DNA-Encoded Library Market Size & Outlook, 2026-2034

DNA-Encoded Library Market Overview

The global DNA-encoded library market size is valued at USD 851.06 million in 2025 and is estimated to reach USD 2,613.81 million by 2034, growing at a CAGR of 13.32% during the forecast period. The consistent market growth is supported by the integration of AI-guided molecular design for precise, patient-specific drug discovery pipelines.

Key Market Trends & Insights

• North America held a dominant share of the global market, accounting for 44.62% in 2025.
• The Asia Pacific region is projected to grow at the fastest pace, with a CAGR of 15.89%.
• Based on product & service, the product segment is expected to register the fastest CAGR of 14.03%.
• By therapeutic area, the oncology segment dominated the market with a revenue share of 37.21% in 2025.
• By application, the hit generation/identification segment dominated the market with a revenue share of 42.47%.   
• Based on end user, the pharmaceutical & biotechnology companies segment dominated the market in 2025.
• S. dominates the DNA-encoded library market, valued at USD 304.23 million in 2024 and reaching USD 343.44 million in 2025.

Table: U.S. DNA-Encoded Library Market Size (USD Million)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 851.06 million
• 2034 Projected Market Size: USD 2,613 million
• CAGR (2026-2034): 13.32%
• Dominating Region: North America
• Fastest-Growing Region: Asia Pacific

The DNA‑encoded library market encompasses a comprehensive range of products and services designed to accelerate drug discovery and development. Product offerings include kits and reagents, encoded chemical libraries, and other specialized materials. Services span library design and synthesis, high-throughput screening, and other supportive functions. DEL applications extend across multiple therapeutic areas, including oncology, infectious, cardiovascular, neurological, autoimmune, and metabolic diseases, facilitating hit generation, hit-to-lead development, and hit validation. The market serves pharmaceutical and biotechnology companies, contract research organizations, and academic and research institutes.

Latest Market Trends

Expansion of AI-Driven Drug Discovery in DEL

A major trend in the DNA encoded library market is the integration of artificial intelligence and machine learning to enhance library design, hit identification, and lead optimization. Leading pharmaceutical and biotech companies are increasingly adopting AI-enabled DEL platforms to accelerate drug discovery, reduce development timelines, and improve success rates. This trend underscores the market’s shift toward data-driven, high-precision drug discovery solutions that maximize efficiency and therapeutic potential.

Adoption of Ultra-Large DNA-Encoded Libraries

A notable trend in the DNA encoded library market is the growing use of large libraries containing billions of compounds, which enhances hit discovery efficiency. Companies such as X‑Chem and HitGen are pioneering these expansive libraries, enabling rapid screening against challenging targets. This innovation reduces development timelines and increases the probability of identifying high-affinity, drug-like candidates, driving broader adoption of DEL technology across pharmaceutical and biotechnology research pipelines.

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Market Driver

Rising Investment in High-Throughput Drug Discovery

A major driver in the DNA encoded library market is the increasing investment by pharmaceutical and biotechnology companies in high throughput drug discovery platforms. For instance, Amgen’s acquisition of Nuevolution’s DEL technology enables rapid screening of billions of compounds, accelerating hit identification and lead optimization. Such investments enhance efficiency, reduce drug development timelines, and strengthen the adoption of DEL platforms, reinforcing their pivotal role in modern, cost-effective drug discovery pipelines.

Market Restraint

Technical Complexity and High Implementation Costs

Technical complexity and high cost are associated with developing and maintaining DEL platforms. For example, smaller biotech firms often face challenges in establishing the advanced DNA synthesis, sequencing, and bioinformatics infrastructure required for large-scale library screening. These barriers limit accessibility, slow adoption, and increase dependency on specialized service providers, constraining broader market growth despite the technology’s demonstrated potential in accelerating drug discovery.

Market Opportunity

Collaborations for Rare and Orphan Disease Drug Discovery

The application in discovering therapies for rare and orphan diseases is a key opportunity supporting the market growth. For example, partnerships between HitGen and specialized biotech firms are utilizing DEL platforms to screen vast chemical libraries against challenging, low-prevalence targets. This approach accelerates identification of novel compounds for underserved patient populations, creating a niche market segment while addressing critical unmet medical needs and expanding DEL adoption beyond common therapeutic areas.

Regional Analysis

North America dominated the DNA-encoded library market in 2025, accounting for 44.62% market share. The growth is supported by the region’s extensive network of public-private partnerships that fund early-stage DEL innovation, enabling rapid translation of academic research into commercially viable drug candidates and fostering a collaborative ecosystem for advanced therapeutic discovery.

The U.S. DNA‑Encoded Library market growth is driven by the concentration of specialized DEL service hubs in biotech clusters such as Boston and San Francisco, facilitating rapid access to cutting-edge screening technologies, expert talent, and collaborative innovation, which accelerates drug discovery pipelines and commercialization of novel therapeutics.

Asia Pacific Market Insights

Asia Pacific is emerging as the fastest-growing region with a CAGR of 15.89% from 2026 to 2034. This growth is augmented by the rapid establishment of cross-border DEL research collaborations between emerging biotech hubs in China, India, and Singapore, enabling knowledge transfer, local talent development, and accelerated access to large-scale compound libraries for innovative drug discovery.

China’s DNA encoded library market growth is driven by government-backed biotech innovation zones, such as the Zhangjiang Hi-Tech Park, which provide state-of-the-art DEL infrastructure, funding incentives, and strategic industry-academia partnerships, enabling accelerated in-country drug discovery and positioning China as a global hub for novel therapeutic development.

Regional Market share (%) in 2025

Source: Straits Research

Europe Market Insights

Europe’s DNA-encoded library market is experiencing strong growth due to the increasing establishment of contract research organizations specializing in DEL services, offering scalable, end-to-end screening solutions to domestic and international pharmaceutical companies, thereby reducing reliance on in-house capabilities and accelerating local drug discovery initiatives.

In Germany, the strong emphasis on precision chemistry innovation within academic-industrial consortia enables DEL platforms to integrate novel synthetic methodologies and high-throughput screening techniques, which accelerates the identification of unique therapeutic candidates while maintaining stringent quality and regulatory standards.

Latin America Market Insights

Latin America’s DNA-encoded library market is growing steadily due to the emergence of regional biotech incubators in countries like Brazil and Mexico, which provide localized DEL infrastructure, specialized training programs, and collaborative platforms, enabling domestic pharmaceutical companies to access high-throughput screening and accelerate early-stage drug discovery.

Argentina's DNA-encoded library market is expanding rapidly due to the country’s investment in public-private biomedical innovation hubs, such as the Buenos Aires Science and Technology Park, which foster DEL-focused research, provide access to advanced screening technologies, and support collaborations between local startups and international pharmaceutical companies.

Middle East and Africa Market Insights

The Middle East and Africa DNA-encoded library market growth is propelled by the establishment of government-backed biotech accelerators in hubs like the UAE’s Dubai Science Park, which provide access to DEL infrastructure, international collaborations, and specialized training programs, enabling local pharmaceutical companies to engage in advanced, high-throughput drug discovery.

Egypt's DNA-encoded library market is witnessing growth driven by the development of specialized life sciences clusters, such as the Nile University Biotech Park, which provides domestic DEL research facilities, fosters collaborations with international pharmaceutical firms, and supports training in high-throughput screening, enabling accelerated discovery of novel therapeutic compounds locally.

Product & Service Insights

The services segment dominated the market in 2025, due to increasing reliance on outsourced DEL design and screening platforms by small and mid sized biotech firms, allowing access to specialized expertise and high throughput capabilities without heavy infrastructure investment.

The product segment is expected to grow at the fastest CAGR of 14.03% during the forecast period, owing to rising demand for customizable encoded libraries, which allow researchers to tailor chemical diversity precisely to specific target classes, thereby improving screening efficiency and accelerating discovery of novel, high-affinity drug candidates.

Therapeutic Area Insights

The oncology segment dominated the market and accounted for the highest revenue share of 37.21% in 2025. This growth is attributed to the utilization of DNA‑encoded libraries for targeting previously “undruggable” oncogenic proteins, allowing the discovery of highly selective small molecules that address complex cancer pathways with enhanced therapeutic precision.

The neurological diseases segment is projected to register the fastest CAGR of 14.25% during the forecast timeframe, owing to the adoption of DEL technology for identifying blood-brain barrier-penetrant compounds, facilitating the discovery of targeted therapies for complex neurodegenerative and cognitive disorders.

By Therapeutic Area Market Share (%), 2025

Source: Straits Research

Application Insights

The hit generation/identification segment dominated the market with a revenue share of 42.47% in 2025. This growth is driven by the use of DEL platforms to rapidly identify ligands for allosteric and cryptic binding sites, enabling the discovery of novel molecular interactions previously inaccessible through conventional screening methods.

The hit validation/optimization segment is expected to register the fastest growth during the forecast period, due to the increasing use of DEL-derived scaffolds for iterative chemical refinement, enabling precise enhancement of binding affinity, selectivity, and drug-like properties for challenging targets.

End Use Insights

The pharmaceutical & biotechnology companies dominated the market in 2025. This growth is driven by the strategic adoption of proprietary DEL platforms for in-house discovery of first-in-class compounds for rapid exploration of novel chemical spaces while maintaining competitive intellectual property advantages.

Competitive Landscape

The global DNA‑Encoded Library market is moderately fragmented, with leading pharmaceutical, biotechnology, and specialized DEL service providers holding major market share. Key players sustain leadership through advanced library technologies, high-throughput screening services, and strategic collaborations. Prominent companies in the market include X‑Chem, HitGen, WuXi AppTec, Nuevolution (Amgen), Philochem, DyNAbind, and Vipergen, among others, driving innovation, expanding service offerings, and enhancing global accessibility of DEL platforms.

Serengen: An emerging market player

Serengen, a U.S.-based biotech startup, is emerging in the DNA‑Encoded Library market with a focus on creating highly diverse, structure-enabled libraries for challenging drug targets. By integrating innovative DEL synthesis techniques and advanced screening strategies, Serengen accelerates hit identification and lead optimization, positioning itself as a nimble, next-generation player driving precision and efficiency in modern drug discovery pipelines.

List of key players in DNA-Encoded Library Market

1. Aurigene Pharmaceutical Services Ltd.
2. BioDuro
3. BOC Sciences
4. Charles River Laboratories International, Inc.
5. Creative Diagnostics
6. DyNAbind GmbH
7. GenScript
8. HitGen Ltd.
9. LGC Bioresearch Technologies
10. Life Chemicals Inc.
11. Merck KGaA
12. Pharmaron
13. Philochem AG
14. SPT Labtech Ltd
15. Vipergen ApS
16. WuXi AppTec Co., Ltd.
17. Others

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Strategic Initiative

• April 2024: Vipergen partnered with Aurigene Pharmaceutical Services to enhance drug discovery, combining DEL technology for screening over a billion compounds and co-developing libraries with greater chemical diversity and drug-likeness.