|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
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The cloud-based solutions for drug discovery, development, and manufacturing market is expected to register a CAGR of 12.5% during the forecast period, 2022-2027.
As the impact of the COVID-19 pandemic grows worldwide, biotech and pharmaceutical companies, along with other healthcare organizations, have launched intensive research to learn more about the novel coronavirus. Cloud technology has been one of the most important tools for understanding and discovering the virus. The development of vaccines and drugs against it are expected to significantly impact the market. For example, according to a June 2020 article published by Ashima Gupta and Joe Corkery, Google Cloud user Schrödinger has partnered with Takeda, Novartis, Gilead Sciences, and WuXi AppTec in a charitable effort to share ideas, resources, and data to find an antiviral treatment for the coronavirus. Schrödinger, whose physics-based software platform facilitates the development of high-quality, unique compounds for therapies and materials, will use Google Cloud credits to rapidly explore and test potential new drugs under the agreement. In addition, high investment by pharmaceutical companies in the anti-coronavirus drug discovery and development initiative is expected to further influence cloud-based solutions for drug discovery, development, and manufacturing.
Increasing investment in drug discovery, development, and manufacturing by pharmaceutical, biopharmaceutical, and other entities and the increasing adoption of cloud services for these activities are the major drivers of the market growth. The adoption of cloud-based services for drug discovery, development, and manufacturing is growing due to cloud technology's various advantages. For example, cloud-based services could help streamline operations and develop business cases to determine whether a drug is likely to be useful and financially viable or not. Also, according to a research study published by Olivier J. Wouters et al., in a March 2020 base case analysis, the median capitalized R&D investment to bring a new drug to market was estimated at $985.3 million, with an average investment of $1335.9 million and estimates varying across therapeutic areas, with cancer drug development costs being the highest. These high costs associated with the research and development of a new drug can be significantly reduced by deploying cloud services as it speeds up the drug discovery and development process and minimizes the chance of errors. Due to this factor, the adoption of cloud services in drug discovery, development, and marketing is increasing, which is expected to drive growth in the market under review over the forecast period. For example, in December 2021, Pfizer Inc. and Amazon Web Services (AWS) agreed to collaborate on the development of new cloud technologies that could revolutionize the way new drugs are researched, manufactured, and distributed for clinical trials.
Further, increasing investment in drug discovery and development with the increasing prevalence of various diseases is expected to positively impact the growth of the market under study. For example, according to a report published by the Pharmaceutical Research and Manufacturers of America (PhRMA) in September 2021, biopharmaceutical companies invested more than a trillion dollars in research and development in the last decade alone, including a record year in 2020, when PhRMA member companies alone invested roughly 91 billion USD. Furthermore, according to the same source, more than 8,000 drugs were in development worldwide in 2021, with 74 percent potentially being first-in-class treatments or completely new ways to treat diseases. Due to heavy investments in the drug discovery and development initiative coupled with the benefits offered by cloud-based solutions, the adoption of cloud-based services in drug discovery, development, and manufacturing is expected to increase during the forecast period, fueling the growth of the studied market.
However, the high initial cost of implementation and deployment of cloud solutions and cybersecurity concerns are expected to restrain growth in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period.
Scope of the Report
As per the scope of the report, the cloud is an umbrella term that refers to sharing computing resources and providing data to connected devices on demand. Users can allocate data mining and decision-making tasks more easily and cost-effectively using modern cloud-based systems, which offer decentralized/real-world data management and collaborative operational opportunities. The cloud-based solutions for drug discovery, development, and manufacturing market is segmented by service type (Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS)), by cloud type (public cloud, private cloud, and hybrid cloud), by end user (biotechnology and pharmaceutical companies, contract research organizations, and others) and by geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the value (USD million) for the above segments.
|By Service Type|
|Software as a Service (SaaS)|
|Platform as a Service (PaaS)|
|Infrastructure as a Service (IaaS)|
|By Cloud Type|
|Drug Discovery & Development|
|By End User|
|Biotechnology and Pharmaceutical Companies|
|Contract Research Organizations (CRO)|
Key Market Trends
Private Cloud is Expected to Hold a Significant Share in the Cloud Type Segment in the Studied Market during the Forecast Period
A single organization or entity owns and operates private clouds. In a private cloud environment, the hardware, software, and associated infrastructure resides either in the organization's data center or a regulated service provider environment. Private clouds are preferred by government agencies, financial organizations such as banks, mid-sized to large companies, and any other entity involved in sensitive data such as drug discovery and development. This segment is expected to account for a significant market share under study.
Private clouds differ from public clouds in data control and flexibility; by definition, private clouds cannot be offered as a service. Microsoft, HP Data Centers, Ubuntu, Elastra-private cloud, and others are well-known examples of private cloud types. Other factors expected to drive growth in the private cloud segment include low deployment costs, greater efficiency and control over the cloud, ease of customization as needed, and greater security and privacy. And collectively, as a result of these factors, it is expected that the use of private cloud will increase during the forecast period of the study, and the segment will grow in the cloud solutions for discovery, development, and production market during the forecast period of the study.
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North America is Expected to Hold a Significant Share in the Studied Market Over the Forecast Period
Geographically, the North American region (including the United States, Canada, and Mexico) is expected to account for a significant share of the cloud-based drug discovery, development, and manufacturing solutions market during the forecast period due to the presence of a large pharmaceutical market and high investment in development and discovery drugs by some of the largest pharmaceutical companies located in the region. For example, according to a 2021 report by the European Federation of Pharmaceutical Industries and Associations, the North American market, which includes the United States and Canada, had the largest share of the global pharmaceutical market at 49%, ahead of Europe, China, and Japan. Thus, due to the high demand for drugs in the region, investment in drug discovery, development, and manufacturing is significantly higher than in other regions, and this is expected to increase cloud services in the region, leading to growth in the researched market in North America during the forecast period of the study.
In the North American region, the United States is expected to account for a significant share of cloud-based solutions for drug discovery, development, and manufacturing market over the years due to factors such as increasing R&D investment by pharmaceutical and other companies and increasing adoption of cloud-based solutions for drug discovery, development, and manufacturing, which is expected to drive growth in the United States market under review.
In addition, new product launches, a collaboration between users and providers, and mergers and acquisitions are further expected to have a significant positive impact on the growth of the study market in the United States. For example, in March 2021, Cleveland Clinic and IBM entered into a landmark 10-year partnership agreement to support health and life sciences research. As part of the agreement, the Cleveland Clinic Global Center for Pathogens and Human Health Research will be built using IBM Hybrid Cloud, High-Performance Computing, Artificial Intelligence, and Quantum Computing technologies.
Additionally, in June 2022, Merck launched the Merck Digital Sciences Studio (MDSS) to enable the generation of innovative technologies for drug discovery and development. MDSS will support early-stage biomedical startups with direct investment, access to powerful Azure Cloud computing, and opportunities to pilot their technologies in collaboration with discovery and clinical scientists from Merck. Therefore, due to the above-mentioned factors, the United States is expected to have a significant share in the cloud-based solutions for drug discovery, development, and manufacturing market during the forecast period of the study in the North American region.
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The cloud-based solutions for drug discovery, development, and manufacturing market is fairly competitive with several global market players. With the technological advancements and funding, the new entrants in the market are expected to increase the competitive landscape in the studied market over the forecast period of the study. Some key players in the cloud-based solutions for drug discovery, development, and manufacturing market are International Business Machines (IBM) Corporation, Oracle, Amazon Web Services, Google, and Tata Consultancy Services, among others.
- In June 2022, Insilico Medicine, a clinical-stage end-to-end artificial intelligence (AI)-driven drug discovery company, completed a USD 60 million Series D financing from a syndicate of global investors with expertise in investing in the biopharmaceutical and life sciences sectors.
- In January 2022, Excelra partnered for its Global Online Structure Activity Relationship Database (GOSTAR) with XtalPi Inc. to enhance its intelligent digital drug discovery and development platform.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Investment in the Drug Discovery, Development, and Manufacturing
4.2.2 Rising Adoption of Cloud Technology in Drug Discovery, Development, and Manufacturing Market
4.2.3 Growing Burden of Chronic Diseases
4.3 Market Restraints
4.3.1 High Cost of Implementation and Deployment of Various Cloud Technologies
4.3.2 Cybersecurity Concerns
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - in USD Million)
5.1 By Service Type
5.1.1 Software as a Service (SaaS)
5.1.2 Platform as a Service (PaaS)
5.1.3 Infrastructure as a Service (IaaS)
5.2 By Cloud Type
5.2.1 Public Cloud
5.2.2 Private Cloud
5.2.3 Hybrid Cloud
5.3 By Application
5.3.1 Drug Discovery & Development
5.3.2 Drug Manufacturing
5.4 By End User
5.4.1 Biotechnology and Pharmaceutical Companies
5.4.2 Contract Research Organizations (CRO)
5.5.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.5.4 Middle-East and Africa
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
5.5.5 South America
220.127.116.11 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.2 Amazon Web Services
6.1.6 Veeva Systems
6.1.7 Tata Consultancy Services
6.1.11 Alibaba Group
6.1.12 Cloud Pharmaceuticals Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market market is studied from 2019 - 2027.
What is the growth rate of Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market?
The Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market is growing at a CAGR of 12.5% over the next 5 years.
Which region has highest growth rate in Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market?
North America holds highest share in 2021.
Who are the key players in Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market?
Amazon Web Services, Accenture, Tata Consultancy Services, Oracle, International Business Machines (IBM) are the major companies operating in Global Cloud-based Solutions for Drug Discovery, Development and Manufacturing Market.