The global compound management market size was valued at USD 258.3 million in 2018 and is expected to grow at a compound annual growth rate (CAGR) of16.7% from 2019 to 2026. Increasing drug discovery activities, growth in the pharmaceutical and biotechnology industry as well as increasing demand for outsourcing these services are some of the factors driving the market.
Automated storage systems manage collections of compounds more efficiently, maximize sample integrity as well as improve turnaround times while sourcing samples. Additionally, new automated technology for sample management has led to the introduction of innovations that support novel approaches for high-throughput screening. Fully automated systems include preparation of assay plate, weighing and dissolution of the compound, and library maintenance that completely improve workflows of drug discovery by eliminating time-consuming and error-prone tasks.
With the increasing number, variety as well as the size of the sample collections around the world, the need for software management tools also increases. Earlier, numerous organizations preferred to set up and maintain their software systems for sample management. But this has often proven costly. Hence, many have now switched to outsourced solutions. For instance, Titan Software Limited supplied its Mosaic sample management system to various consumers ranging from CROs to biotech start-ups and large pharmaceutical companies.
Companies are increasingly undertaking collaborations and leveraging expertise, which is expected to drive the compound management market. Organizations are undertaking and extending existing strategic partnerships with many academic institutions, venture capitalists for funding, and other private or public companies to exploit any patented technology and molecules. Rising partnerships between public or private entities accelerate drug discovery processes, which in turn, increase the global demand.
In May 2017, Eisai, Inc., a U.S. subsidiary of Japan-based Eisai Co. Ltd., and John Hopkins University extended their drug discovery partnership via a license agreement for small molecule compounds recognized by the collaborated study of John Hopkins University and Eisai's Andover Innovative Medicines (AiM) Institute.
Based on type, the market is segmented into products and services. The product segment is segmented into automated compound/sample storage systems, automated liquid handling systems, and other compounds/sample storage systems which includes capper/decapper systems.
The product segment dominated the market for compound management with a share of 65.1% in 2018. It is anticipated to lead the market owing to the increasing demand for automation to manage the compound and libraries. Plates, tubes, and vials can be managed by an automated liquid handler and automated compound store equipment to permit plate stamping compound tracking and reformatting.
Automated storage systems enhance overall efficiency as well as reliability thus allowing users to focus attention on high-value activities. Many updated processes comprise of complete integration of storage systems with workstations of sample processing that contains pipetting robots. Novel systems are also providing the flexibility required for smaller companies to benefit from the integration of the system. For instance, the Verso automated storage system offers a range of adaptable configurations, comprising an entry-level Verso SE series to suit the changing needs of compound storage.
Based on the sample, the market is divided into chemical compounds and biosamples. The chemical compound segment was identified as the largest segment accounting for 53.0% of the entire market share. This is largely due to a large number of small molecule compounds being screened and assayed during the process of drug discovery.
The biosample segment is anticipated to exhibit the fastest CAGR of 17.1% over the forecast period. The increasing demand for personalized medicines is fueling the market growth. Biological samples are the vital assets of medical research. Different biospecimens stored at biobanks are observing significant demand due to the developments in cell-based research activities. As per the FDA recommendations, the discovery and development of biomarkers are essential for biotechnology and pharmaceutical companies in the process of R&D.
Based on application, the global market for compound management is segmented into drug discovery, gene synthesis, biobanking, and others, which includes forensic science. Drug discovery is projected to grow significantly over the forecast period. Developing a drug is a costly, lengthy, and complicated process and requires various advanced techniques to check its process.
High Throughput Screening is used to screen a large number of compounds with a biological target. The data on activity against the target is collected from a broad library. Drug Discovery is used to identify more active compounds. Hence, an increase in the activity of drug discovery is anticipated to create a huge demand.
The biobanking segment is also anticipated to grow rapidly owing to the increasing number of organizations involved in the collection and storage of the biomaterials. Also, increasing emphasis on personalized medicines is driving the need for biobanking. Besides, the need for quality biospecimens that are used to support research is expected to increase. Thus, the abovementioned factors are anticipated to support the growth of the segment.
Based on end-use, the global market for compound management is segmented into pharmaceutical companies, biopharmaceutical companies, contract research organizations (CROs), and others which includes government, research, and academic institutes. The pharmaceutical companies segment is anticipated to lead the market with a share of 34.2% owing to the increasing drug discovery activity that is leading to an increased demand for the compounds, thereby positively affecting the market growth.
The biopharmaceutical segment is anticipated to exhibit the highest CAGR over the forecast period. Increased biologic production and emergence of biosimilars are anticipated to propel the segment’s growth over the forecast period. Also, rising R&D investments in biopharmaceutical companies, and the growing prevalence of chronic diseases will drive the segment.
Based on geography, North America dominated the market for compound management in 2018 with a market share of 42.0%. This is due to the strong base of pharmaceutical and biotechnology companies that are involved in drug discovery activity. Thus, there is an increasing demand for services in this region. Moreover, the increase in disease-related morbidity and mortality has led to the discovery of more drug candidates, thereby driving the growth in this region.
The Asia Pacific is expected to witness the fastest growth over the forecast period. Ongoing studies in drug discovery, private-public collaborations, and government initiatives are some of the other factors likely to propel the growth of the regional market. Japan contributed to the largest market share owing to favorable government support. The revised Pharmaceutical Affairs Law supports research activities regarding tissue diagnostics and cancer in Japan, which is expected to drive the market for compound management in this country soon.
Product launch, merger and acquisitions, and collaborations are the key strategies undertaken by the market players. For instance, In January 2019, Beckman Coulter Life Sciences announced the acquisition of Labcyte, which is a liquid handling company based in California, to expand the laboratory automation business. Some of the prominent players in the compound management market include:
Brooks Life Sciences
Tecan
Hamilton Company
BioAscent
Titian Service Limited
Evotec
Beckman Coulter Inc
LiCONiC systems
AXXAM S.p.A.
TTP Labtech
Report Attribute |
Details |
The market size value in 2020 |
USD 351.5 million |
The revenue forecast in 2026 |
USD 885.9 million |
Growth Rate |
CAGR of 16.7% from 2019 to 2026 |
The base year for estimation |
2018 |
Historical data |
2015 - 2017 |
Forecast period |
2019 - 2026 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2026 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type, sample type, application, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Japan; China; India; Australia; South Korea; Brazil; Mexico; Argentina; Colombia; Saudi Arabia; UAE |
Key companies profiled |
Brooks Life Sciences; Tecan; Hamilton Company; BioAscent; Titian Service Limited; Evotec; Beckman Coulter, Inc.; LiCONiC systems; AXXAM S.p.A.; TTP Labtech |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2026. For this study, Grand View Research has segmented the global compound management market report based on type, sample type, application, end-use, and region:
Type Outlook (Revenue, USD Million, 2015 - 2026)
Products
Automated Compound/Sample Storage Systems
Automated Liquid Handling Systems
Other Compound/Sample Storage Systems
Service
Sample Type Outlook (Revenue, USD Million, 2015 - 2026)
Chemical Compounds
Bio Samples
Application Outlook (Revenue, USD Million, 2015 - 2026)
Drug Discovery
Gene Synthesis
BioBanking
Others
End-Use Outlook (Revenue, USD Million, 2015 - 2026)
Pharmaceutical Companies
Biopharmaceutical Companies
Contract Research Organizations
Others (Research and Academic Institutes)
Regional Outlook (Revenue, USD Million, 2015 - 2026)
North America
The U.S.
Canada
Europe
U.K.
Germany
France
Italy
Spain
Asia Pacific
Japan
China
India
Australia
South Korea
Latin America
Brazil
Mexico
Argentina
Colombia
MEA
South Africa
Saudi Arabia
UAE
b. The global compound management services market size was estimated at USD 301.3 million in 2019 and is expected to reach USD 351.5 million in 2020.
b. The global compound management services market is expected to grow at a compound annual growth rate of 16.7% from 2019 to 2026 to reach USD 885.9 million by 2026.
b. The chemical compound segment dominated the market with a share of 52.8% in 2019 This is largely due to the large number of small molecule compounds being screened and assayed during the process of drug discovery.
b. Some of the players operating in this market are Brooks Life Sciences; Tecan; Hamilton Company; BioAscent; Titian Service Limited; Evotec; Beckman Coulter, Inc.; LiCONiC systems; AXXAM S.p.A.; and TTP Labtech.
b. Key factors that are driving the market growth include increasing drug discovery activities, growth in the pharmaceutical and biotechnology industry as well as increasing demand for outsourcing these services.
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With Covid-19 infections rising globally, the apprehension regarding a shortage of essential life-saving devices and other essential medical supplies in order to prevent the spread of this pandemic and provide optimum care to the infected also widens. In addition, till a pharmacological treatment is developed, ventilators act as a vital treatment preference for the COVID-19 patients, who may require critical care. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process for a wide range of test-kits (antibody tests, self-administered, and others). The report will account for Covid19 as a key market contributor.