Market Size of Drug Discovery Informatics Industry
| 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 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 Size Summary
The drug discovery informatics market is poised for substantial growth, driven by increased investments in research and development by pharmaceutical and biotechnology companies. The market is experiencing a surge in technological advancements, particularly in data mining and analytics, which are enhancing the drug discovery process. The COVID-19 pandemic accelerated the adoption of information technology in drug development, showcasing the potential of AI and machine learning in creating effective treatments and vaccines. This trend is expected to continue, with significant investments in AI-driven platforms and automation technologies further propelling market expansion. Strategic collaborations and expansions by key players, such as the establishment of AI-powered research centers, are also contributing to the market's growth trajectory.
North America is anticipated to maintain a significant share of the drug discovery informatics market, supported by robust research and development activities and technological innovations in the region. The market is characterized by competitive dynamics, with major players like Infosys, IBM, and PerkinElmer actively engaging in collaborations to expedite drug development. These companies are leveraging informatics software to streamline various stages of drug discovery, from target identification to compound screening. Despite the promising growth prospects, challenges such as high costs associated with informatics software may pose constraints. Nonetheless, the ongoing strategic initiatives and investments by key industry players are expected to drive the market forward over the forecast period.
Drug Discovery Informatics Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Technological Advancements in Data Mining and Analytics
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1.2.2 Increasing R&D on Drug Discovery
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1.3 Market Restraints
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1.3.1 High Pricing and Setup Cost of Informatics Software
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD)
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2.1 By Function
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2.1.1 Sequencing and Target Data Analysis
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2.1.2 Docking
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2.1.3 Molecular Modeling
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2.1.4 Libraries and Database Preparation
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2.1.5 Other Functions
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2.2 By End User
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2.2.1 Pharmaceutical and Biotechnology Companies
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2.2.2 Contract Research Organizations (CROS)
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2.2.3 Other End Users
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 South Korea
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2.3.3.6 Rest of Asia-Pacific
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2.3.4 Middle East and Africa
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2.3.4.1 GCC
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2.3.4.2 South Africa
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2.3.4.3 Rest of Middle East and Africa
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2.3.5 South America
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2.3.5.1 Brazil
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2.3.5.2 Argentina
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2.3.5.3 Rest of South America
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Drug Discovery Informatics Market Size 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.
