Governments, research organizations, and companies across the globe are increasingly prioritizing research & development, attributed to the increasing burden of a vast range of diseases. In addition, advanced technologies have facilitated enhanced drug candidate identification. As a result, drug discovery has evolved considerably with emerging technologies. The global performance of the drug discovery market is optimistic, with a CAGR of 6.58% between 2022 and 2030. This trend is supplemented with the inflow of technology and focus on innovating new drugs that widen the scope of treatments.
Global Drug Discovery Market | Segmentation Analysis
Based on our report offerings, the drug discovery market is studied for drug type, technologies, end-user, and service segments. Advantages like precision, time-saving, and upgradation in the drug discovery process have rendered the technology segment to witness lucrative growth opportunities. Moreover, the key role of biological targets in the development of disease is projected to push the CAGR of the biologic drugs type segment during the forecast period.
Biologic drugs to record the fastest CAGR during the forecast period
The increasing adoption of biologic drugs is due to their specific advantages, especially target specificity. Recent developments include investigating the Sars-Cov-2 genome and therapeutics. Further, the growing funding from private and public organizations for developing vaccines, and most recently, COVID-19 aftermath, offer prospects to the biologic drugs segment. Additionally, revised regulations like the elimination of outdated biologics by the US FDA, facilitate new testing capabilities and manufacturing technologies, favoring the segment growth.
The high throughput screening to retain dominance in the technology segment.
The high throughput screening segment growth is attributed to the rising healthcare expenditure and the increasing government initiatives for advanced medicines development for treating chronic diseases. Also, as per the National Institute of Health (NIH), the research expenditure increased considerably between 2013 and 2020 in the United States.
Besides, there is a growing demand for drug discovery among pharmaceutical and biotechnology companies. Therefore, players have implemented innovative, open drug discovery models through collaborations with academic institutions and research organizations. The other factors contributing to the segment growth include the increased healthcare expenditure and the rising aging population.
Asia-Pacific is expected to project the highest CAGR by 2030.
Geographically, the global drug discovery market growth analysis includes the evaluation of North America, Europe, Asia-Pacific, and Rest of World. The European and North American countries have been advancing in drug discovery and development for decades, given the programs and initiatives by governments, CROs, and pharmaceutical companies. However, Asia-Pacific is expected to project the highest CAGR of 7.13% by 2030.
Key Trends shaping the Drug Discovery Market in 2022
The surging incidences of pathogen resistance to old drugs, patent expiries, diseases, and fierce competitive rivalry facilitate lucrative growth opportunities. Accordingly, pharmaceutical companies are increasingly pursuing blockbuster drugs to gain additional margins. Such trends are raising the demand for drug discovery technologies.
According to our expert analysis, the following are the key trends shaping the market:
Growing Collaborations among Industry Players
The market players are prioritizing partnerships and collaborations to strengthen their foothold in the global market. Collaborations aid players in transferring technology, exchanging knowledge, and sharing expertise. For instance, Insilico Medicine collaborated with the University of Zurich (UZH) to hasten the discovery of transformative novel therapeutics for cystinosis. Additionally, companies such as Icon PLC, Evotec SE, AstraZeneca PLC, Pfizer Inc, GlaxoSmithKline PLC, etc., are coming together to develop successful drugs through mutual efforts to tackle the innovation challenges.
Increased Outsourcing of R&D from CROs
There has been an increase in the number of services offered by contract research organizations (CROs) among pharmaceutical players in recent years. This is accredited to the persistent need for effective and innovative drugs in the market, given the rising health concerns. Accordingly, companies are outsourcing their R&D efforts to sustain the competition and need for self-growth. This entails funding the projects and taking control of the development or making agreements or buying licenses for the purchase of innovative drugs. Some of the prominent CROs that provide such services include Agilent Technologies, Evotec SE, Charles River Laboratories, etc.
Conclusion
The rising investments by biopharmaceutical companies in developing biologics and biosimilars have surged the number of product approvals. Besides the recent pandemic fatality, health conditions like cancer, cardiovascular diseases, and diabetes have raised health concerns across the globe. This has strengthened the stance to prioritize developments and advancements in treatments, thus enabling lucrative opportunities in the drug discovery market.
FAQs:
Which technology projects immense potential in the global drug discovery market?
Biochips project immense potential in the global drug discovery market.
Which is the fastest-growing service in the global drug discovery market?
Drug Metabolism and Pharmacokinetics (DMPK) Services are the fastest-growing service in the global drug discovery market.