Global Drug Discovery Technologies Market to Reach $80.2 Billion by 2026

Strategic Insights -

The drug discovery industry has been significantly impacted by the COVID-19 pandemic, with temporary breaks in clinical trials and a shift towards remote and virtual study methods. However, the pandemic has also led to the emergence of new working ways, and technological advancements are simplifying the complex procedures in drug discovery. The global market for Drug Discovery Technologies is projected to reach $80.2 billion by 2026, growing at a CAGR of 8.1%. The market is driven by the growing geriatric population worldwide, increasing affluent patients' demand for efficient drugs, and advancements in molecular biology, biotechnology, genomics, and nanotechnology.

Key Takeaways:

  • The global Drug Discovery Technologies market is anticipated to reach $80.2 billion by 2026, growing at a CAGR of 8.1%.
  • Small Molecule Drugs, one of the segments analyzed, is projected to grow at a 7.8% CAGR to reach $60.2 billion by the end of the analysis period.
  • The Biologics segment currently accounts for a 23.9% share of the global market and is forecast to grow at a revised 8.8% CAGR for the next 7-year period.
  • The market is driven by the growing geriatric population worldwide, increasing affluent patients' demand for efficient drugs, and advancements in molecular biology, biotechnology, genomics, and nanotechnology.
  • Pharmaceutical organizations that are new have the opportunity to launch into the drug discovery global market through generics.
  • Pharmaceutical companies primarily focus on the technologies of drug development because drug discovery has a critical role to play in the cycle of drug development.
  • The U.S. Market is estimated at $16.4 billion in 2021, while China is forecast to reach $12.7 billion by 2026.
  • Among the geographic markets, Japan and Canada are forecast to grow at 7.3% and 6.8% respectively over the analysis period.
  • Within Europe, Germany is forecast to grow at approximately 7.9% CAGR.

Statistics:

  • The average cost of drug development has doubled in recent years to reach over $2.6 billion.
  • By therapeutic area, oncology and immuno-modulatory drugs are the most expensive to develop.
  • Clinical trials for oncology treatments require specific trial design expertise and have high attrition rates.
  • Only 12% of clinical trials in Phase II reach the market, while only 8% of those in Phase III are successful.
  • The rollout of more complex and extensive clinical trials contributes to the high late-stage failure rates.

Sources:

  • Global Industry Analysts Inc., (GIA) report titled "Drug Discovery Technologies - Global Market Trajectory & Analytics"
  • StrategyR(TM) Platform
  • www.StrategyR.com
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