Number of pages: 100 | Report Format: PDF | Published date: January 17, 2023
Historical Years – 2020 | Base Year – 2021 | Forecasted Years – 2022-2030
According to the deep-dive market assessment study by Growth Plus Reports, the global cloud-based solutions for drug discovery market was valued at US$ 2.5 billion in 2021 and is expected to register a revenue CAGR of 12.4% to reach US$ 8.04 billion by 2030.
Cloud-based Solutions for Drug Discovery Market Fundamental
Cloud computing allows consumers to access storage, data, software, and servers via internet-connected devices, such as PCs, smartphones, tablets, and wearables. Cloud computing solutions providers store and analyze data at locations distinct from end users. Furthermore, cloud computing allows data storage, access, and programs via the internet rather than a hard disc. Usage of cloud-based drug development platforms can help in collaborations among scientists and pharmaceutical and biotechnology companies. Furthermore, cloud-based drug discovery platforms lower risk and accelerate the drug development process by leveraging the broad cloud infrastructure's cost-effective, high-performance computing capacity, and artificial intelligence/machine learning capabilities.
Cloud-based Solutions for Drug Discovery Market Dynamics
The global market is expected to register revenue growth at a significant CAGR due to increase in investments in drug discovery, development, and manufacturing by pharmaceutical and biopharmaceutical companies and rise in the utilization of cloud services for these activities. Increase in awareness about numerous benefits of cloud technology has resulted into a rise in the usage of cloud-based services for drug discovery, development, and manufacturing. Cloud-based services, for instance, could help in streamlining operations and construct business cases to establish whether a drug is likely to be valuable and financially viable.
According to March 2020 research by Olivier J. Wouters et al., the median capitalized R&D investment to bring a new drug to market was estimated at US$ 985.3 million, with an average investment of US$ 1,335.9 million, and estimates varying across therapeutic areas, with cancer drug development costs being the highest. These high expenses of new medication R&D can be reduced by implementing cloud services, increasing drug discovery and development processes, and reducing the possibility of errors. As a result of this feature, cloud services are increasingly being used in drug discovery, development, and marketing. This factor is likely to fuel revenue growth in the market during the forecast period.
Cloud-based Solutions for Drug Discovery Market Ecosystem
The global cloud-based solutions for drug discovery market is analyzed based on three parameters: services type, end user, and region.
Cloud-based Solutions for Drug Discovery Market by Service Type
Based on the service type, the global cloud-based solutions for drug discovery is segmented into infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).
The software as a service (SaaS) segment is expected to dominate the cloud-based drug discovery platforms market in terms of revenue share during the forecast period. This high revenue share is attributed to increasing usage of this service type in drug discovery. This technology can assist researchers and pharmaceutical companies in identifying potential targets for new drugs as well as developing more effective treatments for existing diseases. By streamlining the process and eliminating redundant steps, SaaS can be used to reduce the cost of drug development. SaaS can provide researchers with a comprehensive view of drug development landscape by leveraging data from multiple sources, allowing them to make informed decisions about which compounds are most likely to succeed in clinical trials. Due to lower maintenance costs than other varieties, SaaS is accessible to small research companies. SaaS can quickly and efficiently deliver the primary value of a clinical research application with the ability to capture, manage, and share efficiently and effectively across thousands of investigators worldwide and among all stakeholders, reducing the time for the entire clinical research cycle and driving the revenue growth of this segment.
Cloud-based Solutions for Drug Discovery Market by End User
Based on the end user, the global cloud-based solution for drug discovery market is segmented into pharmaceutical companies, biotechnology companies, contract research organizations, academia, and research institutes.
The pharmaceutical companies segment is expected to dominate the market in terms of revenue share during the forecast period. Increase in the number of software providers offering cloud-based drug discovery platforms to facilitate R&D activities is driving the revenue growth in this segment. Furthermore, cloud-based platforms assist research organizations in promptly developing treatments to combat new strains of viruses and bacteria and discover appropriate medications in these outbreaks.
Cloud-based Solutions for Drug Discovery Market by Region
Based on the region, the global cloud-based solutions for drug discovery market is segmented into North America, Europe, Asia Pacific, and the Rest of the World (RoW).
North America (Which includes the U.S., Canada, and Mexico) is expected to account for a significant revenue share of the cloud-based drug discovery market during the forecast period. This can be attributed to presence of a leading pharmaceutical industry, high investment in the development and discovery of drugs by leading pharmaceutical companies, and increased adoption of cloud-based solutions for drug discovery. For instance, according to a 2021 study by the European Federation of Pharmaceutical Industries and Association, the North America market accounted for the greatest share of the global pharmaceutical industry at 49%, ahead of Europe, China, and Japan. Rise in the demand for drugs in the region has resulted into greater investments in drug discovery, development, and manufacturing. This, in turn, is driving the demand for cloud services.
Cloud-based Solutions for Drug Discovery Market Competitive Landscape
The prominent players operating in the global cloud-based solutions for drug discovery market include:
Cloud-based Solutions for Drug Discovery Market Strategic Developments
Europe accounts for the highest revenue share of the global cloud-based solutions for drug discovery market.
Rising investments in drug discovery, development, and manufacturing and increasing adoption of cloud technology in R&D activities are driving the global cloud-based solutions for drug discovery market revenue growth.
IBM Corporation, Accenture PLC, Dassault Systèmes SE, WuXi AppTec Co. Ltd, and Amazon Web Services, Inc. are among the key companies operating in the global cloud-based solutions for drug discovery market.
The global cloud-based solutions for drug discovery market is expected to be valued at US$ 8.04 billion by 2030.
The global cloud-based solutions for drug discovery market is expected to register a revenue CAGR of 12.4% during the forecast period from 2022 to 2030.
*Insights on financial performance are subject to the availability of information in the public domain.