The drug discovery outsourcing market is expected to expand its roots at a steady CAGR of 7.2% during the forecast period. The market is likely to hold a revenue of USD 3.75 billion in 2023, while it is anticipated to cross a value of USD 7.52 billion by 2033.
The research report on the drug discovery outsourcing market states that the pharmaceutical industry is expanding thoroughly with new extensions and high-end research programs. The higher penetration of smart technology in the drug discovery and development process is likely to transform the market condition. Furthermore, AI drug discovery outsourcing is much cheaper, easy, and integrated. Thus, pharmaceutical brands adopt these newly designed methods to increase reliability and promote cruelty-free discovery. Alongside this, the growing outsourcing trend in Asian economies like India and China is likely to strengthen the pharmaceutical ties between the West and East. The wave of novel drug discovery in India, with brands building their projects around the Indian drug discovery outsourcing space, is anticipated to flourish the market growth. Moreover, the government projects and the bilateral relationship are also anticipated to increase drug production. This pushes pharma companies to look for biomedical advancements.
The market dynamics have been affected by the pandemic, the geriatric population, and new diseases spreading out of nations. Thus, the consumption of advanced drugs, drug mixtures (synergistic drugs), and other anti-infection drugs are likely to put pressure on the brands. This leads pharmaceutical companies to reach out to distant markets to reduce the cost of production and research of drug discovery and development.
The use of stimulating organs coupled with organs-on-chips for disease modeling and drug development is likely to change the market dynamic. From hit confirmation to lead optimization and high-speed screening services, the smart tech has reformed each component of the drug discovery systems. An estimate states that 80% of the research for different pharmaceutical elements can be outsourced. Thus, the drug discovery outsourcing market is likely to garner during the forecast period.
| Attributes | Details |
|---|---|
| Drug Discovery Outsourcing Market CAGR (2023 to 2033) | 7.2% |
| Drug Discovery Outsourcing Market Size (2023) | USD 3.75 billion |
| Drug Discovery Outsourcing Market Size (2033) | USD 7.52 billion |
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According to FMI analysis, the drug discovery outsourcing market was valued at USD 3.50 billion in 2022 and is likely to be worth USD 7.52 billion by 2033.
AI-enabled drug discovery methods, along with the expanding research and development programs, are garnering market growth. The increased penetration of innovation, reduced costs, and pharmaceutical companies collaborating for the research part fuel the market growth.
The application of AI in protein modeling, digital organ simulation, and organ-on-a-chip is also easing the drug discovery process. Developing nations like India and China are becoming the center stage for the pharmaceutical revolution with mass drug production and extended research and development programs. The AI-driven drug discovery is anticipated to increase the capital investment in distant lands to expand their production and research workforce. Alongside this, the new AI drug discovery outsourcing services are likely to enhance target identification, patient stratification, and biomarker development.
As COVID-19 pandemic garnered the pharmaceutical industry, new viruses and their penetration in developed nations are also increasing drug consumption. Even developing nations enhancing public health conditions are adopting advanced drug discovery measures. Similarly, they are indulged in collaborating with cheaper third-party research and development vendors.
Key restraints for the drug discovery outsourcing market are governmental restrictions, higher outsourcing costs, and tariffs restraining market growth. The rapidly expanding space for alternative medicine and limited medical budgets are limiting the growth of the market.
Increased Demand for Research and Development along with Expanding Bilateral Ties are making North America the Top Growing Region
North America region leads in terms of the market share in the drug discovery outsourcing market with a market share CAGR of 35.5%. The growth is attributed to lower research costs, higher innovative experiments, and increasing demand for generic and disease-specific drugs. Furthermore, companies collaborating with third-party drug discovery service vendors are likely to impact the market positively. The rising competition is fueled by factors such as higher efficiency, quality, and innovation is garnering regional growth.
Integration of Smart Technologies coupled with Heavy Demand for Generic Medicine is Fuelling the Demand for Drug Discovery Outsourcing
Asia Pacific region leads the market in terms of CAGR between 2023 and 2033. Japan drug discovery outsourcing markets in the Asia Pacific region. Apart from the higher population and higher investment, the Japanese market comes in the pharmaceutical market due to smart technology integration. The AI-enabled drug discovery method is transforming the industry with fast, reliable, inexpensive, and cruelty-free drug discovery.
Concepts like Digital Organ Simulation and Organ-on-a-chip are collectively flourishing the Regional Growth
The United Kingdom is another significant market for drug discovery outsourcing systems. The increase in virus mutations and deadly chronic diseases is pushing the demand for drug discovery outsourcing. Better prediction in human drug discovery also impacts the various treatment garnering market growth.
| Category | By Workflow |
|---|---|
| Leading Segment | Lead Identification & Candidate Optimization |
| Market Share % (2022) | 32.3% |
| Category | By Therapeutic Area |
|---|---|
| Leading Segment | Respiratory Systems |
| Market Share % (2022) | 14% |
Based on the workflow, lead identification & candidate optimization held the leading share of 32.3% in 2022. The growth is attributed to better workflow management. Also, increased activity around the non-bonded interaction and reduced side effects are making this segment more popular in the category. It is expected to improve potency and dynamics as well.
Based on the therapeutic area, the respiratory systems segment held a share of 14.0% in 2022. The higher amount of chronic diseases impacting the respiratory organs and developing various chronic and non-chronic diseases are thriving segmental growth. The therapeutic areas involve oncology, ophthalmology, hematology, cardiovascular, endocrine, and others. The diseases like bronchitis, tuberculosis, COPD, and asthma fuel the segment growth.
The key players focus on adopting advanced AI-enabled drug discovery outsourcing services. The end users choose the vendors that not only provide better pricing but also efficient quality and timing. Companies also merge, collaborate, and acquire in order to expand their sales and distributional channels.
Market Developments
The drug discovery outsourcing market is valued at USD 3.75 billion in 2023.
Albany Molecular Research Inc., EVOTEC and Laboratory Corporation of America Holdings are key players.
The drug discovery outsourcing market will reach USD 7.52 billion by 2033.
AI-driven drug discovery, expanding R&D, innovation adoption, cost reduction, and pharma collaboration propel the market.
Lead Identification & Candidate Optimization segment to remain preferred in the market through 2033.
Drug Discovery Outsourcing Market
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