Drug Discovery Informatics Market Growth by Application, Solution and Geography - Forecast and Analysis 2023-2027

The drug discovery informatics market is estimated to grow at a CAGR of 15.06% between 2022 and 2027. The size of the market is forecast to increase by USD 4,953.48 million. The growth of the market depends on several factors, including increasing R and D investments by pharmaceutical and biopharmaceutical companies, drug discovery with reduced time and cost by using in-silico modeling tools, and increasing outsourcing activities for drug discovery. 

This report extensively covers market segmentation by application (discovery informatics and development informatics), solution (software and services), and geography (North America, Europe, Asia, and Rest of World (ROW)). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Drug Discovery Informatics Market During the Forecast Period?

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Drug Discovery Informatics Market: Key Drivers, Trends, Challenges, and Customer Landscape

The increasing R and D investments by pharmaceutical and biopharmaceutical companies are notably driving the market growth, although high setup costs of drug discovery informatics may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Drug Discovery Informatics Market Driver

The increasing R and D investments by pharmaceutical and biopharmaceutical companies are notably driving the drug discovery informatics market growth. Due to the increasing prevalence and incidence of various chronic diseases such as diabetes, chronic obstructive pulmonary disease (COPD), asthma, cancer, heart disease, arthritis, cystic fibrosis, and dementia, there is an increasing need to develop drugs. For example, according to the CDC, 6 out of 10 adults in the United States have a chronic disease. For the treatment of chronic diseases, pharmaceutical and biopharmaceutical companies are increasingly focusing on R&D activities to expand their pipeline of drug molecules used for various therapeutic applications.

Pharmaceutical and biopharmaceutical companies are enhancing their product pipelines by developing advanced and innovative medicines in therapeutic areas such as immunology, cancer, and infectious diseases. The pharmaceutical industry spends more on R&D to continuously develop new product pipelines to introduce new drugs and increase revenue. Pharmaceutical companies spend approximately 65% ??and 35% of their revenues on early-stage discovery and development and late-stage development, respectively. Pharmaceutical companies need drug discovery informatics to build a strong pipeline. The cumbersome R&D process of product development drives demand for advanced software to speed up the R&D process. This is driving the growth of the drug discovery informatics market. 

Significant Drug Discovery Informatics Market Trend

An increasing number of clinical trials is a key trend influencing the drug discovery informatics market growth.  Pharmaceutical companies, biotechnology companies, and research institutes focus on conducting clinical trials to develop new approaches for the treatment of various chronic and infectious diseases. Clinical trials are conducted as an integral part of the overall pharmaceutical research and development process to gather information about the safety and efficacy of new drug molecules. They are an important part of the drug research process for obtaining regulatory approval for marketing.

Collecting data from clinical trials can introduce unnecessary risks, costs, and complexities. Clinical trials also require data from the early stages of drug development. An effective clinical data integration platform helps integrate, standardize, and aggregate data collected from all possible source systems in real time. This assists pharmaceutical companies in early decision-making related to drug molecules. Drug discovery informatics solutions help optimize clinical trial performance. Vendors present in the global drug discovery informatics market are focused on developing clinical trial management solutions.  All these factors are expected to serve the drug discovery informatics market during the forecast period.  

Major Drug Discovery Informatics Market Challenge

The high setup costs of drug discovery informatics are challenging the drug discovery informatics market growth. Drug discovery and development generate large amounts of data and information. Drug discovery informatics is used by pharmaceutical and biopharmaceutical companies to integrate and aggregate heterogeneous and distributed data. The drug discovery and design process is costly due to the high costs associated with research and development and clinical trials. The average total cost of drug development generally ranges from USD 800 million to USD 2 billion. Drug discovery informatics plays a key role in accelerating the drug development process, from target identification to commercialization. In drug discovery informatics, computational drug design (CADD) requires appropriate facilities within the facility to design, develop, and optimize bioactive compounds. The cost of pharmaceutical research informatics impacts its use in research labs. The cost of drug discovery research informatics depends on many factors, including the cost of software used in different stages of drug discovery research, the cost of technical staff, and the cost of advanced equipment used in drug discovery research.

The use of software as a service (SAAS), high-throughput screening (HTS) software, and laboratory information management systems (LIMS) primarily used in drug discovery and development increase the total cost of drug discovery informatics.  High costs associated with the entire drug discovery process reduce the use of drug discovery informatics solutions in small and medium-sized laboratories. This is expected to hamper the growth of the drug discovery informatics market during the forecast period.  

Key Drug Discovery Informatics Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Drug Discovery Informatics Market Customer Landscape

Who are the Major Drug Discovery Informatics Market Vendors?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Certara Inc: The company's biosimulation business segment provides different services such as how potential doses will affect different patient groups, how a drug affects the body, and how patients will respond under various clinical scenarios.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Aragen Life Sciences Pvt. Ltd.
• Charles River Laboratories International Inc.
• ChemAxon Ltd.
• ChemBridge Corp.
• Collaborative Drug Discovery Inc.
• Cresset BioMolecular Discovery Ltd.
• Curia Global Inc.
• Dassault Systemes SE
• Eurofins Scientific SE
• Evotec SE
• Infosys Ltd.
• Insilico Medicine
• International Business Machines Corp.
• Jubilant Pharmova Ltd.
• Melissa Inc.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segments in the Drug Discovery Informatics Market?

The market share growth by the discovery informatics segment will be significant during the forecast period. The Discovery of drug molecules for specific therapeutic areas is the most important part of the drug discovery and development process. This process requires the generation of vast amounts of data and information. Identification and validation, and lead generation are two major steps performed in the drug discovery process. In the process, researchers will primarily focus on early-stage lead generation across different target classes. Identifying novel leads using a wide range of techniques, including high-throughput screening, molecular modeling, medicinal chemistry, and structural biology, and selectively guiding them through the preclinical discovery process is an integral part of the drug discovery process. The time required for the drug discovery process and the associated high costs burden end users such as the pharmaceutical and biotechnology industries. Discovery informatics primarily involves creating systems that can efficiently process large data sets. It consists of informatics for identification, validation, and assay development, and informatics for lead generation. 

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The discovery informatics segment was valued at USD 1,207.95 million in 2017 and continued to grow until 2021. The adoption of drug discovery informatics solutions by the pharmaceutical industry is increasing due to various factors such as ease of onboarding, affordability, multi-domain usage, and role in protecting intellectual property from accidental loss or disclosure. Therefore, factors such as identification, validation, and lead generation by identifying new starting points using a wide range of techniques such as high-throughput screening, molecular modeling, medicinal chemistry, and structural biology will boost the discovery informatics segment in the forecast period.  

Which are the Key Regions for the Drug Discovery Informatics Market?

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North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The drug discovery informatics market in North America is expected to grow at a moderate rate during the forecast period. North America has seen an increase in the adoption of various advanced technologies in recent years. Markets in this region are driven by the adoption of advanced technology, the increasing burden of chronic and lifestyle diseases, cheap government funding for drug discovery, the presence of pharmaceutical and biopharmaceutical companies, and increasing investment in information technology. In addition, the rising presence of prominent vendors and increasing adoption of AI and machine learning are driving the growth of the drug discovery informatics market in North America. 

The COVID-19 outbreak affected the market globally in 2020, which led to partial lockdowns across the world. A range of non-emergency pharmaceuticals and related operations were running at limited capacity or halted entirely, in accordance with government guidelines. Some of the planned preclinical trials were also deferred. Instead, activity focused on the development of vaccines and therapeutics for COVID-19, significantly slowing the growth of the market in the first quarters of 2020 and 2021. However, by January 2021, lockdown restrictions in various countries were eased somewhat to support business reopening. The resumption of operations by various contract manufacturers boosted the demand for drug discovery informatics across the world during the forecast period. 

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook (USD Million, 2017 - 2027)
  • Discovery informatics
  • Development informatics

• Solution Outlook (USD Million, 2017 - 2027)
  • Software
  • Services

• Region Outlook (USD Million, 2017 - 2027)
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Rest of World (ROW) 

Parent Market Analysis

Technavio categorizes the global drug discovery informatics market as part of the global healthcare technology market, which is part of the global healthcare market. The market includes revenues from sales of healthcare applications and IT systems, internet-based healthcare tools (such as monitoring devices), and IT consulting services for clinics, hospitals, or companies primarily engaged in the healthcare sector.

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What are the Key Data Covered in this Drug Discovery Informatics Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the drug discovery informatics market between 2023 and 2027
• Precise estimation of the size of the drug discovery informatics market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of drug discovery informatics market vendors

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