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29-Oct-2024

Global Drug Discovery Outsourcing Market Poised to Reach USD 7.52 Billion by 2033 at a 7.2% of CAGR

Drug Discovery Outsourcing Market

The drug discovery outsourcing market is set to experience steady growth, expanding at a compound annual growth rate (CAGR) of 7.2% over the forecast period from 2023 to 2033. With a market value projected at USD 3.75 billion in 2023, the industry is expected to surpass USD 7.52 billion by 2033.

This growth is largely fueled by the rising need for cost-efficient and accelerated R&D processes within the pharmaceutical and biotechnology sectors. Outsourcing enables firms to leverage specialized expertise, cutting-edge technology, and faster timelines, enhancing drug development efficiencies. As research and development become increasingly complex and costly, companies are adopting outsourcing strategies to streamline operations and remain competitive.

The expanding drug discovery outsourcing market offers significant opportunities for contract research organizations (CROs), pharmaceutical firms, and biotech companies, enabling them to optimize resources, reduce development timelines, and expedite market access for new therapeutic solutions.

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.

What Growth Drivers Flourish the Drug Discovery Outsourcing Market?

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.

Competition Scenario

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

  • EVOTEC has introduced different discovery options for antibody discovery such as integrated drug discovery, integrated CMC, integrated pre-clinical, target ID, and validation services.
  • The Genscript has launched small-molecule drugs and large-molecule drug discovery programs that use organic or metallic compounds.

Key Players

  • Albany Molecular Research Inc.
  • EVOTEC
  • Laboratory Corporation of America Holdings
  • GenScript
  • Pharmaceutical Product Development, LLC
  • Charles River
  • WuXi AppTec
  • Merck & Co., Inc.
  • Thermo Fisher Scientific Inc.
  • Dalton Pharma Services
  • Oncodesign
  • Jubilant Biosys
  • DiscoverX Corp.
  • QIAGEN
  • Eurofins SE
  • Syngene International Limited
  • Dr. Reddy Laboratories Ltd.
  • Pharmaron Beijing Co., Ltd.
  • TCG Lifesciences Pvt Ltd.
  • Domainex Ltd.

A Full Report Overview

Market Segmentation

Workflow Outlook:

  • Target Identification & Screening
  • Target Validation & Functional Informatics
  • Lead Identification & Candidate Optimization
  • Preclinical Development
  • Other Associated Workflow

Therapeutics Area Outlook:

  • Respiratory system
  • Pain and Anesthesia
  • Oncology
  • Ophthalmology
  • Hematology
  • Cardiovascular
  • Endocrine
  • Gastrointestinal
  • Immunomodulation
  • Anti-infective
  • Central Nervous System
  • Dermatology
  • Genitourinary System

Drug Type Outlook:

  • Small Molecules
  • Large Molecules (Biopharmaceuticals)

Service Type Outlook:

  • Chemistry Services
  • Biology Services

End-user Outlook:

  • Pharmaceutical & Biotechnology companies
  • Academic Institutes
  • Others

Key Regions Covered:

  • North America
    • United States
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Spain
    • Russia
    • Rest of Europe
  • Japan
  • Asia Pacific Excluding Japan
    • China
    • India
    • Malaysia
    • Singapore
    • Australia
    • Rest of Asia Pacific Excluding Japan (APEJ)
  • The Middle East and Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East Asia (MEA)

Author By:

Sabyasachi Ghosh (Associate Vice President at Future Market Insights, Inc.) holds over 12 years of experience in the Healthcare, Medical Devices, and Pharmaceutical industries. His curious and analytical nature helped him shape his career as a researcher.

Identifying key challenges faced by clients and devising robust, hypothesis-based solutions to empower them with strategic decision-making capabilities come naturally to him. His primary expertise lies in areas such as Market Entry and Expansion Strategy, Feasibility Studies, Competitive Intelligence, and Strategic Transformation.

Holding a degree in Microbiology, Sabyasachi has authored numerous publications and has been cited in journals, including The Journal of mHealth, ITN Online, and Spinal Surgery News.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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Last Updated: 29-Oct-2024