Drug Discovery Market Set to Reach USD 146.80 Billion by 2030 Amid Growing Focus on Biologics and Advanced Therapeutics

Introduction: Expanding Global Efforts to Meet Medical Demands

The global drug discovery market is projected to grow from an estimated USD 106.70 billion in 2025 to USD 146.80 billion by 2030, registering a compound annual growth rate (CAGR) of 6.59%. This expansion reflects sustained investment across the pharmaceutical and biotechnology industries to address rising disease burdens and develop new treatment options.

From chronic illnesses like cardiovascular disease and diabetes to emerging infectious diseases, the demand for effective therapies continues to rise. The pandemic accelerated global efforts in drug research, and the momentum continues as public and private stakeholders increase funding, streamline development pathways, and explore new therapeutic approaches, particularly in biologics and gene therapy.

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Drug Discovery Market Key Trends: What's Driving the Market Forward

Increased Focus on Infectious Disease Research

The urgency created by COVID-19 prompted significant drug screening efforts and collaborative research. Institutions and pharmaceutical firms examined existing drugs and novel compounds alike to identify viable antiviral candidates. In one major initiative, the National Institute of Allergy and Infectious Diseases (NIAID) awarded over USD 577 million in 2022 to establish nine Antiviral Drug Discovery (AViDD) Centers. These centers are working to develop drugs not only for COVID-19 but for other pathogens with pandemic potential.

Biologics Gaining Ground

Biologic drugs-those derived from living organisms-are seeing increased adoption due to their specificity and reduced side effect profiles. The global health crisis underscored their value, with many biotech firms accelerating development efforts. For example, AbCellera's antibody drug bebtelovimab was granted Emergency Use Authorization by the FDA for treating COVID-19. Biologics also show promise in oncology and autoimmune diseases, pushing more companies to focus on this drug class.

Technology Integration in Discovery Processes

Drug discovery processes have become more refined with the integration of artificial intelligence (AI), high-throughput screening, and bioinformatics. Partnerships such as the 2022 agreement between CytoReason and Pfizer, which leverages AI to improve development timelines, illustrate how technology is shaping drug pipelines. Tools that speed up the identification and testing of drug candidates are now essential, especially given the complexity of diseases and the increasing cost of clinical trials.

Rising Disease Burden Across Categories

According to the World Health Organization, cardiovascular diseases account for roughly 32% of all global deaths. Conditions such as diabetes, kidney disorders, and neurological diseases are also becoming more common. This growing disease burden across age groups and regions adds urgency to drug development efforts. At the same time, patent expirations for high-revenue drugs have created opportunities for new treatments to enter the market.

Drug Discovery Market Segmentation: Scope and Structure of the Industry

By Drug Type:

- Small Molecule Drugs: Continue to dominate due to their ease of manufacturing and well-understood pharmacokinetics.
- Biologic Drugs: Rapidly gaining market share, particularly in oncology, autoimmune conditions, and infectious diseases.

By Technology:

- High-throughput Screening
- Pharmacogenomics
- Combinatorial Chemistry
- Bioinformatics
- Artificial Intelligence in Drug Discovery

By Application:

-Oncology
- Cardiovascular Diseases
- Neurological Disorders
- Infectious Diseases
- Metabolic Diseases

By End User:

- Pharmaceutical Companies
- Biotechnology Firms
- Academic and Research Institutions
- Contract Research Organizations (CROs)

These segments reflect a wide application range and diverse end-user landscape. Pharmaceutical companies continue to lead in adoption, but biotech firms and research institutions are playing an increasingly critical role in shaping next-generation therapies.

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Drug Discovery Market Key Players: Collaboration, Focus, and New Drug Pipelines

The drug discovery market is marked by intense competition and constant activity among key players. Companies like

- Eli Lilly and Company,
- Bristol-Myers Squibb,
- Novartis AG,
- Bayer AG,
- AbbVie Inc.,
- Pfizer Inc.,
- Sanofi, and
- AstraZeneca PLC

continue to lead in terms of research funding and clinical trial pipelines.

Several companies are expanding through partnerships that allow shared expertise and faster access to new technologies. For instance:

Sanofi and Innovent Biologics announced a collaboration to develop oncology drugs and strengthen their reach in the Chinese market.

Abzena, Oncodesign, and Alira Health launched the DRIVE biologics consortium to support early-stage biologic drug development.

Many of these players are also incorporating machine learning into early discovery stages to reduce time-to-market and improve success rates in later trial phases. The competitive landscape favors organizations that are agile, well-funded, and able to collaborate across borders and sectors.

Conclusion: A Growing and Dynamic Industry Responding to Global Needs

The drug discovery market is navigating a dynamic and rapidly shifting global healthcare landscape. From pandemic preparedness to chronic disease management, the demand for faster, safer, and more effective drug development continues to rise. Biologics and AI-driven processes have emerged as central components of modern discovery pipelines.

While the market faces challenges such as high development costs, regulatory scrutiny, and varying clinical success rates, its core strengths-diverse research areas, public-private funding, and technological integration-are driving progress. North America remains a dominant force due to its research infrastructure and active clinical trials, while Asia-Pacific and Europe show increasing momentum in both drug development and regulatory approvals.

With a projected market value of USD 146.80 billion by 2030, the global drug discovery sector is positioned to remain a cornerstone of the pharmaceutical and biotech industries-providing not only new treatments but also hope for millions worldwide facing serious and life-threatening illnesses.

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