Global Drug Discovery Market Hits $71.8 Billion in 2025 with 9.6% CAGR

Published: Feb 2026

Drug discovery market was valued at $71.8 billion in 2025 and is projected to reach $178.06 billion by 2035, growing at a CAGR of 9.6% during the forecast Period (2026-2035). The growth of the drug discovery market is driven by the increasing need for therapeutic solutions across healthcare sectors, where the prevalence of chronic and infectious diseases requires ongoing research activity. The demand for faster identification of drug candidates, improved efficacy, and reduced development timelines has led to wider use of advanced discovery tools and platforms. Market activity is influenced by technological developments in high-throughput screening, computational drug design, and artificial intelligence, as well as the emphasis on reducing clinical attrition through data-driven early-stage research.

Browse the full report description of “Drug Discovery Market Size, Share & Trends Analysis By Type (Pharmacogenomics, High Throughput Screening, Genomics, Bioinformatics, Biochips and Nanotechnology), and By End User (Pharmaceutical Companies, Biopharmaceutical Companies, Biotech Companies and Research Institutes), Forecast Period (2026-2035)” of https://www.omrglobal.com/industry-reports/drug-discovery-market

In the United States, regulatory and funding frameworks influence drug discovery by defining research priorities and providing support for the development of new therapeutics. Policies such as the Food and Drug Administration’s (FDA) expedited review pathways and public funding for biomedical research affect the progression of discovery efforts. Compliance with regulatory requirements for preclinical validation and safety assessment is necessary for the development of drug candidates and guides the implementation of automated and scalable discovery workflows.

In Europe, programs including Horizon Europe and regional research grants support activities related to target identification, disease modeling, and candidate optimization. Countries such as the United Kingdom, Germany, and France have established funding mechanisms and collaborative research networks that facilitate coordination between academic institutions and industry. Policy frameworks, technological development, and research investment collectively influence the growth of the drug discovery market.

Key Drivers Shaping the Drug Discovery Market

The key players in the global drug discovery market include AbbVie, Johnson & Johnson, Merck & Co., Pfizer, Roche, among others. These companies are engaged in research and development of novel therapeutics, early-stage drug discovery programs, and pipeline expansion across multiple disease areas. Their activities include collaborations and licensing agreements to advance investigational compounds, development of small molecules, biologics, and RNA-based therapeutics, and application of advanced technologies such as high-throughput screening, artificial intelligence, and molecular modeling to accelerate drug discovery and preclinical development.

  • In December?2025, Pfizer announced an exclusive global collaboration and license agreement with YaoPharma for the development, manufacturing, and commercialization of YP05002, a small?molecule GLP?1 receptor agonist currently in Phase?1 development for chronic weight management. This agreement expands Pfizer’s pipeline of investigational drug candidates and supports ongoing efforts in early?stage research and therapeutic discovery.
  • In May?2025, AbbVie, Inc. and ADARx Pharmaceuticals announced a collaboration and license option agreement to co?develop next?generation siRNA therapeutics across multiple disease areas including neuroscience, immunology, and oncology. The collaboration will leverage AbbVie’s drug discovery expertise and ADARx’s proprietary RNA technology to advance small interfering RNA (siRNA) therapeutics designed to regulate gene expression by targeting disease?causing mRNA.

Market Coverage

  • The market number available for – 2025-2035
  • Base year- 2025
  • Forecast period- 2026-2035
  • Segment Covered-
    • By Type
    • By End-User
  • Regions Covered-
    • North America
    • Europe
    • Asia-Pacific
    • Rest of the World
  • Competitive Landscape - AbbVie, Johnson & Johnson, Merck & Co., Pfizer, Roche, among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Drug discovery market Report Segment

By Type

  • Pharmacogenomics
  • High Throughput Screening
  • Genomics
  • Bioinformatics
  • Biochips
  • Nanotechnology

 

By End-Users

  • Pharmaceutical Companies
  • Biopharmaceutical Companies
  • Biotech Companies
  • Research Institutes

 

Drug discovery market Report Segment by Region

North America

  • United States
  • Canada

Europe

  • UK
  • Germany
  • Italy
  • Spain
  • France
  • Russia
  • Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia and New Zealand
  • ASEAN Economies
  • Rest of Asia-Pacific

Rest of the World

  • Latin America
  • Middle East & Africa

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