Drug Discovery Services Market Size, Share, and Trends 2025 to 2034

Drug Discovery Services Market Size and Forecast 2025 to 2034

The global drug discovery services market size accounted for USD 21.26 billion in 2024 and is expected to exceed USD 79.71 billion by 2034, growing at a CAGR of 14.13% from 2025 to 2034. The market growth is driven by the increasing investments in drug discovery and development.

Drug Discovery Services Market Key Takeaways

• North America dominated the global market with the largest market share of 44% in 2024.
• Asia Pacific is projected to expand at the notable CAGR during the forecast period.
• By drug type, the small molecules segment contributed the highest market share in 2024.
• By drug type, the biologics segments is estimated to be the fastest-growing segment during the forecast period.
• By type, the medicinal segment captured the biggest market share in 2024.
• By therapeutic area, the oncology segment has held the largest market share in 2024.
• By therapeutic area, the diabetes segments is predicted to be the fastest-growing segment during the forecast period.

What is the role of AI in the Drug Discovery Services Market?

The rise of artificial intelligence (AI) and machine learning (ML) is transforming every aspect of the healthcare and pharmaceutical industry from the research phase to production. AI algorithms are being highly adopted in drug discovery processes, where they perform tedious tasks by analyzing datasets, which further helps in drug testing. This also increases accuracy and reduces the risks. AI also helps in developing personalized medicines.

U.S. Drug Discovery Services Market Size and Growth 2025 to 2034

The U.S. drug discovery services market size was evaluated at USD 6.55 billion in 2024 and is projected to be worth around USD 25.01 billion by 2034, growing at a CAGR of 14.34% from 2025 to 2034.

North America was the leading drug discovery services market in 2024. The presence of several top biopharmaceutical and pharmaceutical companies are supported by the numerous CROs and CMOs in the region, which favors the growth of the drug discovery services market. US is the patent holder of the most of the newly developed drugs. Furthermore, the increased prevalence of various chronic diseases and rising geriatric population in US is fueling the growth of the market. According to the Population Reference Bureau, the number of people aged 65 years and above is expected to reach at 95 million in US by 2060. It is estimated that around 60% of the US population is suffering from one or more chronic diseases. The increasing awareness regarding the biologics is boosting the demand for the new and innovative drugs in the region, which in turn is supporting the growth of the drug discovery services market in North America.

Asia Pacific is estimated to be the fastest-growing market during the forecast period. This is attributed to the presence of several top research organizations in the countries like China, India, and South Korea. The rising awareness regarding the biologics among the population in the emerging nations is fueling the demand for the innovative biologic drugs. Moreover, the favorable government policies is attracting FDIs, which is expected to drive the growth of the drug discovery services in Asia Pacific market.

Drug Discovery Services Market Growth Factors

• Rising investments by pharmaceutical and biopharmaceutical companies in research and development contribute to market expansion.
• Increasing demand for generic medicines boosts the growth of the market.
• The rising production of biopharmaceuticals and novel drugs positively impacts the market.
• The active participation of various authorities like the FDA and EMA in the approvals of new drugs is supporting the market growth.

Market Scope

Market Dynamics

Drivers

Rising Investments in R&D

With the growing burden of various diseases worldwide, there is a significant increase in the demand for novel drugs. Thus, pharmaceutical and biopharmaceutical companies are heavily investing in research & development activities to accelerate the development of novel drugs, which significantly boosts the demand for outsourcing services related to clinical trials and analytical tests. Moreover, growing research activities on orphan medicines and rare diseases are fostering the growth of the global drug discovery services market. The burgeoning demand for biopharmaceutical drugs further contributes to market expansion. 

Rising Prevalence of Chronic Diseases

The rising prevalence of various chronic diseases such as cancer, diabetes, cardiovascular diseases, and respiratory diseases due to unhealthy food habits, rising pollution levels, and rising consumption of tobacco significantly contribute to the growth of the drug discovery services market. Moreover, the rapidly growing geriatric population across the globe positively impacts the market, as older people are more susceptible to various diseases, which significantly boosts the demand for novel drugs.

Restraint

Regulatory Requirements

Stringent regulatory requirements for drug approvals hamper the growth of the market. Substantial investment is required in the development of drugs, discouraging small and mid-sized healthcare organizations from investing in drug development. Moreover, drug approval is a lengthy process, which delays time to market, thus limiting the growth of the market.

Opportunities

Expansion of the Contract Research Organizations (CROs)

With the rapid expansion of contract research organizations (CROs), the availability of advanced resources and expertise that enhance the R&D in drug discovery is increasing. CROs provide high-quality services to pharmaceutical and biopharmaceutical companies without large-scale operational costs. Additionally, the increasing demand for outsourcing services will boost market growth in the coming years.

Demand for Personalized Medicine

Personalized medicines are gaining significant traction due to the rise in complex medical conditions. This leads to the increased use of drug discovery services to study the individual genetic profile, their day-to-day movements, and other factors to develop a specific drug.

Drug Type Insights

The small molecules segmented accounted for the largest revenue share of the global drug discovery services market in 2024. The small molecules drugs are easy to characterize, simple, and well-defined that fostered its growth. The small molecules drugs are much more effective and have higher demand among the population. The small molecules can easily affect the cells and can provide effective treatment owing to its small molecules. The increased awareness regarding the benefits of the small molecule drugs has favored the growth of this segment.

On the other hand, the biologics is estimated to be the most opportunistic segment during the forecast period. The biologics industry has produced several life-saving drugs that can effectively treat various non-communicable diseases such as cancer, cardiovascular diseases, and diabetes. The rising prevalence of various chronic diseases and rising awareness regarding the availability of various biologic drugs is estimated to foster the growth of this segment in the foreseeable future.

Type Insights

Based on the type, the medicinal chemistry segment dominated the global drug discovery services market in 2020. The medicinal chemistry has widespread application in the drug discovery services, starting from pre-clinical trials to the delivery of candidates. Therefore, the importance of this segment has led to its dominance. Moreover, the increased outsourcing by the biopharmaceutical companies is expected to drive the growth of this segment.

Therapeutic Area Insights

Depending on the therapeutic area, the oncology segment dominated the global drug discovery services market in 2020. This is primarily attributed to the increased drug discovery activities related to the cancer. The increased prevalence of different types of cancer among the population has fostered the growth of the oncology segment. According to the International Agency for Research on Cancer, around 19.3 million new cancer cases and around 10 million cancer deaths were reported in 2020. The new cancer cases are expected to rise by 47% from 2020 to 2040, globally. Therefore, it is estimated that around 28.4 million new cancer cases will be recorded in 2040 across the globe. The most prevailing types of cancer include lungs cancer, breast cancer, prostate cancer, and colorectal cancer. Hence, the increased prevalence of various cancers is expected to sustain the dominance of this segment in the forthcoming years.

On the other hand, the diabetes is expected to be the fastest-growing segment. The rising prevalence of cancer among the population owing changing lifestyles and unhealthy food habits of the consumers is fostering the growth of this segment. As per the International Diabetes Federation, around 783 million people across the globe are estimated to live with diabetes by 2045. Further, over 1.2 million children and teenagers are suffering from type 1 diabetes. Diabetes is the major cause of stroke, kidney failure, and blindness.

Drug Discovery Services Market Companies

• Abbott Laboratories Inc.
• Advinus Therapeutics
• Agilent Technologies Ubiquigent
• Albany Molecular Research Inc.
• AstraZeneca PLC
• Aurigene
• Bayer AG
• Charles River Laboratories International
• ChemBridge Corporation
• Covance

Recent Developments

• In December 2024, Axcelead Drug Discovery Partners, Inc. entered into a drug discovery service agreement with Astellas Pharma, Inc. to explore new candidate compounds for targeted protein degraders.
• In October 2024, Jubilant Biosys expanded its drug discovery and preclinical development capabilities in the field of biologics and Antibody Drug Conjugate (ADCs) through a strategic partnership with Pierre Fabre, establishing a European Centre of Excellence in Saint Julien, France.

Segments Covered in the Report

By Process

• Target Selection
• Target Validation
• Hit to Lead Identification
• Lead Optimization
• Candidate Validation

By Drug Type

• Small Molecules
• Biologics

By Type

• DMPK
• Biology Services
• Medicinal Chemistry

By Therapeutic Area

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

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Malaysia
  • Philippines
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa