According to Vision Research Reports, the global drug discovery outsourcing market size suarpassed at US$ 4.7 Bn in 2020 and to reach US$ 12.5 bn by 2028.
The global drug discovery outsourcing market is anticipated to grow at a CAGR of 10.2% during the forecast period.
The market growth can be attributed to increase in research and development costs, rise in competition in the pharmaceutical sector, consumer demand for low-cost and efficient medication, and advancements in technology. Small to medium-sized pharmaceutical companies are increasingly turning to drug discovery outsourcing due to lack of adequate production capabilities & resources and lack of expertise. Although several larger companies are also expected to follow a similar path, organizational complications and discrepancies among shareholders could possibly slow down the process.
Drug discovery contract research organizations (CROs) are offering a range of research services on a contract basis to pharmaceutical and biotechnology companies for drug discovery. The expansion of the global drug discovery outsourcing market can be attributed to the rise in penetration of contract research organizations for pre-clinical research, increase in investments in research and development (R&D), a surge in the demand for personalized medicines, and rise in focus of pharmaceutical companies on streamlining their internal costs. North America dominated the global drug discovery outsourcing market in 2019. The trend is anticipated to continue during the forecast period. Increase in R&D costs, rise in funding for research & development, and an increase in penetration of CROs boost the drug discovery outsourcing market in the region.
Increase in R&D spending
Drug research and development (R&D) costs have been significantly high. These costs have been increasing continuously for the last few years. It is estimated that the cost of manufacturing a new molecule entity (NME) in 2017 was ~US$ 2 Bn to US$ 3.5 Bn. Furthermore, the total research and development spending is anticipated to increase at a rate of over 2% to 3% by 2020, primarily driven by significant unmet needs and strong technological advances. The increase in R&D costs has led to a range of biopharmaceutical companies outsourcing their research process ranging from target validation and lead optimization to animal testing and human clinical trials to CROs. Furthermore, R&D spending in oncology has been increasing significantly, which has fuelled the need for outsourcing R&D activities.
Challenges in Modern-day Pharmaceutical Sector and Technological Advancements Redefine Drug Development
The modern-day pharmaceutical is marred with several challenges in the drug development phase and requires considerable changes. Due to mounting challenges in drug development, drug development as well as drug discovery activities are increasingly being outsourced. Pricing pressure remains the major factor that is likely to trigger the tectonic shift in drug discovery outsourcing during the forecast period. High profit margins of pharmaceutical companies have attracted the attention of healthcare providers to add pressure pertaining to costs and reimbursement. In addition, as a result, as profit margins continue to decline several companies are evaluating the possibility of outsourcing drug discovery to third party organizations that have been equipped with required resources.
Technological advancements have played a key role in accelerating innovations in the past decade and the trend is likely to continue in the upcoming decade. Due to fast-paced development in technology, competition in the drug discovery and drug development sectors has increased at a rapid pace. Due to the cutthroat competition, several companies in the drug discovery outsourcing market are increasingly joining hands with third-party companies to develop various cost-effective drugs.
Cost Benefits Associated with Drug Discovery Outsourcing to Increase Adoption
Biotech and pharmaceutical companies have consistently expressed high levels of interest in drug discovery outsourcing due to immense cost saving and various other benefits over in-house manufacturing. As per current trends, the number of small and medium-sized businesses operating in the drug discovery outsourcing market is expected to remain higher than that of larger entities due to the low number of stakeholders and fewer organizational barriers in decision-making. In addition, apart from minimizing organizational complications, small and medium-sized companies are increasingly relying on drug discovery outsourcing for product manufacturing and development due to various factors, including insufficient production ability and lack of technical expertise. These factors, along with mushrooming costs of research and development activities continue to accelerate the overall growth of the global drug discovery outsourcing market.
Chemical Services Dominated Global Market
In terms of service type, the chemical services segment is projected to account for a major share of the global drug discovery outsourcing market during the forecast period. The expansion of the segment can be attributed to chemical services being the core of the drug discovery services. Moreover, increase in demand for newer molecules exceeding the supply and shortage of chemists has led to a rise in outsourcing of chemical services.
Small Molecules Drug Type to Remain Prominent
Based on drug type, the small molecules segment is anticipated to account for a major share of the global drug discovery outsourcing market during the forecast period. The expansion of the segment can be attributed to the increase in number of small molecule drugs in the pipeline. Additionally, ease of incorporation of AI and technology in drug discovery of small molecules further fuels the segment.
The global drug discovery outsourcing market has been segmented into five major regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominated the global drug discovery outsourcing market in 2020. The expansion of the drug discovery outsourcing market in the region can be attributed to the rise in focus and investments on research & development. The U.S. was a major country contributing to the expansion of the drug discovery outsourcing market in the region. Additionally, strong presence of leading market players, significant partnerships, and contracts of pharmaceutical companies with CROs for outsourcing their drug discovery process boost the drug discovery outsourcing market.
The drug discovery outsourcing market in Asia Pacific is estimated to expand at a high CAGR from 2020 to 2030 driven by developing countries such as China and India. The expansion of the drug discovery outsourcing market in the region can be attributed to a rise in the number of contract research organizations offering drug discovery services. Additionally, increase in focus of big pharmaceutical companies on outsourcing drug discovery to countries in Asia, owing to the large target population and presence of skilled technicians further propels the drug discovery outsourcing market in the region.
Focus on Strategic Acquisitions and Partnerships by Key Players to Propel Global Market
The global drug discovery outsourcing market is fragmented in terms of number of players. Key players operating in the global drug discovery outsourcing market are CHARLES RIVER LABORATORIES INTERNATIONAL, INC., WuXi AppTec Co., Ltd., Albany Molecular Research Inc. (AMRI), GVK Biosciences Private Limited, Sygnature Discovery, Pharmaron Beijing Co., Ltd., WuXi Biologics (Cayman), Inc., Domainex Ltd., Thermo Fisher Scientific, Inc., Jubilant Biosys Ltd., Evotec SE, Eurofins Discovery, and GenScript Biotech Corporation.
Drug Discovery Outsourcing Market: Segmentation
The Drug discovery outsourcing market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Drug discovery outsourcing market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Drug discovery outsourcing market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Drug discovery outsourcing market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Drug discovery outsourcing market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Drug discovery outsourcing capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Drug discovery outsourcing by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Drug discovery outsourcing market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Drug discovery outsourcing market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Drug discovery outsourcing market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Drug discovery outsourcing industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Drug discovery outsourcing market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Drug discovery outsourcing market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Drug discovery outsourcing market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Drug discovery outsourcing market. These factors have benefited the growth of the global market for Drug discovery outsourcing. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Drug discovery outsourcing. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Drug discovery outsourcing are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are: