Drug Discovery Informatics Market Expected to Reach $7.9 Billion by 2032

According to a new report published by Allied Market Research, titled, “Drug Discovery Informatics Market," The drug discovery informatics market size was valued at $2.9 billion in 2022, and is estimated to reach $7.9 billion by 2032, growing at a CAGR of 10.5% from 2023 to 2032. 

Drug discovery informatics utilizes computational and informational method to expedite the discovery as well as advancement of novel pharmaceuticals. This method utilizes diverse computational techniques, algorithms, and databases to analyze biological data, forecast drug-target interactions, refine drug candidates, and enhance the efficiency of the drug development journey.

The drug discovery informatics market size is primarily propelled by an increased emphasis on drug discovery through the utilization of informatics software, alongside advancements in high-performance computing and web services. Furthermore, the growing adoption of in silico modeling tools and the rising demand for innovative drug molecules are expected to further stimulate market growth. However, the high costs associated with informatics software may impede market expansion. Moreover, the growth of the biotechnology and biologics industry, particularly in emerging markets, will present numerous lucrative opportunities in the drug discovery informatics market growth.

The market's growth is additionally fueled by the introduction of advanced information technology solutions in drug discovery, leading to heightened competition among industry players. For instance, Certara, Inc. introduced version 20 of the Simcyp Physiologically based Pharmacokinetic (PBPK) Simulator, which provides new models for evaluating drug effects during pregnancy and lactation. This assists in critical decision-making regarding the optimization of medicine safety and efficacy profiles.

Furthermore, the anticipated growth of the global drug discovery informatics market during the forecast period is expected to be fueled by the advantages offered by drug delivery informatics solutions. These benefits include enhanced data organization, improved documentation and retrieval of the drug discovery process, and the provision of real-time insights that can aid in decision-making processes.

On the basis of function, the drug discovery informatics market opportunity in drug discovery segment is expected to dominate the Drug Discovery Informatics Market Share in 2022. The rise in chronic diseases and the need in early treatments is one of the major factors driving the growth of the market. As per National Center for Biotechnology Information in 2020, individuals aged 50 years and above, the number with at least one chronic disease is estimated to increase by 99.5% from 71.522 million in 2020 to 142.66 million by 2050. 

On the basis of function, the sequencing and target data analysis dominated the Drug Discovery Informatics Market Share in 2022 and is expected to continue this drug discovery informatics market trends during the Drug Discovery Informatics Market Analysis period. This is due to the growing focus on precision medicine as well as the recent technological advancements which has resulted in enhanced data storage, processing, management, and molecular profiling approaches. Various databases and analytical methods are utilized in foundational drug discovery research, with sequence analysis tools like CLUSTALW, BLAST, and FASTA being pivotal. The emergence of novel and enhanced software in this domain significantly bolsters its expansion. For instance, in July 2019, Certara launched version 19.6 of its scientific informatics platform, D360. This platform facilitates the alignment, visualization, and assessment of protein and peptide sequences, enabling the organization of sequences according to color-coded attributes.

On the basis of end user, pharmaceutical companies held a major share of the drug discovery informatics market in 2022. This is due to the increase in R&D for varied types of novel diseases together with the strategic partnerships between companies and contract research organizations. For instance, Parexel, and Partex, have entered into a partnership aiming to leverage artificial intelligence (AI)-powered solutions to accelerate drug discovery and development for biopharmaceutical customers worldwide and de-risk the assets in their portfolios.

Region-wise, North America dominated the market in 2022 and is expected to continue this trend during the drug discovery informatics market forecast period. North America has a well-established healthcare system and CROs due to which there is an increase in drug discovery processes throughout the U.S. Asia-Pacific is expected to grow with a faster CAGR during the forecast period owing to the rise in incorporation of pharmaceutical and biotechnology companies especially in China, India, and Thailand among other Asia-Pacific countries.

Key Findings of the Study

• By application, the drug discovery segment was largest contributor to the Drug Discovery Informatics Industry in 2022.
• By function, sequencing and target data analysis segment acquired major share in the global Drug Discovery Informatics Industry in 2022.
• By end user, the pharmaceutical companies segment dominated the drug discovery informatics market in 2022.
• By region, North America dominated the market in terms of revenue in 2022. However, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.