What is the current size and annual growth rate of the drug discovery market?
The drug discovery market size has grown rapidly in recent years. It will grow from $110.26 billion in 2024 to $125.23 billion in 2025 at a compound annual growth rate (CAGR) of 13.6%. The growth in the historic period can be attributed to advancements in genomics and proteomics, expanding prevalence of chronic diseases, emergence of biopharmaceuticals.
The drug discovery market size is expected to see rapid growth in the next few years. It will grow to $221.71 billion in 2029 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to precision medicine adoption, focus on rare diseases, expansion of personalized therapies. Major trends in the forecast period include collaborative drug discovery models, focus on rare diseases and orphan drugs, integration of multi-omics data, rapid adoption of organoids and 3D cell culture models, advancements in virtual screening.
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What key drivers have fueled the drug discovery market’s development over the years?
Rising healthcare expenditure is expected to propel the drug discovery market going forward. Countries around the world are spending a major share of their GDP on healthcare expenses which include hospital care, physician and clinical services, other professional services, dental services, other health, residential, and personal care, home health care, nursing care facilities, and continuing care retirement communities, prescription drugs, and others. Drug discovery holds a significant part of the health expenditure, as it is required to treat diseases and prolong life. There is an increasing need for new drugs to treat new diseases. For instance, in October 2024, according to the Centers for Medicare and Medicaid Services, a US-based federal agency, national health expenditure grew 4.1% to $4.5 trillion in 2022, or $13,493 per person, over 2023–32, average national health expenditure growth (5.6%) is projected to outpace that of average GDP growth (4.3%), resulting in an increase in the health spending share of GDP from 17.3 percent in 2022 to 19.7 percent in 2032. Therefore, the rise in healthcare expenditures is driving the growth of the drug discovery market.
What is the segmentation for the drug discovery market?
The drug discovery market covered in this report is segmented –
1) By Drug Type: Small Molecule, Large Molecule
2) By Process: Target Selection, Target Validation, Hit-To-Lead Identification, Lead Optimization, Candidate Validation
3) By Technology: High Throughput Screening, Spectroscopy, Combinatorial Chemistry, Biochips, Pharmacogenomics And Pharmacogenetics, Bioinformatics, Metabolomics, Nanotechnology, Other Technologies
4) By Therapeutic Area: Oncology, Neurology, Infectious And Immune System Diseases, Digestive System Diseases, Cardiovascular Diseases, Diabetes, Respiratory Disease, Other Therapeutic Areas
5) By End User: Pharmaceutical Companies, CROs, Other End-Users
Subsegments:
1) By Small Molecule: Synthetic Small Molecules, Natural Small Molecules, Targeted Small Molecule Drugs
2) By Large Molecule: Monoclonal Antibodies, Proteins And Peptides, Nucleic Acid-Based Therapies
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Who are the most influential companies in the drug discovery market?
Major companies operating in the drug discovery market include Pfizer Inc., Merck & Co. Inc., Novartis International AG, Thermo Fisher Scientific Inc., WuXi AppTec Group, GlaxoSmithKline plc, Eli Lilly and Company, Laboratory Corporation of America Holdings, Evotec SE, Eurofins Scientific SE, Agilent Technologies Inc., Sanofi S.A., Charles River Laboratories International Inc., Pharmaron Ltd., Viva Biotech Ltd., Albany Molecular Research Inc., Schrödinger Inc., BioDuro Ltd., Aptuit LLC, Selvita S.A., Sygnature Discovery Limited, Jubilant Biosys Limited, Gero Limited, Domainex Ltd., Verge Genomics lnc., Aqemia SAS, BenevolentAI Limited, EPIVAX INC., ProteinQure lnc., Synlogic Inc., ChemPartner Co. Ltd., WuXi Biologics lnc., Abzena plc, Lonza Group Ltd., Catalent lnc., Recursion Pharmaceuticals Inc.
What are the top industry trends projected to impact the drug discovery market?
Technological advancements are a key trend in the drug discovery market. Companies operating in the drug discovery market are coming up with various new technologies, such as AI, imaging technology, and others, to reduce the time required for drug discovery. The imaging technology enables non-invasive biological activities occurring within organisms in response to medications to be visualized, characterized, and quantified. These methods, which make use of the strengths of either probes or tissue itself, are crucial for understanding diseases and finding new treatments. For instance, in May 2023, Google Cloud recently launched two new AI-powered tools, the Target and Lead Identification Suite and the Multiomics Suite, to accelerate drug discovery and precision medicine. These tools are designed to help biotech and pharmaceutical companies advance drug discovery and precision medicine. The Target and Lead Identification Suite assists in identifying the function of amino acids and proteins, while the Multiomics Suite accelerates the discovery and interpretation of genomic data, aiding in the design of precision treatments.
What are the major regional insights for the drug discovery market, and which region holds the top position?
The countries covered in the drug discovery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
What Does The Drug Discovery Market Report 2025 Offer?
The drug discovery market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Drug discovery is the process of identifying biologically active compounds that possess the potential to become therapeutic agents. The drug discovery process involves different phases, from ideation to development to approval. It is used to discover a new clinical drug for treating new, existing, and previously incurable diseases.
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