U.S. Drug Discovery Market: Focus on Precision Medicine and Genomics

The U.S. drug discovery market size is calculated at USD 25.20 billion in 2024 and is predicted to reach around USD 60.21 billion by 2034, expanding at a CAGR of 9.1% from 2025 to 2034.

U.S. Drug Discovery Market Report Highlights

• By drug type, the small molecule segment dominated the market with the largest share in 2024, driven by their high efficacy and ease of oral administration.
• By drug type, the large molecule segment accounted for a considerable share of the market in 2024.
• By end user, the pharmaceutical companies segment held a dominant presence in the market in 2024.
• By end user, the CROs segment is projected to expand rapidly in the U.S. drug discovery market in the coming years.
• By technology, the high throughput screening segment registered its dominance over the market in 2024.
• By technology, the nanotechnology segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.

The U.S. drug discovery market is undergoing massive growth, attributable to growing forces of biotechnology, artificial intelligence, and the rising demand for new therapeutics. Drug discovery is the process of identifying and developing new drugs to treat diseases like cancer and infectious disorders. The entire pharmaceutical industry is in for huge growth as these new technologies help resolve time-to-market issues and are of particular importance when it comes to precision medicine and personalized treatment in drug development.

A significant driving force in the U.S. drug discovery market is the increasing prevalence of chronic diseases such as cancer, cardiovascular disorders, neurological conditions, and infectious diseases. As populations age globally and lifestyle-related diseases become more common, the demand for novel and better therapies consequently increases. The rising number of chronic diseases has stimulated investments in immunotherapy, gene therapy, and other modern approaches to curing diseases.

Industry Valuation and Growth Rate Projection

Advancements in high-throughput screening, AI-driven analytics, and computational biology have changed the structure and dynamics of drug discovery. AI and ML now enable the fast analysis of giant datasets, predicting molecular interactions and screening candidates for drug-like qualities at an incredible rate. The process of drug development has also been made easier as new genomic, proteomic, and CRISPR gene-editing technologies result in precise and custom-made treatments that diminish discovery time and costs.

During drug discovery, some biologics such as gene therapy, cell therapy, and monoclonal antibodies are becoming more well-known. The market growth has also been fuelled by the shift to precision medicine, where treatments are specifically formulated to fit in with individual genetic makeups. The increasing demand for personalized healthcare solutions to meet patient needs has driven pharmaceutical companies toward biomarker research, companion diagnostics, and biologic drug development.

In spite of astonishing growth, increasing costs of product development and difficult regulatory conditions are some problems arising for the drug discovery market. Putting an unexplored drug on the market takes more than 10 years, costing anywhere from hundreds of millions to billions of dollars. With limited funding opportunities, smaller biotech firms find it hard to compete with bigger pharmaceuticals in the changing face of drug discovery. These cost and regulatory barriers are emerging to be huge obstacles that could open a way toward slow growth of the U.S. drug discovery market.

AI has transformed drug discovery through increased research efficiency, reduced costs, and improved the U.S. drug discovery market. AI-directed algorithms will efficiently analyze complex biological data, predict drug interactions, and optimize clinical trial designs. Machine learning models are now accelerating hit-to-lead optimization, which will help researchers come up with apt drug candidates much faster than traditional methods. AI-based virtual screening techniques cut major lab screenings, thus saving time and resources. On top of that, the AI works conveniently in repurposing existing therapeutics with the aim of finding new uses for their active ingredients. Pharmaceutical companies can drive innovation, reduce future output failures, and shorten the timelines of pharmacotherapy development by leveraging insight from AI.

The U.S. drug discovery market is flourishing in emerging economies like China, India, and Brazil. Enterprises are establishing support through healthcare expenditures, government policies, and booming local biotech firms, making these regions crucial players in global drug development. Collaborations between multinational pharmaceutical corporations and local research institutions are additionally accelerating market growth. More pharmaceutical companies are outsourcing drug discovery processes to contract research organizations (CROs) to minimize operational costs and enhance efficiency. CROs offer specialized expertise in preclinical and clinical research, thus furthering the pace of drug development. The market will continue evolving and will be driven by innovation, AI, and precision medicine advancements.