Cloud-based Solutions for Drug Discovery Market

Report Overview

According to the deep-dive market assessment study conducted 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.

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. Collaboration with scientists and companies worldwide is made possible by using cloud-based drug development platforms in pharmaceutical and biotechnology firms. 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.

[6765448]

Market Dynamics 

Significant investment from pharmaceutical corporations in the anti-coronavirus drug discovery and development initiative is projected to impact further cloud-based solutions for drug discovery, development, and manufacturing. The key drivers of market revenue expansion are increased investment in drug discovery, development, and manufacturing by pharmaceutical, biopharmaceutical, and other companies and increased utilization of cloud services for these activities. Because of the numerous benefits of cloud technology, the use of cloud-based services for drug discovery, development, and manufacturing is increasing. Cloud-based services, for example, could help to streamline operations and construct business cases to establish whether a drug is likely to be valuable and financially viable. 

According to a research study published in March 2020 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 research and development can be reduced by implementing cloud services, increasing the 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, likely to fuel revenue growth in the market during the forecast period.

Market Ecosystem 

The global cloud-based solutions for drug discovery market have been analyzed from three perspectives: services type, end user, and region. 

Cloud-based Solutions for Drug Discovery Market by Service Type

[347654]

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 the increasing use of this segment 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 also be used to reduce the cost of drug development. SaaS can provide researchers with a comprehensive view of the 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.

Cloud-based Solutions for Drug Discovery Market by End User

Based on the end user, the global cloud-based solution for drug discovery is segmented into pharmaceutical companies, biotechnology companies, contract research organizations, academia, and research institutes. 

The pharmaceutical company segment is expected to dominate the market in terms of revenue share during the forecast period from 2022 to 2030. The increase in the number of software providers offering cloud-based drug discovery platforms to facilitate R&D activities is driving the market revenue of 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. Because of a lower maintenance cost 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 Region 

Based on the region, the global cloud-based solutions for drug discovery market have been segmented into North America, Europe, Asia Pacific, and the Rest of the World. 

North America (including the United States, Canada, and Mexico) is expected to account for a significant revenue share of cloud-based drug discovery, and development during the forecast period. This large revenue share is attributed to the presence of a leading pharmaceutical market and high investment in the development, and discovery of drugs by some of the largest pharmaceutical companies, and increased adoption of cloud-based solutions for drug discovery. For instance, according to the European Federation of Pharmaceutical Industries and Associations' 2021 study, the North American market, which comprises the United States and Canada, had the greatest proportion of the global pharmaceutical industry at 49%, ahead of Europe, China, and Japan. As a result of the high demand for drugs, greater investment in drug discovery, development, and manufacturing, and the demand for cloud services in the region the market revenue share is expected to remain high during the forecast period. 

Competitive Landscape 

The prominent market players in the global cloud-based solutions for drug discovery market include: 

• IBM Corporation
• Accenture PLC
• Dassault Systemes SE
• WuXi AppTec Co. Ltd.
• Saama Technologies, LLC.
• Oracle Corporation
• Amazon Web Services, Inc.
• Cloud Pharmaceuticals Inc.
• SAS Institute Inc.
• NVIDIA Corporation 

Strategic Developments 

• In June 2022, Insilico Medicine, a clinical-stage end-to-end artificial intelligence (AI)-driven drug discovery company, completed a US$ 60 million Series D financing from a syndicate of global investors with expertise in investing in the biopharmaceutical and life sciences sectors.
• In January 2022, Excelra collaborated with XtalPi Inc. to improve its intelligent digital drug discovery and development platform with its Global Online Structure Activity Relationship Database (GOSTAR).

Frequently Asked Questions About This Report