Biosimulation Market Expected to Reach $10.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Biosimulation Market," The biosimulation market size was valued at $2.5 billion in 2022, and is estimated to reach $10.6 billion by 2032, growing at a CAGR of 15.8% from 2023 to 2032. Biosimulation is quantitative drug development that powers decision making. Modeling and simulation are proven effective and efficient alternatives to real-world clinical trials. The result is enabling clients to make better medicines available to patients sooner. 

In addition, various biological fields, including pharmacokinetics and pharmacodynamics, toxicology, systems biology, and personalized medicine, are expected to benefit from the use of biosimulation. It helps in the development of safer and more effective treatments by enabling researchers to anticipate and evaluate how medications, chemicals, or interventions are anticipated to affect biological systems.  

The growth of the biosimulation market share is majorly driven by increase in the prevalence of chronic disease such as cancer, diabetes, Alzheimer's, cardiovascular disease, kidney disorders and various others and surge in the number of R&D activities for the development of novel drug therapies to treat cancer and chronic disease and increases the demand for biosimulation software.

Moreover, the growth in adoption of biosimulation software by regulatory bodies, the increase in failure rate of clinical drug development, and the need to curtail drug discovery and development costs are the major factors that propel the growth of the biosimulation market. According to a ScienceDirect article from July 2022, around 90% of clinical drug development projects have failed, despite the fact that drug discovery and development is a long, expensive, and risky process that requires more than 10-15 years and an average cost of more than $1-2 billion for each new drug to be approved for use in humans. 

Furthermore, advancement in technology such as (ML), (AI), and high-performance computing, growth in demand for biosimilars due to their cost-effectiveness and positive outcomes of biosimulation in ongoing clinical trials are the factors that propel the growth of the biosimulation market.

In addition, integration of artificial intelligence (AI) and machine learning (ML) technologies are expected to enhance biosimulation by providing meaningful actionable insights much earlier in the drug development process with unprecedented accuracy and scalability. For example, biosimulation software helps in processing trillions of interdependencies and biosimulation scenarios to understand multiple biological systems at once.

Thus, adoption of ML and AI in drug discovery & development and technological advancement in biosimulation software that promotes drug discovery are the factors that drive the growth of the biosimulation market share.  

Moreover, governments and regulatory bodies such as United States Food and Drug Administration (U.S. FDA) have increasingly recognized the potential of biosimulation in accelerating drug development and reducing animal testing. This includes incorporating simulation-based approaches into their guidelines, and further encourages the adoption of biosimulation in the pharmaceutical industry, which notably contributes toward the growth of the biosimulation market size. 

On the basis of product, the software segment generated maximum revenue in 2022, owing to the launch of upgraded versions of biosimulation software and advancement in computational power that have significantly enhanced the capabilities of biosimulation.

However, the services segment is expected to witness a significant CAGR during the forecast period, owing to increase in the number key market players providing biosimulation services and the increased awareness & acceptance of biosimulation tools among the researchers and cost savings by opting for biosimulation services.  

On the basis of application, the biosimulation industry is segmented into drug discovery, drug development and otherts. The drug discovery segment dominated the market in 2022, owing to surge in demand for personalized medicine and cost and time efficiency provided by biosimulation software in drug discovery as it allows researchers to virtually test and analyze the effects of different drug candidates on biological systems, reducing the need for costly and time-consuming laboratory experiments.

The drug development segment is expected to witness the significant CAGR during the forecast period, owing to an increase in the number of chronic disease and the various advantages offered by biosimulation in drug development such as reduction in failure and target identification and validation. 

On the basis of delivery model, the ownership model segment generated maximum revenue in 2022, owing to benefits offered by ownership model such as ownership model is expected to provide better customization and control as owning the software gives organizations greater control over customization and tailoring the software to their specific needs.

However, the subscription model segment is expected to witness a significant CAGR during the forecast period, owing to the various advantages offered by subscription model such as it provides a steady and predictable revenue stream for the providers, allowing them to continue investing in research, software development, and support.  

On the basis of end user, the biosimulation market analysis is done on the basis of pharmaceutical and biotechnology companies, contract research organization and academic and research institutes. The pharmaceutical and biotechnology companies segment dominated the market in 2022, owing to the fact that biosimulation software enables pharmaceutical and biotechnology companies to leverage computational modeling and simulation techniques to accelerate the drug discovery and development process, optimize resource allocation, reduce costs, and improve the success rate of bringing new therapies to the market.

The contract research organization segment is expected to witness the significant CAGR during the forecast period, owing to cost savings opportunities provided by CROs and increase in the number of CROs that provide drug discovery and drug development services with the help of biosimulation software. 

On the basis of region, North America generated maximum revenue in 2022 owing to presence of key market players such as Certara Inc, and Simulation Plus Inc, in this region and significant increase in the prevalence of chronic disease in the U.S. drive the market growth. Moreover, a large number of ongoing drug development processes, increased usage of personalized medicine and increasing healthcare expenditure in R&D activities by pharmaceutical & biotechnology companies propel the growth of the market.  

However, Asia-Pacific is expected to witness growth at the highest CAGR during the biosimulation market forecast period owing to growth in healthcare infrastructure, a surge in healthcare expenditure, and a rise in the prevalence of cancer and chronic disease, which increase the demand for intense R&D activities for the development of novel drug therapies, hence propelling the demand for biosimulation software that boosts the growth of the market. 

The major players profiled in the biosimulation industry are Dassault Systemes, VeriSIM Life, Certara Inc, Genedata AG, SimBioSys, Physiomics PLC, INOSIM Software GmbH, Schrodinger, Inc. Simulation Plus Inc, and Cadence Design Systems, Inc. 

Key findings of the study 

• On the basis of product, the software segment held the largest biosimulation market trends in 2022. 

• On the basis of application, the drug discovery dominated the market in 2022.  

• On the basis of delivery model, the ownership model dominated the market in 2022. 

• On the basis of end user, the pharmaceutical and biotechnology companies dominated the market in 2022. 

• On the basis of region, North America was the major shareholder in 2022. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.