DNA-encoded Library Market Size to Hit USD 2.6 Billion by 2034

The global DNA-encoded library market size stood at USD 759 million in 2024 and is predicted to increase from USD 861.47 million in 2025 to reach around USD 2.6 billion by 2034, registering a robust CAGR of 13.5% from 2025 to 2034, Study Published by Vision Research Reports.

The market growth is driven by rising demand for efficient drug discovery, advancements in DNA barcoding and sequencing, increasing use of AI-based screening, and expanding pharma–CRO collaborations.

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What is DNA-Encoded Library?

DNA-encoded chemical library is a revolutionary technology that combines the fields of combinatorial chemistry and molecular biology to accelerate the drug discovery process. This technology allows for the synthesis and screening of vast collections of small molecule compounds, thus facilitating early-phase discovery activities such as target validation and hit identification.

DNA-Encoded Library Market Key Takeaways

•  By region, North America held the largest market share of 45% in 2024.

•  By region, Asia-Pacific is expected to grow at the fastest throughout the forecast period.

•  By product and service, the service segment contributed the largest market share 2024.

•  By product and service, the product segment is estimated to expand the fastest CAGR from 2025 to 2034.

•  By therapeutic area, the oncology segment is registered as the maximum market share of 39% in 2024.

•  By therapeutic area, the neurological diseases segment is expected to grow at the fastest CAGR during the forecast period.

•  By application, the Hit Generation / Identification segment generated the maximum market share of 43% in 2024.

•  By application, the Hit Validation / Optimization segments expected to grow at the notable CAGR from 2025 to 2034.

•  By end user, the pharmaceutical & biotechnology companies dominated the market with highest share of 41% in 2024.

•  By end user, the Contract Research Organizations (CROs) segment is estimated to expand the fastest CAGR during the forecast period.

What are the Growth Factors of the DNA-Encoded Library Market?

Growing demand for cutting-edge drug discovery solutions is a key growth driver of the market. Pharmaceutical and biotech firms are seen continuously looking for faster and cheaper means of identifying lead drug candidates. DNA-encoded library (DEL) technology allows high-throughput screening of billions of compounds and increases the likelihood of identifying lead molecules with potential therapeutic value.

The increasing incidences of chronic diseases like cancer, neurological disorders and other infectious diseases is also driving demand for new treatments. New developments in molecular biology and Next-Generation Sequencing (NGS) are further broadening DNA-encoded library platform’s capabilities. These factors continue to fuel market growth and boosting the use of this technology by research institutes and drug development organizations.

What are the Key Trends in the DNA-Encoded Library Market?

•  One of the biggest trends in the market today is the incorporation of diverse chemical scaffolds into DEL platforms. Recent breakthroughs in DNA-compatible reactions such as photoredox catalysis, sulfur (VI) fluoride exchange (SuFEx), and click chemistry are enabling the creation of chemically rich libraries that have higher ligand efficiency and binding specificity.

•  Artificial intelligence is now being increasingly integrated in order to decode DEL screening outputs and refine compound selection based on structure. Advanced ML algorithms are also   being applied to design next-generation libraries that are tailored to specific targets such as kinases, GPCRs or allosteric inhibitors.

•  DEL workflows are seen increasingly integrating automated microfluidic platforms for parallel synthesis and barcode encoding. These systems help to reduce reagent waste, increase throughput and facilitate real-time quality checks.

•  The market is witnessing a number of biotech–pharma partnerships and open innovation initiatives being launched. These types of agreements allow smaller biotech firms and academic labs to access proprietary libraries or screening data, thus driving innovation.

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What are the Major Challenges in the DNA-Encoded Library Market?

One of the major restraints hindering the growth of the DNA encoded library market is the fragmented and evolving regulatory landscape across various regions. The absence of cohesive and clear guidelines regarding DEL-based drug discovery leads to complications, especially for companies that operate internationally. These separate and fluctuating requirements force companies to customize protocols as per each jurisdiction. This increases operating costs and delays development for a long time, thus slowing down market entry and development.

What are the Key Opportunities in the DNA-Encoded Library Market?

The pharmaceutical and biotechnology industries are constantly searching for faster and greater cost-powerful methods in order to find new drug applicants. DEL technology proves quite beneficial by using allowing the fast screening of considerable libraries of compounds, thus decreasing the time required to discover promising leads. This factor is a vital one for addressing the growing call for novel therapeutics, specifically when it comes to rising diseases and unmet medical needs worldwide.

Advancements in genomics and bioinformatics have also opened up new avenues of opportunity, enhancing the skills of DEL generation. Improved sequencing technologies and computational equipment allow for more accurate and thorough decoding of DNA-encoded libraries, facilitating the identification and evaluation of binding interactions between small molecules. These technological enhancements have made DNA Libraries more handy and appealing to a broader range of researchers and pharmaceutical businesses. As bioinformatics and genomics continue to adapt and evolve, this market is poised to offer a strong foundation for market growth.

DNA-Encoded Library Market Report Coverage

Report Attribute

Key Statistics

Market Size in 2025

USD 861.47 Million

Market Size in 2026

USD 977.76 Million

Market Size in 2030

USD $1,622.62 Million

Market Size in 2032

USD $2,090.30 Million

Market Size by 2034

USD 2,692.78 Million

Growth rate from 2025 to 2034

CAGR of 13.5%

Base Year

2024

Forecast Period

2025 to 2034

Segments Covered

By Product & Service, By Therapeutic Area, By Application, By End Use

Companies Covered

Merck KGaA, GenScript, Pharmaron, WuXi Biology, Aurigene Pharmaceutical Services, BOC Sciences, LGC Bioresearch Technologies, SPT Labtech Ltd, Life Chemicals, Charles River Laboratories.

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DNA-Encoded Library Market Regional Analysis

Why is North America Dominating the Market in 2024?

North America dominated the DNA encoded library technology market in 2024. This region is driven by a robust pharmaceutical and biotechnology ecosystem, has substantial funding in studies and development and is also home to leading educational establishments and research groups. Robust funding from both government agencies and private investors supports advanced research initiatives and collaborations, enabling rapid development and commercialization of DEL technologies. The availability of superior infrastructure, a skilled pool of workers, and strong government regulations contribute to the region’s dominance in the global marketplace.

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What are the Advancements in Asia-Pacific?

Asia Pacific is expected to witness the fastest rate of growth throughout the forecasted period. This growth is by increasing investments in pharmaceutical research all across the region. Countries such as China, India, Japan and South Korea are increasing government support through funding and deploying favorable policies that are aimed at bolstering research and development activities. The presence of a large patient population also necessitates the development of new therapeutics. Moreover, the cost advantages in research and manufacturing compared to western countries make Asia-Pacific a popular choice.

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DNA-encoded Library Market Segmental Analysis

Product and Service Analysis

Which Product and Service Segment Dominated the Market in 2024?

The services segment dominated the market in 2024. This dominance can be attributed due to the increasing number of outsourcing processes in drug discovery research. Pharmaceutical companies all over the world are partnering up with service providers in order to access advanced screening technologies while avoiding significant infrastructure investments. The growing need for cost-effective and time-efficient screening solutions has boosted this segment.

The products segment is expected to grow at the fastest rate over the forecast period. This growth is due to the rising demand for novel drug discovery tools. Pharmaceutical and biotechnology companies are increasingly adopting DNA-encoded library technologies in order to enhance screening efficiency and reduce development costs.

Therapeutic Area Analysis

Which Therapeutic area Led the Market as of this Year?

The oncology segment led the market as of this year in 2024. This dominance is due to the high demand for targeted cancer therapies. This technology has rapidly identified potential small-molecule inhibitors for oncogenic targets. The increasing prevalence of cancer worldwide has also boosted research efforts in this particular sector. The need for innovative and cost-effective drug discovery methods has further driven the need for DNA-encoded library adoption in this segment.

The neurological diseases segment is expected to grow at the fastest rate throughout the forecast period. This growth is due to the high demand for effective treatments against neurodegenerative disorders. The complexity of central nervous system drug discovery has further increased the reliance on DNA-encoded library-based screening. Efforts for the analysis of Alzheimer’s, Parkinson’s, and other neurological diseases has expanded this segment even more.

Application Analysis

Which Application Dominated the Market as of this Year?

The hit generation / Identification dominated the market as of this year. The advantage of this segment lies in its ability to generate high-confidence hits in a rapid and accurate manner. The vast chemical space encoded within DNA libraries enables the exploration of novel scaffolds and binding motifs that traditional HTS may potentially overlook. DEL screening can also be performed in various aqueous environments, thus making it suitable for a variety of protein targets including GPCRs, kinases and enzymes.

The hit validation / optimization is estimated to grow at the fastest rate during the forecast period. Following the identification of initial hits, validating and optimizing those candidates to improve potency, selectivity and pharmacokinetic properties is a critical factor. Recent advances in structure-guided design, artificial intelligence and SAR analysis are being combined with DEL outputs to streamline this process. Moreover, hybrid workflows integrating DEL with cryo-EM and X-ray crystallography are further boosting this segment.

End Use Analysis

Which End User Held the Largest Market Share in 2024?

The pharmaceutical and biotechnology companies held the largest market share in 2024. This is because these types of organizations are the primary drivers of DEL adoption, due to their emphasis on pipeline expansion and innovation. Companies all over the world are integrating DEL into their lead discovery platforms in order to improve efficiency and tackle undruggable targets. Large pharma firms are also seen investing in proprietary library creation and building in-house capabilities to gain long-term strategic advantages.

The contract research organizations (CROs) are witnessing the fastest growth rate throughout the forecast period. This growth is due to the increasing demand for cost-effective and flexible drug discovery solutions. They cater to small scale and medium scale biotech firms and academic institutions that lack the infrastructure for large-scale DEL implementation. The increased number of partnerships and licensing deals between CROs and pharma clients is set to push the momentum in this segment even more.

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Recent Developments in the DNA-encoded Library Market

•  In October 2025, Charles River Laboratories International, Inc. announced a strategic collaboration with X-Chem, Inc., who is the pioneer in DNA-encoded library (DEL) technology and a data-driven drug discovery company, to enhance its hit identification (Hit ID) capabilities and accelerate the discovery of novel therapeutics. This partnership enables Charles River clients to access X-Chem’s DEL platform, which features a proprietary library of over 15 billion compounds. (Source: https://www.bing.com)

•  In September 2025, HitGen congratulated its partner BioAge Labs, Inc., who is a clinical-stage biotechnology company based in Emeryville, CA, USA, on the initiation of a Phase 1 clinical study of BGE-102, a novel, potent NLRP3 inhibitor developed from a hit compound identified using HitGen’s industry-leading DEL technology platform. The event triggers an undisclosed milestone payment to HitGen under the collaboration agreement between the two companies. (Source: https://www.diwou.com)

Top Key Players in the DNA-encoded Library Market

•  Merck KGaA

•  GenScript

•  Pharmaron

•  WuXi Biology

•  Aurigene Pharmaceutical Services

•  BOC Sciences

•  LGC Bioresearch Technologies

•  SPT Labtech Ltd

•  Life Chemicals

•  Charles River Laboratories

Segments Covered in the Report

By Product & Service

•  Products

•  Kits & Reagents

•  Encoded Libraries

•  Others

•  Services

•  Design & Synthesis Services

•  Screening Services

•  Others

By Therapeutic Area

•  Oncology

•  Infectious Diseases

•  Cardiovascular Diseases

•  Neurological Diseases

•  Autoimmune Diseases

•  Metabolic Diseases

•  Others

By Application

•  Hit Generation / Identification

•  Hit to Lead

•  Hit Validation / Optimization

•  Others

By End Use

•  Academic & Research Institutes

•  Pharmaceutical & Biotechnology Companies

•  Contract Research Organizations

•  Others

By Region

•  North America

•  Latin America

•  Europe

•  Asia Pacific

•  Middle East and Africa

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