Drug discovery outsourcing market to reach $6.37Bn by 2030 — Straits Research
NEW YORK, UNITED STATES — The global drug discovery outsourcing market is poised for significant growth, with projections expecting a surge to $6.37 billion by 2030, marking a compound annual growth rate (CAGR) of 7.6%.
Market research firm Straits Research attributed this expansion to escalating collaborations and the strategic utilization of expertise within the industry.
The market’s growth is also driven by the rising prevalence of genetic, metabolic, and other chronic diseases. Technological advancements, alongside the growing adoption of artificial intelligence in drug discovery processes, are also significant contributors.
Furthermore, the shift in patent biologics, their expiration, and the notable downsizing of internal drug research by major pharmaceuticals are expected to bolster market growth.
Key market segments include target identification & screening, target validation & functional informatics, and lead identification & candidate optimization, with the latter expected to register a CAGR of 7.7% during the forecast period.
The market is also segmented by therapeutic area, with the respiratory system segment projected to grow at a 6.9% CAGR.
Regionally, North America is leading the charge with a 6.8% CAGR, largely due to the United States’ dominant presence in pharmaceutical sales and R&D investments.
Europe is not far behind, with an expected value of $17 million by 2030 at a 7.1% CAGR, fueled by joint ventures such as the European Lead Factory.
Meanwhile, the Asia Pacific region is expected to witness the highest growth rate due to the increasing number of pharmaceutical companies and contract manufacturing organizations in the region.
The competitive global drug discovery outsourcing features major industry players like Curia, EVOTEC, Laboratory Corporation of America Holdings, and GenScript, among others, who are pivotal in driving the market forward through strategic collaborations and innovations.
Earlier this year, outsourcing company Accenture made headlines by investing $2 million into clinical trial design firm QuantHealth to accelerate its drug development initiatives.
At the same time, Software-as-a-service (SaaS) firm SandboxAQ acquired computational chemistry company Good Chemistry to accelerate drug discovery initiatives.
