DNA-encoded Library Market Size, Share & Trends Analysis Report By Product & Service (Products, Services), By Therapeutic Area (Oncology, Infectious Diseases), By Application (Hit Generation / Identification), By End Use, By Region, And Segment Forecasts,

Published Date: May - 2025 | Publisher: MIR | No of Pages: 240 | Industry: healthcare | Format: Report available in PDF / Excel Format

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DNA-encoded Library Market Size & Trends

The size of the global DNA-encoded library market was estimated to be USD 758.1 million in 2024 and is expected to grow at a CAGR of 13.4% from 2025 to 2035. Growing demand for cutting-edge drug discovery solutions is the growth driver. Pharmaceutical and biotech firms continually look for faster, 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 infectious diseases are driving the demand for new treatments. New developments in molecular biology and Next-Generation Sequencing (NGS) further broaden DNA-encoded library platforms' capabilities. These drivers are fueling market growth and boosting the use of this technology by research institutes and drug development organizations.

Growing interest in precision medicine and personalized therapeutics drives demand for DNA-encoded library technology. Scientists are utilizing DEL platforms to discover very selective and potent compounds that hit unique disease pathways. The capability to design and screen enormous chemical libraries with high precision enhances drug discovery programs' efficiency. The inclusion of Artificial Intelligence (AI) and Machine Learning (ML) maximizes data analysis and speeds up hit identification. For example, in March 2025, Isomorphic Labs secured USD 600 million to increase R&D, enhance its workforce, and develop its AI-based drug design engine. The DeepMind spinoff collaborated with Novartis and Eli Lilly with the goal of bringing products to clinical trials by year-end.  Automation of DNA-encoded library processes cuts down time and labor expenses and is a favorable solution for drug companies. All these technologies are enhancing drug discovery success rates and the overall efficacy of R&D operations.

Strategic alliances and partnerships between biotech companies and Contract Research Organizations (CROs) are extending the boundaries of DNA-encoded library technology. Firms are outsourcing drug discovery operations to specialized CROs that provide expertise in DEL-based screening. This trend is lowering the cost of operations and raising access to a wide variety of chemical libraries. Research infrastructure investments and laboratory capacity expansion are enhancing the market position. The creation of new DNA-encoded scaffolds and enhanced encoding methods is raising the quality of compound screening. These developments are making DNA-encoded library technology an essential tool in contemporary drug discovery, propelling its use throughout the pharmaceutical industry.

Report Coverage & Deliverables

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  • Competitive benchmarking
  • Historical data & forecasts
  • Company revenue shares
  • Regional opportunities
  • Latest trends & dynamics

Growing Demand for Drug Discovery & Development

The biotechnology and pharmaceutical industries increasingly use DNA-encoded libraries to streamline drug discovery processes. DNA-encoded library technology enables scientists to screen billions of small molecules with great efficiency, minimizing the time taken to identify prospective drug candidates. The increasing incidence of chronic diseases and the pressing need for novel therapeutics drive demand for rapid, cost-effective drug discovery techniques. Research institutions and companies gain from the DNA-encoded library's capacity to enhance hit identification rates while reducing the cost of research and development overall. Consequently, the DNA-encoded library market is growing significantly, with investments coming from big pharmaceutical companies and biotech companies.

Advancements in DNA-Encoded Library Technology & AI Integration

Advancements in DNA barcoding, sequencing, and chemical synthesis on an ongoing basis are augmenting the efficacy and accuracy of screening of DNA-encoded libraries. Incorporating Artificial Intelligence (AI) and Machine Learning goes one step further and enhances hit validation as well as lead optimization of large chemical libraries. AI-enabled DNA-encoded library platforms allow quick identification of putative drug leads through highly accurate predictions of molecular interactions. These developments serve to overcome the conventional difficulties of medicinal chemistry, including high attrition rates and false positives. With advancing technology, more and more companies use AI-driven DNA-encoded library solutions to hasten their drug discovery pipeline.

Complexity in Data Management & Analysis

DNA-encoded library technology produces huge volumes of data, and effective analysis requires advanced computational tools and expertise. Interpreting billions of molecular interactions is a complicated process that necessitates sophisticated bioinformatics and machine learning algorithms. Small and medium-sized businesses frequently lack the computational resources and expertise, making it challenging to extract useful information from DNA-encoded library experiments. The danger of false positives and the requirement for large-scale validation add to the complexity. Without robust data management solutions, researchers could be hindered from maximizing the efficiency and reliability of DNA-encoded library-based drug discovery.

High Initial Investment & Technical Challenges

Establishing and running a DNA-encoded library platform is a capital-intensive process involving substantial investment in sequencing technology, automation, and human resources. Establishing a DNA-encoded library system, including DNA encoding, chemical synthesis, and high-throughput screening infrastructure, can be cost-prohibitive for small businesses. Moreover, technical issues like chemical stability problems, DNA-encoded compound diversity constraints, and hit validation challenges can hinder progress. The requirement for comprehensive hits optimization and validation of hits enhances the technical and financial demands of applying DNA-encoded library technology to drug discovery. Such cost and technical impediments may limit the extensive application of DNA-encoded libraries, especially by nascent biotech companies and universities.

Market Concentration & Characteristics

The market for DNA-encoded libraries is extremely innovative, fueled by progress in combinatorial chemistry, artificial intelligence, and automation. Ongoing refinements in library design and screening efficiency facilitate accelerating drug discovery. AI-powered analytics further strengthens target identification, and DNA-encoded library technology becomes even more appealing to pharmaceutical and biotech companies. Innovation in DNA tagging and decoding methods continues to broaden the applications in early-stage drug discovery.

Mergers and Acquisitions (M&A) are an important aspect of the DNA-encoded library market, with major pharmaceutical companies acquiring biotech companies that have expertise in DEL technology. Strategic partnerships and acquisitions stem from the necessity to access proprietary libraries and skills in DNA-encoded library-based drug discovery. Firms attempt to incorporate DNA-encoded libraries into their early-stage pipeline to enhance hit identification rates. The growing need for new therapeutic targets has deepened M&A activity, promoting market consolidation.

Regulatory environments affect the market for DNA-encoded libraries by establishing standards for drug discovery and preclinical qualification. While DNA-encoded library platforms facilitate hit identification, compliance with regulations around data integrity, safety, and qualification remains important. Strong FDA and EMA guidelines guarantee compound screening and candidate reliability. Intellectual property rights policies set by regulatory environments shape competition in the market and dictate how firms utilize their DNA-encoded library technology assets.

The DEL business is witnessing aggressive product and service growth, with organizations creating increasingly diverse libraries and new screening platforms. Improvements in chemical space coverage and target specificity broaden the reach of DNA-encoded library-based discovery. The advent of AI-enabled drug screening further broadens product capabilities. Moreover, the combination of DNA-encoded libraries with other screening technologies, including fragment-based drug discovery, has unveiled new avenues for therapeutic innovation.

Market-leading players in the DNA-encoded library industry are increasing their presence in major regions to broaden their global reach. Industry majors such as WuXi AppTec and HitGen have set up bases in North America, Europe, and Asia to serve the mounting demand for DNA-encoded library-based drug discovery. Firms like X-Chem are bolstering their presence in Europe with partnerships with biotech companies, while Chinese companies are increasingly joining hands with Western pharmaceutical firms to offer DNA-encoded library screening services. Growth in emerging markets, especially in Asia Pacific, is spurred by increased investment in biotech infrastructure and government-sponsored research projects.

Product & Service Insights

The services segment led the DNA-encoded library market in 2024, generating the highest revenue, driven by the increasing outsourcing of drug discovery research. Pharmaceutical companies are partnering with service providers to access advanced screening technologies without significant infrastructure investments. The rising complexity of drug discovery has fueled the demand for specialized expertise. Customized library synthesis and hit-to-lead optimization services have gained traction in recent years. The growing need for cost-effective and time-efficient screening solutions has expanded the market. Small and mid-sized biotech firms' increasing adoption of contract research services has also contributed to growth. Technological sequencing and data analytics advancements have enhanced service efficiency, further supporting market expansion.

The products segment is expected to grow at a significant CAGR over the forecast period, due to the rising demand for novel drug discovery tools. Pharmaceutical and biotechnology companies are increasingly adopting DNA-encoded library technologies to enhance screening efficiency and reduce development costs. For instance, major pharmaceutical companies such as Amgen, GSK, Pfizer, Roche, Novartis, AstraZeneca, Bristol Myers Squibb, Sanofi, and Janssen have integrated DNA-encoded library technology into their drug discovery processes to enhance screening efficiency and reduce development costs. Advances in DNA barcoding and molecular tagging have significantly improved compound identification. The growing investment in high-throughput screening solutions has further strengthened market growth. The increasing availability of diverse chemical libraries has expanded research opportunities. Integration with artificial intelligence has streamlined compound selection, improving hit rates. These factors collectively contributed to the dominance of the products segment.

Therapeutic Area Insights

The oncology segment held the largest revenue share of 38.32% in 2024, primarily due to the high demand for targeted cancer therapies. DNA-encoded library technology has rapidly identified potential small-molecule inhibitors for oncogenic targets. The increasing prevalence of cancer worldwide has intensified research efforts in this domain. Expanding genomic data has facilitated the discovery of novel biomarkers for personalized treatments. The need for innovative and cost-effective drug discovery methods has further driven DNA-encoded library adoption in oncology. Growing investment by pharmaceutical companies in immuno-oncology research has also supported market growth. The emergence of new drug candidates in preclinical and clinical pipelines has reinforced segment dominance.

The neurological diseases segment is expected to grow at the fastest CAGR of 15.31%, fueled by the rising demand for effective treatments against neurodegenerative disorders. The complexity of central nervous system drug discovery has increased the reliance on DNA-encoded library-based screening. The surge in research efforts for Alzheimer’s, Parkinson’s, and other neurological diseases has expanded market opportunities. Advances in blood-brain barrier permeability studies have improved target specificity. The rising aging population has led to a higher prevalence of neurological conditions, increasing the need for novel drug candidates. Pharmaceutical companies are actively investing in DNA-encoded library technology to accelerate hit identification. Integrating computational modeling with DNA-encoded library platforms has enhanced drug discovery precision, further driving growth.

Application Insights

The hit generation/identification segment dominated the market in 2024, with a share of 42.52% due to the growing need for efficient lead discovery solutions. DNA-encoded library technology has provided a cost-effective and scalable approach to screening large chemical libraries. The rising focus on early-stage drug discovery has accelerated the adoption of high-throughput screening methods. The ability to rapidly identify potential drug candidates with high specificity has strengthened market penetration. Continuous advancements in DNA barcoding techniques have improved the accuracy of compound selection. Pharmaceutical and biotech firms are increasingly integrating DNA-encoded library-based screening into their R&D processes. These factors have contributed to the segment’s leading revenue share.

The hit validation/optimization segment is projected to expand at the fastest CAGR of 14.63% over the forecast period, driven by the increasing need to refine potential drug candidates. Pharmaceutical companies prioritize optimization to enhance drug efficacy and safety. Advances in structure-based drug design have improved hit validation accuracy. The integration of artificial intelligence has streamlined the analysis of binding affinities and structure-activity relationships. The growing importance of reducing late-stage drug failures has intensified the focus on optimization processes. The adoption of DNA-encoded libraries in combination with computational modeling has improved success rates. These advancements have fueled market growth in this segment.

End Use Insights

Pharmaceutical and biotechnology companies accounted for the largest revenue share of 42.77% in 2024, primarily due to their extensive investment in drug discovery programs. The increasing demand for novel therapeutics has led to the widespread adoption of DNA-encoded library screening. Pharmaceutical firms are leveraging DNA-encoded library technology to accelerate the identification of promising drug candidates. The ability to explore vast chemical space efficiently has improved research productivity. Continuous advancements in combinatorial chemistry have strengthened drug pipeline development. Large-scale collaborations with technology providers have expanded the accessibility of DNA-encoded library platforms. These factors have collectively reinforced the dominance of this end user segment.

The Contract Research Organizations (CROs) segment is anticipated to witness the fastest CAGR of 14.94% over the forecast period, driven by the growing trend of outsourcing drug discovery research. Pharmaceutical and biotech companies increasingly rely on CROs to access specialized expertise and advanced screening platforms. The rising need for cost-effective and time-efficient research solutions has accelerated market expansion. CROs invest in DNA-encoded library technology to enhance service offerings and attract a broader client base. The growing complexity of drug discovery has increased the demand for external research partnerships. Advancements in sequencing and data analytics have further strengthened CRO capabilities. These factors have contributed to the rapid growth of this segment.

Regional Insights

Market Analysis

North America is dominant in the DNA-encoded library industry, primarily due to its biotechnology sectors and robust pharmaceutical industry. The region is home to major industry players actively investing in innovative drug discovery technologies. A well-established research infrastructure supports extensive R&D activities, facilitating the adoption of DNA-encoded library platforms. Collaborations between academic institutions and pharmaceutical companies further enhance market growth. Advanced technological capabilities accelerate the development and implementation of DNA-encoded library services. Therefore, North America will maintain its market share in the coming years.

U.S. DNA-encoded Library Market Trends

The U.S. held a significant share of the DNA-encoded library industry in 2024, driven by a concentration of leading pharmaceutical firms. Extensive investment in biotechnology research raises the development of novel drug discovery methods. The country's advanced healthcare infrastructure supports integrating cutting-edge technologies like DNA-encoded libraries. Academic and research institutions actively partner with industry players, promoting innovation. A favorable regulatory environment encourages the adoption of DNA-encoded library platforms.

Europe DNA-encoded Library Market Trends

Europe exhibits steady growth in the DNA-encoded library industry due to a strong emphasis on innovation and research. The region hosts numerous pharmaceutical and biotech companies investing in advanced drug discovery technologies. Collaborative efforts between countries enhance the development and application of DNA-encoded library platforms. A well-established academic and research community contributes to ongoing advancements in the field. The focus on personalized medicine drives the demand for efficient compound screening methods. Europe's commitment to scientific excellence ensures its continued relevance in the market.

The UK DNA-encoded library marketcontributes significantly to the regional share, with a thriving pharmaceutical sector. The country's focus on research and development fosters the adoption of innovative technologies. Leading universities and research institutions contribute to advancements in DNA-encoded library methodologies. Strategic partnerships between academia and industry facilitate knowledge transfer and commercialization. The emphasis on precision medicine increases the demand for targeted compound libraries. These elements collectively support the UK's position in the DNA-encoded library landscape.

The DNA-encoded library market in Germany is a key contributor to the Europe market. Germany is known for its strong industrial base. The country's pharmaceutical and biotech industries invest heavily in research and development. Collaborations between research institutions and companies drive innovation in drug discovery. Germany's focus on technological advancement supports the integration of DNA-encoded library platforms. The growing interest in personalized healthcare solutions fuels the demand for efficient screening technologies. These factors underscore Germany's significant role in the market.

Asia Pacific DNA-encoded Library Market Trends

Asia Pacific is expected to exhibit the fastest CAGR in the DNA-encoded library industry during the forecast period, driven by increasing investments in pharmaceutical research. Emerging economies are enhancing their biotech capabilities, leading to greater adoption of DNA-encoded library technologies. The presence of a large patient population necessitates the development of new therapeutics. Collaborations with international pharmaceutical companies bring advanced technologies to the region. The rise of Contract Research Organizations (CROs) offering DNA-encoded library services supports market expansion. These dynamics position Asia Pacific as a rapidly growing market for DNA-encoded library.

China DNA-encoded library market is expected to grow during the forecast period. China expanding pharmaceutical sector and substantial investments in biotechnology research position it as a key market player. The country's focus on innovative drug discovery methods accelerates the adoption of DNA-encoded library platforms. Collaborations between Chinese biotech firms and international partners enhance research capabilities. Integrating advanced technologies, such as artificial intelligence, streamlines compound screening processes. China's commitment to advancing healthcare solutions supports the growth of DNA-encoded library applications. These factors underscore China's significant role in the Asia Pacific market.

The DNA-encoded library in Japan is poised for growth during the forecast period. Japan maintains a strong position in the market, supported by its advanced pharmaceutical industry. The country's commitment to research and development fosters innovation in drug discovery. Collaborations between academic institutions and pharmaceutical companies enhance technological advancements. Japan's focus on addressing complex diseases drives the demand for efficient screening methods. The integration of artificial intelligence with DNA-encoded library platforms is gaining traction. These elements collectively reinforce Japan's role in the DNA-encoded library landscape.​

Middle East and Africa DNA-encoded Library Market Trends

Middle East and Africa (MEA) is an emerging market for DNA-encoded library technologies, with increasing investments in healthcare infrastructure. Countries such as Saudi Arabia and Kuwait focus on enhancing their pharmaceutical research capabilities. Collaborations with international biotech firms facilitate the transfer of knowledge and technology. The region's interest in innovative drug discovery methods supports the gradual adoption of DNA-encoded library platforms. Investments in education and training contribute to building a skilled workforce for research and development. These factors collectively indicate a growing potential for the DNA-encoded library industry in MEA.

Saudi Arabia DNA-encoded library market is anticipated to grow during the forecast period. Saudi Arabia is investing in biotechnology as part of its economic diversification efforts. The development of research centers supports advancements in drug discovery technologies. Partnerships with international biotech firms facilitate knowledge transfer. The focus on improving healthcare outcomes drives interest in innovative therapeutics. Initiatives to enhance education in life sciences are building a skilled workforce. These efforts position Saudi Arabia as a potential market for DNA-encoded library technologies.

The DNA-encoded library market in Kuwait represents a smaller but potentially growing space within the MEA region. This growth is anticipated due to increasing investments in improving the healthcare sector and raising scientific research. Research institutions and potential pharmaceutical initiatives within Kuwait may explore the benefits of a DNA-encoded library for their drug development efforts. As the country continues investing in its healthcare infrastructure and research capabilities, the adoption of innovative technologies such as DNA-encoded libraries could increase. This focus on healthcare advancement suggests a future for the Kuwait market.

Key DNA-encoded Library Company Insights

Partnerships, collaborations, and product launches were the most adopted strategies by key players. Companies such as Aurigene Pharmaceutical Services Ltd. and Vipergen ApS formed a strategic partnership to offer integrated drug discovery services and DNA-Encoded Library screening to expand their market reach globally.

Key DNA-encoded Library Companies

The following are the leading companies in the DNA-encoded library market. These companies collectively hold the largest market share and dictate industry trends.

Recent Developments

  • In April 2024, Vipergen announced a strategic partnership with Aurigene Pharmaceutical Services Ltd. to offer integrated drug discovery services. The collaboration aimed to enhance hit identification by screening over a billion small-molecule compounds using Vipergen’s DNA-Encoded Library technology. They also planned to co-develop novel DNA-encoded libraries with improved chemical diversity and drug-likeness.

  • In April 2024, Aurigene Pharmaceutical Services Ltd. and Vipergen ApS formed a strategic partnership to offer integrated drug discovery services and DNA-Encoded Library screening. The partnership aimed to improve success rates and reduce timelines by screening over a billion small-molecule compounds in cells or purified proteins. They also planned to co-develop novel DNA-encoded libraries with enhanced drug-likeness and chemical diversity.

  • In September 2023, WuXi AppTec announced the launch of DNA-encoded libraryman, an automatic DNA-Encoded Library screening device. The device featured an advanced fluidics system and embedded protocols, enabling users to conduct DNA-encoded library screenings within 1.5 to 2 hours with minimal human intervention. DNA-encoded libraryman was designed to democratize DNA-encoded library access, allowing researchers to perform screenings directly in their labs.

DNA-encoded Library Market Report Scope

Report Attribute

Details

Market size value in 2025

USD 851.0 million

Revenue forecast in 2030

USD 1.60 billion

Growth rate

CAGR of 13.4% from 2025 to 2035

Actual data

2018 - 2024

Forecast period

2025 - 2035

Quantitative units

Revenue in USD million/billion and CAGR from 2025 to 2035

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product & service, therapeutic area, application, end use, region

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Sweden, Denmark, Norway, China, Japan, India, South Korea, Australia, Thailand, Brazil, Argentina, Saudi Arabia, Kuwait, UAE, and South Africa

Key companies profiled

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

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

Global DNA-encoded Library Market Report Segmentation

Product & Service Outlook (Revenue, USD Million, 2018 - 2035)

    • Products

      • Kits & Reagents

      • Encoded Libraries

      • Others

    • Services

      • Design & Synthesis Services

      • Screening Services

      • Others

  • Therapeutic Area Outlook (Revenue, USD Million, 2018 - 2035)

    • Oncology

    • Infectious Diseases

    • Cardiovascular Diseases

    • Neurological Diseases

    • Autoimmune Diseases

    • Metabolic Diseases

    • Others

  • Application Outlook (Revenue, USD Million, 2018 - 2035)

    • Hit Generation / Identification

    • Hit to Lead

    • Hit Validation / Optimization

    • Others

  • End Use Outlook (Revenue, USD Million, 2018 - 2035)

    • Academic & Research Institutes

    • Pharmaceutical & Biotechnology Companies

    • Contract Research Organizations

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2035)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

      • France

      • Italy

      • Spain

      • Sweden

      • Denmark

      • Norway

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Australia

      • Thailand

    • Latin America

      • Brazil

      • Argentina

    • Middle East and Africa (MEA)

      • South Africa

      • UAE

      • Saudi Arabia

      • Kuwait

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