Cloud Services Market

Cloud Services Market for Drug Discovery, Development and Manufacturing by Type of Cloud, Type of Service, End-User and Key Geographical Regions: Industry Trends and Global Forecasts, 2021-2030

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Cloud Services Market Overview

The cloud services market for drug discovery, development and manufacturing is estimated to be worth $6.2 billion in 2021 and is expected to grow at CAGR of 15.4% during the forecast period. The process of drug development and manufacturing is estimated to take around 10-15 years.

In addition, according to a study published in the Journal of the American Medical Association, it was estimated that approximately USD 1.3 billion in capital investment is required in progressing a single pharmacological lead from the bench to the market. It is also worth highlighting that close to 90% of pharmaceutical product candidates fail to make it past the clinical stage of development. This high attrition rate has long been attributed to certain legacy challenges associated with the drug discovery process, which is, presently, more of a trial-and-error based paradigm. Clinical trials are responsible for nearly 50% of the time and capital expenditure in a drug development program. Therefore, if such studies are delayed, or unsuccessful, developers are liable to bear considerable losses. 

Amidst the ongoing digital revolution, cloud computing, which was introduced in the 1960s, has recently demonstrated significant potential as an information sharing and analysis solution model. Although the healthcare industry is considered to be among the late adopters of this technology, it is rapidly evolving into an indispensable aspect of pharmaceutical R&D. Today, large volumes of health data can be accessed by medical researchers on dedicated cloud servers through processes that have been designed to comply with the Health Insurance Portability and Accountability Act (HIPAA) of 1996. 

Over time, cloud-based tools and solutions have been gradually deployed and integrated across various processes, including drug discovery, clinical trials and product manufacturing, within the pharma / biotech sector. Primarily, data clouds were designed to store information such that it can be easily accessed when required from multiple terminals. However, advances in online data processing technologies have led to the establishment of solutions that allow rapid analysis of large volumes of clinical / medical data; this aspect is widely used in the initial stages of pharmaceutical R&D. In this context, modern cloud-based solutions offer decentralized / real world data management, and collaborative operating opportunities to users, enabling the delegation of data mining and decision-making responsibilities.

Context of Cloud Services Market List of Cloud-based Solution Providers in Cloud Services Market Current Market Landscape of Cloud Services Market

According to experts, the aforementioned features are expected to not only improve overall productivity, but also reduce the chances of clinical failure (by enabling drug developers to analyze historical data to inform their respective clinical research activities). Moreover, the implementation of relevant cloud-based solutions is deemed to possess the potential to save over 50% of the total cost and time invested in a drug development program (considering expenditure from the discovery stage to product commercialization). Interestingly, cloud computing is also being used in the development of potential therapeutic / preventive options against the novel coronavirus strain. In May 2020, researchers at the University of Bristol claimed to have used cloud-based solutions to successfully elucidate the structure of a potential preventive intervention, called ADDomer (a new class of synthetic vaccines). Further, several information technology focused companies are exploring ways to incorporate advanced data analysis algorithms, including those powered by artificial intelligence, machine learning, and / or quantum computing technologies, which are anticipated to open up new applications in pharmaceutical development and biotech research. Given how the pharmaceutical industry is advancing, in terms of adopting digital technologies, coupled to the ongoing efforts of cloud service providers to further improve / expand their respective offerings, we believe the cloud services market is likely to witness a steady market growth during the forecast period.

Key Companies Engaged in Cloud Services Market

Examples of key companies providing cloud services to the pharmaceutical industry (which have also been profiled in this market report; the complete list of companies is available in the full report) include Accenture, Alibaba Cloud, Amazon Web Services, Google, IBM, Nutanix and XtalPi. This market report includes an easily searchable excel database of all the companies providing cloud services for drug discovery, development and manufacturing, worldwide.

Recent Developments in Cloud Services Market:

Several recent developments have taken place in the field of cloud services market. We have outlined some of these recent initiatives below. These developments, even if they took place post the release of our market report, substantiate the overall market trends that have been outlined in our analysis.

  • In August 2023, Ginkgo Bioworks collaborated with Google Cloud Partner to build next generation AI platform to accelerate innovation and discovery in the fields of drug discovery, agriculture, industrial manufacturing, and biosecurity. 
  • In July 2023, NVIDIA invested USD 50 million in Recursion with an aim to advance the development of its artificial intelligence (AI) models for drug discovery. 
  • In May 2023, Google Cloud launched two new AI-powered solutions, namely Target and Lead Identification Suite and Multiomics Suite, with an aim to help biotech and pharmaceutical companies accelerate drug discovery and advance precision medicine.

Scope of the Report

The “Cloud Services Market by Type of Cloud (Private, Public and Hybrid), Type of Service (Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS)), End-User (Biotech Vendors, Contract Research Organizations, Pharmaceutical Companies and Others), and Key Geographical Regions (North America, Europe, Asia, Middle East and North Africa, Latin America, and Rest of the World): Industry Trends and Global Forecasts, 2021-2030” market report features an extensive study of the current market landscape, market size, cloud services market share, market forecast, market outlook and future opportunities of the cloud services market. The market research report presents an in-depth analysis, highlighting the capabilities of various stakeholders engaged in cloud services market.

Company Competitiveness Analysis of Players Engaged in Cloud Services Market Partnerships and Collaborations in Cloud Services Market Cost Saving Analysis in Cloud Services Market

Amongst other elements, the market research report features:

  • A detailed review of the current market landscape of companies offering cloud-based services, platforms, and tools for drug discovery, development and manufacturing, providing information on year of establishment, company size (in terms of number of employees), company type, location of headquarters, quality certifications, type of cloud (public, private, hybrid), type of service (IaaS, PaaS, SaaS), area of application (drug discovery, drug development, drug manufacturing), additional capabilities, and additional services offered.
  • An in-depth analysis of the contemporary trends, highlighted through various schematic representations, such as 4D bubble analysis based on type of service, area of application, company size and quality certifications, grid representation based on type of service, area of application, and type of cloud, a waffle chart based on geography and COVID-19-related initiatives, a mekko chart based on geography and additional capabilities and a world map highlighting the location of cloud service providers.
  • An insightful competitiveness analysis of the cloud service providers, taking into consideration their supplier strength (in terms of experience of the service provider), and popularity index (in terms of type of cloud, type of service, area of application, additional capabilities, additional services offered, COVID-19-related initiatives, number of quality certifications, number of partnerships, number of followers on twitter, and Google hits).
  • Elaborate profiles of key cloud service providers that provide cloud-based solutions for drug discovery, development and manufacturing. Each company profile features a brief overview of the company (including information on year of establishment, number of employees, location of headquarters and key members of the executive team), recent developments and an informed future outlook.
  • An analysis of the partnerships that have been inked by stakeholders in cloud services market, in the period between 2015 and 2020, covering clinical data management agreements, platform development / improvement agreements, research agreements, research and platform development agreements, regulatory process management agreements, technology / data integration agreements, and other relevant types of deals. 
  • An insightful analysis highlighting the likely cost saving potential associated with the use of cloud-based solutions for drug discovery, development and manufacturing, taking into consideration various parameters, such as pharmaceutical R&D expenditure, drug discovery expenditure / budget, clinical trials expenditure, drug manufacturing expenditure and increase in efficiency by adoption of cloud-based solutions.
  • An in-depth analysis of the opportunities and the overall cost savings associated with integration of key tools and technologies, such as artificial intelligence, deep learning, machine learning, and quantum computing with cloud-based solutions for pharmaceutical product development and manufacturing. Further, it provides a detailed analysis on ease of implementation and associated risk in integrating above-mentioned technologies, based on the trends highlighted in published literature and patents.

The key objective of cloud services market report is to provide a detailed market analysis in order to estimate the existing market size, market value, statistics and future opportunity for cloud services market during the forecast period. We have developed informed estimates on the financial evolution of the market, over the forecast period 2021-2030. The market report also provides details on the likely distribution of the current and forecasted opportunity across [A] type of cloud (private, public and hybrid) ), [B] type of service (infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS)), [C] area of application (drug discovery, drug development and drug manufacturing) , [D] end-user (biotech vendors, contract research organizations, pharmaceutical companies and others), and [E] key geographical regions (North America, Europe, Asia, Middle East and North Africa, Latin America and Rest of the World). In order to account for future uncertainties and to add robustness to our forecast model, we have provided three market forecast scenarios, namely conservative, base and optimistic scenarios, representing different tracks of the industry’s growth. 
The opinions and insights presented in the market research report were also influenced by discussions held with multiple stakeholders in cloud services market. The market report features detailed transcripts of interviews held with the following individuals (in alphabetical order):

  • Paolo Colombo (Vice President Growth, InSilicoTrials Technologies)
  • Velizar Natovski (Regional Manager North and South America, CloudSigma)

All actual figures have been sourced and analyzed from publicly available information forums. Financial figures mentioned in this market research report are in USD, unless otherwise specified.

Frequently Asked Questions

Question 1: What are the applications of cloud solutions in drug discovery?

Answer: Cloud solutions have been gradually deployed and integrated across various processes in drug discovery, including clinical trials and product manufacturing, within the pharma / biotech sector.

Question 2: How big is the cloud services market for drug discovery, development and manufacturing?

Answer: The cloud services market size for drug discovery, development and manufacturing is estimated to be worth $6.2 billion in 2021.

Question 3: What is the projected market growth of cloud services market for drug discovery, development and manufacturing?

Answer: The cloud services market for drug discovery, development and manufacturing is expected to grow at compounded annual growth rate (CAGR) of 15.4% during the forecast period 2021 – 2030.

Question 4: Who are the leading players in the cloud services market market?

Answer: Examples of key companies engaged in cloud services market for drug discovery, development and manufacturing (which have also been profiled in this market report; the complete list of companies is available in the full report) include Accenture, Alibaba Cloud, Amazon Web Services, Google, IBM, Nutanix and XtalPi.

Question 5: How many companies are currently engaged in cloud services market for drug discovery, development and manufacturing?

Answer: Over 60 companies are currently engaged in the cloud services market for drug discovery, development and manufacturing, offering services for pharmaceutical and biotech companies.

Question 6: How many partnership deals have been inked between stakeholders in the cloud services market?

Answer: More than 55 partnership deals have been inked between the stakeholders engaged in cloud services market for drug discovery, development and manufacturing, highlighting the consolidation efforts of the players in this industry.

Question 7: What is the cost saving potential of cloud solutions in drug discovery applications?

Answer: The implementation of cloud solutions in drug discovery is deemed to save over 50% of the total cost and time invested in a drug development programs.

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