Drug Discovery Services Market Size, Share, By Type (Medicinal Chemistry, Biology Services, Drug Metabolism, Pharmaceutical Services, and Others), Drug Type (Small Molecules and Biologics), Process (Target Selection, Target Validation, Hit-to-lead Identification, Candidate Validation, and Others), Technology, Therapeutic Area, End-Users, and Region - Trends, Analysis, and Forecast till 2035

• The drug discovery services market size is projected to grow to USD 88.6 Billion by 2035. 
• USD 24.8 Billion was the valuation of the market in 2024.
• The market is expanding at a CAGR of 14.3%.

The scientific and technological services that aid in the identification and development of novel medications are known as drug discovery services.  The process of discovering novel treatments for illnesses may be accelerated with the use of these services. The increasing research and development by biopharmaceutical companies, demand for generic medicines, production of biopharmaceuticals and novel drugs, and regulatory support are factors driving the drug discovery services market growth. Moreover, drug discovery services help pharmaceutical companies develop new drugs, more efficiently, and cost-effectively, with access to specialized expertise, accelerate the timeline, improve quality, and help companies anticipate future needs, thereby, further contributing to market diversification.

Generative AI Impact on Drug Discovery Services Market:

The term drug discovery services describes businesses that offer the know-how and technology to find and create possible new medications. Generative AI has a big impact in this area since it makes it possible to find promising drug candidates more quickly and effectively by creating novel molecules with desired qualities. This significantly cuts down on the time and expense involved in the drug discovery process and may even lead to previously unconsidered therapeutic avenues.

Key Drivers of Target Market:

Rising Demand for Generic Drugs is Expected to Pitch the Market Growth

The need for contract research organizations (CROs) to develop and test generic versions of existing brand-name drugs is growing, especially as patents on those brand-name drugs expire. This increases demand for CROs' cost-effective drug development services to bring generic alternatives to the market quickly and efficiently, which boosts business for drug discovery service providers. The growing demand for generic drugs is a major driver of the growth of the drug discovery services market.

• For instance, in October 2024, according to an article published by the FDA, access to affordable medicines remained a significant public health priority for the FDA. The agency regularly conducted economic analyses to measure the impact additional approved generic equivalents can have on consumer generic drug prices. The studies conducted by the FDA continually demonstrated that greater competition from generic drugs could help affordability and improve access to drugs for American patients and consumers.

Restraints:

Market Growth is Disturbed by the Complex Regulatory Pathways

The lengthy medication development process brought on by intricate regulatory clearances and comprehensive clinical trials is a significant obstacle in the drug discovery services market. This affects patient access to novel therapies and postpones market entrance. Furthermore, service providers face uncertainty due to changing regulatory requirements.

• Counterbalance Statements: Approvals can be accelerated by streamlining regulatory processes and fostering more cooperation between service providers and regulatory bodies. Additionally, trial designs may be optimized and delays can be decreased by utilizing AI-driven prediction models.

Opportunities:

Incorporating Advanced Technologies in Drug Discovery Services is Unlocking Growth Opportunities in the Future

Incorporating advanced technologies with drug discovery services fuels market growth in the future by improving efficiency, reducing costs, and speeding up the process of bringing new drugs into the market. The advanced technologies that could be incorporated include artificial intelligence (AI) and machine learning, high-throughput screening, next-generation sequencing platforms, cloud-based platforms, proteomics tools, and 3D-bioprinting technology.

• For instance, in July 2024, Exscientia plc announced that it would be expanding its work with Amazon Web Services (AWS) to use the cloud provider’s artificial intelligence (AI) and machine learning (ML) services to power its platform for end-to-end drug discovery and automation. The main goal of the company was to accelerate early drug development at a lower cost.

Type, drug type, process, technology, therapeutic area, end-user, and region are the segmentations of drug discovery services market.

By Type

Dependent on type, the market is divided into medicinal chemistry, biology services, drug metabolism, pharmaceutical services, and others. The medicinal chemistry segment is dominating the drug discovery services market. The segment’s expansion is driven by the increasing demand for chemistry services due to the outsourcing of small molecule projects by pharmaceutical companies. Moreover, the availability of high-quality drug chemical synthesis services is also increasing the segment’s demand.

• For instance, in May 2024, Avicenna Biosciences introduced an extension to its machine learning (ML) technology platform to enhance medicinal chemistry and expedite clinical-stage drug discovery. Avicenna’s novel ML methods could make the lead-to-drug optimization phase of small molecule drug discovery faster, less expensive, and more successful, particularly when it comes to engineering potency and selectivity against a potential biological target.

By Drug Type

On the basis of drug type, the market is bifurcated into small molecules and biologics. The small molecule drugs holds the largest drug discovery services market share due to its simplicity, effectiveness, and high demand. Additionally, small molecule drugs are well-defined, easy to describe, helps to treat a variety of conditions, used to create immunosuppressant drugs, and can easily penetrate cells.

• For instance, in July 2022, Dotmatics, a leader in R&D scientific software connecting science, data, and decision-making, announced the release of its Small Molecule Drug Discovery Solution, an integrated scientific R&D platform with pre-configured workflows and expanded data management capabilities. The solution helped companies innovate more easily by leveraging best practices derived from the company's 15+ years of experience supporting small molecule drug discovery.

Process

By process, the market is classified into target selection, target validation, hit-to-lead identification, candidate validation, and others. The hit-to-lead identification segment is projected to rule over the market as it represents a crucial stage in the drug development process, where initial compounds showing potential therapeutic activity are further optimized and refines into more promising molecules.

By Technology

Based on Technology, the market is sub-segmented into high throughput screening, biochips, pharmacogenetics, nanotechnology, and others. The high throughput screening technology is expected to govern the market as it can quickly test thousands of compounds at once. This in turn, speeds up the process of discovering new drugs.

• For instance, in January 2025, Alloy Therapeutics, a biotechnology ecosystem company dedicated to democratizing access to cutting edge drug discovery technologies, announced that it was launching a new market-disrupting licensing structure, mAbForge, a high-throughput screening service for drug discovery. Partners could now have the option to use the ATX-Gx antibody discovery platform with no annual access fee or development milestones.

By Therapeutic Area

The market is branched into oncology, neurology, cardiovascular diseases, respiratory diseases, diabetes, and others, on the foundation of therapeutic area. The oncology segment is influencing the market due to the rising number of cancer patients and the need for new cancer therapies. Additionally, research studies on cancer therapeutics are also increasing, driving the segment’s growth. 

• For instance, in February 2024, Pharmaron, outlined its strategic priorities for the newly formed Oncology organization, in a meeting, and how it’s deep and diverse pipeline, industry-leading Oncology expertise, and anticipated near- and mid-term catalysts were expected to position the company to deliver strong growth and shareholder value.

By End-User

According to end-user, the market is grouped into hospital and clinics, pharmaceutical companies and biotechnology companies, research institutes, and others. The pharmaceutical and biotechnology companies have the biggest drug discovery services market as it is the main developer of new therapies. Pharmaceutical and biotechnology companies use drug discovery services to identify potential drug candidates and optimize drug formulations.

• For instance, in May 2024, Enzene Biosciences, a global CDMO known for its flagship fully-connected continuous manufacturing platform had launched a new Drug Discovery Division, further expanding its breadth of services to the biotech industry and complementing its EnzeneX, equipped biologics manufacturing site, which opened later in that summer in the U.S.

Region

Geographically, the market is classified into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This is the region leading the drug discovery services market share by 50%. This is due to this region’s strong presence of established biopharmaceutical companies, substantial investment in research and development, advanced research infrastructure, favorable regulatory environment, strong academic collaboration, advanced technology and expertise, and growing demand for novel therapeutics.

• For instance, in March 2024, Ardena, a specialist pharmaceutical Contract Development and Manufacturing Organization (CDMO) and bioanalytical Contract Research Organization (CRO) with facilities in Belgium, Spain, the Netherlands, and Sweden, announced that it had successfully completed the acquisition of Catalent’s state-of-the-art drug discovery services facility in Somerset, New Jersey. This acquisition marked a significant milestone in the Adrena’s strategic expansion in North America.

Europe: This is the region with the market which grows with the fastest growth rate, during the forecast period. This is due to its robust healthcare infrastructure, presence of major biopharmaceutical companies, adoption of advanced technologies, increased investment in research and development, and an increasing focus on drug discovery.

• For instance, in March 2024, Selvita S.A. announced a strategic initiative to significantly expand its drug discovery services portfolio and enter the field of biologic drug discovery and development, by adding comprehensive therapeutic antibody discovery and development capabilities to its portfolio. The company woud employ a highly proficient team of experts specializing in the discovery and development of therapeutic antibodies and rent fully equipped state-of-the-art laboratories.

Drug Discovery Services Market Report Scope:

Attribute	Details
Market Size 2025	USD 26.2 Billion
Projected Market Size 2035	USD 88.6 Billion
CAGR Growth Rate	14.3% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S., and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia Malaysia, South Korea, and Rest of Asia Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of the Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Type:

• Medicinal Chemistry
• Biology Services
• Drug Metabolism
• Pharmaceutical Services
• Others

By Drug Type:

• Small Molecules
• Biologics

By Process:

• Target Selection
• Target Validation
• Hit-to-lead Identification
• Candidate Validation
• Others

By Technology:

• High Throughput Screening
• Biochips
• Pharmacogenetics
• Nanotechnology
• Others

By Therapeutic Area:

• Oncology
• Neurology
• Cardiovascular Diseases
• Respiratory Diseases
• Diabetes
• Others

By End User:

• Hospitals and Specialty
• Pharmaceutical and Biotechnology Companies
• Research Institues
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of the Middle East & Africa

The key players are adopting strategies such as using computational technologies to speed up the process, strategic partnerships, new product launches, and establishing facilities in emerging markets. The companies operating in the drug discovery services market are Piramal Pharma Limited, TheraIndx Lifesciences Pvt. Ltd., Vipragen, BenevolentAI, Jubilant Biosys Limited, and others.

Drug Discovery Services Market Companies:

• Piramal Pharma Limited
• TheraIndx Lifesciences Pvt. Ltd.
• Vipragen
• BenevolentAI
• Jubilant Biosys Limited
• Charles River Laboratories
• IQVIA
• Aurigene Pharmaceutical Services Ltd.
• Evotec SE
• Sai Life Sciences Limited
• Eurofins Advinus
• Vipragen
• Pharmaron
• Sygnature Discovery

View an Additional List of Companies in the Drug Discovery Services Market

• In December 2023, Merck, which is a leading science and technology company, launched its AIDDISON drug discovery software. It is the first software-as-a-service platform that bridged the gap between virtual molecule design and real-world manufacturability through SynthiaTM retrosynthesis software application programing interface (API) integration. It combined generative AI, machine learning and computer-aided drug-design to speed up drug development.
• In May 2023, Axxam and Promega announced the formalization of an agreement that would offer world-class early-stage drug discovery services for different classes of targets and cellular pathways. Global clients had facilitated access to innovative customized luminescence-based, cell-free and cell-based assays suitable to run in miniaturized and fully automated High-Throughput Screening (HTS) format, in search of novel drug candidates.

Analyst View:

The market is growing due to biopharmaceutical companies' research and development, demand for generic medicines, production of novel drugs, and regulatory support. These services help develop new drugs efficiently, cost-effectively, and anticipate future needs, contributing to market diversification.

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Company Name	Piramal Pharma Limited
Headquarter	Telengana, India
CEO	Mr. Peter DeYoung
Employee Count (2024)	10,001+ Employees