Drug Discovery Outsourcing Market Expected to Reach $7.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Drug Discovery Outsourcing Market," The Drug Discovery Outsourcing Market Size was valued at $3.6 billion in 2021 and is estimated to reach $7.4 billion by 2031, growing at a CAGR of 7.5% from 2022 to 2031.

Drug discovery outsourcing is used by different companies to reduce costs by transferring portions of work to outside suppliers. Outsourced activities can be carried out in various fields, right from drug discovery to the manufacturing of products.

The Drug Discovery Outsourcing Market Trends is an increase in the incidence of rare genetic disorders and cancer, as well as the rising demand for novel drug delivery technologies. Moreover, the rising usage of AI in drug discovery, as well as the rapid shift toward patent expiration, biologics, and unprecedented downsizing of internal discovery of big pharmaceuticals, and the rising incidences of antibiotic resistance as well as drug resistance, boost the growth of the market.

However, the high cost as well as the high risk of drug failure are the major barriers to the growth of the market. Conversely, emerging economies such as India, China, Mexico, and Brazil are anticipated to create new opportunities during the forecast period.

On the basis of workflow, the target identification and screening segment accounted for the largest share of the market. The dominance of this segment can be attributed to the rapid drug development process and rise in awareness regarding target selection by using various methods such as assay & readers, automation, and high content screening.

On the basis of therapeutic area, the oncology segment accounted for the largest share of the market. The dominance of this segment can be attributed to the rise in the prevalence of cancer cases around the globe, which leads to an increase in the demand to conduct R&D activities for the development of targeted drug therapy against the cancerous cell.

On the basis of drug type, the small molecules segment accounted for the largest share of the market. The dominance of this segment can be attributed to the rapid advancement of biopharmaceutical research and technology for the discovery and some distinct advantages, such as it can be administered orally and can pass through cell membranes to reach intracellular targets more precisely as compared to large molecules.

By end user, the pharmaceutical and biotechnology companies segment exhibited the highest growth in 2021 and is anticipated to lead during the forecast period, owing to rising R&D expenditure of pharmaceutical and biopharmaceutical companies, which is prompting them to opt for fully integrated or functional outsourcing services, from the early development stage to the late-stage development phase, for drug discovery and development.

North America accounted for a majority of the drug discovery outsourcing market share in 2021 and is anticipated to remain dominant during the forecast period owing to the high adoption rate of technologically advanced AI-based drug discovery systems, increase in healthcare expenditure, and the presence of major key players in the country providing outsourcing facilities for the development of novel drug therapies to treat cancer and chronic diseases.

Asia-Pacific is expected to register the fastest CAGR during the forecast period. The market growth in the Asia-Pacific is supplemented by highly populated countries along with a high prevalence rate of genetic disorders and cancer. In addition, the favorable regulatory environment and availability of low-cost skilled manpower with high-quality data in these nations, especially in countries such as India and China, are expected to further drive the Drug Discovery Outsourcing Market Growth.

The key players that operate in the Drug Discovery Outsourcing Industry are Curia Global Inc, Charles River Laboratories Inc, Dr. Reddy’s Laboratories, Discover X Corporation, Dalton Pharma Service, Laboratory Corporation of America Holdings, Merck & Co, Syngene International Ltd, TCG Life Science Pvt. Ltd, and Thermo Fisher Scientific.

Key findings of the study

• By workflow, the target identification and screening segment was the highest contributor to the market in 2021.
• By therapeutic area, the oncology segment was the highest contributor to the market in 2021.
• By type, the small molecules segment was the highest contributor to the market in 2021.
• By end user, the pharmaceutical and biotechnology companies dominated the market in 2021 and are expected to continue this trend during the forecast period.
• By region, North America garnered the largest revenue share in 2021, whereas Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.