Small Molecule Drug Discovery Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 56.94 Billion |
| Market Size (2029) | USD 86.65 Billion |
| CAGR (2024 - 2029) | 8.76 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Small Molecule Drug Discovery Market Analysis
The Small Molecule Drug Discovery Market size is estimated at USD 56.94 billion in 2024, and is expected to reach USD 86.65 billion by 2029, growing at a CAGR of 8.76% during the forecast period (2024-2029).
Factors such as the rise in demand for small-molecule drugs, an increasing number of contract organizations for research and development, rising funding activities for research and development of small-molecule therapeutics, and increasing usage of small molecules in treating chronic diseases are expected to drive the market's growth.
Small molecule drugs are extensively used in the treatment of chronic diseases. The increasing prevalence of these chronic diseases is expected to drive the market's growth. For instance, according to the World Heart Report 2023, more than half a billion people worldwide were affected by cardiovascular diseases in 2022. According to the American Cancer Society stats for 2024, 2 million new cancer cases are projected to occur in the United States, an increase from 1.9 million cases in 2023. Such an increase in chronic diseases increases the demand for the discovery of new small molecules to manage chronic diseases more effectively. Hence, the rising prevalence of chronic diseases is expected to drive the small molecule drug discovery market during the forecast period.
The increasing research and development funding for discovering small molecules is also expected to drive the market. For instance, in order to harness the power of artificial intelligence (AI) for small molecule drug discovery, Sanofi entered a USD 140 million multi-year research collaboration with French pharmacy company Aqemia. The collaboration is poised to help reshape the landscape of drug development and improve the way new small-molecule therapeutic compounds are identified and optimized. Hence, the increasing funding activities in small molecule drug discovery are expected to drive the market.
The launch of technologically advanced products and partnerships by the market players are expected to propel the growth of the market. For instance, in July 2022, Dotmatics, one of the leaders in the research and development of scientific software connecting science, data, and decision-making, released a small-molecule drug discovery solution. It is an integrated scientific research and development platform with pre-configured workflows and expanded data management capabilities. In April 2022, Iktos and Teijin Pharma Limited signed a strategic collaboration agreement in artificial intelligence for new drug design. As per the agreement, Iktos generative modeling technology will be implemented and applied to several of Teijin Pharma's small molecule drug discovery projects to expedite the identification of potential pre-clinical candidates. Such launches and partnerships are expected to contribute to the growth of the market.
Factors such as the rising demand for small molecules in treating chronic diseases and increasing funding for small-molecule drug discovery are driving the growth of the market. However, high drug development costs and stringent regulatory scenarios are expected to restrain market growth.
Small Molecule Drug Discovery Market Trends
The Target ID/Validation Segment is Expected to Witness High Growth Over the Forecast Period
Target identification is used to identify a small molecule's direct molecular target, such as protein or nucleic acid. In the case of clinical pharmacology, target identification is aimed at finding out the efficacy of the target of the drug molecule. The main objective of target validation is to identify and access the chances of a molecular target in achieving the development of pharmaceuticals for therapeutic application. Factors such as increasing research and development activities of small molecules due to the rising burden of chronic diseases and the launch of new technologically advanced drug discovery platforms are expected to drive segmental revenue during the forecast period.
Drug discovery technology is crucial in every small-molecule drug discovery, from target identification and validation to lead optimization. Hence, technological advancements are a growth driver for the market segment. For instance, in September 2023, Exscientia PLC collaborated with Merck KGaA to focus on the discovery of novel small-molecule drug candidates across oncology, neuroinflammation, and immunology. In addition, in November 2023, Sosei Group Corporation, in collaboration with Kallyope companies, successfully identified, validated, and nominated the first G protein-coupled receptor (GPCR) target to enter a therapeutic discovery program for gastrointestinal diseases.
Therefore, increasing research and development activities of small molecules and the launch of new technologically advanced drug discovery platforms are expected to drive segmental growth during the forecast period.
North America is Expected to Hold a Significant Market Share Over the Forecast Period
North America holds a significant share of the market owing to the rising cases of various chronic diseases, such as cardiovascular diseases and cancer, and the increasing approval of new small molecules in the region.
The region's rising prevalence of chronic diseases is expected to drive market growth. For instance, according to the National Center for Chronic Disease Prevention and Health Promotion report published in 2022, six out of 10 adults in the United States had chronic diseases, and four in 10 adults had two or more chronic conditions as of July 2022. According to the Canadian Cancer Society 2023, 239,100 Canadians were expected to be registered with cancer in that year. Such a high burden of cancer is expected to drive the market's growth as small molecules are primarily employed in the treatment of cancer.
Strategic initiatives such as partnerships and collaborations undertaken by the market players are expected to drive the growth of the segment in the region. For instance, in January 2022, Amgen and Arrakis Therapeutics signed a research collaboration focused on the discovery and development of RNA degrader therapeutics against a range of difficult-to-drug targets in multiple therapeutic areas. This new class of targeted RNA degraders consists of small-molecule drugs that selectively destroy RNAs encoding disease-causing proteins by inducing their proximity to nucleases. Such research collaborations are expected to boost the growth of the market.
Thus, owing to factors such as the rising cases of various chronic diseases and increasing approval of new small molecules, the market is expected to record growth in North America over the forecast period.
Small Molecule Drug Discovery Industry Overview
The small-molecule drug discovery market is moderately competitive due to the presence of a few companies operating globally as well as regionally. Major companies have undertaken several business strategies to gain a competitive edge, such as regional expansion, mergers and acquisitions, and collaborative research initiatives. Some of the key players in the market are ICON PLC, Charles River Laboratories, Labcorp Drug Development, Thermo Fisher Scientific Inc., and Eurofins Discovery.
Small Molecule Drug Discovery Market Leader
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ICON Plc
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Thermo Fisher Scientific Inc.
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Eurofins Discovery
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Charles River Laboratories.
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Labcorp Drug Development
*Disclaimer: Major Players sorted in no particular order
Small Molecule Drug Discovery Market News
- January 2024: Iktos announced a collaboration agreement in AI with Nerviano Medical Sciences Srl (NMS), an Italian clinical-stage biotech that discovers and develops innovative therapies for cancer treatment for the kinase project. With this collaboration, Iktos is expected to enhance small molecule discovery by using AI.
- February 2023: Charles River Laboratories announced a multi-program agreement with Pioneering Medicines, allowing access to its Logica AI platform to discover small-molecule drugs. Logica is an AI-powered drug solution that translates biological insights into optimized pre-clinical assets by leveraging Valo Health’s AI-powered Opal Computational Platform and Charles River’s leading pre-clinical expertise.
Small Molecule Drug Discovery 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 Rise in Demand for Small Molecule Drugs
4.2.2 Increasing Number of Contract Organizations for R&D
4.2.3 Small Molecules in Treatment of Chronic Diseases
4.3 Market Restraints
4.3.1 High Drug Development Costs
4.3.2 Strict Regulations
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
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 Therapeutic Area
5.1.1 Oncology
5.1.2 Central Nervous System
5.1.3 Cardiovascular
5.1.4 Respiratory
5.1.5 Metabolic Disorders
5.1.6 Gastrointestinal
5.1.7 Other Therapeutic Areas
5.2 By Process/Phase
5.2.1 Target ID/Validation
5.2.2 Hit Generation and Selection
5.2.3 Lead Identification
5.2.4 Lead Optimization
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 ICON PLC
6.1.2 Charles River Laboratories.
6.1.3 Promega Corporation.
6.1.4 Eurofins Discovery
6.1.5 Schrödinger Inc.
6.1.6 Labcorp Drug Development
6.1.7 Thermo Fisher Scientific Inc.
6.1.8 Jubilant Biosys Ltd
6.1.9 Syngene International Limited
6.1.10 Curia Global Inc.
6.1.11 Evotec
6.1.12 Teva Pharmaceuticals
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Small Molecule Drug Discovery Industry Segmentation
As per the report's scope, small molecule drug discovery represents all the costs incurred by a drug discovery company during the discovery phase. A small molecule is a substance that can enter cells quickly as it has a low molecular weight. These are used as drugs for therapeutic purposes and include chemically synthesized drug molecules and all biologically synthesized drug molecules.
The small molecule drug discovery market is segmented by therapeutic area, process/phase, and geography. By therapeutic area, the market is segmented into oncology, central nervous system, cardiovascular, respiratory, metabolic disorders, gastrointestinal, and other therapeutic areas. By process/phase, the market is segmented into target ID/validation, hit generation and selection, lead identification, and lead optimization. By geography, the market is segmented into North America, Europe, Asia-Pacific, the 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 all the above segments.
| By Therapeutic Area | |
| Oncology | |
| Central Nervous System | |
| Cardiovascular | |
| Respiratory | |
| Metabolic Disorders | |
| Gastrointestinal | |
| Other Therapeutic Areas |
| By Process/Phase | |
| Target ID/Validation | |
| Hit Generation and Selection | |
| Lead Identification | |
| Lead Optimization |
| Geography | ||||||||
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Small Molecule Drug Discovery Market Research FAQs
How big is the Small Molecule Drug Discovery Market?
The Small Molecule Drug Discovery Market size is expected to reach USD 56.94 billion in 2024 and grow at a CAGR of 8.76% to reach USD 86.65 billion by 2029.
What is the current Small Molecule Drug Discovery Market size?
In 2024, the Small Molecule Drug Discovery Market size is expected to reach USD 56.94 billion.
Who are the key players in Small Molecule Drug Discovery Market?
ICON Plc, Thermo Fisher Scientific Inc., Eurofins Discovery, Charles River Laboratories. and Labcorp Drug Development are the major companies operating in the Small Molecule Drug Discovery Market.
Which is the fastest growing region in Small Molecule Drug Discovery Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Small Molecule Drug Discovery Market?
In 2024, the North America accounts for the largest market share in Small Molecule Drug Discovery Market.
What years does this Small Molecule Drug Discovery Market cover, and what was the market size in 2023?
In 2023, the Small Molecule Drug Discovery Market size was estimated at USD 51.95 billion. The report covers the Small Molecule Drug Discovery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Small Molecule Drug Discovery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Small Molecule Drug Discovery Industry Report
Statistics for the 2024 Small Molecule Drug Discovery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Small Molecule Drug Discovery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
