Drug Discovery Informatics Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 2.70 Billion |
| Market Size (2029) | USD 4.40 Billion |
| CAGR (2024 - 2029) | 10.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Drug Discovery Informatics Market Analysis
The Drug Discovery Informatics Market size is estimated at USD 2.70 billion in 2024, and is expected to reach USD 4.40 billion by 2029, growing at a CAGR of 10.10% during the forecast period (2024-2029).
Factors driving the market growth include high R&D expenditure by pharmaceutical and biotechnology companies for drug discovery and development and increasing technological advancement in data mining and analytics.
The market is growing R&D expenditure by pharmaceutical and biotechnology companies is expected to increase demand for drug discovery informatics is likely to contribute to boosting the segment growth over the forecast period. For instance, in February 2022, UK-based Automata Labs raised USD 50 million to automate the lab research process. Additionally, in March 2022, ArrePath, a drug discovery startup, raised USD 20 million in a seed funding round. The Boehringer Ingelheim Venture Fund, Insight Partners, and Innospark Ventures led it. The investment will support the company's machine learning-based drug discovery platform, which focuses on developing new anti-infective drugs to combat antimicrobial resistance. Rising investment in research and development is expected to drive market growth over the forecast period.
Moreover, increasing technological advancement in drug discovery platforms is expected to grow the market over the forecast period. For instance, in February 2024, Eurofins Discovery has unveiled its latest innovation, the DiscoveryAI SAFIRE (Suite of ADMET Predictions For In Silico Refinement and Evaluation). This cutting-edge platform harnesses proprietary datasets, artificial intelligence (AI), and machine learning (ML), empowering a swift and distinctive approach to discovery. Interested customers can now access SAFIRE directly through the Eurofins Discovery website. Similarly, in February 2023, Insilico Medicine opened its Insilico Medicine Generative Artificial Intelligence and Quantum Computing Research and Development Center in Abu Dhabi, the region's largest AI-powered biotechnology research center.
Thus, due to the increasing research and development investment coupled with strategic activities by the key players, the studied market is expected to witness significant growth over the forecast period. However, high pricing and setup costs for informatics software are expected to restrain the market's growth during the forecast period.
Drug Discovery Informatics Market Trends
Pharmaceutical and Biotechnology Companies Segment is Expected to Witness Growth Over the Forecast Period
Pharmaceutical companies heavily rely on this informatics software for pre-clinical research and development, target identification, compound screening, lead identification, and streamlining their drug discovery process. It is a major factor driving this segment's growth. Informatics analysis in drug discovery accelerates drug target identification and drug candidate screening and refinement, facilitates the characterization of side effects, and predicts drug resistance. Researchers and the pharmaceutical industry can use data mining software for drug discovery to gain access to all relevant and up-to-date data generated by the scientific community.
The pharmaceutical companies segment is expected to witness significant growth in the studied market owing to factors such as increased research and development activities by the key players utilizing technological support and a rise in investments and strategic activities by the companies for drug discovery. For instance, in January 2022, PostEra, a biotechnology company specializing in machine learning for pre-clinical drug discovery, expanded the company's existing strategic collaboration with Pfizer. The expanded multi-target research program established an AI Lab where PostEra and Pfizer jointly advance multiple drug discovery programs with an initial focus on oncology and antiviral therapeutics. The AI Lab leverages novel machine learning for medicinal chemistry built upon Pfizer's data and PostEra's pioneering innovations in generative chemistry and synthesis-aware design.
Pharma players adopt various strategies to bolster the use of drug discovery informatics in drug discovery, drug design, and drug development. For instance, in April 2022, Iktos, a company specializing in Artificial Intelligence (AI) for new drug design, and Teijin Pharma Limited, the core company of the Teijin Group's healthcare business that provides comprehensive healthcare services to improve the quality of life, reported a strategic collaboration agreement in Artificial Intelligence for small molecules drug discovery.
Similarly, in January 2022, Shanghai Fosun Pharmaceutical (Fosun Pharma), a China-based healthcare group, and Insilico Medicine, a US-based artificial intelligence (AI)-driven drug discovery and development company, entered into a collaboration agreement to advance the discovery and development of drugs targeting different targets globally using AI technology.
Therefore, due to the increased strategic activities by pharmaceutical companies for drug discovery, the studied segment is expected to witness significant market growth over the forecast period.
North America Anticipated to Hold a Significant Market Share Over the Forecast Period
North America is expected to hold a significant market share due to the increasing research and development activities on drug discovery and technological advancements in data mining and analytics. It helped the growth of the drug discovery informatics market in the country. For instance, in August 2022, Sanofi partnered with Atomwise in a drug design deal worth potentially up to USD 1.2 billion. The contract, for which Sanofi paid USD 20 million upfront, focused on using the AtomNet platform to research small molecules for up to five drug targets selected by Sanofi.
In addition, regional companies are concentrating their efforts on joint ventures, launches, and research collaborations, which will help the market grow in the coming years. For instance, in February 2022, Cyclica launched Perturba Therapeutics, a University of Toronto spin-out focusing on AI-enabled oncology drug design. Perturba is taking this challenge on by integrating Cyclica's comprehensive AI-augmented proteome-wide drug design technology with two first-in-class live cell-based assays from the Stagljar Lab. Thus, research collaboration for drug discovery creates significant demand for drug discovery informatics anticipated to boost the market.
Thus, owing to the increase in investments and strategic activities by the key players in drug discovery development with the support of informatics, the North American region is expected to witness significant market growth over the forecast period.
Drug Discovery Informatics Industry Overview
The drug discovery informatics market is fragmented and consists of a few major players. The key players increasingly collaborate with other companies, research institutes, and clinical research organizations to promote rapid drug development. Some of the major players in the market are Infosys, IBM, and PerkinElmer, Io Informatics, among others.
Drug Discovery Informatics Market Leaders
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PerkinElmer
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Infosys
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IBM
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Collaborative Drug Discovery
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Io Informatics
*Disclaimer: Major Players sorted in no particular order
Drug Discovery Informatics Market News
- April 2024: Sapio Sciences, a lab informatics platform with a focus on science, has unveiled its latest offering: multimodal registration capabilities. This new feature integrates small-molecule, large-molecule, and multimodal discovery workflows, streamlining entity registration onto a unified platform. By introducing these advanced capabilities, Sapio aims to assist R&D teams in tackling the collaboration and efficiency hurdles often linked with developing multimodal therapies and products.
- February 2023: Insilico Medicine, a clinical-stage end-to-end generative artificial intelligence (AI)-driven drug discovery company, received FDA Orphan Drug Designation for generative AI discovered and designed drug for idiopathic pulmonary fibrosis.
Drug Discovery Informatics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Technological Advancements in Data Mining and Analytics
4.2.2 Increasing R&D on Drug Discovery
4.3 Market Restraints
4.3.1 High Pricing and Setup Cost of Informatics Software
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
5.1 By Function
5.1.1 Sequencing and Target Data Analysis
5.1.2 Docking
5.1.3 Molecular Modeling
5.1.4 Libraries and Database Preparation
5.1.5 Other Functions
5.2 By End User
5.2.1 Pharmaceutical and Biotechnology Companies
5.2.2 Contract Research Organizations (CROS)
5.2.3 Other End Users
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Spain
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 South Korea
5.3.3.6 Rest of Asia-Pacific
5.3.4 Middle East and Africa
5.3.4.1 GCC
5.3.4.2 South Africa
5.3.4.3 Rest of Middle East and Africa
5.3.5 South America
5.3.5.1 Brazil
5.3.5.2 Argentina
5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Collaborative Drug Discovery
6.1.2 Dassault System
6.1.3 IBM
6.1.4 Infosys
6.1.5 IO Informatics
6.1.6 Jubilant Life Sciences
6.1.7 Perkinelmer
6.1.8 Certara
6.1.9 Aragen Lifescience Pvt. Ltd
6.1.10 Selvita
6.1.11 Charles River Laboratories
6.1.12 Thermo Fisher Scientific
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Drug Discovery Informatics Industry Segmentation
As per the scope of the report, the information technology supporting the drug discovery process is known as drug discovery bioinformatics. With the vast amount of biochemical data generated from experiments conducted by research laboratories worldwide, there is a strong demand for software to analyze and manage the data effectively, which will drive the market studied.
The drug discovery informatics market is segmented by function, end user, and geography. By function, the market is segmented as sequencing and target data analysis, docking, molecular modeling, libraries, database preparation, and other functions. By end-user, the market is segmented as pharmaceutical and biotechnology companies, contract research organizations (CRO), and other end users. By geography, the market is segmented as 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) for the above segments.
| By Function | |
| Sequencing and Target Data Analysis | |
| Docking | |
| Molecular Modeling | |
| Libraries and Database Preparation | |
| Other Functions |
| By End User | |
| Pharmaceutical and Biotechnology Companies | |
| Contract Research Organizations (CROS) | |
| Other End Users |
| Geography | ||||||||
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Drug Discovery Informatics Market Research FAQs
How big is the Drug Discovery Informatics Market?
The Drug Discovery Informatics Market size is expected to reach USD 2.70 billion in 2024 and grow at a CAGR of 10.10% to reach USD 4.40 billion by 2029.
What is the current Drug Discovery Informatics Market size?
In 2024, the Drug Discovery Informatics Market size is expected to reach USD 2.70 billion.
Who are the key players in Drug Discovery Informatics Market?
PerkinElmer, Infosys, IBM, Collaborative Drug Discovery and Io Informatics are the major companies operating in the Drug Discovery Informatics Market.
Which is the fastest growing region in Drug Discovery Informatics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Drug Discovery Informatics Market?
In 2024, the North America accounts for the largest market share in Drug Discovery Informatics Market.
What years does this Drug Discovery Informatics Market cover, and what was the market size in 2023?
In 2023, the Drug Discovery Informatics Market size was estimated at USD 2.43 billion. The report covers the Drug Discovery Informatics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Drug Discovery Informatics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Drug Discovery Informatics Industry Report
Statistics for the 2024 Drug Discovery Informatics market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Drug Discovery Informatics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Drug Discovery Informatics Market Report Snapshots
