Small Molecule Drug Discovery Outsourcing Market Size, Share & Trends Analysis Report By Workflow (Target Identification & Screening, Preclinical Development), By Service, By Therapeutics Area, By End Use, By Region, And Segment Forecasts, 2025 - 2033
Laboratory Corporation of America Holdings(Covance)
Eurofins
Evotec
Albany Molecular Research(Curia)
GenScript BIoTech
Pharmaron
Syngene International
Dalton Pharma Services
Oncodesign
Jubilant Biosys
Domainex
GenScript BIoTech
Merck & Co., Inc.
QIAGEN
Dr. Reddy Laboratories Ltd.
Pharmaron Beijing Co., Ltd.
TCG Lifesciences Pvt Ltd.
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Small Molecule Drug Discovery Outsourcing Market Summary
The global small molecule drug discovery outsourcing market size was estimated at USD 4.55 billion in 2024, and is projected to reach USD 10.62 billion by 2033, growing at a CAGR of 10.03% from 2025 to 2033. Rising research and development expenses, an increasing need for drug development, and a transition toward virtual pharmaceutical models drive the market.
Some other factors contributing to market growth are a rising number of registered studies, growing approval of small molecule drugs, advancements in medical technology, an upsurge in diseases under investigation, and the imperative for novel treatments. Currently, small molecule drugs have been the cornerstone of the pharmaceutical industry. These organic compounds, characterized by their low molecular weight, offer several advantages as therapeutic agents. These molecules provide advantages such as high oral bioavailability, adaptable dosing regimens, and the capability to engage intracellular pathways, making them applicable to a broad spectrum of diseases, particularly in areas like cancer, infections, and neurological disorders.
Besides, drug discovery plays a crucial role in developing these small molecule drugs, encompassing complex stages and cutting-edge technologies to formulate effective therapies and accelerate R&D pipelines. Thus, many pharmaceutical and biopharmaceutical companies are increasingly partnering with outsourcing companies specializing in the expertise to manage early discovery phases, including target identification, hit-to-lead processes, lead optimization, and the approval process. For instance, in 2024, the U.S. FDA Center for Drug Evaluation and Research approved 50 new molecular entities, consisting of 32 chemical entities & 18 biologic entities. Besides, of the NCEs, small molecules gained major attention and share, making up 91% (31 drugs), with the remaining drugs comprising peptides and nucleic acids.
Moreover, outsourcing in the pharmaceutical industry is gaining momentum as companies recognize the benefits of acquiring additional competencies essential for successful drug development and commercialization. Outsourcing provides specialized expertise, helps improve cash flow management, and offers significant manufacturing advantages, including reducing investment risks. Besides, developing costly in-house capabilities for early-stage technologies and products involves considerable risks throughout development. These factors have led to outsourcing as an emerging risk-averse alternative for product innovations. Moreover, companies often face challenges in determining the necessary scale for current and future product offerings or market penetration, complicating the design and scaling of in-house manufacturing. As a result, outsourcing has become a preferred option for product innovation.
Furthermore, innovative technologies, the rising prevalence of chronic and infectious diseases, and the growing need for new therapies support market growth. Advances such as artificial intelligence, machine learning, and high-throughput screening are streamlining the hit identification and lead optimization processes, supporting the market growth. Also, the advancement of precision medicine and AI-driven screening methods has further enhanced the efficiency of the discovery process. Similarly, advancements in drug design, predictive modeling, and precision medicine are enhancing the contributions of outsourcing partners in the early stages of drug discovery and development. Such factors are expected to drive the market growth over the estimated time period.
Global Small Molecule Drug Discovery Outsourcing Market Report Segmentation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global small molecule drug discovery outsourcing market report based on workflow, service, therapeutics area, end use, and region:
Workflow Outlook (Revenue, USD Million, 2021 - 2033)
Target Identification & Screening
Target Validation & Functional Informatics
Lead Identification & Candidate Optimization
Preclinical Development
Others
Service Outlook (Revenue, USD Million, 2021 - 2033)
Chemistry Services
Biology Services
Therapeutics Area Outlook (Revenue, USD Million, 2021 - 2033)
Respiratory system
Pain and Anesthesia
Oncology
Ophthalmology
Hematology
Cardiovascular
Endocrine
Gastrointestinal
Immunomodulation
Anti-infective
Central Nervous System
Dermatology
Genitourinary System
End Use Outlook (Revenue, USD Million, 2021 - 2033)
Pharmaceutical & Biotechnology companies
Academic Institutes
Regional Outlook (Revenue, USD Million, 2021 - 2033)
North America
U.S.
Canada
Mexico
Europe
UK
Germany
France
Italy
Spain
Sweden
Denmark
Norway
Asia Pacific
Japan
China
India
Thailand
South Korea
Australia
Latin America
Brazil
Argentina
Middle East & Africa
South Africa
Saudi Arabia
Argentina
UAE
Kuwait
Table of Contents
Chapter 1. Research Methodology and Scope
1.1. Market Segmentation & Scope
1.2. Segment Definitions
1.2.1. Workflow
1.2.2. Service
1.2.3. Therapeutics Area
1.2.4. End Use
1.3. Research Methodology
1.4. Information Procurement
1.4.1. Purchased Database
1.4.2. GVR's Internal Database
1.4.3. Secondary Sources
1.4.4. Primary Research
1.5. Information Or Data Analysis
1.5.1. Data Analysis Models
1.6. Market Formulation & Validation
1.7. Model Details
1.7.1. Commodity Flow Analysis
1.7.2. Parent Market Analysis
1.8. List Of Secondary Sources
1.9. List Of Abbreviations
1.10. Objectives
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segment Outlook
2.3. Competitive Insights
Chapter 3. Small Molecule Drug Discovery Outsourcing Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.1.1. Parent Market Outlook
3.1.2. Related/Ancillary Market Outlook
3.2. Market Dynamics
3.2.1. Market Driver Analysis
3.2.1.1. Rising R&D costs in pharmaceutical/biopharmaceutical Industry
3.2.1.2. Increasing demand for outsourcing services in drug development
3.2.1.3. Technological advancements in drug discovery