Market Size of Compound Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 14.70 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Compound Management Market Analysis
The compound management market is expected to register a CAGR of nearly 14.7% during the forecast period.
During the COVID-19 pandemic, most vaccines and drugs were in the pipeline. COVID-19 vaccines gained considerable importance even after the decline in cases. The fear of the emergence of a new variant of COVID-19 increased the demand for vaccines. Thus, a significant number of drug manufacturers began developing COVID-19 vaccines. According to Clinicaltrials.gov, as of May 31, 2022, over 1,112 vaccines were under development for COVID-19. This is likely to improve the demand for compound management for COVID-19 vaccines.
Increasing drug discovery activities, growth in the pharmaceutical and biotechnology industries, and increasing demand for outsourcing these services are key factors driving the market. The drug pipeline has seen a visible surge in the last few years. According to Pharma R&D annual review 2022, the R&D pipeline consisted of 17,737 drugs in 2020, while in 2022, the number of drugs in the pipeline rose to 20,109. The growing drug pipeline is expected to create opportunities for the market. During the COVID-19 pandemic, most vaccines and drugs were in the pipeline. However, according to the Pharma R & D annual review 2022, biotechnology and anticancer drugs were the major ones in the pipeline. The pipeline for these drugs is expected to improve during the forecast period due to the high demand for biotechnology and anticancer drugs globally. This is expected to increase the demand for compound management of biotechnology and anticancer drugs during the forecast period.
Companies are collaborating and leveraging expertise more frequently, which is expected to drive the market. Organizations are forming and expanding strategic alliances with numerous academic institutions, venture capitalists, and other private or public companies to support drug discovery. Growing drug discovery collaborations between public and private entities are expected to boost the global demand for compound management services. For instance, in January 2022, the pharmaceutical company AstraZeneca expanded its AI-powered drug discovery partnership with BenevolentAI to discover drugs for diseases such as systemic lupus erythematosus and heart failure. Such partnerships are likely to be profitable for the market. However, the high cost of compound management may hamper business growth in the forecast period.
