Quantitative Structure-Activity Relationship (QSAR) Market Size, Trends and Growth Analysis by 2027

The quantitative structure-activity relationship (QSAR) market is projected to grow significantly, reaching approximately US$ 1,888.5 million by 2027, up from US$ 1,388.1 million in 2019. This growth represents a compound annual growth rate (CAGR) of 4.0% from 2020 to 2027.

The primary drivers of this market expansion include the increasing utilization of modeling tools in the realm of drug discovery and the surge in investments directed towards this field. Nevertheless, the slow adoption of QSAR techniques in developing nations poses a challenge to the overall growth of the market.

QSAR is a computational or mathematical modeling technique that explores the relationships between the biological activities of chemical compounds and their structural characteristics. These models are instrumental in predicting the effects of untested chemicals and serve various other purposes. As an in silico approach, QSAR helps streamline the selection of candidate molecules for in vivo testing by categorizing them based on their anticipated biological activities.

Traditional methods of drug discovery and development encounter numerous obstacles, including high failure rates, significant capital requirements, and lengthy timelines. The drug discovery process typically involves the experimental screening of existing drug libraries, followed by the synthesis of numerous new molecules. The conventional pathway from identifying a lead compound to its market launch can take anywhere from 10 to 16 years and requires substantial financial investment. According to the Pharmaceutical Research and Manufacturers of America, the average cost of successfully developing a drug compound is around US$ 2.6 billion. Furthermore, only a small fraction of the leads that are selected for further study progress to clinical trials. Consequently, there has been a notable increase in research and development (R&D) spending within the pharmaceutical industry. For instance, in 2017, biopharmaceutical companies in the US sponsored over 4,500 clinical trials, amounting to approximately US$ 43 billion, while investing around US$ 97 billion in R&D that same year. This situation has placed immense pressure on the pharmaceutical sector to manage escalating costs associated with drug discovery, research, and the high rate of molecule failure.

In recent years, a variety of computational and modeling tools have emerged to assist in the identification, selection, and optimization of pharmacological lead candidates, thereby enhancing the drug discovery process. The predictive power of these tools has proven beneficial, enabling researchers to avoid the exhaustive screening of billions of molecules. Consequently, computational services, including molecular modeling and QSAR, have become essential components in industries such as pharmaceuticals, cosmetics, and food and beverages. As a result, pharmaceutical companies that focus on developing large drug molecules are increasingly likely to outsource their drug discovery and development tasks to specialized drug modeling providers.

The QSAR market is categorized by application into several segments, including drug discovery, molecular modeling, chemical screening, regulatory and decision-making processes, and other applications. In 2019, drug discovery held the largest market share and is anticipated to exhibit the highest CAGR during the forecast period. The drug discovery process frequently employs QSAR to pinpoint chemical structures that may exhibit effective inhibitory properties against specific targets while maintaining low toxicity levels. According to Lipinski's Rule of Five, predicting the partition coefficient log P is a crucial metric for assessing a compound's "drug likeness."

The COVID-19 pandemic has led to significant disruptions in supply chains, consumer markets, and global economies. However, the urgent need for effective tools to facilitate rapid and accurate drug and vaccine development has resulted in increased demand for QSAR, thereby propelling market growth.

Key organizations such as the Organization for Economic Co-operation and Development (OECD), the World Health Organization (WHO), the European Union (EU), the International Trade Administration (ITA), the European Federation of Pharmaceutical Industries and Associations (EFPIA), and the US Food and Drug Administration (FDA) are among the primary secondary sources consulted in the preparation of the report on the QSAR market.