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Global Drug Discovery Software market valued at $2 billion in 2020, is expected to grow at a CAGR of 14% to cross $3.5 billion by 2025

Medi-Tech Insights

Medi-Tech Insights: The global Drug Discovery Software market is driven by growing R&D spending’s, need for cost-efficiency & faster time-to-market, stringent regulatory compliance/reporting, growing use of AI & ML in drug discovery, and rising demand for novel software solutions specifically designed for biologicals/cell & gene therapy.



The global drug discovery software market (such as ligand-based design, structure-based design, LIMS, ELN) is driven by the increasing R&D spend and pipeline, expanding scope and scale, increasing stringency of testing and regulations, growing number and size of biotechs, need for increasing cost efficiencies and reducing time to market, and move towards web/cloud-based software.

Niche but Fast-Growing Drug Discovery Software Market

The drug discovery software market is niche and growing rapidly, driven by the rising pressure on the pharma and biotech companies to cut costs in the research and preclinical stage of drug development, reduce timelines and improve transparency through deep learning software tools.

“Large players present in this segment are trying to consolidate the market by becoming a one stop shop. Moreover, companies are also considering to combine their solutions with bioinformatics and LIMS tools to have a competitive edge.” Executive, Leading Drug Discovery Software Provider, US

Increasing Focus on Developing AI/ML platforms for Drug Discovery

The life sciences industry is increasingly recognizing the benefits offered by big data and AI/ML in drug discovery. Several AI/ML developments could be seen recently that are expected to disrupt the current drug discovery landscape. For instance, in Mar 2021, instituted, a ML-driven drug discovery and development company raised $400 million. In 2020, Optibrium launched Cerella, an AI software platform for drug discovery.

Rising Demand for Software Solutions Specifically Designed for Biologics

Biologics are expected to experience strong growth in the drug discovery phase. 50% of drugs currently in the preclinical phase are biologics. To leverage growth opportunities, companies are entering/expanding into biologicals software space.

Transition to Web/Cloud-based Software

The drug discovery software industry is slowly moving towards cloud-based solutions as it can address most of the issues with on-premise installations and provide quick deployment, minimum upfront costs, high flexibility and scalability making it affordable for even small and medium size pharma/ biotechs, academic research/universities and CROs.

competitive landscape Analysis: Drug Discovery Software Market

The global drug discovery software market is highly competitive and fragmented. The key players include Dassault Systems, LabVantage, PerkinElmer, Schrodinger, Abbott, Healx, Optibrium, Instem, Chemical Computing Group, dotmatics, idbs, Titian, Biovia, Celsius, Genome Biologics, Atomwise, Standigm, insitro, and CytoReason.

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