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Global Drug Discovery Outsourcing Market to reach USD 6.24 billion by the end of 2030.

Global Drug Discovery Outsourcing Market Size study & Forecast, by Workflow (Target Identification & Screening, Target Validation & Functional Informatics, Lead Identification & Candidate Optimization, Preclinical Development, Other Associated Workflow), by Therapeutics Area (Respiratory system, Pain and Anesthesia, Oncology, Ophthalmology, Others), by Drug Type (Small Molecules, Large Molecules (Biopharmaceuticals)), by Service Type (Chemistry Services, Biology Services), by End user (Pharmaceutical & Biotechnology companies, Academic Institutes, Others) and Regional Analysis, 2023-2030

Product Code: HLSHS-86040349
Publish Date: 27-06-2023
Page: 200

Global Drug Discovery Outsourcing Market is valued approximately USD 3.5 billion in 2022 and is anticipated to grow with a healthy growth rate of more than 7.5% over the forecast period 2023-2030. The Drug Discovery Outsourcing Market refers to the practice of pharmaceutical and biotechnology companies outsourcing various stages of the drug discovery and development process to contract research organizations (CROs) or other specialized service providers. It involves delegating specific tasks and responsibilities related to drug discovery, such as target identification, hit-to-lead optimization, preclinical and clinical trials, and regulatory submissions, to external entities. The major driving factors for the Global Drug Discovery Outsourcing Market is rising prevalence of cardiovascular diseases and growing geriatric population. Moreover, rising initiatives by key market players and advancements in formulation is creating lucrative growth opportunity in the Global Drug Discovery Outsourcing Market over the forecast period.

The high burden of chronic diseases such as cardiovascular diseases, cancer, and respiratory diseases in the region is expected to drive market growth in the drug discovery outsourcing sector. For example, according to the CDC National Center for Health Statistics, as of 2021, 4.9% of adults aged 18 and over in the United States had coronary heart disease. This increasing prevalence of chronic diseases creates a growing demand for the development of safe and effective treatments, thereby accelerating the need for collaborations with Contract Research Organizations (CROs). Furthermore, the strategic initiatives undertaken by key players, including partnerships and acquisitions, are expected to contribute to the growth of the drug discovery outsourcing market in the region. An example of such initiatives is the collaboration agreement between Shanghai Fosun Pharmaceutical (Group) Co., Ltd and Insilico Medicine in January 2022. This partnership aimed to leverage Insilico’s AI-driven drug discovery and development capabilities to advance the discovery of drugs targeting various global targets. The collaboration involved an investment of USD 13 million for R&D collaboration projects, focusing on the research and development of four biological targets. However, the high cost of Drug Discovery Outsourcing stifles market growth throughout the forecast period of 2023-2030.

The key regions considered for the Global Drug Discovery Outsourcing Market study includes Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. North America dominates the drug discovery outsourcing market due to the presence of established pharmaceutical and biotechnology companies. The United States, in particular, has a robust outsourcing industry and a favorable regulatory environment, driving market growth. Factors such as advanced healthcare infrastructure, strong research and development capabilities, and increasing demand for novel therapeutics contribute to market growth in this region. The Asia Pacific region is experiencing rapid growth in the drug discovery outsourcing market. Countries such as China, India, Japan, and South Korea are emerging as major outsourcing hubs, primarily due to their large population, cost advantages, and growing expertise in life sciences. Increasing investments in healthcare infrastructure, rising disposable incomes, and favorable government policies are driving market growth in this region.

Major market player included in this report are:
Albany Molecular Research Inc.
Laboratory Corporation of America Holdings
Pharmaceutical Product Development, LLC
Charles River
WuXi AppTec
Merck & Co., Inc.
Thermo Fisher Scientific Inc.
Dalton Pharma Services

Recent Developments in the Market:
Ø In November 2022, Sanofi, a leading pharmaceutical company, and Insilico Medicine, a clinical-stage biotechnology company, announced a significant drug development deal worth USD 1200 million. As part of this agreement, Sanofi will utilize Insilico’s AI platform, Pharma.AI, to accelerate drug development efforts focused on up to six new targets.

Global Drug Discovery Outsourcing Market Report Scope:
ü Historical Data – 2020 – 2021
ü Base Year for Estimation – 2022
ü Forecast period – 2023-2030
ü Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
ü Segments Covered – Workflow, Therapeutics Area, Drug Type, Service Type, End user, Region
ü Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa
ü Customization Scope – Free report customization (equivalent up to 8 analyst’s working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.

The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and Workflow offerings of key players. The detailed segments and sub-segment of the market are explained below:

By Workflow:
Target Identification & Screening
Target Validation & Functional Informatics
Lead Identification & Candidate Optimization
Preclinical Development
Other Associated Workflow
By Therapeutics Area:
Respiratory system
Pain and Anesthesia
By Drug Type:
Small Molecules
Large Molecules (Biopharmaceuticals)
By Service Type:
Chemistry Services
Biology Services
By End user:
Pharmaceutical & Biotechnology companies
Academic Institutes

By Region:

North America


Asia Pacific
South Korea

Latin America

Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

Chapter 1. Executive Summary
1.1. Market Snapshot
1.2. Global & Segmental Market Estimates & Forecasts, 2020-2030 (USD Billion)
1.2.1. Drug Discovery Outsourcing Market, by Region, 2020-2030 (USD Billion)
1.2.2. Drug Discovery Outsourcing Market, by Workflow, 2020-2030 (USD Billion)
1.2.3. Drug Discovery Outsourcing Market, by Therapeutics Area, 2020-2030 (USD Billion)
1.2.4. Drug Discovery Outsourcing Market, by Drug Type, 2020-2030 (USD Billion)
1.2.5. Drug Discovery Outsourcing Market, by Service Type, 2020-2030 (USD Billion)
1.2.6. Drug Discovery Outsourcing Market, by End user, 2020-2030 (USD Billion)
1.3. Key Trends
1.4. Estimation Methodology
1.5. Research Assumption
Chapter 2. Global Drug Discovery Outsourcing Market Definition and Scope
2.1. Objective of the Study
2.2. Market Definition & Scope
2.2.1. Industry Evolution
2.2.2. Scope of the Study
2.3. Years Considered for the Study
2.4. Currency Conversion Rates
Chapter 3. Global Drug Discovery Outsourcing Market Dynamics
3.1. Drug Discovery Outsourcing Market Impact Analysis (2020-2030)
3.1.1. Market Drivers Increasing prevalence of cardiovascular diseases Growing Geriatric Population
3.1.2. Market Challenges High Cost of Drug Discovery Outsourcing
3.1.3. Market Opportunities Advancements in Formulation Rising initiatives by key market players
Chapter 4. Global Drug Discovery Outsourcing Market Industry Analysis
4.1. Porter’s 5 Force Model
4.1.1. Bargaining Power of Suppliers
4.1.2. Bargaining Power of Buyers
4.1.3. Threat of New Entrants
4.1.4. Threat of Substitutes
4.1.5. Competitive Rivalry
4.2. Porter’s 5 Force Impact Analysis
4.3. PEST Analysis
4.3.1. Political
4.3.2. Economical
4.3.3. Social
4.3.4. Technological
4.3.5. Environmental
4.3.6. Legal
4.4. Top investment opportunity
4.5. Top winning strategies
4.6. COVID-19 Impact Analysis
4.7. Disruptive Trends
4.8. Industry Expert Perspective
4.9. Analyst Recommendation & Conclusion
Chapter 5. Global Drug Discovery Outsourcing Market, by Workflow
5.1. Market Snapshot
5.2. Global Drug Discovery Outsourcing Market by Workflow, Performance – Potential Analysis
5.3. Global Drug Discovery Outsourcing Market Estimates & Forecasts by Workflow 2020-2030 (USD Billion)
5.4. Drug Discovery Outsourcing Market, Sub Segment Analysis
5.4.1. Target Identification & Screening
5.4.2. Target Validation & Functional Informatics
5.4.3. Lead Identification & Candidate Optimization
5.4.4. Preclinical Development
5.4.5. Other Associated Workflow
Chapter 6. Global Drug Discovery Outsourcing Market, by Therapeutics Area
6.1. Market Snapshot
6.2. Global Drug Discovery Outsourcing Market by Therapeutics Area, Performance – Potential Analysis
6.3. Global Drug Discovery Outsourcing Market Estimates & Forecasts by Therapeutics Area 2020-2030 (USD Billion)
6.4. Drug Discovery Outsourcing Market, Sub Segment Analysis
6.4.1. Respiratory system
6.4.2. Pain and Anesthesia
6.4.3. Oncology
6.4.4. Ophthalmology
6.4.5. Others
Chapter 7. Global Drug Discovery Outsourcing Market, by Drug Type
7.1. Market Snapshot
7.2. Global Drug Discovery Outsourcing Market by Drug Type, Performance – Potential Analysis
7.3. Global Drug Discovery Outsourcing Market Estimates & Forecasts by Drug Type 2020-2030 (USD Billion)
7.4. Drug Discovery Outsourcing Market, Sub Segment Analysis
7.4.1. Small Molecules
7.4.2. Large Molecules (Biopharmaceuticals)
Chapter 8. Global Drug Discovery Outsourcing Market, by Service Type
8.1. Market Snapshot
8.2. Global Drug Discovery Outsourcing Market by Service Type, Performance – Potential Analysis
8.3. Global Drug Discovery Outsourcing Market Estimates & Forecasts by Service Type 2020-2030 (USD Billion)
8.4. Drug Discovery Outsourcing Market, Sub Segment Analysis
8.4.1. Chemistry Services
8.4.2. Biology Services
Chapter 9. Global Drug Discovery Outsourcing Market, by End user
9.1. Market Snapshot
9.2. Global Drug Discovery Outsourcing Market by End user, Performance – Potential Analysis
9.3. Global Drug Discovery Outsourcing Market Estimates & Forecasts by End user 2020-2030 (USD Billion)
9.4. Drug Discovery Outsourcing Market, Sub Segment Analysis
9.4.1. Pharmaceutical & Biotechnology companies
9.4.2. Academic Institutes
9.4.3. Others
Chapter 10. Global Drug Discovery Outsourcing Market, Regional Analysis
10.1. Top Leading Countries
10.2. Top Emerging Countries
10.3. Drug Discovery Outsourcing Market, Regional Market Snapshot
10.4. North America Drug Discovery Outsourcing Market
10.4.1. U.S. Drug Discovery Outsourcing Market Workflow breakdown estimates & forecasts, 2020-2030 Therapeutics Area breakdown estimates & forecasts, 2020-2030 Drug Type breakdown estimates & forecasts, 2020-2030 Service Type breakdown estimates & forecasts, 2020-2030 End user breakdown estimates & forecasts, 2020-2030
10.4.2. Canada Drug Discovery Outsourcing Market
10.5. Europe Drug Discovery Outsourcing Market Snapshot
10.5.1. U.K. Drug Discovery Outsourcing Market
10.5.2. Germany Drug Discovery Outsourcing Market
10.5.3. France Drug Discovery Outsourcing Market
10.5.4. Spain Drug Discovery Outsourcing Market
10.5.5. Italy Drug Discovery Outsourcing Market
10.5.6. Rest of Europe Drug Discovery Outsourcing Market
10.6. Asia-Pacific Drug Discovery Outsourcing Market Snapshot
10.6.1. China Drug Discovery Outsourcing Market
10.6.2. India Drug Discovery Outsourcing Market
10.6.3. Japan Drug Discovery Outsourcing Market
10.6.4. Australia Drug Discovery Outsourcing Market
10.6.5. South Korea Drug Discovery Outsourcing Market
10.6.6. Rest of Asia Pacific Drug Discovery Outsourcing Market
10.7. Latin America Drug Discovery Outsourcing Market Snapshot
10.7.1. Brazil Drug Discovery Outsourcing Market
10.7.2. Mexico Drug Discovery Outsourcing Market
10.8. Middle East & Africa Drug Discovery Outsourcing Market
10.8.1. Saudi Arabia Drug Discovery Outsourcing Market
10.8.2. South Africa Drug Discovery Outsourcing Market
10.8.3. Rest of Middle East & Africa Drug Discovery Outsourcing Market

Chapter 11. Competitive Intelligence
11.1. Key Company SWOT Analysis
11.1.1. Company 1
11.1.2. Company 2
11.1.3. Company 3
11.2. Top Market Strategies
11.3. Company Profiles
11.3.1. Albany Molecular Research Inc Key Information Overview Financial (Subject to Data Availability) Product Summary Recent Developments
11.3.2. EVOTEC
11.3.3. Laboratory Corporation of America Holdings
11.3.4. GenScript
11.3.5. Pharmaceutical Product Development, LLC
11.3.6. Charles River
11.3.7. WuXi AppTec
11.3.8. Merck & Co., Inc.
11.3.9. Thermo Fisher Scientific Inc.
11.3.10. Dalton Pharma Services
Chapter 12. Research Process
12.1. Research Process
12.1.1. Data Mining
12.1.2. Analysis
12.1.3. Market Estimation
12.1.4. Validation
12.1.5. Publishing
12.2. Research Attributes
12.3. Research Assumption

At Bizwit Research and Consultancy, we employ a thorough and iterative research methodology with the goal of minimizing discrepancies, ensuring the provision of highly accurate estimates and predictions over the forecast period. Our approach involves a combination of bottom-up and top-down strategies to effectively segment and estimate quantitative aspects of the market, utilizing our proprietary data & AI tools. Our Proprietary Tools allow us for the creation of customized models specific to the research objectives. This enables us to develop tailored statistical models and forecasting algorithms to estimate market trends, future growth, or consumer behavior. The customization enhances the accuracy and relevance of the research findings.
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Critical elements of methodology employed for all our studies include:
Data Collection:
To determine the appropriate methods of data collection based on the research objectives, we consider both primary and secondary sources. Primary data collection involves gathering information directly from various industry experts in core and related fields, original equipment manufacturers (OEMs), vendors, suppliers, technology developers, alliances, and organizations. These sources encompass all segments of the value chain within the specific industry. Through in-depth interviews, we engage with key industry participants, subject-matter experts, C-level executives of major market players, industry consultants, and other relevant experts. This allows us to obtain and validate critical qualitative and quantitative information while evaluating market prospects. AI and Big Data are instrumental in our primary research, providing us with powerful tools to collect, analyze, and derive insights from data efficiently. These technologies contribute to the advancement of research methodologies, enabling us to make data-driven decisions and uncover valuable findings.
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Data Analysis:
Our team of experts carefully examine the gathered data using suitable statistical techniques and qualitative analysis methods. For quantitative analysis, we employ descriptive statistics, regression analysis, and other advanced statistical methods, depending on the characteristics of the data. This analysis may also incorporate the utilization of AI tools and big data analysis techniques to extract meaningful insights.
To ensure the accuracy and reliability of our findings, we extensively leverage data science techniques, which help us minimize discrepancies and uncertainties in our analysis. We employ Data Science to clean and preprocess the data, ensuring its quality and reliability. This involves handling missing data, removing outliers, standardizing variables, and transforming data into suitable formats for analysis. The application of data science techniques enhances our accuracy, efficiency, and depth of analysis, enabling us to stay competitive in dynamic market environments.
Market Size Estimation:
Our proprietary data tools play a crucial role in deriving our market estimates and forecasts. Each study involves the creation of a unique and customized model. The model incorporates the gathered information on market dynamics, technology landscape, application development, and pricing trends. AI techniques, such as machine learning and deep learning, aid us to analyze patterns within the data to identify correlations, trends, and relationships. By recognizing patterns in consumer behavior, purchasing habits, or market dynamics, our AI algorithms aid us in more precise estimations of market size. These factors are simultaneously analyzed within the model, allowing for a comprehensive assessment. To quantify their impact over the forecast period, correlation, regression, and time series analysis are employed.
To estimate and validate the market size, we employ both top-down and bottom-up approaches. The preference is given to a bottom-up approach, where key regional markets are analyzed as separate entities. This data is then integrated to obtain global estimates. This approach is crucial as it provides a deep understanding of the industry and helps minimize errors.
In our forecasting process, we consider various parameters such as economic tools, technological analysis, industry experience, and domain expertise. By taking all these factors into account, we strive to produce accurate and reliable market forecasts. When forecasting, we take into consideration several parameters, which include:
Market driving trends and favorable economic conditions
Restraints and challenges that are expected to be encountered during the forecast period.
Anticipated opportunities for growth and development
Technological advancements and projected developments in the market
Consumer spending trends and dynamics
Shifts in consumer preferences and behaviors.
The current state of raw materials and trends in supply versus pricing
Regulatory landscape and expected changes or developments.
The existing capacity in the market and any expected additions or expansions up to the end of the forecast period.
To assess the market impact of these parameters, we assign weights to each one and utilize weighted average analysis. This process allows us to quantify their influence on the market and derive an expected growth rate for the forecasted period. By considering these various factors and applying a weighted analysis approach, we strive to provide accurate and reliable market forecasts.
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