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

Drug Discovery Informatics Market Forecast 2023-2027

The drug discovery informatics market size is forecast to increase by USD 4.95 billion at a CAGR of 15.06% between 2022 and 2027. Market growth is spurred by various factors, including the heightened research and development (R&D) investments from pharmaceutical and biopharmaceutical companies. These entities are leveraging in-silico modeling tools to streamline innovation processes, reducing both time and costs significantly. Additionally, the increasing adoption of outsourcing activities for drug discovery is contributing to market expansion. This trend allows companies to access specialized expertise and resources, enhancing their capabilities in bringing novel drugs to market efficiently. Altogether, these developments signify a shift towards more efficient and cost-effective innovation methodologies fueled by advancements in technology and strategic collaborations within the pharmaceutical industry.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by application (discovery informatics and development informatics), solution (software and services), and geography (North America, Europe, Asia, and the Rest of the 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.

Market Dynamics and Customer Landscape

The market is driven by the rising demand for precision medicine and personalized medical care, enhancing treatment effectiveness for specific patient groups. Advancements in genetic profiling, molecular profiling, and technological innovations like gene sequencing are fueling the development of novel medications. Challenges include managing vast amounts of data storage and optimizing data collection processes. Trends indicate increased adoption of informatics software for data gathering and visualization, alongside growing collaborations in Drug Discovery Hackathon events and advancements in clinical trial design and bioinformatic solutions for molecular modeling. 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. In the healthcare sector, data analysis powered by data-driven software is revolutionizing pre-clinical research. Through sophisticated computational methods and data analytics, researchers can predict potential side effects more accurately, leveraging vast pools of biochemical data. This approach enhances safety and efficacy evaluations, paving the way for more precise and efficient drug development processes.

Key Market Driver

The increasing R&D investments by pharmaceutical and biopharmaceutical companies are notably driving the 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.

Moreover, 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 these solutions 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 market. 

Significant Market Trend

An increasing number of clinical trials is a key trend influencing the 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.

Moreover, 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. These solutions help optimize clinical trial performance. companies present in the global market are focused on developing clinical trial management solutions.  All these factors are expected to serve the market during the forecast period.  

Major Market Challenge

The high setup costs of drug discovery informatics are challenging the market growth. Drug discovery and development generate large amounts of data and information. It is used by pharmaceutical and biopharmaceutical companies to integrate and aggregate heterogeneous and distributed data. The innovation 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. It plays a key role in accelerating the drug development process, from target identification to commercialization. 

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

Key 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 Market Customer Landscape

Who are the Major Market Players?

Companies 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 offers Drug Discovery Informatics services sucha as the affects of a drug on 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 companies, 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 companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segments in the Market?

The market is characterized by a wide range of technologies and strategies aimed at enhancing the efficiency and effectiveness of drug discovery and development processes. Key elements driving this market include precision medicine, which tailors medical care to specific patient groups based on genetic and molecular characteristics. Genetic profiling and molecular profiling techniques play a crucial role in identifying targets and developing novel medications for diseases, particularly rare diseases and those requiring orphan drug research. Technological advancements in data storage, data collection, and gene sequencing have revolutionized the way drug molecules are discovered and validated. Informatics software plays a vital role in data gathering and visualization, facilitating the interpretation of complex genome sequencing data, nucleic acids, proteins, and genes. Innovative platforms such as the Drug Discovery Hackathon (DDH) and Sequence analysis platforms streamline clinical trial design and bioinformatic solutions, enabling pharmaceutical companies to expedite the identification of promising drug candidates. Molecular modeling and bioinformatics solutions are leveraged to predict drug behavior and optimize drug-target interactions.

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 validation and lead generation are two major steps performed in the innovation 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.

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The discovery informatics segment was valued at USD 1.20 billion in 2017 and continued to grow until 2021. The adoption of these 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 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 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 companies and increasing adoption of AI and machine learning are driving the growth of the market in North America. 

Segment Overview

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

• Application Outlook 
  • Discovery informatics
  • Development informatics

• Solution Outlook 
  • Software
  • Services

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
  • Rest of the World (ROW)
    • Australia
    • Argentina
    • Brazil

Market Analyst Overview

The market is experiencing rapid growth due to various factors, such as precision medicine, which aims to tailor medical care to individual patients, increasing the effectiveness of treatments. Advances in genetic profiling and molecular profiling have paved the way for more targeted therapies, supported by continuous technological advancements in the field. The utilization of data storage and collection techniques, coupled with gene sequencing technologies, has enabled the discovery of novel medications.  Genetic or molecular profiling has revolutionized healthcare, demanding robust data management, processing, and analysis. Compared to traditional procedures, research spending in rare diseases, including cancer, has surged, aided by next-generation sequencing in chemical laboratories and pharma nanotechnology sectors. Sequencing analysis, driven by bioinformatics tools, deciphers nucleic acid and protein biomolecular sequences, aiding in pregnancy, lactation, and COVID-19 drug discovery. Virtual screening techniques tackle SARS-CoV-2, enriching the pharmaceutical sector with data-driven software for drug design, preclinical research, and drug target identification. Machine learning tools enhance prediction of drug resistance and side effects, augmenting data science and analytics beyond conventional methods.

Moreover, the biotechnology industry is focusing on rare diseases and orphan drug research, leveraging informatics software for efficient data gathering and visualization. Collaborations between the Healthcare IT sector and pharmaceutical companies have led to the development of innovative pharmaceuticals, including SARS-COV-2 vaccines, utilizing cloud-based technology and computational resources for primary and secondary databases, scientific research, and drug discovery. Moreover, high-performance computing and Web services are facilitating clinical trial design and Sequence analysis platforms for hit discovery and hit-to-lead optimization. The market witnesses significant contributions from AI algorithms and artificial intelligence in bioinformatics solutions across middle and small-scale firms, accelerating drug discovery processes. Major pharmaceutical companies and middle to small-scale firms are making substantial financial investments in research infrastructure and computational drug discovery workflows to unlock the potential of precision medicines and novel therapeutic compounds.

Innovative strides in data processing and analysis are reshaping traditional procedures, particularly in tackling rare diseases like cancer. Next-generation sequencing, coupled with advancements in healthcare IT and pharma nanotechnology sectors, holds promise in diverse areas such as pregnancy, lactation, and combating the SARS-CoV-2 virus. Data-driven software empowers preclinical research, accelerating discoveries in healthcare and beyond. Pharma firms are leveraging both public data and internal datasets, integrating them for enhanced insights through machine learning algorithms. This synergy aids in advancing drug therapeutics, particularly in genomics and molecular simulation, driving predictive modeling for personalized medicine. Additionally, such technologies optimize drug manufacturing processes and meet the evolving demands for vaccines in healthcare.

Market Scope
Report Coverage	Details
Page number	159
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.06%
Market growth 2023-2027	USD 4.95 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	14.66
Regional analysis	North America, Europe, Asia, and the Rest of the World (ROW)
Performing market contribution	North America at 29%
Key countries	US, Germany, UK, France, and China
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aragen Life Sciences Pvt. Ltd., Certara Inc., 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., OpenEye Scientific Software Inc., Perkin Elmer Inc., Schrodinger Inc., Selvita SA, and Thermo Fisher Scientific Inc.
Market dynamics	Parent market analysis, market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

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

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