary System

Global Drug Discovery Outsourcing Services Market, Service Type Analysis

• Chemistry Service
• Biology Service

Global Drug Discovery Outsourcing Services Market, End-User Analysis

• Pharmaceutical & Biotechnology Companies
• Academic Institutes
• Others

Global Drug Discovery Outsourcing Services Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

About the Spherical Insights & Consulting

Spherical Insights & Consulting is a market research and consulting firm which provides actionable market research study, quantitative forecasting and trends analysis provides forward-looking insight especially designed for decision makers and aids ROI.

Which is catering to different industry such as financial sectors, industrial sectors, government organizations, universities, non-profits and corporations. The company's mission is to work with businesses to achieve business objectives and maintain strategic improvements. 

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