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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. 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.
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.
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.
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.
Amongst other elements, the market research report features:
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):
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.