Drug Discovery Services Market

Drug Discovery Services Market

Market Size and Growth

The global drug discovery services market size reached US$ 8.37 Billion in 2024 from US$ 8.01 Billion in 2023 and is expected to reach US$ 12.78 Billion by 2033, growing at a CAGR of 4.9% during the forecast period 2025-2033.

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Key Development:

United States: Recent Drug Discovery Services Developments

✅ In December 2025, Meiji Seika Pharma announced a strategic partnership with MBC BioLabs to strengthen global innovation in drug discovery by tapping into startup ecosystems and accelerating early‐stage research collaboration between Japan and U.S. innovation hubs, boosting cross‐border discovery capabilities.

✅ In November 2025, RealizeEdge Partners formed an alliance with Axcelead Drug Discovery Partners and Xeureka to launch a new company focused on targeted protein degraders (TPDs) and degrader‐antibody conjugates (DACs), integrating AI‐enabled molecular design with drug discovery services.

✅ In October 2025, Eli Lilly and NVIDIA partnered to build an advanced supercomputer to accelerate drug discovery workflows using AI‐driven models and high‐performance computing, aiming to shorten discovery timelines and enhance predictive research.

✅ In October 2025, XenoSTART expanded its partnership with Minerva Imaging to deliver an integrated PDX‐radiopharmaceutical drug development platform, enhancing discovery and preclinical testing capabilities for oncology therapies.

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Japan: Recent Drug Discovery Services Developments

✅ In December 2025, Xeureka and UBE Corporation entered into a joint research agreement on small‐molecule oncology drug discovery, combining expertise to accelerate target identification and early‐stage compound development.

✅ In November 2025, UBE Corporation and FRONTEO signed a research agreement leveraging AI‐driven drug discovery support services (“DDAIF”) to explore and generate novel drug discovery seeds for licensing by pharma companies.

✅ In September 2025, Japanese biotech xFOREST Therapeutics partnered with Axcelead Drug Discovery Partners to use advanced high‐throughput screening and RNA‐focused discovery platforms to identify novel therapeutic small molecules, targeting previously “undruggable” RNA structures.

✅ In June 2025, Mitsubishi Research Institute and Astellas Pharma announced a collaboration to support drug‐discovery startups via Japan’s MEDISO program, providing lab facilities and industry expertise to accelerate early‐stage discovery commercialization.

Key Players:

=> Charles River Laboratories, Thermo Fisher Scientific Inc., Labcorp, WuXi AppTec, Evotec, Domainex, GenScript, and Pharmaron, among others.

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Key Segments:

By Service Type

Integrated Drug Discovery leads with 28% share, driven by demand for end-to-end solutions that reduce time-to-market and improve R&D efficiency.

Target Validation accounts for 18%, fueled by the need to confirm therapeutic targets across oncology, neurology, and metabolic disorders.

Lead Optimization holds 15%, supported by increasing investments in preclinical drug development to enhance efficacy and safety profiles.

Computational Chemistry represents 12%, driven by the adoption of in silico modeling and AI-based drug design.

Medicinal Chemistry accounts for 10%, benefiting from personalized medicine trends and high-value small molecule development.

ADME & DMPK represents 9%, critical for pharmacokinetics and drug metabolism studies.

Biochemistry and Others contribute 8%, covering niche enzyme assays, biomarker analysis, and specialty lab services.

By Application

Oncology dominates with 32% share, reflecting rising cancer prevalence, targeted therapy development, and expanding R&D pipelines.

Neurology accounts for 18%, driven by growing neurodegenerative disease research and cognitive disorder therapies.

Metabolic Disorders represent 14%, fueled by demand for diabetes, obesity, and lipid disorder treatments.

Inflammatory Diseases hold 12%, supported by biologics development and immunomodulatory drugs.

Immunology accounts for 11%, driven by immunotherapy, vaccines, and autoimmune disease research.

Others contribute 13%, including rare diseases, infectious diseases, and emerging therapeutic areas.

By Region

North America – 42% Share

North America dominates due to robust pharmaceutical R&D infrastructure, strong biopharma presence, and high healthcare expenditure. Regulatory support and venture funding further boost growth.

Europe – 25% Share

Europe benefits from established contract research organizations (CROs), government-backed drug discovery programs, and adoption of advanced medicinal chemistry techniques.

Asia Pacific – 20% Share

Asia Pacific shows rapid growth driven by emerging biotech hubs, cost-effective R&D services, and government incentives in countries like China, India, and Japan.

Latin America – 7% Share

Growth is supported by expanding clinical research networks and increasing collaborations with global pharma companies.

Middle East & Africa – 6% Share

The region’s growth is modest but supported by increasing investment in healthcare infrastructure and biopharma collaborations.

FAQ

What is the current size of the drug discovery services Market?

A: In 2024, the drug discovery services Market was valued at US$ 8.37 Billion, reflecting its strong industry presence.

Q2: How large is the drug discovery services Market expected to be by 2033?

A: By 2033, industry forecasts suggest the drug discovery services Market will grow to around US$ 12.78 Billion , demonstrating significant expansion.

Q3: What is the growth rate of the drug discovery services Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 4.9% during the forecast period from 2025 to 2033.

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