Drug Discovery Market Size, Share, Growth, Trends, and Global Industry Analysis: By Drug Type (Small Molecule Drugs and Biologic Drugs), By Technology (High Throughput Screening, Pharmacogenomics, Combinatorial Chemistry, Nanotechnology, and Others), By End User (Pharmaceutical Companies, Contract Research Organizations, and Others), and Region Forecast 2019-2030

Drug Discovery Market Size was valued at US$ 38,946.7 million in 2023, at a CAGR of 3.2% during the forecast period (2024-2030). The market for drug discovery is propelled by the increasing need for novel treatments, developments in artificial intelligence and machine learning, and more R&D spending by pharmaceutical firms. The growth of biologics and precision medicine is also driving market expansion. The danger of medication failure, strict regulatory regulations, and the high expense of clinical trials, however, serve as important barriers. Personalized medicine, orphan medications, and new developments in drug discovery methods such as pharmacogenomics and high-throughput screening present opportunities. Important developments include the growing use of AI to speed up drug development, an increase in pharmaceutical and biotech company partnerships, and an emphasis on biologics and targeted medicines, which are revolutionizing the field of drug discovery.

Key Players

The drug discovery market size is inclusive of several companies such as Pfizer Inc., GlaxoSmithKline PLC, Merck and Co. Inc., Agilent Technologies Inc., Eli Lilly and Company, Hoffmann-La Roche Ltd, Bayer AG, Abbott Laboratories Inc., Shimadzu Corp, AstraZeneca, Sanofi, Polpharma Biologics Group, Novartis AG, Takeda Pharmaceutical Company Limited., and Teva Pharmaceutical Industries Ltd.

Facts and Figures 

•  AstraZeneca revealed plans to invest US$ 1.5 billion to strengthen its expertise in cancer research and development. Through this money, AstraZeneca will be able to concentrate more on developing novel cancer medicines, which will accelerate the progress of its potential drug candidates' clinical studies.
•  In just 46 days, the AI system at Insilico Medicine discovered a new fibrosis treatment candidate. These platforms produce possible molecules more quickly than conventional techniques by utilizing large databases and sophisticated algorithms. With this method, a great deal less physical experimentation is required, which saves money and expedites the process.

Key Developments

•  In February 2023, the partnership between Tempus and Pfizer to advance the use of genomics. This collaboration focuses on leveraging Tempos’ advanced genomics and data analytics capabilities to enhance Pfizer's drug discovery and development processes.
•  In July 2024, a lengthy court struggle resulted from Sanofi's challenge to Amgen's patent for a medication that lowers cholesterol. Uncertainty surrounds market exclusivity and medicine accessibility as a result of the disagreement over patent validity and infringement accusations. These disagreements have the potential to result in large financial expenses and problems with the distribution of resources, which can take focus away from the development of new drugs and delay the release of novel treatments.

Drug Discovery Market Segmentation

By Drug Type: Due to their proven role in treating a wide range of ailments, simplicity of production, and oral administration, Small Molecule Drugs continue to dominate the drug discovery industry. These medications are useful for focusing on intracellular pathways since they are often less expensive to make and have a high penetration rate into cells. Furthermore, there is a lengthy history of success using small-molecule medications to treat chronic illnesses including diabetes, cancer, and cardiovascular disorders. On the other hand, biological drugs are expanding quickly due to advances in biotechnology and their ability to effectively treat complicated illnesses like cancer and autoimmune disorders. Biologics are becoming increasingly significant, but they are more expensive and difficult to create, which means that small molecules remain the preferred option in many therapeutic fields.

By Technology: High Throughput Screening (HTS), with its capacity to quickly screen thousands of chemicals for possible therapeutic effects, is the leading technique in drug development. HTS is an essential tool for pharmaceutical firms since it finds promising candidates from enormous chemical libraries, greatly speeding up the early-stage drug development process. It is frequently used due to its effectiveness in cutting expenses and time while expediting the lead identification process. Nanotechnology and Pharmacogenomics are two new fields that are becoming more and more significant, especially in targeted medication delivery and customized medicine, respectively. In contrast to HTS, their applicability is more specific. Combinatorial Chemistry contributes to the synthesis of novel chemicals as well, although it is not as important to the market or widely used as HTS.

By End Use: Pharmaceutical companies have a significant investment in research and development (R&D) for novel treatments and cures, making them the major end consumers in the drug discovery industry. These businesses possess the infrastructure, know-how, and funding necessary to carry out large-scale drug discovery initiatives, from preclinical research to clinical trials. Their main objective is to create novel medicines for a broad spectrum of illnesses, and they frequently employ state-of-the-art tools such as pharmacogenomics and high-throughput screening. Contract Research Organizations (CROs) are becoming more and more significant since they provide pharmaceutical corporations with outsourced services that save R&D expenses and expedite the discovery of new drugs. Drug development activities are still mostly driven by pharmaceutical firms, even if CROs serve a critical supporting role.