Cloud Based Drug Discovery Platform Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[226+ Pages Report] According to Facts and Factors, the global cloud-based drug discovery platform market size was valued at USD 2351.45 million in 2022 and is predicted to surpass USD 6348.36 million by the end of 2030. The cloud-based drug discovery platform industry is expected to grow by a CAGR of 13.16%.

Market Overview

Cloud-based drug discovery platform refers to the modern approach to research and development in the pharmaceutical sector to leverage cloud computing and data analytics technology, thereby improving the drug discovery processes. This platform provides a large number of tools and capabilities required to align with various aspects of drug discovery and development.

These make the processes more collaborative, cost-effective, and efficient. The cloud-based drug discovery platform offers secure data storage solutions that help pharmaceutical companies and research institutions manage the vast amount of clinical, chemical, and biological data.

Key Insights

• As per the analysis shared by our research analyst, the global cloud-based drug discovery platform market size is estimated to grow annually at a CAGR of around 13.16% over the forecast period (2023-2030).
• In terms of revenue, the global cloud-based drug discovery platform market size was valued at around USD 2351.45 million in 2022 and is projected to reach USD 6348.36 million by 2030.
• Increasing research and development costs are driving the growth of the global cloud-based drug discovery platform market.
• Based on the application, the drug discovery and development segment is growing at a high rate and is projected to dominate the global market.
• Based on the cloud type, the public cloud services segment is projected to swipe the largest market share.
• Based on the end users, the pharmaceutical companies segment is the fastest-growing segment of the global market.
• Based on the service type, the platform as a service (PaaS) segment accounts for the largest share of the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Increasing research and development costs are likely to drive the growth of the global market.

The pharmaceutical sector is facing an increasing cost for the research and development process, along with extended drug development timelines. However, the cloud-based platform provides a cost-effective solution to the industry by eliminating the requirement for on-premises infrastructure and the research optimization process.

Also, the accumulation of clinical, chemical, and biological data poses a high requirement for data storage solutions, which in turn is further expected to propel the demand for cloud platforms to offer a powerful analytic tool to manage large datasets easily.

Moreover, the increasing complexity of the drug discovery process is also likely to foster developments in the cloud-based drug discovery platform industry in the forthcoming years. Clinical trial designs, lead compound optimization, suitable drug targets, and modeling capabilities are some of the advantages offered by cloud-based computational resources, which are likely to boost the popularity of these platforms.

For instance, Insilico Medicine completed a USD 60 million Series D financing in June 2022 from a syndicate of global investors. The company is a clinical-stage end-to-end artificial intelligence (AI)-driven drug discovery organization.

Restraints

• Security concerns and data privacy are likely to hamper the growth of the global market.

The biotechnology and pharmaceutical sector revolves around patient and research data, which is a sensitive matter. Therefore, the rising concerns regarding data privacy and securities are likely to slow down the growth of the global cloud-based drug discovery platform market. Moreover, the increasing need to comply with data protection regulations like GDPR is becoming more complex for companies in the global marketplace.

Opportunities

• Drug repurposing and global collaboration are likely to foster growth opportunities in the global market.

Cloud-based platforms encourage data mining and analysis to help researchers find existing drugs for different therapeutic applications, thereby lowering the cost and time required for drug discovery. For instance, Cleveland Clinic partnered with IBM in March 2021 to enter an agreement of a 10-year partnership to encourage health and life sciences research.

Challenges

• Integration concerns are a big challenge in the global market.

Integrating the cloud's platform with the legacy software is a challenging task. There are increasing chances of compatibility issues and complexities in data migration, which is likely to hinder the growth of the cloud-based drug discovery platform industry.

Segmentation Analysis

The global cloud-based drug discovery platform market can be segmented into application, cloud type, end user, service type, and region.

By application, the market can be segmented into drug discovery & development and drug manufacturing. The drug discovery and development segment is projected to swipe the largest share of the cloud-based drug discovery platform industry. The segment primarily focuses on cloud-based platforms, which are of high importance during the early stages of drug development, starting from target identification to pre-clinical research and trial designs.

The cloud-based platform is crucial for offering data management, informatics analysis, virtual screening, molecular modeling, and collaboration among researchers. These cloud-based platforms are used to validate the potential drugs that are implicated in a disease.

Moreover, this platform assists in the virtual screening of compounds to recognize the potential drug candidates that can actively interact with the target. Also, researchers use these platforms to optimize lead compounds that improve their safety and application.

By cloud type, the market can be segmented into hybrid, private, and public cloud. The public cloud services segment is likely to dominate the global cloud-based drug discovery platform market during the forecast period. The public cloud services are offered by third parties, and resources are shared among multiple organizations.

Also, the services are accessible over internet servers. The public cloud services are widely used for non-confidential and non-sensitive drug discovery. The private cloud infrastructure segment is also likely to grow steadily during the forecast period because the servers are dedicated to only a single entity or organization. However, it is hosted by a third-party provider. Private clouds are used in applications where there are strict data security and compliance regulations.

By end-user, the market can be segmented into contract research organizations, biotechnology, pharmaceutical companies, and others. The pharmaceutical companies segment is expected to register a high growth rate during the forecast period.

Pharmaceutical companies refer to the large organizations engaged in the manufacturing, development, discovery, and marketing of pharmaceutical drugs. Pharmaceutical companies often go through complex drug discovery and development pipelines.

Therefore, they use the cloud-based platforms to organize the extensive data and conduct a high throughput screening. Furthermore, this platform also helps streamline the entire drug development process and perform molecular modeling.

By service type, the market can be segmented into infrastructure as a service, platform as a service, and software as a service. The platform as a service (PaaS) segment accounts for the largest share of the cloud-based drug discovery platform industry. It offers an easy deployment environment on the cloud, including the services and tools required for application development integration and data management.

It abstracts the underlying infrastructure. It offers a platform for scientific applications and collaboration solutions. Researchers can focus on optimizing and building their applications without being concerned regarding the underlying infrastructure, which led to the fast development in the segment.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America is a prominent region in the global cloud-based drug discovery platform market and is expected to grow rapidly during the forecast period. The fast-growing pharmaceutical and biotechnology sector in the region is likely to contribute heavily towards the growth of the regional market.

Moreover, leading countries like the United States and Canada are becoming hubs for pharmaceutical research and development. Therefore, the cloud-based platforms are likely to grow high in the region. The market is highly characterized by increasing investments in research and development to expedite the drug discovery and development processes.

Cloud-based drug platforms in the region are encouraging collaboration between organizations and researchers, which is likely to further foster developments in the regional market.

Asia Pacific is expected to show a positive growth rate with a high CAGR during the forecast period. The growing demand for innovative drug development solutions in the region is likely to further support the growth of the regional market.

The leading regions like South Korea, Singapore, Japan, China, and India are increasingly investing in research and development processes, which is further likely to fuel the demand for cloud-based platforms. Biotech companies and local startups are utilizing cloud-based drug discovery platforms at an increasing rate.

For instance, Merck came up with the Merck Digital Sciences Studio (MDSS) in June 2022 to initiate the generation of innovative technologies for drug discovery.

Competitive Analysis

The key players in the global cloud-based drug discovery platform market include:

• Schrodinger
• DNAnexus
• ChemAxon
• CDD Vault
• Benchling
• Insilico Medicine
• Atomwise
• OpenEye Scientific Software
• Chemical Computing Group
• Cloud Pharmaceuticals
• Evidentic

For instance, Excelra collaborated with XtalPi in January 2022 to improve its intelligent digital drug discovery for its Global Online Structure Activity Relationship Database (GOSTAR).

The global cloud-based drug discovery platform market is segmented as follows:

By Application Segment Analysis

• Drug Discovery & Development
• Drug Manufacturing

By Cloud Type Segment Analysis

• Hybrid
• Private
• Public Cloud

By End User Segment Analysis

• Contract Research Organizations
• Biotechnology
• Pharmaceutical Companies
• Others

By Service Type Segment Analysis

• Infrastructure As A Service
• Platform As A Service
• Software As A Service

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America