The small molecule drug discovery market size is projected to reach US$ 106.77 billion by 2031 from US$ 50.93 billion in 2023. The market is expected to register a CAGR of 9.7% during 2023–2031. The growing adoption of artificial intelligence in drug discovery is likely to act as a future trend in the market.
The small molecule drug discovery market is mainly driven by increasing R&D by pharmaceutical and biotechnology companies in discovering novel drugs, government initiatives, and the prevalence of cancer. Other factors contributing to the market expansion include the globalization of clinical trials, rapid advancements in associated technologies, and an increase in demand for CROs for conducting clinical trials. In addition, increasing small molecule-based pipeline acts as an opportunity for the growth of the small molecule drug discovery market.
Asia Pacific is expected to register the highest CAGR during the forecast period. An upsurge in technological advancements, a surge in collaborations (for the development of genomic research) among Asian and Western countries, a decrease in prices of DNA sequencing, and a rising prevalence of genetic and other target diseases are propelling the Asia Pacific small molecule drug discovery market. The market in Asia Pacific is expected to propel owing to the rising GDP resulting in the growth of the pharmaceutical industry. Additionally, the increasing disposable income is boosting the adoption of advanced healthcare techniques. Thus, there is a huge potential for the small molecule drug discovery market owing to the aforementioned factors.
The pharmaceutical industry is one of the most R&D-intensive industries in the world. Efforts are being made to achieve greater effectiveness and efficiency in fulfilling patients' needs. The cost of medicines has been a prime concern for pharmaceutical companies as they bank on their R&D activities to achieve intended cost targets. Over the last decade, the number of new small molecule drugs approved yearly has drastically increased. The Food and Drug Administration (FDA) approved 55 new drugs in 2023. The small molecules dominated new drug approvals in 2023, accounting for 62% of all new molecular entities (NME) approved. Globally, the US is a leading country in terms of R&D investments, and the country produced over 50% of the world's new molecules in the past decade. An increase in approval has led to growing investments by companies for the development of small molecule drugs due to their potential in treating several severe diseases.
Takeda Pharmaceutical Co Ltd
4.2
5.08
Pfizer Inc
11.4
10.6
Grifols SA
427.05
432.71
Note: The current conversion rate is considered for presenting the currencies.
Source: Annual Reports and The Insight Partners Analysis
The R&D expenditure is instrumental in companies' efforts to discover, examine, and produce new products; make upfront payments; improve existing outcomes; and demonstrate product efficacy and regulatory compliance before launch. These investments differ as per the need and demand for drug discovery. The cost includes materials, supplies used, and employee salaries, along with the cost of developing quality control. According to PhRMA Member Companies 2021 report, the top 15 largest pharmaceutical companies by revenue invested US$ 133 billion in R&D cumulatively, and ~44% of the total R&D investment was allocated to drug discovery. Thus, the increasing R&D investments by companies are fueling the small molecule drug discovery market growth.
The pharmaceutical industry is continually evolving and there is always a need for new, innovative therapeutic approaches in the treatment of various chronic indications. Small molecule-based drug approvals have increased over the past five years owing to their effectiveness against a wide range of indications. Small molecule drug candidate-based pipelines are growing for a wide range of therapeutic applications, including oncology, hypertension, diabetes, and inflammatory disorders. Many big and small pharmaceutical companies are engaged in the development of several small-molecule drugs.
The growing pipeline of small molecule-based drugs for various indications is, in turn, boosting drug discovery activities across the industry.
PF-06821497
Small Molecule
Pfizer Inc.
Phase 1
Cancer
PF-06873600
Small Molecule
Pfizer Inc.
Phase 1
Breast Cancer Metastatic
PF-06939999
Small Molecule
Pfizer Inc.
Phase 1
Solid Tumors
PF-06952229
Small Molecule
Pfizer Inc.
Phase 1
Cancer
PF-06826647
Small Molecule
Pfizer Inc.
Phase 1
Ulcerative Colitis
PF-07038124
Small Molecule
Pfizer Inc.
Phase 1
Atopic Dermatitis
PF-06842874
Small Molecule
Pfizer Inc.
Phase 1
Pulmonary Arterial Hypertension
PF-06865571
Small Molecule
Pfizer Inc.
Phase 1
Non-alcoholic Steatohepatitis (NASH) with Liver Fibrosis
PF-06882961
Small Molecule
Pfizer Inc.
Phase 1
Diabetes Mellitus-Type 2, Obesity
PF-07081532
Small Molecule
Pfizer Inc.
Phase 1
Diabetes Mellitus-Type 2, Obesity
R835
Small Molecule
Rigel Pharmaceuticals, Inc.
Phase 1
Inflammatory
Disorders
R552
Small Molecule
Rigel Pharmaceuticals, Inc.
Phase 1
Inflammatory
Disorders
SY-1425
Small Molecule
Syros Pharmaceuticals, Inc.
Phase 2
AML
Source: Company News and The Insight Partner Analysis
Key segments that contributed to the derivation of the small molecule drug discovery market analysis are therapeutic area and process/phase.
The geographic scope of the small molecule drug discovery market report is mainly divided into five regions: North America, Asia Pacific, Europe, South & Central America, and the Middle East & Africa. In terms of revenue, North America dominated the market in 2023. Increasing research and development by pharmaceutical and biotechnology companies in discovering novel drugs, growing investments in pharmaceuticals, and prevalence of cancer are among the factors that are projected to accelerate the growth of the North America small molecule drug discovery market. The US is the largest and fastest-growing market for small molecule drug discovery. The increasing prevalence of chronic diseases such as cardiovascular diseases and cancer primarily drives the market growth in the country. As per the American Cancer Society, in 2024, ~2 million people are projected to suffer from new cancer cases, and ~611,000 death cases are expected to be registered in the US. Owing to this scenario, the US health system witnesses massive investments in research and developments for novel drug molecules. Further, a strong drug pipeline, along with therapeutic area approvals for small molecule drugs, is expected to drive the regional market. Apart from the rising number of approved drugs, increasing awareness of advanced therapeutics is likely to be responsible for the growth of the small molecule drug discovery market during the forecast period.
The regional trends and factors influencing the Small Molecule Drug Discovery Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Small Molecule Drug Discovery Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
Report Attribute | Details |
---|---|
Market size in 2023 | US$ 50.93 Billion |
Market Size by 2031 | US$ 106.77 Billion |
Global CAGR (2023 - 2031) | 9.7% |
Historical Data | 2021-2022 |
Forecast period | 2023-2031 |
Segments Covered |
By Therapeutic Area
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
The Small Molecule Drug Discovery Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Small Molecule Drug Discovery Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The small molecule drug discovery market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the market are listed below:
The "Small Molecule Drug Discovery Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The List of Companies - Small Molecule Drug Discovery Market
The market is expected to register a CAGR of 9.7% during 2023–2031.
The small molecule drug discovery market value is expected to reach US$ 106.77 billion by 2031.
Bristol-Myers Squibb Co, Merck KGaA, GSK Plc, Boehringer Ingelheim International GmbH, Thermo Fisher Scientific Inc, ICON Plc, Danaher Corp, Charles River Laboratories International Inc, Oncodesign Services, and Revvity Inc are among the key players in the market.
The growing adoption of artificial intelligence in drug discovery is expected to be a prime trend in the market in the coming years.
The flourishing pharmaceutical industry with a surge in R&D activities and the growing inclination toward outsourcing are among the most significant factors fueling the market growth.
North America dominated the market in 2023.