The global drug discovery services market size was US$ 9,112 million in 2021. The global drug discovery services market is forecast to grow to US$ 19,512 million by 2030 by registering a compound annual growth rate (CAGR) of 9.1% during the forecast period from 2022 to 2030. 

Factors Influencing the Market

The rising demand for novel drugs will drive the growth of the drug discovery services market in the coming years. In addition, changing market dynamics and increasing demand for accurate and robust analytical testing will drive the market forward during the forecast period. 

Growing investments in research and development and the rising trend of big data, artificial intelligence will offer ample growth opportunities for the market. Pfizer invested nearly US$ 7,690 million in R&D in 2016 and approximately US$ 8,650 million in 2019. Such investments are likely to propel the drug discovery services market forward. 

The growing prevalence of chronic diseases will fuel the growth of the drug discovery services market. On the contrary, stringent regulatory requirements may limit the growth of the global drug discovery services market. 

The rising individual spending on healthcare is forecast to benefit the market in the coming years. 

COVID-19 Impact Analysis

The COVID-19 pandemic positively influenced the global drug discovery services market. Due to the wake of the pandemic, governments started focusing on the healthcare sector. The demand for novel drugs increased. Pharmaceutical companies also increased R&D activities in order to curb the spread of the virus. As a result, the drug discovery services market witnessed ample growth opportunities due to the COVID-19 pandemic. 

Regional Analysis

Of all the regions, the Asia-Pacific drug discovery services market is forecast to emerge as the largest market. The growth of the market will be mainly due to the contribution of emerging economies like China, India, and Japan. In addition, China held the largest share of this market in 2020, owing to the favorable government policies to boost healthcare expenditure. In addition, the presence of leading pharmaceutical companies in the region will benefit the market. Growing research and manufacturing base, together with the rising prevalence of diseases, will contribute to the growth of the market. 

Market Segmentation

The global drug discovery services market segmentation focuses on Process, Type, Drug, Therapeutic Area, Company Type, and Region. 

By Process 

• Target Selection
• Target Validation
• Hit-To-Lead Identification
• Lead Optimization
• Candidate Validation

By Type 

• Medicinal Chemistry Services
• Biology Services
• Drug Metabolism and Pharmacokinetics

By Drug Type 

• Small Molecule Drugs
• Biologic Drugs

By Therapeutic Area 

• Oncology
• Central Nervous Systems
• Cardiovascular
• Infectious Disease
• Metabolic Disorders
• Others

By Company Type

• Tier 1 Pharmaceutical Companies
• Tier 2 Pharmaceutical Companies
• Tier 3 Pharmaceutical Companies

By Region

• North America
• The U.S.
• Canada
• Mexico
• Europe
• Western Europe
• The UK
• Germany
• France
• Italy
• Spain
• Rest of Western Europe
• Eastern Europe
• Poland
• Russia
• Rest of Eastern Europe
• Asia Pacific
• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific
• Middle East & Africa (MEA)
• UAE
• Saudi Arabia
• South Africa
• Rest of MEA
• South America
• Brazil
• Argentina
• Rest of South America

Competitors in the Market

• Thermo Fisher Schientific
• Merck KGaA
• Charles River Laboratories International
• GE Healthcare
• Evotec
• Jubilant Biosys
• Covance
• Genscript Biotech Corporation
• Aurigene Discovery Technologies
• Wuxi Apptec
• Syngene
• Eurofins Scientific
• Laboratory Corporation of America Holdings
• GVK Biosciences Private Limited
• Lonza Group AG
• Piramal Enterprises Ltd.
• Dalton Pharma Services
• Viva Biotech
• Selvita
• Other Prominent Players