The global DNA-encoded library (DEL) market size was valued at USD 758.1 million in 2024 and is projected to reach USD 1.60 billion by 2030, expanding at a CAGR of 13.4% from 2025 to 2030. Market growth is being driven by the rising demand for innovative and efficient drug discovery solutions, as pharmaceutical and biotechnology companies continue to face pressure to identify potential therapeutic candidates in a faster and more cost-effective manner. DEL technology enables the high-throughput screening of billions of compounds, significantly improving the likelihood of identifying promising lead molecules for drug development. The growing global burden of chronic diseases such as cancer, neurological conditions, and infectious diseases has further fueled the need for novel treatments, increasing the adoption of DEL platforms. Moreover, advancements in molecular biology techniques and Next-Generation Sequencing (NGS) are continuously enhancing DEL capabilities, making them more powerful and precise. These factors collectively position DEL as a critical tool in modern drug discovery and development pipelines, attracting both research institutions and leading biopharmaceutical companies.

The DNA-encoded library market is highly innovation-driven, supported by breakthroughs in combinatorial chemistry, artificial intelligence (AI), and laboratory automation. Continuous improvements in library design, compound diversity, and screening efficiency have accelerated early-stage drug discovery processes. The integration of AI-powered analytics is particularly impactful, as it enables more accurate target identification, hit optimization, and predictive modeling, thereby increasing the overall effectiveness of DEL platforms. In addition, ongoing innovation in DNA tagging, coding, and decoding techniques is broadening the scope of applications, making DEL a vital solution in early drug discovery and reducing reliance on traditional, slower screening approaches.

The industry is also witnessing strong mergers, acquisitions, and strategic collaborations, as large pharmaceutical firms seek to strengthen their pipelines by integrating DEL technology. M&A activity is driven by the desire to access proprietary compound libraries, novel screening technologies, and specialized expertise in DEL-driven drug discovery. These partnerships allow companies to improve hit identification rates, streamline early-stage development, and accelerate time-to-market for new drugs. With the rising demand for novel therapeutic targets, consolidation within the industry is expected to increase further, resulting in stronger collaborations between big pharma, biotech startups, and academic research institutions.

Key Market Trends & Insights:

  • Regional Insights: North America dominated the DNA-encoded library market in 2024 with a 44.66% share, supported by strong research infrastructure, high R&D investments, and the presence of leading pharmaceutical firms. Asia Pacific is forecasted to record the fastest CAGR during the forecast period due to increasing biotech innovation, expanding drug discovery programs, and supportive government initiatives.
  • Therapeutic Area: The oncology segment led the market in 2024, accounting for 38.32% of revenue, as DEL platforms are extensively used in cancer drug discovery. The neurological diseases segment is projected to grow at the fastest CAGR of 15.31%, reflecting the urgent need for therapies targeting complex neurodegenerative conditions.
  • Application: In 2024, hit generation/identification dominated the market with a 42.52% share, highlighting DEL’s strength in screening vast compound libraries. The hit validation/optimization segment is expected to expand at the fastest CAGR of 14.63%, as researchers place increasing emphasis on refining and validating early leads.
  • End Use: Pharmaceutical and biotechnology companies were the largest end users, accounting for 42.77% of revenue in 2024, as they integrate DEL into their drug discovery pipelines. Meanwhile, Contract Research Organizations (CROs) are projected to grow at the fastest CAGR of 14.94%, as outsourcing becomes a cost-effective strategy for companies seeking specialized expertise.
  • Product & Service: The services segment led the market in 2024, reflecting the preference for outsourcing DEL activities to specialized providers. The products segment is anticipated to grow significantly during the forecast period, driven by the rising demand for DEL kits, reagents, and consumables.

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Market Size & Forecast:

  • 2024 Market Size: USD 758.1 Million
  • 2030 Projected Market Size: USD 1.60 Billion
  • CAGR (2025-2030): 13.4%
  • North America: Largest market in 2024
  • Asia Pacific: Fastest growing market

Key Players

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

  • 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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Conclusion:

The global DNA-encoded library market is on a strong growth trajectory, fueled by rising demand for innovative drug discovery solutions and the urgent need for therapies targeting cancer, neurological disorders, and infectious diseases. DEL technology’s ability to screen billions of compounds quickly and cost-effectively positions it as a transformative tool in modern drug discovery pipelines. Continuous advancements in molecular biology, NGS, AI-driven analytics, and automation are further enhancing the efficiency and precision of DEL platforms. While North America currently leads the market, Asia Pacific is expected to experience the fastest growth, supported by increasing investments in biotechnology and government-backed research initiatives. Strategic mergers, acquisitions, and partnerships are reshaping the competitive landscape, enabling companies to expand access to proprietary libraries and expertise. Overall, the market is expected to remain highly dynamic, with innovation and collaboration driving long-term growth and broader adoption across the pharmaceutical and biotechnology industries.