According to Towards Healthcare, the oncology drug discovery market size is set to witness substantial growth between 2024 and 2034, fueled by rapid advancements in precision medicine, AI-driven drug development, and a rising pipeline of targeted therapies. The increasing global cancer burden, along with heightened investments from public and private sectors, is intensifying research efforts focused on uncovering novel biomarkers and therapeutic targets.
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A major growth factor for the oncology drug discovery market expansion is a rise in cancer instances, which highly fuels demand for novel and highly efficacious cancer therapeutics. As well as significant global healthcare investments in the research and development sector, growing technological breakthroughs in imaging, diagnostics, and molecular biology are transforming the drug discovery process. Along with this, rapid regulatory approvals for orphan drugs and advanced therapy designations are boosting the development and arrival of novel drug candidates in the market. Also, increasing focus on the development of customized therapies is acting as another growth factor in the market.
The Oncology Drug Discovery Market: Highlights
• North America led the market in 2024.
• Asia-Pacific is expected to grow rapidly during 2025-2034.
• By therapy type, the targeted therapy segment was dominant in the market in 2024.
• By therapy type, the immunotherapy segment is expected to register rapid expansion in the upcoming years.
• By cancer type, the lung cancer segment dominated the oncology drug discovery market in 2024.
• By cancer type, the breast cancer segment is expected to be the fastest-growing during the forecast period.
• By stage of development, the drug discovery segment held a major revenue share of the market in 2024.
• By stage of development, the clinical trials (Phase I, II, III) segment is expected to show the fastest growth in the predicted timeframe.
• By modality, the small-molecule drug segment led the market in 2024.
• By modality, the cell and gene therapy segment is expected to grow at the fastest CAGR during 2025-2034.
Market Overview: Novel Therapies Progression
The global oncology drug discovery market is primarily fueled by the escalating cases of cancer, advancements in cancer biology and related fields, and the growing demand for efficient cancer therapies. Nowadays, this market is stepping towards the emergence of customized medicine, immunotherapy, and the unification of artificial intelligence (AI) in drug discovery. Inclusion of drugs like PARP inhibitors (e.g., Olaparib) has evolved to exploit vulnerabilities in cancer cells with specific mutations, like BRCA mutations.
Production of New Targeted and Combinatorial Therapies: Major Potential
In 2025, the global oncology drug discovery market comprises various applications, including the production of novel targeted therapies that are increasingly targeting specific cancer cells and their growth. Alongside, the empowerment of the immunotherapy domain by boosting the production scale of checkpoint inhibitors is widely employed in numerous cancer types. Furthermore, these two therapies are used in a combined form to meet synergistic effects and overcome drug resistance.
Crucial Cancer Complexity and Heterogeneity: Major Challenge
Generally, the contribution of complex cancer characteristics creates a major hurdle for the drug discovery process. As well as cancer tumors are also greatly heterogeneous, which may have diverse genetic profiles and different behaviours in the same patient. Developing drugs that target specific cancer types and subtypes and that can resolve drug resistance is a substantial limitation.
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The Oncology Drug Discovery Market: Regional Analysis
In 2024, North America held the biggest revenue share of the market. Due to increasing geriatric population and other environmental factors, are resulting in enhanced instances of cancer are broad demand for novel and widespread effective onco-drugs. Besides this, North America is driven by developments in genomics, immunology, and cancer biology are assisting in the production of new therapies, especially targeted and immunotherapies. Major investments in the R&D area by both public and private sectors are expanding the discovery and development of new oncology drugs in this region.
In this oncology drug discovery market, the US is fueled by a raised government initiative, such as the U.S. Cancer Moonshot initiative, are offers funding and support for cancer research. However, another driver accelerating demand for precision medicine is boosting the enhancement of targeted therapies in the US. On the other hand, a major hub of well-developed hospitals, cancer research centers, and a strong healthcare system is propelling the adoption of new oncology solutions.
For instance,
• In May 2025, SAGA Diagnostics, a personalised cancer medicine and disease monitoring company, launched a multicancer molecular residual disease (MRD) platform in the US.
Canada possesses a rising cancer incidence, with the emergence of regulatory bodies that are supporting rapid drug approvals and allowing funding for drug discovery. Moreover, accelerating the adoption of combination therapies, in which different drugs are employed, and a large pool of sophisticated diagnostic and healthcare systems, is driving this region's oncology drug discovery market.
The Asia Pacific is Anticipated to be the Fastest-Growing Region During 2025-2034
In the upcoming years, the Asia Pacific will grow rapidly, as this region is facing a huge burden of varied cancer cases in a growing elderly population, like liver and stomach cancers. As well as in the ASAP region, certain countries like China, India, and South Korea have robust pharmaceutical and biotechnology companies, which are increasingly fostering innovations and discovery of novel therapies in the oncology drug discovery market.
In ASAP, India has crucial health issues, including cancer is one of the highly impacting health concerns is fueling demand for more efficient and inexpensive treatments. Moreover, the initiatives, such as the "Make in India" campaign and tax incentives for R&D, are boosting growth in the pharmaceutical area. Also, India has a surge in R&D approaches, especially in developing oncology diagnostics and innovative measures.
For this market,
• In March 2025, A South Korean joint venture group committed to establishing a research and production unit at the Medical Device Park in Ujjain and developing kits for detecting cancer symptoms through urine tests.
China is heavily spending on healthcare departments for improved diagnosis and treatment in cancer care. Also, increasing awareness about cancer and its treatments among the public and healthcare professionals is widely influencing the oncology drug discovery market. Ongoing clinical trials, pipelines, and widespread collaborations between different pharmaceutical and biotechnology industries are propelling China’s market growth.
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The Oncology Drug Discovery Market: Segmentation Analysis
By therapy type analysis
The targeted therapy segment captured the largest share of the market in 2024. Many advantages of this kind of therapy include specific molecular targets within cancer cells, resulting in fewer off-target effects on healthy cells and enhanced patient outcomes. Alongside, consistent research and development in areas, including PARP inhibitors and immuno-oncology agents, are further fueling the growth of targeted therapy.
On the other hand, the immunotherapy segment will expand fastest in the oncology drug discovery market, with the emergence of innovative immunotherapy research, especially in areas like antibody engineering. Enhanced demand for monoclonal antibodies, CAR-T cells, and checkpoint inhibitors provides targeted approaches to cancer treatment, minimizing off-target effects, coupled with optimizing patient outcomes. Moreover, the development of combination therapies, such as using CTLA-4 inhibitors with PD-1 inhibitors, is boosting the scope and efficacy of immunotherapy.
By cancer type analysis
In 2024, the lung cancer segment registered dominance in the oncology drug discovery market. Around the world, accelerating cases and death rates of lung cancer are fueled by many factors, like smoking, air pollution, and a geriatric population. Primarily, in these cases, highly developed diagnostic technologies, particularly liquid biopsies and AI-powered tools, are increasingly used for earlier cancer detection and allow for greater customized solutions.
During 2025-2034, the breast cancer segment is estimated to grow at a rapid CAGR, due to the increasing prevalence across the globe. In these growing cases, several targeted therapies, such as trastuzumab (Herceptin), palbociclib (Ibrance), and olaparib (Lynparza), are widely used. Also, antibody-drug conjugates (ADCs), such as T-DXd, are transforming treatment for metastatic breast cancer, demonstrating enhanced efficiency and becoming a standard of care.
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Major Drifts in Breast Cancer
|
Company/Organizations |
Recent Trends |
|
Biovica (July 2025) |
Launched DiviTum® TKa for use in early breast cancer |
|
Onco Lifecare Cancer Trust & Research Centre (April 2025) |
Unveiled AI-based Mobile breast cancer screening van |
|
SimonMed Imaging (April 2025) |
Partnered with South Korea-based Lunit to develop novel AI-powered breast cancer detection for patients across the country |
|
Therapixel (April 2025) |
Entered into a partnership with Onsite Women's Health to locate MammoScreen® AI for expanded breast cancer detection around the national provider network |
|
Owkin (October 2024) |
Collaborated with AstraZeneca to develop an AI gBRCA Pre-Screen Solution for breast cancer |
By the stage of development analysis In the oncology drug discovery market, the
drug discovery segment dominated in 2024. Nowadays, growth in the cancer cases
burden is assisting in novel creations in domains, including genomics, proteomics,
computational biology, high-throughput screening, artificial intelligence (AI),
and machine learning (ML) are driving the segment expansion. Adoption of these
technologies and increasing
focus on personalized medicine are fueling a new drug discovery and
development process with broad reliance on targeted therapies. However, the clinical trials (Phase I, II,
III) segment is predicted to expand rapidly, as these phases serve significant
benefits in drug discovery. In clinical trial phases, phases I, II, and III
support the evaluation of safety, efficacy, and comparison with reference
molecules, respectively. For novel drug discovery in oncology, clinical trials
assist in the estimation of dosage form, dosing, and possible adverse effects
and side effects of developing drugs. By modality analysis In 2024, the small-molecule drug segment
held a dominating share of the oncology drug discovery market. Widespread adoption
of the outsourcing trend of early-stage small molecule research to CROs
provides opportunities for expansion and alliances within industries. As well
as recent approvals for these molecule inhibitors for specific cancer
mutations, like those in non-small cell lung cancer, are further driving the
development of targeted therapies. And, the cell and gene therapy segment will
grow at the fastest CAGR during 2025-2034. Currently, this segment is driven by
enhanced adoption of novel technologies, such as CRISPR-Cas9 are transforming
gene therapy by offering precise gene editing. Along with this, other
breakthroughs in non-viral gene delivery methods, specialized manufacturing
equipment (like GMP boxes), and in vivo cell therapy approaches are progressing
the efficiency and scalability
of cell and gene therapies. Browse More Insights of Towards
Healthcare: Global Immuno-Oncology Drugs Market: The immuno-oncology
drugs market was valued at USD 94 billion in 2024, reached USD 109.39
billion in 2025, and is projected to hit approximately USD 421.27 billion by 2034,
growing at a CAGR of 16.34% from 2025 to 2034. AI and ML in Drug Development Market: The AI
and ML in drug development market is advancing rapidly on a global
scale and is expected to generate hundreds of millions in revenue between 2025
and 2034. Microfluidics in Oncology Market: The microfluidics
in oncology market is witnessing steady growth and is expected to
generate substantial revenue, potentially reaching hundreds of millions over
the forecast period from 2025 to 2034. Multiple Modalities in Oncology Market: The multiple
modalities in oncology market is rapidly evolving, with projections
indicating revenue growth into the hundreds of millions between 2025 and 2034. Proteomics in Oncology Market: The proteomics
in oncology market is on a significant growth trajectory, expected to
achieve substantial revenue expansion reaching hundreds of millions during the
forecast period of 2025 to 2034. Oncology Companion Diagnostics Market: The oncology
companion diagnostics market was valued at USD 5.24 billion in 2024 and
USD 5.7 billion in 2025, and is projected to reach USD 12.07 billion by 2034,
growing at a CAGR of 8.73% between 2025 and 2034. U.S. Oncology Molecular Diagnostics
Market: The U.S.
oncology molecular diagnostics market was estimated at USD 810 million
in 2024 and USD 909.14 million in 2025, and is forecasted to reach around USD
2.57 billion by 2034, expanding at a CAGR of 12.24%. Global Oncology Molecular Diagnostics
Market: The global oncology
molecular diagnostics market size stood at USD 3.11 billion in 2024,
reached USD 3.48 billion in 2025, and is expected to grow to USD 9.76 billion
by 2034, at a CAGR of 12.13%. Oncology NGS (Next-Generation
Sequencing) Market: The oncology
NGS market was valued at USD 508.95 million in 2024, increased
to USD 589.01 million in 2025, and is projected to reach USD 2.19 billion by
2034, with a CAGR of 15.73% from 2024 to 2034. Rapid Genomic Diagnostics Market: The rapid
genomic diagnostics market is experiencing robust expansion globally,
with expected revenues climbing into the hundreds of millions between 2025 and
2034. Oncology Drug Discovery Market
Companies: • Roche • Merck • Johnson &Johnson • Dr. Reddy’s • Sanofi • Eli Lilly • Novartis What are the Latest Developments in the Oncology Drug Discovery Market? ➢ In July 2025, Lantern Pharma, a clinical-stage
pharmaceutical company, launched an AI-driven tool for robust cancer drug
pairings, which consists assessment of DNA-damaging agents (DDAs) and DNA
damage response inhibitors (DDRis). ➢ In July 2025, Tevogen.AI, a clinical-stage specialty immunotherapy
company, introduced the PredictCell model to revolutionize drug discovery
and accelerate cancer immunotherapy development. ➢ In June 2025, Teva Pharmaceutical Industries and Shanghai Fosun
Pharmaceutical (Fosun Pharma) entered into a strategic partnership focused on
evolving a drug candidate currently in phase 1 clinical development for
different forms of cancer. ➢ In March 2025, Sermonix, a private biopharmaceutical company,
collaborated with Regor Therapeutics Group to detect new drug targets and
therapeutics in breast cancer. Oncology Drug Discovery Market:
Segmentation By Drug/Therapy Type • Targeted Therapy • Immunotherapy • Chemotherapy • Hormonal Therapy • Others (Radiopharmaceuticals, Gene
Therapy) By Cancer Type / Indication • Lung Cancer • Breast Cancer • Colorectal Cancer • Prostate Cancer • Leukemia • Ovarian Cancer • Melanoma • Others (Bladder, Liver, Pancreatic,
etc.) By Stage of Development • Drug Discovery • Preclinical • Clinical Trials (Phase I, II, III) • Regulatory Submission & Approval By Modality / Technology • Small Molecule Drugs • Biologics (Monoclonal Antibodies, ADCs) • RNA-based Therapeutics • Cell & Gene Therapy • Peptides/Protein Therapeutics • CRISPR & Genomic Editing Platforms By Region • North America • Asia Pacific • Europe • Latin America • Middle East and Africa (MEA) Immediate Delivery Available | Buy
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