The global Drug Discovery Outsourcing market size is expected to be worth around US$ 7.4 billion by 2030, according to a new report by Vision Research Reports.
The global Drug Discovery Outsourcing market size was valued at US$ 5.1 billion in 2020 and is anticipated to grow at a CAGR of 8.4% during forecast period 2021 to 2030.
Drug discovery is a costly and lengthy process. This has forced pharmaceutical and biotech companies to opt for outsourcing their research activities to academic and private Contract Research Organizations (CROs). Thus, factors such as high R&D costs, patent expiration of best-selling drugs, and the need to speed up the drug discovery process, are expected to boost the demand for outsourcing of drug discovery in the coming years.
Rising cases of chronic diseases have compelled companies to develop better medicines. Some of the key therapeutic areas where companies are actively involved in outsourcing include oncology, cardiovascular, and anti-infectives. In November 2020, AstraZeneca collaborated with 9 of the foremost oncology medical centers to expedite research in some of the hardest-to-treat cancers. The company will be funding clinical and non-clinical research proposals from members within this network. The COVID-19 pandemic has brought pharmaceutical companies in limelight. It is demonstrating the value of drug discovery and development.
Several companies are proactively involved in developing an effective to treat the disease. Pfizer Inc. and BioNTech SE received the first approval for the vaccine following a worldwide Phase 3 trial of a potential strain to combat the virus. As for , many of them are halted, while some are functional by adopting remote monitoring technologies. Thus, the pandemic has brought the pharmaceutical industry to center-stage, with drug discovery outsourcing becoming a key aspect to develop effective treatments against the virus. This is expected to boost the market revenue for the next 2 years i.e. a short-term boom, after which it shall regain its original growth curve.
The lead identification & candidate optimization workflow segment accounted for the highest revenue share of over 32% in 2020. The segment is projected to expand further at a steady CAGR from 2021 to 2028. The iterative process of lead identification, also known as hit-to-lead, is a significant stage in early drug discovery. It has historically proven to have improved efficiencies and economies of scale for drug developers. The introduction of advanced in silico techniques to improve the lead identification process, such as Computer-Aided Drug Discovery (CADD) and structure-based drug designs, support segment growth.
The rising need for skilled resources with combinational knowledge of metabolism, analytical chemistry, and computer software, along with the high cost associated with the integration of the latest computation technology, is enabling higher outsourcing for lead identification services. This, in turn, will fuel the segment growth over the forecast period. The other associated services segment, which includes cell line development, upstream & downstream processes, analytical/bioanalytical methods, formulations & quality assessment, and regulatory assistance, is anticipated to witness the fastest CAGR during the forecast years. This is owing to the increased adoption of outsourcing services and high investments in drug discovery R&D.
The respiratory systems segment accounted for the largest share of 13.75% of the global drug discovery outsourcing market in 2020 High incidence of respiratory disorders, such as bronchitis, tuberculosis, Chronic Obstructive Pulmonary Diseases (COPD), and asthma, and increasing cases of drug resistance have supported the segment growth. The introduction of novel drug delivery technologies, such as nasal sprays, also contributed to the segment’s growth. Lung diseases are responsible for over 700,000 hospital admissions and over 6 million in-patient bed-days in the U.K. per year.
An estimated 1.2 million people suffer from diagnosed COPD in the U.K. Because of this, in 2018, The University of Nottingham formed a strategic research collaboration with GSK and the University of Leicester. The collaboration aimed at accelerating the discovery and development of innovative treatments for COPD. The oncology and anti-infective segments are both projected to witness solid growth rates over the forecast period. Increased focus on the identification of novel targets to support cancer treatment contributes to the growth of the oncology segment.
In June 2020, AstraZeneca collaborated with Accent Therapeutics to discover, develop, and commercialize transformative therapeutics targeting RNA-Modifying Proteins (RMPs) for the treatment of cancer. Antimicrobial resistance is projected to become a global crisis with its growing emergence and spread resulting in a high economic burden. Thus, companies are also focusing on R&D regarding anti-infective drugs, which will boost the segment growth.
The small molecules/pharmaceuticals drug type segment accounted for the largest revenue share of over 77% in 2020 and is projected to register the fastest CAGR during the forecast period. Small molecules play a significant role in the development of innovative treatments for patients worldwide. Sales of half of the specialty medicines are attributable to small molecule applications.
Its role is also visible in the recent approval trends. In 2019, the FDA approved 48 new drugs, 79% of which were composed of small molecules. Small molecules continue to play a vital role in the innovation of treatments across 4 key therapeutic areas: oncology, cardiovascular, autoimmune, and respiratory diseases. Increased significance and highly effective components add up to the potential of small molecules in the pharmaceutical portfolio. All these factors are projected to boost the segment growth.
Furthermore, the advantages of small molecules over larger ones have increased investments in the field, especially in cancer research. Small molecules can be administered orally, especially for the treatment of chronic diseases; they are cheaper, easy to manufacture, and can be combined with intracellular targets. Ongoing studies to investigate and develop novel therapeutics for various indications are expected to further influence segment growth.
North America dominated the global market in 2020 with a share of over 35%. Factors, such as higher adoption of technological advancements, presence of well-established research infrastructure and key players, and investments in drug discovery R&D, augment the region’s growth. With outsourcing no longer being solely about cost reduction, the rising need for efficiency, quality, and innovation is expected to contribute to the market growth.
Asia Pacific is projected to be the fastest-growing regional market during the forecast period. The region is emerging as a hub for outsourcing drug discovery activities owing to a favorable regulatory environment and easy availability of low-cost skilled manpower and high-quality data. Japan, being the second-largest pharmaceutical market at the global level, is expected to provide a robust opportunity for CROs, thus driving the overall market in Asia Pacific.
Albany Molecular Research Inc.
Laboratory Corporation of America Holdings
Pharmaceutical Product Development, LLC
Merck & Co., Inc.
Thermo Fisher Scientific Inc.
Dalton Pharma Services
Target Identification & Screening
Target Validation & Functional Informatics
Lead Identification & Candidate Optimization
Other Associated Workflow
Therapeutics Area Outlook
Pain & Anesthesia
Central Nervous System
Drug Type Outlook
Large Molecules (Biopharmaceuticals)
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 2030. 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 2017 to 2030. 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.
The 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:
To strategically profile the key players and comprehensively analyze their growth strategies.
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