Discovery Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Discovery Services market reached a value of about USD 13.87 billion in 2021. The industry is projected to grow at a CAGR of around 13.5% in the forecast period of 2022-2027 to reach a value of about USD 29.66 billion by 2027.

The global Discovery Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The rise in R&D activities in the pharmaceutical sector is primarily driving the market growth. North America is the highest category spender by region, driving the demand for the Discovery Services industry.

Industry Definition and Segmentation

Drug discovery is the method of uncovering novel candidate pharmaceuticals in the domains of medicine, biotechnology, and pharmacology. It focuses on early-stage lead generation across various target classes in the drug discovery process. It uses multiple technologies to identify novel start points that are then selectively taken through the pre-clinical discovery process, including high throughput screening, molecular modelling, medicinal chemistry, structural biology, and computational chemistry. The Discovery Services industry report comprises segments by region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

North American Regions is Driving the Growth of the Industry

North America holds the largest share in the industry due to well-established CROs, growing R&D expenditure by pharmaceutical and biopharmaceutical firms, rapid growth in the biosimilar and biologics markets, and the accessibility of state-of-the-art procedures, instruments, and services for drug discovery research in the region.

The market is being driven by increased R&D activities in the pharmaceutical sector. Furthermore, the preference of big pharmaceutical firms for outsourcing to avoid barriers and the spike in demand for outsourcing analytical testing and clinical trial services are propelling the industry. Due to the increase in awareness about chronic diseases paired with an increase in the patient pool with unmet medical needs, the market is witnessing further demand. The patent expiration of blockbuster drugs, an improved regulatory framework for drug discovery, and increased funding and reimbursement further augment the market's expansion. Other factors like the need for generic pharmaceuticals, senior population growth, and technical developments in drug discovery services will likely expand the market further.

Best Procurement Practices

The global Discovery Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Discovery Services regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

The process of developing a novel medication is known as drug discovery. Molecular manipulation, random screening, drug metabolites, molecular designing, and serendipity are the most prevalent strategies used in drug discovery. Drug discovery services are specially developed to reduce drug discovery costs and schedules. The process of drug discovery is used to create and find novel pharmaceuticals in pharmacology, biotechnology, and medicine. Identification of aspirants, manufacture, depiction, selection and testing for therapeutic value are all part of this process. Once a chemical has proven its worth in these tests, it will begin the process of medication development, which will eventually lead to clinical trials. Drug discovery services include drug-target recognition, drug discovery selection, drug design based on fragments, and lead compound recognition and lead optimization.

Technological Breakthroughs in the Sector, Further Bolstering the Discovery Services Market

The market is expanding owing to technological developments and an increase in the adoption of new methodologies for discovery. Major pharmaceutical companies are focusing on assembling a team of talented scientists with experience in various treatment areas and technology. Cancer drugs are in high demand due to the rising number of cancer patients. As a result, oncology is predicted to propel industry growth. However, the strict regulatory policies for drug research and animal testing are hampering the market's expansion.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Discovery Services Industry Report

• IQVIA Holdings Inc.
• Parexel International Corporation
• Laboratory Corporation of America Holdings
• Syneos Health
• PPD Inc.

Market Landscape

The global market for Drug Discovery Services is highly fragmented, with only a few significant companies competing.

Key Initiatives by Companies

• Eurofins partnered with Liverpool ChiroChem Ltd in September 2021 to expand their integrated drug discovery platform, DiscoveryOne, by gaining access to LCC's fragment library and PROTAC linker molecules.
• In February 2020, Eurofins Discovery and PharmaResouces announced a partnership to build a joint drug discovery platform to speed the development of small-molecule medicines.