Drug Discovery Informatics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 10.60 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Drug Discovery Informatics Market Analysis
The drug discovery informatics market is anticipated to register a CAGR of 10.6% during the forecast period.
Amid the COVID-19 pandemic, countries' health systems were heavily invested in research and development to combat the virus. Research groups worldwide set about identifying small-molecule drugs for the treatment of COVID-19. Thus, information technology-supported drug discovery and design were widely employed in the COVID-19 drug development. For instance, as per the article published in March 2022 in PubMed, a 694 amino acid (aa) multiepitope vaccine was created using a proposed artificial intelligence (AI)-based vaccine discovery facility. This vaccine was able to fight SARS-CoV-2 viral infection with good antigenicity, population coverage, and good physicochemical properties and structures. It offered great potential for the next stage of COVID-19 vaccine design with actual clinical trials. Thus, such AI-related drug development significantly impacted the growth of the studied market during the pandemic and is expected to witness notable growth in the coming years.
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. In February 2022, UK-based Automata Labs raised USD 50 million to automate the lab research process. Similarly, in July 2021, Strateos raised USD 56 million for further improving its SmartLab platform and its remote robotized, automated technology, available to preclinical researchers across the globe. Also, 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 October 2021, PyTorch launched a machine-learning drug discovery platform, TorchDrug, to accelerate drug discovery research. This library is open-sourced and can be installed through PIP if PyTorch and torch-scatter are installed. Also, strategic expansion by the key regional players to increase their presence is expected to contribute to market growth. For instance, 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 COVID-19 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.
Also, an increase in investments in research and development in the North American region is positively impacting the market growth. For instance, according to a report published in December 2022 by the Pharmaceutical Research and Manufacturers of America (PhRMA), PhRMA members alone invested hundreds of billions of dollars over the years in research and development (R&D), including a record USD 102 billion in 2021. 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 competitive 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
- 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.
- February 2023: Evotec SE expanded its integrated multi-target drug discovery agreement with data-driven biotech creation firm Related Sciences. It will continue to grow its joint portfolio of drug development candidates through 2030, leveraging Evotec's industry-leading capabilities across the full R&D continuum.
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 (sequencing and target data analysis, docking, molecular modeling, libraries, database preparation, and other functions), end-user (pharmaceutical and biotechnology companies, Contract Research Organizations (CROS), and other end users), and 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) 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
What is the current Global Drug Discovery Informatics Market size?
The Global Drug Discovery Informatics Market is projected to register a CAGR of 10.60% during the forecast period (2024-2029)
Who are the key players in Global Drug Discovery Informatics Market?
PerkinElmer, Infosys, IBM , Collaborative Drug Discovery and Io Informatics are the major companies operating in the Global Drug Discovery Informatics Market.
Which is the fastest growing region in Global 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 Global Drug Discovery Informatics Market?
In 2024, the North America accounts for the largest market share in Global Drug Discovery Informatics Market.
What years does this Global Drug Discovery Informatics Market cover?
The report covers the Global Drug Discovery Informatics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global 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 Intelligence™ 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.
