The global Drug Discovery Outsourcing Market Size was valued at $3.6 billion in 2021 and is projected to reach $7.4 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031. Drug discovery outsourcing is defined as a practice that is used by different companies to reduce the cost of drug development by transferring portions of work to outside suppliers. Outsourced activities can be carried out in various fields, right from drug discovery to the manufacturing of products. Outsourcing drug commercialization to a third-party service provider specializing in drug commercialization helps to ensure the maximization of a drug product’s value proposition. It is a procedure that is used to find new medicines or drugs in different fields such as pharmacology, pharmaceuticals, and biotechnology.
Moreover, drug discovery contract research organizations (CROs) are engaged in offering a range of research services on a contract basis to pharmaceutical and biotechnology companies for drug discovery. Pharmaceutical companies are now outsourcing their R&D activities to private contract research organizations (CROs) and academic research institutions to reduce drug development time and cost.
The key factors that drive the growth of the market are the rise in the prevalence of chronic diseases such as cancer, cardiovascular disease, diabetes, and high blood pressure; the increase in R&D activities for drug discovery, and the surge in demand for target drug therapy are the major factors that drive the growth of the drug discovery outsourcing market. For instance, according to the report published by IQVIA in June 2022, the number of trials in oncology drug development reached a historic high of 56% in 2016. A record 30 oncology novel active substances were initially launched globally in 2021, and a total of 159 have been launched since 2012. Thus, the rise in the number of research activities increases the demand for performing clinical trials to launch new molecules in the market, which increases the demand for outsourcing service providers and hence boosts the growth of the market.
Furthermore, rise in the adoption of outsourcing services by pharmaceutical companies and the increase in the number of key players as CROs for the launch of novel drug therapies are anticipated to fuel the growth of the market. For instance, there are more than 1,000 CROs in the U. S. and Europe. The top 10 accounts for approximately 40% of industry sales. However, CROs have been focused on drug development and clinical trial support, where they can effectively speed the launch of a new drug in the market.
However, the high cost as well as the high risk of drug failure, along with the lack of skilled professionals, hamper the market's growth. Conversely, rising cases of cancer, genetic disease, & chronic disease; large geriatric population; a favorable regulatory environment; and the availability of low-cost skilled manpower with high-quality data in the developing countries are expected to provide a lucrative opportunity for the growth of the market during the forecast period.
The drug discovery outsourcing market is segmented on the basis of workflow, therapeutic area, drug type, end user, and region. By workflow, it is fragmented into target identification & screening, target validation & functional informatics, lead identification & candidate optimization, preclinical development, and others. By therapeutic area, it is classified into the respiratory system, infectious disease, oncology, immunology, hematology, cardiovascular, central nervous system, gastrointestinal, and others. By drug type, it is bifurcated into small molecules and large molecules. By end user, the market is categorized into pharmaceutical & biotechnology companies, academic institutes, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
North America accounted for a majority of the drug discovery outsourcing market share in 2021 and is anticipated to remain dominant during the forecast period. The drug discovery outsourcing market is mainly driven by the presence of well-established research facilities and a high prevalence rate of cancer & chronic diseases. Moreover, the availability of technologically advanced medical devices and the rise in the demand for target drug therapy techniques to cure cancer are contributing to the growth of the market in this region. Furthermore, an increasing number of key players involved in R&D activities for the discovery of novel drugs is expected to fuel market growth.
Asia-Pacific is expected to register the fastest CAGR during the forecast period. This is due to the availability of low-cost skilled manpower and high-quality clinical trial data and constantly improving healthcare infrastructure. In addition, the rapidly growing population, rising incidence of cancer & chronic disease, and improvement in the quality of healthcare facilities are set to drive the market in Asia-Pacific. This helps several key market players to invest in Asia-Pacific countries, which in turn, is further expected to contribute to the growth of the market.
The key players that operate in the drug discovery outsourcing market are Curia Global Inc, Charles River Laboratories Inc, Dr. Reddy’s Laboratories, Discover X Corporation, Dalton Pharma Service, Laboratory Corporation of America Holdings, Merck & Co, Syngene International Ltd, TCG Life Science Pvt. Ltd, and Thermo Fisher Scientific.
Moreover, drug discovery contract research organizations (CROs) are engaged in offering a range of research services on a contract basis to pharmaceutical and biotechnology companies for drug discovery. Pharmaceutical companies are now outsourcing their R&D activities to private contract research organizations (CROs) and academic research institutions to reduce drug development time and cost.
The key factors that drive the growth of the market are the rise in the prevalence of chronic diseases such as cancer, cardiovascular disease, diabetes, and high blood pressure; the increase in R&D activities for drug discovery, and the surge in demand for target drug therapy are the major factors that drive the growth of the drug discovery outsourcing market. For instance, according to the report published by IQVIA in June 2022, the number of trials in oncology drug development reached a historic high of 56% in 2016. A record 30 oncology novel active substances were initially launched globally in 2021, and a total of 159 have been launched since 2012. Thus, the rise in the number of research activities increases the demand for performing clinical trials to launch new molecules in the market, which increases the demand for outsourcing service providers and hence boosts the growth of the market.
Furthermore, rise in the adoption of outsourcing services by pharmaceutical companies and the increase in the number of key players as CROs for the launch of novel drug therapies are anticipated to fuel the growth of the market. For instance, there are more than 1,000 CROs in the U. S. and Europe. The top 10 accounts for approximately 40% of industry sales. However, CROs have been focused on drug development and clinical trial support, where they can effectively speed the launch of a new drug in the market.
However, the high cost as well as the high risk of drug failure, along with the lack of skilled professionals, hamper the market's growth. Conversely, rising cases of cancer, genetic disease, & chronic disease; large geriatric population; a favorable regulatory environment; and the availability of low-cost skilled manpower with high-quality data in the developing countries are expected to provide a lucrative opportunity for the growth of the market during the forecast period.
The drug discovery outsourcing market is segmented on the basis of workflow, therapeutic area, drug type, end user, and region. By workflow, it is fragmented into target identification & screening, target validation & functional informatics, lead identification & candidate optimization, preclinical development, and others. By therapeutic area, it is classified into the respiratory system, infectious disease, oncology, immunology, hematology, cardiovascular, central nervous system, gastrointestinal, and others. By drug type, it is bifurcated into small molecules and large molecules. By end user, the market is categorized into pharmaceutical & biotechnology companies, academic institutes, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
North America accounted for a majority of the drug discovery outsourcing market share in 2021 and is anticipated to remain dominant during the forecast period. The drug discovery outsourcing market is mainly driven by the presence of well-established research facilities and a high prevalence rate of cancer & chronic diseases. Moreover, the availability of technologically advanced medical devices and the rise in the demand for target drug therapy techniques to cure cancer are contributing to the growth of the market in this region. Furthermore, an increasing number of key players involved in R&D activities for the discovery of novel drugs is expected to fuel market growth.
Asia-Pacific is expected to register the fastest CAGR during the forecast period. This is due to the availability of low-cost skilled manpower and high-quality clinical trial data and constantly improving healthcare infrastructure. In addition, the rapidly growing population, rising incidence of cancer & chronic disease, and improvement in the quality of healthcare facilities are set to drive the market in Asia-Pacific. This helps several key market players to invest in Asia-Pacific countries, which in turn, is further expected to contribute to the growth of the market.
The key players that operate in the drug discovery outsourcing market are Curia Global Inc, Charles River Laboratories Inc, Dr. Reddy’s Laboratories, Discover X Corporation, Dalton Pharma Service, Laboratory Corporation of America Holdings, Merck & Co, Syngene International Ltd, TCG Life Science Pvt. Ltd, and Thermo Fisher Scientific.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the drug discovery outsourcing market analysis from 2021 to 2031 to identify the prevailing drug discovery outsourcing market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the drug discovery outsourcing market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes an analysis of the regional as well as global drug discovery outsourcing market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Workflow
- Target Validation and Functional Informatics
- Lead Identification and Candidate Optimization
- Preclinical Development
- Others
- Target Identification and Screening
By Therapeutic area
- Cardiovascular
- Central Nervous System (CNS)
- Gastrointestinal
- Others
- Hematology
- Respiratory system
- Infectious disease
- Oncology
- Immunology
By Drug Type
- Small Molecules
- Large Molecules
By End User
- Pharmaceutical and Biotechnology companies
- Academic Institutes
- Others
By Region
- North America
- U. S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- Australia
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- . Charles River Laboratories,
- Curia Global Inc
- Dr. Reddy's Laboratories
- Dalton Pharma Service
- Discover X Corporation
- Laboratory Corporation of America Holdings
- Merck & Co
- Syngene International Ltd
- Thermo Fisher Scientific, Inc.
- TCG Life Science Pvt. Ltd
Table of Contents
CHAPTER 1: INTRODUCTION1.1. Report description
1.2. Key market segments
1.3. Key benefits to the stakeholders
1.4. Research Methodology
1.4.1. Secondary research
1.4.2. Primary research
1.4.3. Analyst tools and models
CHAPTER 2: EXECUTIVE SUMMARY
2.1. Key findings of the study
2.2. CXO Perspective
CHAPTER 3: MARKET OVERVIEW
3.1. Market definition and scope
3.2. Key findings
3.2.1. Top investment pockets
3.3. Porter’s five forces analysis
3.4. Top player positioning
3.5. Market dynamics
3.5.1. Drivers
3.5.2. Restraints
3.5.3. Opportunities
3.6. COVID-19 Impact Analysis on the market
CHAPTER 4: DRUG DISCOVERY OUTSOURCING MARKET, BY WORKFLOW
4.1 Overview
4.1.1 Market size and forecast
4.2 Target Identification and Screening
4.2.1 Key market trends, growth factors and opportunities
4.2.2 Market size and forecast, by region
4.2.3 Market share analysis by country
4.3 Target Validation and Functional Informatics
4.3.1 Key market trends, growth factors and opportunities
4.3.2 Market size and forecast, by region
4.3.3 Market share analysis by country
4.4 Lead Identification and Candidate Optimization
4.4.1 Key market trends, growth factors and opportunities
4.4.2 Market size and forecast, by region
4.4.3 Market share analysis by country
4.5 Preclinical Development
4.5.1 Key market trends, growth factors and opportunities
4.5.2 Market size and forecast, by region
4.5.3 Market share analysis by country
4.6 Others
4.6.1 Key market trends, growth factors and opportunities
4.6.2 Market size and forecast, by region
4.6.3 Market share analysis by country
CHAPTER 5: DRUG DISCOVERY OUTSOURCING MARKET, BY THERAPEUTIC AREA
5.1 Overview
5.1.1 Market size and forecast
5.2 Respiratory system
5.2.1 Key market trends, growth factors and opportunities
5.2.2 Market size and forecast, by region
5.2.3 Market share analysis by country
5.3 Infectious disease
5.3.1 Key market trends, growth factors and opportunities
5.3.2 Market size and forecast, by region
5.3.3 Market share analysis by country
5.4 Oncology
5.4.1 Key market trends, growth factors and opportunities
5.4.2 Market size and forecast, by region
5.4.3 Market share analysis by country
5.5 Immunology
5.5.1 Key market trends, growth factors and opportunities
5.5.2 Market size and forecast, by region
5.5.3 Market share analysis by country
5.6 Hematology
5.6.1 Key market trends, growth factors and opportunities
5.6.2 Market size and forecast, by region
5.6.3 Market share analysis by country
5.7 Cardiovascular
5.7.1 Key market trends, growth factors and opportunities
5.7.2 Market size and forecast, by region
5.7.3 Market share analysis by country
5.8 Central Nervous System (CNS)
5.8.1 Key market trends, growth factors and opportunities
5.8.2 Market size and forecast, by region
5.8.3 Market share analysis by country
5.9 Gastrointestinal
5.9.1 Key market trends, growth factors and opportunities
5.9.2 Market size and forecast, by region
5.9.3 Market share analysis by country
6.0 Others
6.0.1 Key market trends, growth factors and opportunities
6.0.2 Market size and forecast, by region
6.0.3 Market share analysis by country
CHAPTER 6: DRUG DISCOVERY OUTSOURCING MARKET, BY DRUG TYPE
6.1 Overview
6.1.1 Market size and forecast
6.2 Small Molecules
6.2.1 Key market trends, growth factors and opportunities
6.2.2 Market size and forecast, by region
6.2.3 Market share analysis by country
6.3 Large Molecules
6.3.1 Key market trends, growth factors and opportunities
6.3.2 Market size and forecast, by region
6.3.3 Market share analysis by country
CHAPTER 7: DRUG DISCOVERY OUTSOURCING MARKET, BY END USER
7.1 Overview
7.1.1 Market size and forecast
7.2 Pharmaceutical and Biotechnology companies
7.2.1 Key market trends, growth factors and opportunities
7.2.2 Market size and forecast, by region
7.2.3 Market share analysis by country
7.3 Academic Institutes
7.3.1 Key market trends, growth factors and opportunities
7.3.2 Market size and forecast, by region
7.3.3 Market share analysis by country
7.4 Others
7.4.1 Key market trends, growth factors and opportunities
7.4.2 Market size and forecast, by region
7.4.3 Market share analysis by country
CHAPTER 8: DRUG DISCOVERY OUTSOURCING MARKET, BY REGION
8.1 Overview
8.1.1 Market size and forecast
8.2 North America
8.2.1 Key trends and opportunities
8.2.2 North America Market size and forecast, by Workflow
8.2.3 North America Market size and forecast, by Therapeutic area
8.2.4 North America Market size and forecast, by Drug Type
8.2.5 North America Market size and forecast, by End User
8.2.6 North America Market size and forecast, by country
8.2.6.1 U. S.
8.2.6.1.1 Key market trends, growth factors and opportunities
8.2.6.1.2 Market size and forecast, by Workflow
8.2.6.1.3 Market size and forecast, by Therapeutic area
8.2.6.1.4 Market size and forecast, by Drug Type
8.2.6.1.5 Market size and forecast, by End User
8.2.6.2 Canada
8.2.6.2.1 Key market trends, growth factors and opportunities
8.2.6.2.2 Market size and forecast, by Workflow
8.2.6.2.3 Market size and forecast, by Therapeutic area
8.2.6.2.4 Market size and forecast, by Drug Type
8.2.6.2.5 Market size and forecast, by End User
8.2.6.3 Mexico
8.2.6.3.1 Key market trends, growth factors and opportunities
8.2.6.3.2 Market size and forecast, by Workflow
8.2.6.3.3 Market size and forecast, by Therapeutic area
8.2.6.3.4 Market size and forecast, by Drug Type
8.2.6.3.5 Market size and forecast, by End User
8.3 Europe
8.3.1 Key trends and opportunities
8.3.2 Europe Market size and forecast, by Workflow
8.3.3 Europe Market size and forecast, by Therapeutic area
8.3.4 Europe Market size and forecast, by Drug Type
8.3.5 Europe Market size and forecast, by End User
8.3.6 Europe Market size and forecast, by country
8.3.6.1 Germany
8.3.6.1.1 Key market trends, growth factors and opportunities
8.3.6.1.2 Market size and forecast, by Workflow
8.3.6.1.3 Market size and forecast, by Therapeutic area
8.3.6.1.4 Market size and forecast, by Drug Type
8.3.6.1.5 Market size and forecast, by End User
8.3.6.2 France
8.3.6.2.1 Key market trends, growth factors and opportunities
8.3.6.2.2 Market size and forecast, by Workflow
8.3.6.2.3 Market size and forecast, by Therapeutic area
8.3.6.2.4 Market size and forecast, by Drug Type
8.3.6.2.5 Market size and forecast, by End User
8.3.6.3 UK
8.3.6.3.1 Key market trends, growth factors and opportunities
8.3.6.3.2 Market size and forecast, by Workflow
8.3.6.3.3 Market size and forecast, by Therapeutic area
8.3.6.3.4 Market size and forecast, by Drug Type
8.3.6.3.5 Market size and forecast, by End User
8.3.6.4 Italy
8.3.6.4.1 Key market trends, growth factors and opportunities
8.3.6.4.2 Market size and forecast, by Workflow
8.3.6.4.3 Market size and forecast, by Therapeutic area
8.3.6.4.4 Market size and forecast, by Drug Type
8.3.6.4.5 Market size and forecast, by End User
8.3.6.5 Spain
8.3.6.5.1 Key market trends, growth factors and opportunities
8.3.6.5.2 Market size and forecast, by Workflow
8.3.6.5.3 Market size and forecast, by Therapeutic area
8.3.6.5.4 Market size and forecast, by Drug Type
8.3.6.5.5 Market size and forecast, by End User
8.3.6.6 Rest of Europe
8.3.6.6.1 Key market trends, growth factors and opportunities
8.3.6.6.2 Market size and forecast, by Workflow
8.3.6.6.3 Market size and forecast, by Therapeutic area
8.3.6.6.4 Market size and forecast, by Drug Type
8.3.6.6.5 Market size and forecast, by End User
8.4 Asia-Pacific
8.4.1 Key trends and opportunities
8.4.2 Asia-Pacific Market size and forecast, by Workflow
8.4.3 Asia-Pacific Market size and forecast, by Therapeutic area
8.4.4 Asia-Pacific Market size and forecast, by Drug Type
8.4.5 Asia-Pacific Market size and forecast, by End User
8.4.6 Asia-Pacific Market size and forecast, by country
8.4.6.1 Japan
8.4.6.1.1 Key market trends, growth factors and opportunities
8.4.6.1.2 Market size and forecast, by Workflow
8.4.6.1.3 Market size and forecast, by Therapeutic area
8.4.6.1.4 Market size and forecast, by Drug Type
8.4.6.1.5 Market size and forecast, by End User
8.4.6.2 China
8.4.6.2.1 Key market trends, growth factors and opportunities
8.4.6.2.2 Market size and forecast, by Workflow
8.4.6.2.3 Market size and forecast, by Therapeutic area
8.4.6.2.4 Market size and forecast, by Drug Type
8.4.6.2.5 Market size and forecast, by End User
8.4.6.3 Australia
8.4.6.3.1 Key market trends, growth factors and opportunities
8.4.6.3.2 Market size and forecast, by Workflow
8.4.6.3.3 Market size and forecast, by Therapeutic area
8.4.6.3.4 Market size and forecast, by Drug Type
8.4.6.3.5 Market size and forecast, by End User
8.4.6.4 India
8.4.6.4.1 Key market trends, growth factors and opportunities
8.4.6.4.2 Market size and forecast, by Workflow
8.4.6.4.3 Market size and forecast, by Therapeutic area
8.4.6.4.4 Market size and forecast, by Drug Type
8.4.6.4.5 Market size and forecast, by End User
8.4.6.5 South Korea
8.4.6.5.1 Key market trends, growth factors and opportunities
8.4.6.5.2 Market size and forecast, by Workflow
8.4.6.5.3 Market size and forecast, by Therapeutic area
8.4.6.5.4 Market size and forecast, by Drug Type
8.4.6.5.5 Market size and forecast, by End User
8.4.6.6 Rest of Asia-Pacific
8.4.6.6.1 Key market trends, growth factors and opportunities
8.4.6.6.2 Market size and forecast, by Workflow
8.4.6.6.3 Market size and forecast, by Therapeutic area
8.4.6.6.4 Market size and forecast, by Drug Type
8.4.6.6.5 Market size and forecast, by End User
8.5 LAMEA
8.5.1 Key trends and opportunities
8.5.2 LAMEA Market size and forecast, by Workflow
8.5.3 LAMEA Market size and forecast, by Therapeutic area
8.5.4 LAMEA Market size and forecast, by Drug Type
8.5.5 LAMEA Market size and forecast, by End User
8.5.6 LAMEA Market size and forecast, by country
8.5.6.1 Brazil
8.5.6.1.1 Key market trends, growth factors and opportunities
8.5.6.1.2 Market size and forecast, by Workflow
8.5.6.1.3 Market size and forecast, by Therapeutic area
8.5.6.1.4 Market size and forecast, by Drug Type
8.5.6.1.5 Market size and forecast, by End User
8.5.6.2 Saudi Arabia
8.5.6.2.1 Key market trends, growth factors and opportunities
8.5.6.2.2 Market size and forecast, by Workflow
8.5.6.2.3 Market size and forecast, by Therapeutic area
8.5.6.2.4 Market size and forecast, by Drug Type
8.5.6.2.5 Market size and forecast, by End User
8.5.6.3 South Africa
8.5.6.3.1 Key market trends, growth factors and opportunities
8.5.6.3.2 Market size and forecast, by Workflow
8.5.6.3.3 Market size and forecast, by Therapeutic area
8.5.6.3.4 Market size and forecast, by Drug Type
8.5.6.3.5 Market size and forecast, by End User
8.5.6.4 Rest of LAMEA
8.5.6.4.1 Key market trends, growth factors and opportunities
8.5.6.4.2 Market size and forecast, by Workflow
8.5.6.4.3 Market size and forecast, by Therapeutic area
8.5.6.4.4 Market size and forecast, by Drug Type
8.5.6.4.5 Market size and forecast, by End User
CHAPTER 9: COMPANY LANDSCAPE
9.1. Introduction
9.2. Top winning strategies
9.3. Product Mapping of Top 10 Player
9.4. Competitive Dashboard
9.5. Competitive Heatmap
9.6. Key developments
CHAPTER 10: COMPANY PROFILES
10.1 . Charles River Laboratories,
10.1.1 Company overview
10.1.2 Company snapshot
10.1.3 Operating business segments
10.1.4 Product portfolio
10.1.5 Business performance
10.1.6 Key strategic moves and developments
10.2 Curia Global Inc
10.2.1 Company overview
10.2.2 Company snapshot
10.2.3 Operating business segments
10.2.4 Product portfolio
10.2.5 Business performance
10.2.6 Key strategic moves and developments
10.3 Dr. Reddy's Laboratories
10.3.1 Company overview
10.3.2 Company snapshot
10.3.3 Operating business segments
10.3.4 Product portfolio
10.3.5 Business performance
10.3.6 Key strategic moves and developments
10.4 Dalton Pharma Service
10.4.1 Company overview
10.4.2 Company snapshot
10.4.3 Operating business segments
10.4.4 Product portfolio
10.4.5 Business performance
10.4.6 Key strategic moves and developments
10.5 Discover X Corporation
10.5.1 Company overview
10.5.2 Company snapshot
10.5.3 Operating business segments
10.5.4 Product portfolio
10.5.5 Business performance
10.5.6 Key strategic moves and developments
10.6 Laboratory Corporation of America Holdings
10.6.1 Company overview
10.6.2 Company snapshot
10.6.3 Operating business segments
10.6.4 Product portfolio
10.6.5 Business performance
10.6.6 Key strategic moves and developments
10.7 Merck & Co
10.7.1 Company overview
10.7.2 Company snapshot
10.7.3 Operating business segments
10.7.4 Product portfolio
10.7.5 Business performance
10.7.6 Key strategic moves and developments
10.8 Syngene International Ltd
10.8.1 Company overview
10.8.2 Company snapshot
10.8.3 Operating business segments
10.8.4 Product portfolio
10.8.5 Business performance
10.8.6 Key strategic moves and developments
10.9 Thermo Fisher Scientific, Inc.
10.9.1 Company overview
10.9.2 Company snapshot
10.9.3 Operating business segments
10.9.4 Product portfolio
10.9.5 Business performance
10.9.6 Key strategic moves and developments
10.10 TCG Life Science Pvt. Ltd
10.10.1 Company overview
10.10.2 Company snapshot
10.10.3 Operating business segments
10.10.4 Product portfolio
10.10.5 Business performance
10.10.6 Key strategic moves and developments
Executive Summary
According to this report, titled, 'Drug Discovery Outsourcing Market,' the Drug Discovery Outsourcing Market Size was valued at $3.6 billion in 2021 and is estimated to reach $7.4 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.Drug discovery outsourcing is used by different companies to reduce costs by transferring portions of work to outside suppliers. Outsourced activities can be carried out in various fields, right from drug discovery to the manufacturing of products.
The Drug Discovery Outsourcing Market Trends is an increase in the incidence of rare genetic disorders and cancer, as well as the rising demand for novel drug delivery technologies. Moreover, the rising usage of AI in drug discovery, as well as the rapid shift toward patent expiration, biologics, and unprecedented downsizing of internal discovery of big pharmaceuticals, and the rising incidences of antibiotic resistance as well as drug resistance, boost the growth of the market.
However, the high cost as well as the high risk of drug failure are the major barriers to the growth of the market. Conversely, emerging economies such as India, China, Mexico, and Brazil are anticipated to create new opportunities during the forecast period.
On the basis of workflow, the target identification and screening segment accounted for the largest share of the market. The dominance of this segment can be attributed to the rapid drug development process and rise in awareness regarding target selection by using various methods such as assay & readers, automation, and high content screening.
On the basis of therapeutic area, the oncology segment accounted for the largest share of the market. The dominance of this segment can be attributed to the rise in the prevalence of cancer cases around the globe, which leads to an increase in the demand to conduct R&D activities for the development of targeted drug therapy against the cancerous cell.
On the basis of drug type, the small molecules segment accounted for the largest share of the market. The dominance of this segment can be attributed to the rapid advancement of biopharmaceutical research and technology for the discovery and some distinct advantages, such as it can be administered orally and can pass through cell membranes to reach intracellular targets more precisely as compared to large molecules.
By end user, the pharmaceutical and biotechnology companies segment exhibited the highest growth in 2021 and is anticipated to lead during the forecast period, owing to rising R&D expenditure of pharmaceutical and biopharmaceutical companies, which is prompting them to opt for fully integrated or functional outsourcing services, from the early development stage to the late-stage development phase, for drug discovery and development.
North America accounted for a majority of the drug discovery outsourcing market share in 2021 and is anticipated to remain dominant during the forecast period owing to the high adoption rate of technologically advanced AI-based drug discovery systems, increase in healthcare expenditure, and the presence of major key players in the country providing outsourcing facilities for the development of novel drug therapies to treat cancer and chronic diseases.
Asia-Pacific is expected to register the fastest CAGR during the forecast period. The market growth in the Asia-Pacific is supplemented by highly populated countries along with a high prevalence rate of genetic disorders and cancer. In addition, the favorable regulatory environment and availability of low-cost skilled manpower with high-quality data in these nations, especially in countries such as India and China, are expected to further drive the Drug Discovery Outsourcing Market Growth.
The key players that operate in the Drug Discovery Outsourcing Industry are Curia Global Inc, Charles River Laboratories Inc, Dr. Reddy’s Laboratories, Discover X Corporation, Dalton Pharma Service, Laboratory Corporation of America Holdings, Merck & Co, Syngene International Ltd, TCG Life Science Pvt. Ltd, and Thermo Fisher Scientific.
Key findings of the study
By workflow, the target identification and screening segment was the highest contributor to the market in 2021.By therapeutic area, the oncology segment was the highest contributor to the market in 2021.
By type, the small molecules segment was the highest contributor to the market in 2021.
By end user, the pharmaceutical and biotechnology companies dominated the market in 2021 and are expected to continue this trend during the forecast period.
By region, North America garnered the largest revenue share in 2021, whereas Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.
Companies Mentioned
- Charles River Laboratories
- Curia Global Inc.
- Dr. Reddy's Laboratories
- Dalton Pharma Service
- Discover X Corporation
- Laboratory Corporation of America Holdings
- Merck & Co
- Syngene International Ltd.
- Thermo Fisher Scientific, Inc.
- Tcg Life Science Pvt. Ltd
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 251 |
| Published | October 2022 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 3.6 billion |
| Forecasted Market Value ( USD | $ 7.4 billion |
| Compound Annual Growth Rate | 7.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
