The global drug discovery market size was estimated at around USD 60.31 billion in 2023 and it is projected to hit around USD 145.68 billion by 2033, growing at a CAGR of 9.22% from 2024 to 2033.
Key Pointers
- In 2023, North America held the highest market share and dominated the industry.
- Over the course of the projection period, Asia Pacific is anticipated to grow at the fastest rate.
- The small molecule segment had the highest revenue share by drug type in 2023.
- According to drug type, the big molecule or biologics market is expected to expand at an amazing CAGR between 2024 and 2033.
- Pharmaceutical firms have the highest market share by End User in 2023.
- Contract Research Organizations (CROs) are expected to be the most promising sector by End User over the course of the forecast year.
Drug Discovery Market Growth
The impressive expansion of the drug discovery market can be credited to several key factors driving innovation and growth. Technological advancements, particularly the integration of artificial intelligence and machine learning, have notably hastened the drug discovery process. These technologies improve the efficiency of target identification, lead optimization, and data analysis, thereby streamlining the research and development pipeline. Furthermore, the increasing understanding of genomics and molecular biology has revealed new therapeutic targets, opening avenues for novel drug candidates. Collaborations among pharmaceutical companies, biotech firms, and academic institutions have nurtured a collaborative ecosystem, facilitating the exchange of knowledge and resources. Additionally, the rising prevalence of complex diseases, coupled with a growing global population, underscores the demand for innovative therapies, driving the drug discovery market forward. As regulatory frameworks adapt to embrace cutting-edge technologies, the industry is poised for sustained growth, with a focus on precision medicine and personalized treatment approaches shaping the future landscape.
Drug Type Insights
The small molecule segment took the lead in the market in 2023, driven by a surge in demand for these drugs among the population. Small molecule drugs, known for their ability to easily impact cells and tackle diseases due to their compact size and weight, attracted growing attention. Manufacturers responded to the rising awareness of the efficacy of small molecule drugs by increasing investments in their development.
On the contrary, the large molecule or biologics segment is expected to see the fastest growth throughout the forecast period. This acceleration is driven by the adoption of new manufacturing technologies, which enable the production of biologics. Furthermore, heightened awareness among the population about the effective treatment capabilities of biologics, coupled with increased healthcare spending, is fueling the growth of the large molecule segment.
End User Insights
In 2023, the pharmaceutical companies segment emerged as the dominant force in the global drug discovery market. This dominance is directly attributed to significant investments made by leading pharmaceutical and biotechnology companies towards the development of new drugs. The increasing prevalence of chronic diseases and the expanding geriatric population have generated substantial demand for innovative drugs, driving the drug discovery market on a global scale. Additionally, the rapid growth of the biopharmaceutical industry has been a significant contributor to overall market expansion.
Conversely, the Contract Research Organizations (CROs) segment is poised to be the most promising sector during the forecast period. The proliferation of numerous small and medium-sized CROs globally, fueled by the increasing demand for CRO services among pharmaceutical companies, is a key factor driving the growth of the drug discovery market. Research stands as a central activity in the drug discovery process, and smaller pharmaceutical companies with limited financial resources typically opt for CRO services, further accelerating the growth of this segment.
Regional Insights
In 2023, North America emerged as the dominant region in the global drug discovery market, with the United States playing a pivotal role. The U.S. leads the world in research and development spending and holds the majority of patents for recently developed drugs. The increased prevalence of chronic diseases in the region has driven demand for advanced and innovative drugs, contributing to market growth. About half of the U.S. population grapples with one or more chronic diseases, leading to significant healthcare spending. Additionally, growing awareness of biologics in North America is impacting market growth. The region is also experiencing increased demand for generic drugs, immunotherapy drugs, and biosimilars, further influencing the drug discovery market.
Meanwhile, Asia Pacific is positioned as a promising market in the coming years, largely due to the presence of numerous Contract Research Organizations (CROs) in the region. Countries like South Korea, India, and China are investing heavily in the pharmaceutical industry, driving demand for biopharmaceutical products. Furthermore, the rising geriatric population in the region is expected to increase demand for drugs, as the elderly are more susceptible to chronic diseases. According to the United Nations, 80% of the global geriatric population is projected to reside in low and middle-income countries by 2050, indicating potential growth in the drug discovery market in the Asia Pacific region in the near future.
Read More: https://www.heathcareinsights.com/asthma-therapeutics-market/
Drug Discovery Market Key Companies
- Pfizer Inc.
- GlaxoSmithKline PLC
- Merck & Co. Inc.
- Agilent Technologies Inc.
- Eli Lilly and Company
- F. Hoffmann-La Roche Ltd
- Bayer AG
- Abbott Laboratories Inc.
- AstraZeneca PLC
- Shimadzu Corp
Drug Discovery Market Segmentations:
By Drug Type
- Small Molecule
- Large Molecule
By End User
- Pharmaceutical Companies
- CROs
- Others
By Technology
- High Throughput Screening
- Pharmacogenomics
- Combinatorial Chemistry
- Nanotechnology
- Other Technologies
By Region
- North America
- Europe
- Asia Pacific
- MEA
- Rest of the World
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