Small Molecule Drug Discovery Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 56.94 Billion |
| Market Size (2029) | USD 86.65 Billion |
| CAGR (2024 - 2029) | 8.76 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Small Molecule Drug Discovery Market Analysis
The Small Molecule Drug Discovery Market size is estimated at USD 56.94 billion in 2024, and is expected to reach USD 86.65 billion by 2029, growing at a CAGR of 8.76% during the forecast period (2024-2029).
During the COVID-19 pandemic, many countries invested heavily in research and development to combat the virus. Research groups worldwide tried to identify small-molecule drugs for the treatment of COVID-19 by screening both novel and existing drugs for their ability to alleviate symptoms and stem viral replication. For instance, in the article published by the National Library of Medicine, in January 2021, by exploiting computational tools, researchers attempted to predict and design small-molecule and peptide-based antiviral agents against various targets of SARS-CoV-2 viral disease. It also reported that during the pandemic, research was done on repurposing small molecules to develop a therapy for treating COVID-19. According to an article published by the Journal of Biomedical Science in September 2022, a large-scale compound repurposing study (screening of a library of 12,000 small molecules) was started, and it found several compounds that were able to prevent the SARS-CoV-2 virus from replicating, with 21 medicines exhibiting dose-response associations. Other than in vitero cells, the chemicals were also tested for their effectiveness against SARS-CoV-2 replication-supporting human cell lines. There is no denying that vaccines were the most effective method for preventing SARS-CoV-2 infections; however, the most urgent need at that moment was the addition of small molecules to the anti-COVID19 arsenal, to increase the variety of therapeutic options, particularly for patients with compromised immune systems. Thus, the use of small molecule drug discovery for COVID-19 therapeutic options was expected to have significant impact on the market.
Factors such as the rise in demand for small-molecule drugs, an increasing number of contract organizations for research and development and increasing usage of small molecules in the treatment of chronic diseases are expected to drive the growth of the market. The increasing number of chronic diseases propels the market's growth. According to the British Heart Foundation's August 2022 statistics, there were around 7.6 million people in the United Kingdom living with some form of heart or cardiovascular disease in 2021. As per the GLOBOCAN 2020 statistics, globally, there were 19.3 million new cases of cancer in 2020 and this number is expected to reach 30.2 million by 2040. Such an increase in chronic diseases is expected to increase the demand for treatments, and ultimately the demand for small molecules.
Additionally, the launch of technologically advanced products and partnership by the market players is expected to propel the growth of the market. For instance, in July 2022, Dotmatics, one of the leaders in the research and development of scientific software connecting science, data, and decision-making, released a small-molecule drug discovery solution. It is an integrated scientific research and development platform with pre-configured workflows and expanded data management capabilities. In April 2022, Iktos and Teijin Pharma Limited signed a strategic collaboration agreement in artificial intelligence for new drug design. As per the agreement, Iktos generative modeling technology will be implemented and applied to several of Teijin Pharma's small molecule drug discovery projects to expedite the identification of potential pre-clinical candidates. Such launches and partnerships are expected to contribute to the growth of the market.
Factors such as rise in demand for small-molecule drugs, and increasing usage of small molecules in the treatment of chronic diseases are driving the market growth of the small molecule drug discovery market. However, high drug development costs and strict regulations are the factors expected to restrain the market growth.
Small Molecule Drug Discovery Market Trends
Target ID/Validation Segment is Expected to Witness High Growth Over the Forecast Period
Target identification is made to identify a small molecule's direct molecular target, such as protein or nucleic acid. In the case of clinical pharmacology, target identification is aimed at finding out the efficacy of the target of the drug molecule. The main objective of target validation is to identify and access the chances of a molecular target in achieving the development of pharmaceuticals for therapeutic application. Three key distinct and complementary approaches are used for target identification and validation: genetic interaction, direct biochemical, and computational interference. In many cases, combinations of multiple approaches may be required to characterize the target entirely.
Technology is crucial in every small molecule drug discovery aspect, from target identification and validation to lead optimization. Hence, technological advancements have been acting as a driving factor for the market segment. For instance, in August 2021, Insilico Medicine, one of the industry leaders in end-to-end artificial intelligence for target discovery, small molecule chemistry, and clinical development, and Usynova signed a strategic cooperation to advance the development of small molecule innovative therapies.
The market segment growth is also propelled by the increasing burden of diseases such as cancer, Alzheimer, and others, as with the increasing burden of diseases, there is an increasing need for research and development for better and more effective therapeutics.
Therefore, technological advancements are expected to drive segmental growth in the market during the forecast period.
North America Expected to Dominate the Market Over the Forecast Period
North America currently dominates the overall market for small molecule drug discovery market owing to the rising cases of various chronic diseases, such as cardiovascular disease, cancer, etc., and increasing approval of new small molecules in the region. According to the American Cancer Society's 2022 statistics, it is estimated that in 2022, there will be 1,918,030 new cases of cancer in the United States, of which 983,160 will be among males and 934,870 will be among females. Furthermore, according to the Canadian Cancer Society 2022, there are 233,900 new cancer cases in Canada in 2022. Such a high burden of cancer is expected to drive the market's growth as small molecules are primarily employed in the treatment of cancer.
Strategic initiatives such as partnerships and collaborations undertaken by the market players are expected to drive the growth of the segment in the region. For instance, in January 2022, Amgen and Arrakis Therapeutics signed a research collaboration focused on the discovery and development of RNA degrader therapeutics against a range of difficult-to-drug targets in multiple therapeutic areas. This new class of targeted RNA degraders consists of small-molecule drugs that selectively destroy RNAs encoding disease-causing proteins by inducing their proximity to nucleases. Such research collaborations are expected to boost the growth of the market in the region.
Thus, owing to the factors such as the rising cases of various chronic diseases, and increasing approval of new small molecules, the studied market in the North American region is expected to project growth over the forecast period.
Small Molecule Drug Discovery Industry Overview
The small molecule drug discovery market is moderate in nature due to the presence of a few companies operating globally as well as regionally. The competitive landscape includes an analysis of a few international as well as local companies which hold market shares and are well known including Pfizer Inc., Bristol-Myers Squibb Company, Merck KGaA, Boehringer Ingelheim GmbH, and GlaxoSmithKline, among others.
Small Molecule Drug Discovery Market Leaders
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ICON Plc
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Charles River Laboratories
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Labcorp Drug Development
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Thermo Fisher Scientific Inc.
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Eurofins Discovery
*Disclaimer: Major Players sorted in no particular order
Small Molecule Drug Discovery Market News
- August 2022: BioDuro-Sundia and X-Chem, a DEL technology pioneer in small molecule drug discovery, launched DNA Encoded Compound Library (DEL) technology services in China to help more innovative pharmaceutical companies quickly discover small molecule drugs.
- July 2022: RxCelerate launched RxNfinit. It is a new small molecule discovery platform that leverages machine learning, in silico structure modeling, and combinatorial chemistry in a novel workflow to offer significant advantages over the current generation of tools to identify small molecule drugs against a wide range of protein targets.
Small Molecule Drug Discovery Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rise in Demand for Small Molecule Drugs
- 4.2.2 Increasing Number of Contract Organizations for R&D
- 4.2.3 Small Molecules in Treatment of Chronic Diseases
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4.3 Market Restraints
- 4.3.1 High Drug Development Costs
- 4.3.2 Strict Regulations
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4.4 Porter's Five Forces Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
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5.1 By Therapeutic Area
- 5.1.1 Oncology
- 5.1.2 Central Nervous System
- 5.1.3 Cardiovascular
- 5.1.4 Respiratory
- 5.1.5 Metabolic Disorders
- 5.1.6 Gastrointestinal
- 5.1.7 Other Therapeutic Areas
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5.2 By Process/Phase
- 5.2.1 Target ID/Validation
- 5.2.2 Hit Generation and Selection
- 5.2.3 Lead Identification
- 5.2.4 Lead Optimization
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Italy
- 5.3.2.5 Spain
- 5.3.2.6 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 South Korea
- 5.3.3.6 Rest of Asia-Pacific
- 5.3.4 Middle East and Africa
- 5.3.4.1 GCC
- 5.3.4.2 South Africa
- 5.3.4.3 Rest of Middle East and Africa
- 5.3.5 South America
- 5.3.5.1 Brazil
- 5.3.5.2 Argentina
- 5.3.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 ICON Plc
- 6.1.2 Charles River Laboratories
- 6.1.3 Promega Corporation
- 6.1.4 Eurofins Discovery
- 6.1.5 Schrödinger, Inc.
- 6.1.6 Labcorp Drug Development
- 6.1.7 Thermo Fisher Scientific Inc.
- 6.1.8 Jubilant Biosys Ltd.
- 6.1.9 Syngene International Limited
- 6.1.10 Curia Global, Inc.
- 6.1.11 Evotec
- 6.1.12 Teva Pharmaceuticals
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySmall Molecule Drug Discovery Industry Segmentation
As per the report's scope, small molecule drug discovery represents all the costs incurred by a drug discovery company during the discovery phase. A small molecule is a substance that can enter cells quickly as it has a low molecular weight. These are used as drugs for therapeutic purposes and include chemically synthesized drug molecules and all biologically synthesized drug molecules. The Small Molecule Drug Discovery Market is Segmented by Therapeutic Area (Oncology, Central Nervous System, Cardiovascular, Respiratory, Metabolic Disorders, Gastrointestinal, and Other Therapeutic Areas), Process/Phase (Target ID/Validation, Hit Generation and Selection, Lead Identification, and Lead Optimization), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (in USD million) for the above segments.
| By Therapeutic Area | Oncology | |
| Central Nervous System | ||
| Cardiovascular | ||
| Respiratory | ||
| Metabolic Disorders | ||
| Gastrointestinal | ||
| Other Therapeutic Areas | ||
| By Process/Phase | Target ID/Validation | |
| Hit Generation and Selection | ||
| Lead Identification | ||
| Lead Optimization | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Middle East and Africa | GCC |
| South Africa | ||
| Rest of Middle East and Africa | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America |
Small Molecule Drug Discovery Market Research FAQs
How big is the Small Molecule Drug Discovery Market?
The Small Molecule Drug Discovery Market size is expected to reach USD 56.94 billion in 2024 and grow at a CAGR of 8.76% to reach USD 86.65 billion by 2029.
What is the current Small Molecule Drug Discovery Market size?
In 2024, the Small Molecule Drug Discovery Market size is expected to reach USD 56.94 billion.
Who are the key players in Small Molecule Drug Discovery Market?
ICON Plc, Charles River Laboratories, Labcorp Drug Development, Thermo Fisher Scientific Inc. and Eurofins Discovery are the major companies operating in the Small Molecule Drug Discovery Market.
Which is the fastest growing region in Small Molecule Drug Discovery Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Small Molecule Drug Discovery Market?
In 2024, the North America accounts for the largest market share in Small Molecule Drug Discovery Market.
What years does this Small Molecule Drug Discovery Market cover, and what was the market size in 2023?
In 2023, the Small Molecule Drug Discovery Market size was estimated at USD 52.35 billion. The report covers the Small Molecule Drug Discovery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Small Molecule Drug Discovery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Small Molecule Drug Discovery Industry Report
Statistics for the 2024 Small Molecule Drug Discovery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Small Molecule Drug Discovery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
