Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Cloud-based Solution for Drug Discovery Development & Manufacturing Market Analysis

The cloud-based solutions for drug discovery, development, and manufacturing market is expected to register a CAGR of 12.5% during the forecast period, 2022-2027.

As the impact of the COVID-19 pandemic grows worldwide, biotech and pharmaceutical companies, along with other healthcare organizations, have launched intensive research to learn more about the novel coronavirus. Cloud technology has been one of the most important tools for understanding and discovering the virus. The development of vaccines and drugs against it are expected to significantly impact the market. For example, according to a June 2020 article published by Ashima Gupta and Joe Corkery, Google Cloud user Schrödinger has partnered with Takeda, Novartis, Gilead Sciences, and WuXi AppTec in a charitable effort to share ideas, resources, and data to find an antiviral treatment for the coronavirus. Schrödinger, whose physics-based software platform facilitates the development of high-quality, unique compounds for therapies and materials, will use Google Cloud credits to rapidly explore and test potential new drugs under the agreement. In addition, high investment by pharmaceutical companies in the anti-coronavirus drug discovery and development initiative is expected to further influence cloud-based solutions for drug discovery, development, and manufacturing.

Increasing investment in drug discovery, development, and manufacturing by pharmaceutical, biopharmaceutical, and other entities and the increasing adoption of cloud services for these activities are the major drivers of the market growth. The adoption of cloud-based services for drug discovery, development, and manufacturing is growing due to cloud technology's various advantages. For example, cloud-based services could help streamline operations and develop business cases to determine whether a drug is likely to be useful and financially viable or not. Also, according to a research study published by Olivier J. Wouters et al., in a March 2020 base case analysis, the median capitalized R&D investment to bring a new drug to market was estimated at $985.3 million, with an average investment of $1335.9 million and estimates varying across therapeutic areas, with cancer drug development costs being the highest. These high costs associated with the research and development of a new drug can be significantly reduced by deploying cloud services as it speeds up the drug discovery and development process and minimizes the chance of errors. Due to this factor, the adoption of cloud services in drug discovery, development, and marketing is increasing, which is expected to drive growth in the market under review over the forecast period. For example, in December 2021, Pfizer Inc. and Amazon Web Services (AWS) agreed to collaborate on the development of new cloud technologies that could revolutionize the way new drugs are researched, manufactured, and distributed for clinical trials.

Further, increasing investment in drug discovery and development with the increasing prevalence of various diseases is expected to positively impact the growth of the market under study. For example, according to a report published by the Pharmaceutical Research and Manufacturers of America (PhRMA) in September 2021, biopharmaceutical companies invested more than a trillion dollars in research and development in the last decade alone, including a record year in 2020, when PhRMA member companies alone invested roughly 91 billion USD. Furthermore, according to the same source, more than 8,000 drugs were in development worldwide in 2021, with 74 percent potentially being first-in-class treatments or completely new ways to treat diseases. Due to heavy investments in the drug discovery and development initiative coupled with the benefits offered by cloud-based solutions, the adoption of cloud-based services in drug discovery, development, and manufacturing is expected to increase during the forecast period, fueling the growth of the studied market.

However, the high initial cost of implementation and deployment of cloud solutions and cybersecurity concerns are expected to restrain growth in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period.

Cloud-based Solution for Drug Discovery Development & Manufacturing Market Trends

This section covers the major market trends shaping the Cloud-based Solution for Drug Discovery Development & Manufacturing Market according to our research experts:

Private Cloud is Expected to Hold a Significant Share in the Cloud Type Segment in the Studied Market during the Forecast Period

Cloud-based Solution for Drug Discovery Development & Manufacturing Industry Segmentation

As per the scope of the report, the cloud is an umbrella term that refers to sharing computing resources and providing data to connected devices on demand. Users can allocate data mining and decision-making tasks more easily and cost-effectively using modern cloud-based systems, which offer decentralized/real-world data management and collaborative operational opportunities. The cloud-based solutions for drug discovery, development, and manufacturing market is segmented by service type (Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS)), by cloud type (public cloud, private cloud, and hybrid cloud), by end user (biotechnology and pharmaceutical companies, contract research organizations, and others) and by geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (USD million) for the above segments.