Computational Biology Market Segmentation Detailed Study with Forecast to 2018

By Nitintmr123    13 / Feb / 2018    In Category Healthcare


Global Computational Biology Market: Snapshot


The skyrocketing rates of drugs along with the continuously rising rate of failure of drugs in the late stage of clinical trials are prompting pharma players to shift their focus from traditional methods of clinical trials to predictive models. The increasing demand for predictive models is, therefore, providing a significant boost to the growth of the global computational biology market. Moreover, the increasing funding from governments and private organizations for research and development in this field is propelling the market.

On the other hand, the lack of standardization and dearth of skilled labor is limiting the market from realizing its utmost potential. However, the emergence of cloud computing is likely to shape future of the market. The opportunity in the global computational biology market was worth US$1.64 bn in 2015 and is estimated to rise to US$2.93 bn by the end of 2018, progressing at a phenomenal CAGR of 21.3% from 2012 to 2018.

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In-house to Remain Most Valuable Service Segment through 2018


Based on tools, database was the leading segment in terms of revenue in 2015. Their demand is likely to remain strong in the forthcoming years owing to the fact that they serve as the ground for modeling and simulation. However, the analysis software and services segment is expected to outperform database by the end of forecast period. The increasing need for cost-effective software that ensures simplified modeling and simulation is contributing to the growth of the segment. The segment is estimated to rise at a noteworthy CAGR of 25.0% during the forecast period.

On the basis of services, the in-house segment will account for the lion’s share throughout the forecast period, expanding at a 22.6% CAGR during the same period. Current trends in the global market indicate that multinational biotech pharma companies are shifting their own research and development setups in countries with cheap manpower cost such as India, China, and Brazil. This coupled with tax benefits offered by the governments of these nations is anticipated to reduce the cost of conducting in-house research. These factors are, therefore, driving the growth of the segment.

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North America to Retain Dominance as Government Organizations Encourage Research and Development Activities


North America will be the frontrunner in the market in terms of revenue throughout the forecast period, with the U.S. being the leading revenue contributor. The growth of the region is supplemented by the conducive environment for the development of bioinformatics and computational biology created by government organizations and continual research and development efforts by pharmaceutical giants. In addition, the U.S. federal government is encouraging the growth of the market through provision of funds for research and development and academic centers using modeling and simulation for drug discovery.

The market for computational biology in Asia Pacific is largely centered in countries such as India, China, and Japan. The presence of a large and trained talent pool of researchers and engineers coupled with robust computational infrastructure is assisting the region in treading along a healthy growth track. Favorable government initiatives and increasing collaborations among international biologists, bioinformatics, and local scientists are augmenting the growth of the region. Owing to these factor, the region is poised to progress at a CAGR of 27.5% during the same period. Some of the prominent players in the global computational biology market are Accelrys, Certara, Chemical Computing Group Inc., Compugen, Entelos, Ltd, Genedata AG, and Insilico Biotechnology AG.


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