Several key factors are propelling the growth of this market, including increased investments in research and development (R&D) for new drug molecules by pharmaceutical firms and the rising utilization of computational and informational tools in drug discovery and development processes. However, challenges such as a shortage of skilled professionals and the high costs associated with software implementation are hindering the expansion of the drug discovery informatics market.
Market Trends in Drug Discovery Informatics
The integration of artificial intelligence (AI) and machine learning (ML) technologies into drug development is transforming the landscape of drug discovery. These advanced technologies enhance the efficiency, speed, and success rates of drug development processes. They are employed to analyze extensive datasets, uncover patterns, predict molecular interactions, and expedite the identification of new drug candidates. The benefits of incorporating AI into informatics have significantly increased the demand for computational tools, algorithms, and databases aimed at discovering and developing new drug molecules. Furthermore, healthcare technology companies are launching a variety of AI-integrated solutions, which positively influences the growth of the drug discovery informatics market. For example, in December 2023, Merck unveiled AIDDISON, a groundbreaking drug discovery software that merges drug discovery with synthesis. This software-as-a-service platform is the first of its kind to connect virtual molecule design with real-world manufacturability through the integration of Synthia retrosynthesis software API.
Moreover, prominent technology firms are forming partnerships with academic institutions to advance information technology in drug discovery. A notable instance occurred in January 2023 when Hitachi High-Tech Solutions Corporation collaborated with Keio University?s Faculty of Pharmacy, Department of Pharmaceutical Sciences, to conduct joint research utilizing Materials Informatics (MI) to improve the efficiency of small molecule drug development. This collaboration aims to leverage the Chemicals Informatics (CI) MI tool for both traditional chemical materials and drug discovery, ultimately enhancing the quality of life for individuals.
These technological innovations and product launches are expected to introduce new trends in the drug discovery informatics market in the forthcoming years.
Segmental Overview of the Drug Discovery Informatics Market
The oncology biosimilars market is categorized based on drug class, cancer type, and distribution channel.
In terms of workflow, the market is divided into discovery informatics and drug development segments. The discovery informatics segment accounted for a larger share of the market in 2023, while the drug development segment is anticipated to experience a higher CAGR from 2023 to 2031. The implementation of informatics tools and databases has significantly shortened the time required to bring new therapies to market, which has had a profound impact on society, particularly during global health crises like the Zika virus and the COVID-19 pandemic. As a result, the exposure to contemporary technologies is expected to lead to substantial growth in informatics tools and databases in the coming years, which will be crucial for the public health sector in discovering novel therapies, thereby driving the growth of the drug discovery informatics market.
The market is also segmented by service into sequence analysis platforms, molecular modeling, clinical trial data management, docking, and others. The sequence analysis platform segment is projected to hold the largest market share in 2023, while the molecular modeling segment is expected to achieve the highest CAGR from 2023 to 2031.
By solution, the drug discovery informatics market is divided into software and services. The services segment dominated the market share in 2023 and is also expected to register a higher CAGR from 2023 to 2031.
In terms of end users, the market is segmented into pharmaceutical and biotechnology companies, contract research organizations (CROs), and others. The pharmaceutical and biotechnology companies segment held the largest market share in 2023, while the CRO segment is projected to experience the highest CAGR from 2023 to 2031.
Geographical Overview of the Drug Discovery Informatics Market
The geographical scope of the drug discovery informatics market report includes 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), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of the Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). The Asia Pacific region is expected to witness the fastest CAGR in the drug discovery informatics market from 2023 to 2031, driven by the presence of major players such as Charles River Laboratories, Certara, and Curia, the high prevalence of infectious diseases, and the swift adoption of advanced R&D tools by leading pharmaceutical companies and CROs for drug discovery and development.