What are the Historical Developments and Current Growth Metrics of the Drug Discovery Outsourcing Market?
The drug discovery outsourcing market has seen considerable growth due to a variety of factors.
• The market size for outsourcing in drug discovery has seen robust growth in the past few years. The market is predicted to expand from $3.92 billion in 2024 to $4.24 billion in 2025, experiencing a compound annual growth rate (CAGR) of 8.1%.
The historic period growth is attributed to factors including increasing complexity in drug discovery, need for specialized knowledge, strict regulatory stipulations, globalization of clinical trials, and a surge in demand for orphan drugs along with personalized medicine.
What Is The Projected Growth Of The Drug Discovery Outsourcing Template Market?
The drug discovery outsourcing market is expected to maintain its strong growth trajectory in upcoming years.
• A robust growth is projected in the drug discovery outsourcing market size over the coming years. The market is anticipated to surge to $5.72 billion by 2029, charting a compound annual growth rate (CAGR) of 7.8%.
Factors contributing to this growth during the forecast period include rising expenditure on research and development, lapsing patents, growth of the biopharmaceutical industry, emphasis on core expertise, and the urgency to minimize time-to-market. Key trends predicted for the forecast period encompass the integration of artificial intelligence, technological progress, use of big data analytics, specialty drugs, as well as collaborative and strategic alliances.
What Are The Key Drivers Fueling Growth In The Drug Discovery Outsourcing Market?
The rise in chronic diseases is anticipated to stimulate the expansion of the drug discovery outsourcing market. Long-term health conditions that may endure for years or a lifetime are classified as chronic diseases. The accelerating rate of such diseases is a result of various factors such as aging population, poor lifestyle choices, urbanization, and environmental influences. Drug discovery outsourcing expedites the creation of therapies for chronic diseases by offering specialized expertise and cutting-edge technology, saving both time and cost. For example, the Australian Institute of Health and Welfare unveiled in June 2024 that about 61% of the population, nearly 15.4 million individuals, were living with a long-term health condition, accounting for 90% of deaths in 2022. Among those aged 0–24, approximately 1.3 million or 16% suffered from anxiety, and 1.6 million or 22% aged 25–44 experienced the same. Back problems were common in about 1.5 million or 23% of those aged 45–64. Meanwhile, approximately 1.3 million or 32% of those aged 65 and up experienced deafness or hearing loss. As a result, the escalating prevalence of chronic diseases acts as a catalyst for the growth of the drug discovery outsourcing market.
What Are The Principal Market Segments In The Global Drug Discovery Outsourcing Industry?
The drug discovery outsourcingmarket covered in this report is segmented –
1) By Service Type: Chemistry Services, Biological Services
2) By Workflow: Target Identification And Screening, Target Validation And Functional Informatics, Lead Identification And Candidate Optimization, Preclinical Development, Other Workflows
3) By Disease Model: In Vitro Models, Animal Models, Cellular Models, Other Disease Models
4) By Therapeutic Area: Cardiovascular, Central Nervous System (CNS), Gastrointestinal, Hematology, Respiratory System, Infectious Disease, Oncology, Immunology, Other Therapeutic Areas
5) By End User: Pharmaceutical And Biotechnology Companies, Academic Institutes, Other End Users
Subsegments:
1) By Chemistry Services: Custom Synthesis And Manufacturing, Medicinal Chemistry, Combinatorial Chemistry, Hit Identification And Lead Optimization, Process Chemistry And Scale-Up, Analytical Chemistry Services, Chemical Library Design And Screening, ADMET (Absorption, Distribution, Metabolism, Excretion, And Toxicity) Profiling
2) By Biological Services: Cell-Based Assays And Screening, Target Identification And Validation, In Vitro And In Vivo Testing, Biomarker Discovery And Development, Toxicology Studies, Genomics And Proteomics Services, Animal Models For Preclinical Development, Biological Safety And Efficacy Testing, Biopharmaceutical Development And Manufacturing.
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What Trends Are Shaping The Drug Discovery Outsourcing Market?
Leading firms in the drug discovery outsourcing market are working on introducing innovations like digital health solutions to adequately address the demands of healthcare professionals, regulators, and patients. These digital health solutions include technologies and services like telehealth, mobile health apps, and wearable tech which bolster healthcare provision, patient participation, and healthcare management. For example, in November 2023, UK-based biopharmaceutical corporation AstraZeneca PLC rolled out Evinova, a revolutionary health-tech firm committed to fostering innovation in the field of life sciences and improving the execution of clinical tests. Evinova is designed to boost health outcomes by providing digital products and services on a global scale that have demonstrated their effectiveness in AstraZeneca's clinical tests in more than 40 nations. By enhancing the design and execution of clinical tests, Evinova aims to simplify the development of new drugs, leading to a decrease in both time and costs.
Who Are the Key Players In The Drug Discovery Outsourcing Market?
Major companies operating in the drug discovery outsourcing market are:
• Thermo Fisher Scientific Inc.
• Laboratory Corporation of America Holdings
• Eurofins SE
• Charles River Laboratories
• QIAGEN N.V.
• Curia Global Inc.
• EVOTEC
• Pharmaron Beijing Co. Ltd.
• Genscript Biotech
• WuXi AppTec
• Pharmaceutical Product Development
• LLC
• Syngene International Limited
• Jubilant Biosys
• Dalton Pharma Services
• Oncodesign Services
• DiscoverX Corp.
• Domainex Ltd.
• Exscientia
• TCG Lifesciences Pvt Ltd.
• GVK Biosciences Private Limited
What Are The Regional Insights Into The Drug Discovery Outsourcing Market?
North America was the largest region in the drug discovery outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the drug discovery outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
