The Global Drug Discovery Informatics Market size is expected to reach $6.5 billion by 2031, rising at a market growth of 10.3% CAGR during the forecast period.
Library and database preparation functions streamline identifying and accessing diverse compound libraries and comprehensive data resources. Thus, the library and database preparation segment would capture around 21.8% revenue share of the market by 2031. These functions enhance the efficiency and effectiveness of drug discovery efforts by providing researchers with the necessary tools and information to identify promising drug candidates and advance them through the drug development pipeline.
The major strategies followed by the market participants are Mergers & Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In October 2023, Certara, Inc. acquired Formedix LLC to expand the Certara Pinnacle 21 data standardization platform utilized to prepare and standardize clinical data for analysis and regulatory submissions. Additionally, in February 2023, Accenture PLC took over Bionest to expand its capabilities with Bionest's skilled team as well as to support its clients in bringing therapeutics to patients quickly and more efficiently.
Based on the Analysis presented in the KBV Cardinal matrix; Thermo Fisher Scientific, Inc., Accenture PLC and Oracle Corporation are the forerunners in the market. In August 2023, Thermo Fisher Scientific, Inc. took over CorEvitas, LLC to expand its clinical research business with highly complementary real-world evidence solutions and improve decision-making as well as the time and cost of drug development. Companies such as Agilent Technologies, Inc., Boehringer Ingelheim International GmbH and Infosys Limited are some of the key innovators in the Market.
The COVID-19 pandemic significantly impacted the market in several ways. The pandemic brought about some negative impacts on the market. One significant challenge was research and clinical trial disruptions due to lockdowns, travel restrictions, and social distancing measures. Many laboratories and research facilities were forced to temporarily close or operate at reduced capacity, leading to delays in data generation, experimentation, and validation of drug candidates. Thus, the pandemic had an overall positive impact on the market.
Big data analytics enable the integration and analysis of vast amounts of biological, chemical, and clinical data from diverse sources, such as genomics, proteomics, metabolomics, and electronic health records. AI algorithms can extract meaningful insights from these datasets, identifying patterns, correlations, and hidden relationships that traditional methods may overlook. Thus, the emergence of big data and artificial intelligence enhances the market.
Additionally, the increasing research and development expenditure in the pharmaceutical industry has led to a growing demand for drug discovery informatics as companies seek more efficient and effective ways to discover new drugs and therapies. Governments worldwide have recognized the importance of R&D in driving innovation in the pharmaceutical sector and have made significant investments to support these efforts. Thus, increasing research and development (R&D) expenditure directly boosts the market.
Implementing drug discovery informatics platforms and solutions typically requires a substantial initial investment in software licenses, hardware infrastructure, computational resources, and specialized expertise. The upfront costs associated with acquiring and setting up informatics systems can be prohibitive for many pharmaceutical companies, biotech startups, and academic institutions, especially those with limited budgets or resources. Hence, the high cost of implementation presents a significant barrier to entry for many organizations interested in adopting drug discovery informatics solutions.
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Challenges Based on application, the market is characterized into drug discovery and drug development. The drug discovery segment garnered 68.5% revenue share in the market in 2023. A key benefit of drug discovery platforms is their ability to analyze vast amounts of data to identify potential drug candidates with high efficacy and safety profiles. As these technologies continue to advance, manufacturers can expect to see even greater innovations in drug discovery and development in the years to come.
On the basis of function, the market is classified into sequencing & target data analysis, library & database preparation, docking, molecular modeling, and others. In 2023, the docking segment acquired a 11.3% revenue share in the market. Docking optimizes lead compounds identified through virtual screening or experimental assays. It is utilized in drug repurposing efforts to identify existing drugs or compounds with the potential to interact with new targets. Furthermore, docking can also optimize the binding affinity of existing drug candidates.
By end user, the market is fragmented into biotechnology companies, pharmaceutical companies, contract research organizations, and others. The pharmaceutical companies segment procured 35.7% revenue share in the market in 2023. Pharmaceutical companies’ substantial investments in research and development are directed toward discovering and developing novel therapeutics and acquiring and developing cutting-edge informatics tools and technologies. Additionally, the growing importance of biotechnology in drug discovery and development has expedited the growth of the pharmaceutical sector.
Free Valuable Insights: Global Drug Discovery Informatics Market size to reach USD 6.5 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment held a 30.5% revenue share in the market in 2023. Europe boasts world-renowned academic and research institutions at the forefront of drug discovery and informatics research. Collaborative initiatives between academia, industry, and government organizations foster innovation and drive advancements in informatics technologies, methodologies, and applications.
The Drug Discovery Informatics market is highly competitive due to constant innovation, diverse solutions, industry consolidation, regulatory requirements, customer relationships, and global reach. Key players such as Oracle Corporation, Accenture Plc, and Certara Inc. are dominating the market. Companies compete by offering cutting-edge technologies, specialized solutions, and excellent customer support to pharmaceutical, biotech, and research organizations.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 3 Billion |
| Market size forecast in 2031 | USD 6.5 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 10.3% from 2024 to 2031 |
| Number of Pages | 264 |
| Number of Tables | 373 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Function, End User, Application, Region |
| Country scope |
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| Companies Included | Oracle Corporation, Accenture PLC, Thermo Fisher Scientific, Inc., Boehringer Ingelheim International GmbH, Infosys Limited, Charles River Laboratories International, Inc., Agilent Technologies, Inc., Illumina, Inc., Certara, Inc., Jubilant Pharmova Limited |
By Application
By Function
By End User
By Geography
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