The global drug discovery services market is experiencing rapid expansion as pharmaceutical and biotechnology companies increase research and development (R&D) investment, outsource complex discovery activities, and pursue more efficient pathways for developing new therapies. The market is projected to grow from USD 20.52 billion in 2025 to USD 23.21 billion in 2026, representing a Compound Annual Growth Rate (CAGR) of 13.1 percent, according to Drug Discovery Services Market Report 2026. 

Growth during the historical period has been supported by expanding pharmaceutical research and development programs, mounting cost pressures on drug developers, the increasing role of Contract Research Organisations (CROs), wider adoption of target-based drug discovery, and stronger collaboration between academic institutions and industry participants. These factors have encouraged organisations to use specialised external expertise, technology platforms, and laboratory infrastructure throughout early-stage research.

The drug discovery services market is forecast to reach USD 39.79 billion by 2030, expanding at a CAGR of 14.4 percent. Key growth drivers include precision medicine pipelines, Artificial Intelligence (AI)-driven discovery platforms, biotechnology startup funding, research into complex diseases, and demand for faster lead optimisation. Major drug discovery services market trends include greater outsourcing, increased use of AI in target identification, expansion of early-stage discovery services, rising demand for biologics discovery, and closer integration of in vitro and in vivo studies.

The increasing prevalence of chronic diseases is expected to remain an important catalyst for market growth. Drug discovery service providers support the identification, evaluation, and advancement of therapeutic candidates for long-term and difficult-to-treat conditions. According to projections published by the National Library of Medicine in January 2023, the number of people aged 50 and older in the US with at least 1 chronic condition is expected to rise by 99.5 percent, from 71.522 million in 2020 to 142.66 million by 2050. This anticipated increase is strengthening demand for new medicines and supporting continued investment in outsourced drug discovery.

AI and Machine Learning (ML) are reshaping drug discovery by improving molecular screening, target identification, candidate selection, and predictive analysis. These technologies can help research teams prioritise promising compounds, reduce development risks, and make better use of large scientific datasets. Their adoption is also helping service providers improve the speed and accuracy of discovery workflows.

In February 2024, Eurofins Discovery launched DiscoveryAI SAFIRE, the Suite of ADMET Predictions for In Silico Refinement and Evaluation. The platform combines proprietary datasets with AI and ML to predict the absorption, distribution, metabolism, excretion, and toxicity properties of molecules. Drawing on data from Eurofins Discovery's BioPrint database, the platform is designed to support earlier evaluation and refinement of pharmaceutical candidates.

Strategic acquisitions are also expanding integrated drug discovery capabilities. In January 2023, UK-based Sygnature Discovery acquired SB Drug Discovery for an undisclosed amount. The transaction strengthened Sygnature Discovery's service portfolio and extended its capabilities in areas including cell line generation, assay development, and compound screening. The acquisition reflects broader market consolidation as providers seek to offer more comprehensive discovery programs through a single service platform.

Demand spans chemistry and biology services across target selection, target validation, hit-to-lead identification, lead optimisation, and candidate validation. Service providers support both small-molecule and biologic drug programs for pharmaceutical companies, biotechnology businesses, academic institutes, and other research organisations. Growing pipeline complexity is increasing demand for medicinal chemistry, biological testing, drug metabolism and pharmacokinetics, compound screening, and preclinical research capabilities.

North America was the largest region in the drug discovery services market in 2025. The geographic coverage of the market includes Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa. Countries covered include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, the UK, the US, Canada, Italy, and Spain.