Drug Discovery Informatics Market is expected to reach US$ 8.17 billion by 2031

Discovery Informatics Segment to Grow Considerably During 2023–2031

According to our new research study on "Drug Discovery Informatics Market Forecast (2021–2031), Global Share, Trend, and Growth Opportunity Analysis – by Workflow, Services, Solutions, End User, and Geography," the market was valued at US$ 3.07 billion in 2023 and is projected to reach US$ 8.17 billion by 2031; it is estimated to record a CAGR of 13.0% during 2023–2031.

The increasing investments in the R&D of new drug molecules by pharmaceutical companies and the growing adoption of computational and information tools for drug discovery and development are driving the market growth. However, the dearth of skilled technicians and the high cost of software setup hinder the drug discovery informatics market growth. 

Drug Discovery Informatics Market, by Geography, 2023 (%)

Drug Discovery Informatics Market Analysis Based on Market Trends:

Integration of AI in Drug Discovery

The deployment of AI and machine learning (ML) algorithms in drug development and discovery are revolutionizing drug development by enhancing these processes' efficiency, speed, and success rates. These technologies are used to analyze vast amounts of data, identify patterns, predict molecular interactions, and accelerate the discovery of novel drug candidates. The advantages offered by the incorporation of AI in informatics sciences have surged the demand for computational tools, algorithms, and databases to discover and develop new drug molecules. Additionally, healthcare technology manufacturers are launching various AI-integrated solutions in the market; this is positively contributing to the growing drug discovery informatics market size. For instance, as per the company press release, in December 2023, Merck introduced AIDDISON drug discovery software, an innovative AI solution that combines drug discovery and synthesis. It is the first software-as-a-service platform that bridges virtual molecule design and real-world manufacturability through Synthia retrosynthesis software API integration.

Additionally, leading tech companies are collaborating with academic institutions for the development of information technology for drug discovery. For instance, in January 2023, Hitachi High-Tech Solutions Corporation announced the partnership with Keio University Faculty of Pharmacy, Department of Pharmaceutical Sciences, to conduct joint research that will use Materials Informatics (MI) to enhance the efficiency of developing small molecule drugs. The team will leverage the Chemicals Informatics (CI) MI tool for developing materials in the traditional chemical materials field and also in drug discovery, with a view to improving the Quality of Life (QoL) for people.

Thus, such technological advancements in drug discovery and product launches are anticipated to bring new drug discovery informatics market trends in the coming years.   

Segmental Analysis:

By workflow, the market is bifurcated into discovery informatics and drug development. The discovery informatics segment held a larger market share in 2023. The drug development segment is projected to register a higher CAGR from 2023 to 2031. The deployment of informatics tools and databases has significantly reduced the time to market for new therapies. This has remarkably impacted society, especially during national and international disasters, such as the Zika and Wuhan virus outbreaks. As a result of exposure to current technology, informatics tools and databases are expected to expand enormously in the coming years. These technologies will be essential in helping the public health sector find novel therapies, which, in turn, is anticipated to propel the drug discovery informatics market growth.

The market, by service, is segmented into sequence analysis platforms, molecular modeling, clinical trial data management, docking, and others. The sequence analysis platform segment is anticipated to hold the largest market share in 2023. The molecular modeling segment is projected to register the highest CAGR from 2023 to 2031.

By solution, the drug discovery informatics market is segmented into software and services. The services segment held a larger drug discovery informatics market share in 2023, and the same segment is projected to register a higher CAGR from 2023 to 2031.

Based on end user, the market is segmented into pharmaceutical and biotechnology companies, contract research organizations, and others. The pharmaceutical and biotechnology companies segment held the largest share of the market in 2023. The contract research organizations segment is expected to register the highest CAGR from 2023 to 2031.

The scope of the drug discovery informatics market report entails North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Asia Pacific is expected to register the fastest CAGR in the Drug discovery informatics market from 2023–2031. This is attributed to advances in research tools and clinical studies, as well as increasing healthcare expenditures in the region. In terms of revenue, North America accounted for the largest drug discovery informatics market share in 2023.

A few initiatives taken by key players operating in the global drug discovery informatics market are listed below:

1. In December 2023, Revvity, Inc. launched a cloud-native Signals Research Suite, a unified SaaS platform designed to accelerate drug and material development. It enables scientific collaboration across various R&D disciplines, from drug discovery to specialty chemical material development. The new solution integrates the VitroVivo, Inventa, and Revvity Signals Notebook applications into a robust solution that supports the entire drug development process, from early research and in vitro testing and safety to early development and specialty chemical new product development.
2. As per the press release in May 2023, Google Cloud announced the launch of two new AI-powered solutions for life sciences at the Bio-IT World Conference. These solutions aim to accelerate drug discovery and precision medicine for biotech companies, pharmaceutical firms, and public sector organizations.

Competitive Landscape

Certara; Infosys Ltd.; Collaborative Drug Discovery, Inc.; Jubliant Biosys; Curia Global, Inc.; Chemaxon Ltd; Charles River Laboratories; Agilent Technologies, Inc.; Illumina, Inc; Boehringer Ingelheim International GmbH; and Evotec are among the leading companies profiled in the drug discovery informatics market report. The companies implement both organic (such as product launches, expansion, and product approvals) and inorganic (such as collaborations and partnerships) strategies to stay competitive in the market. 

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