The global drug discovery market is growing at a considerable CAGR of 13.5% during the forecast period. Rising pervasiveness related to disorders that are lifestyle-oriented and growing demand for novel technology of drug discovery is the prime factors affecting and driving the market. Increasing expenditure in sector of health along with growing patent expires of other drug is also estimated to be the key factors that are contributing significantly towards the growth of the market. However, strict rules and regulations along with high investment cost are major factors constraints that are hindering the growth of the global drug discovery market across the globe. 

Further, growing advancements in biotechnology and genomics along with extensive R&D for new pipeline products are the key factors that are creating opportunities for the market. New product launches in the market are likely to drive the growth of the global drug discovery market. For instance, in July 2020, F. Hoffmann-La Roche Ltd. had started managing research for COVID-19 in order to get potential drug for its treatment. The company is also doing partnership with healthcare provider, various laboratories along with organization in order to carry out this effectively. 

Impact of COVID-19 Pandemic on the Global Drug Discovery Market

The global drug discovery market is hardly hit by the COVID-19 Pandemic since December 2019. The COVID-19 pandemic in the major economies had disrupted the manufacturing and transportation activities. The COVID-19 pandemic has affected the health care, however in order to discover more effective drug strategic collaboration has been done by various key market players and, the companies are also doing collaboration with the government that can favor the market growth in the future. 

Segmental Outlook 

The market is segmented based on type, and end user. Based on type, the market is segmented into pharmacogenomics, high throughput screening, genomics, bioinformatics, biochips and nanotechnology. Further, by end user it is segmented into, pharmaceutical companies, biopharmaceutical companies, biotech companies and research institutes.

Global Drug Discovery Market Share by Type 2020 (%)

Based on the type, pharmacogenomics is projected to grow at a substantial rate over the forecast period. Pharmacogenomics is considered to be the study that is the combination of pharmacology along with genomics. To use genetics in order to optimize drug therapies, maximize drug efficacy, and minimize adverse drug reactions are some purpose that are playing an important role in utilization of pharmacogenomics. 

Regional Outlooks

The global drug discovery market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America held a considerable share in 2020 in the global drug discovery market. Raising pervasiveness related to disorder is growing the demand of drug discovery is one of the prime factors that is boosting the market growth in North America. Additionally, increasing R&D activities, the presence of key market players along with growing healthcare expenditure in the region are some other factors that are promoting the growth of the market. Moreover, in the region of Europe technology development is one of the prime factors affecting market growth.

Global Drug Discovery Market, by Region 2021-2027

Asia-Pacific will have Considerable Growth in the Global Drug Discovery Market

Asia-Pacific region is expected to witness significant growth opportunities for the market. Increasing health awareness among people likely to drive the growth of the regional market. Additionally, rising demand for novel drug discovery technologies due to increasing population in this region especially in India, China and Japan along with growing number of contract research organization (CROs) and favorable government policy is driving the growth of the market in the region.

Market Player Outlook

Key players of the global drug discovery market are Bio-Rad Laboratories, Inc., F. Hoffmann-La Roche Ltd., GlaxoSmithKline plc., Merck & Co., and Pfizer Inc. among others. To survive in the market, these players adopt different marketing strategies such as product launches. For instance, in April 2021, The United States Food and Drug Administration (FDA) had accepted the application for the Gefapixant which is Merck & Co. new drug in order to give the treatment of refractory chronic cough (RCC) in adults.

In February 2021, Incyte had set forth that the United States Food and Drug Administration (FDA) had given review for its new drug application that is a selective JAK1/JAK2 inhibitor in order to give treatment for atopic dermatitis (AD) which is a type of eczema.     

In December 2020, Thermo Fisher Scientific Inc. one of the service providers to healthcare had diversified its presence in North America and Europe for developing sterile drug.

In January 2020, Lilly had introduced its new robotic laboratory in order to boost its process associated with drug discovery in San Diego.

In June 2019, Sanofi had done the collaboration with google for the purpose of establishing artificial intelligence (AI) along with cloud computing capabilities for enlarging new drugs.

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global drug discovery market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

    • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where in the market.